The steel producer Dunaferr was forced to stop production

The steel producer Dunaferr was forced to stop production on September 16, 2022. The Hungarian steel mill Dunaferr in Dunaújváros also stopped the second furnace. This decision comes after the company closed the first furnace, with an annual steel production capacity of 550,000, at the end of August. Expected closure for a period of 60 days.

The company claims that the immediate reason for the closure is the unexpected refusal of Donau Brennstoffkontor GmbH to supply essential coke.

This situation could have fatal consequences for one of the largest Hungarian industrial companies.

„The forced shutdown now means that there is no possibility for the production of cast iron and steel at Dunaferr,” a statement said.

Their only chance of survival is maintaining production and quickly restarting the furnaces. A longer shutdown would make Dunaferr’s operations impossible, mainly due to technical risks and restart costs.

„The expected solution is for DBK to restart the supply of the required quantity and quality of coke in a week at most,” the company’s representatives declare.

What is the situation of the steel producer Dunaferr

Dunaferr is one of the largest industrial companies in Hungary, with 4,500 employees. The company emphasizes that the pandemic. The invasion of the Russian Federation in Ukraine and the energy crisis have brought Dunaferr to a step of survival. In order to face the current crisis in the industry, the company believes, the help of the state is needed.

The support program could help Dunaferr through measures to reduce energy prices, wage subsidies and tax exemptions.

About Dunaferr

Hot-rolled sheet, cold-rolled pickled sheet, galvanized sheet, as well as the steel pipes produced by ISD DUNAFERR are mainly used for the manufacture of industrial products, in the automotive and construction industries, as well as for the production of steel structures, appliances household and other parts.

A significant part of sales revenue is realized on foreign markets. The key partners are Germany, Poland, Austria, the Czech Republic, Slovakia and Italy.