Ningbo, Zhejiang — Wanhua has invested EUR 1.9bn in BorsodChem since its purchase for EUR 1.26bn ($2.2bn) in January 2011, Jiansheng Ding, ceo Wanhua Group told a meeting of international investors here in early June.
Ding outlines Wanhua's investments in BorsodChem
Ding said that his firm had made “by far China’s largest investment in projects in Central and Eastern Europe” and added that his firm employs 2700 people in Hungary. A subsidiary in the Czech Republic has over 350 people, and there are over 100 employed at other subsidiaries in Poland and the Czech Republic. He said that these companies support raw materials production.
Ding added that sales revenue at BorsodChem, which makes a range of chemicals as well as MDI, were up from EUR 760m in 2011 to EUR 1.13bn in 2015. Ding continued that the firm had moved from a loss of EUR 132m to a profit of EUR 50m last year.
The volume of MDI produced at the plant has doubled, he added, since the acquisition.
“We have invested more than EUR 300m in local culture, education, health and charitable contributions including EUR 1.2m to rebuild a local hospital,” he added.
BorsodChem is now ranked at number 5 in Hungary’s most efficient manufacturing companies and has risen from 36 before the acquisition to 14 the Hungarian comprehensive competitiveness ranking, Ding added.
Ding continued that Wanhua is working with the Hungarian Investment and Development Corporation to develop a new industrial park near the BorsodChem factory.
Ding said that Wanhua Chemical Group had sales of CNY 30bn ($4.6 bn) in 2015 and made a profit of CNY 5bn. About a third of sales were overseas, he added. Ding said that Wanhua is partly owned by the Chinese Governement and a number of other shareholders.
Ding was speaking at the third session of the China-Central and Eastern Europe Investment promotion liaison meeting. This saw held between 14 State investment promotion agencies including those from Poland, Bosnia, Estonia, Slovenia, Bulgaria, Hungary as well as, the European Bank of Reconstruction and Development. A number of Chinese bodies including the Ministry of Commerce Investment Promotion Bureau were also present.
Exchange Rates: Xe.com 22 June 2016.