Hungary: HCM needs help to relaunch cement production

Hungarian cement producer Hejocsabai Cement es Meszmu (HCM) will need government support to restart cement production at its Miskolc works, according to the company's managing director, Janos Kalman.

The project could only be carried out after receiving the required permits and a "specific government decision" could speed up the process.

HCM intends to invest HUF9bn (US$38m) on taking the first two production lines into service. The company plans to take out a loan for about a third of this amount with the balance to come from state subsidies.

The total project will cost around HUF13bn although according to Kalman, the cement plant is worth around HUF100bn.

The relaunch has the potential to create 344 jobs as well as cover 35 per cent of the forecast 5Mta in cement consumption. Currently, cement demand in Hungary is some 3Mta with 0.9Mta imported from Slovakia and Romania.