Economy 10 October 2024, 8:58am

Dunaújváros ironworks management reassures workers that wages will be paid on time

Portfolio

According to an internal letter received by Portfolio, Liberty Dunaújváros - which made the news last week with the commencement of liquidation proceedings against Dunarolling Dunai Ironworks Ltd, a company in which it has a direct interest - reassures its employees that the September salaries will be paid on time, i.e. tomorrow.

"There will be no interruption in the payment of wages for September, so that all workers will receive their wages by 10 October. Ensuring the financial security of our employees remains a top priority for us," says CEO Rahul Yenurkar in a letter to employees obtained by Portfolio, adding that

management is working to restart production in November.

Last week, Portfolio reported that ISD Power, the energy supplier to the successor companies of the Dunaújváros ironworks (which has also been in liquidation for 1.5 years) announced on Tuesday that it had initiated liquidation proceedings against Dunarolling Dunai Ironworks Ltd, owned by Liberty Steel, for the significant debts it has accumulated with the energy supplier over the past year. Later came the news that Liberty Dunaújváros's other unit had also been put into liquidation: on 20 September, the Metropolitan Court of Budapest notified Keramet Hungary Ltd of Dunaújváros that Duna Furnace Dunai Ironworks Ltd had been declared insolvent and ordered its liquidation.

In the light of this, it is not surprising that the internal letter now confirms that

the appointed trustee of Dunarolling Dunai Ironworks Ltd has recently arrived,

whose task is to review the company's financial situation, coordinate the settlement of debts and ensure financial stabilisation. "The trustee will work closely with the management to ensure that liquidity problems are resolved and our operations become sustainable in the long term," the CEO wrote, reiterating the earlier strategic goal of introducing green steel production. According to him, preparations for this are ongoing and are currently underway with international partners.

Rahul Yenurkar also stresses in the letter, in effect sending a message to the Ministry of National Economy (NGM), that ensuring legal operation remains their top priority, and that they intend to continue all their activities in full compliance with the law. He also added that "we continue to ask for the patience and cooperation of our colleagues, trusting that together we can overcome the current difficulties".

The current difficult situation of the former Dunaferr is well illustrated by the fact that it is already necessary to send reassuring letters to colleagues that the company pays salaries on time and in compliance with the law. There were disruptions in previous months. Interestingly, this internal letter to employees also contains messages to the outside world, possibly to the Ministry of National Economy, which is playing an important role in the rescue of the company. Last week, the relevant state secretaries of the NGM told an extraordinary press conference that the government was ready to intervene depending on the scenario that would play out in the coming days and weeks regarding the company's operations. It will also be interesting to see how and from when Liberty's management will be able to restart production, and what exactly they will mean by this, for which they drove the nail into the coffin last time when they announced the closure of the two coke ovens on 10 June.