Type
Closure
Country
Hungary
Region
Alfod es Eszak; Eszak-Magyarorszag; Borsod-Abauj-Zemplen
Location of affected unit(s)
Miskolc
Sector
Manufacturing
Manufacture Of Basic Metal And Fabricated Metal Products
Manufacture Of Basic Metals
24.52 - Casting of steel

878 jobs
Number of planned job losses
Job loss
Announcement Date
23 February 2009
Employment effect (start)
23 February 2009
Foreseen end date
29 May 2009

Description

Diósgyőr Steel Works (Diósgyőri Acél Művek, DAM) has announced the closure of almost the entire plant with the loss of 878 dismissals due to the falling demand from the automotive industry. The mass redundancy is expected to take place in two waves, first 771 workers will be dismissed in April, and another 107 in May. Only 16 employees will remain on the company's payroll.

MAG is what is left of the Lenin Metallurgy Works, a flagship company of the Socialist era. Until recently the company has supplied half the the country's steel needs, almost 300,000 tons a year. DAM is owned by the offshore company Reeferway Ltd.


Sources

  • 23 February 2009: Index
  • 23 February 2009: Heti Világgazdaság
  • 23 February 2009: Világgazdaság
  • 23 February 2009: Portfolio

Citation

Eurofound (2009), DAM, Closure in Hungary, factsheet number 68428, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/68428.