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Austrian Prinzhorn Holding to Invest Massively in Hungary

Published: May 21, 2014; 20:34 · (FriedlNews)

Prinzhorn Holding will build its own power plant in Hungary to supply its paper factory in Dunaujvaros.

Paper producer Prinzhorn will invest to establish its own power plant in Hungary. / Picture: © Flickr

“Our competitiveness in Europe depends massively on energy solutions with a high efficiency and low costs,” Cord Prinzhorn, CEO of Vienna-based Prinzhorn Holding, said in a press release. “Hungary is an important market for us since we supply crucial segments of the Hungarian industry with packaging material.” In the past 20 years around € 600m were invested in the Hungarian production sites. With 1,100 employees and an annual turnover of around € 400m the Prinzhorn Group is the most important enterprise in the Hungarian paper and packaging industry, according to the press release.

Earlier statements by the company show that energy prices are up to 25 percent higher than in Austria which was considered a huge competitive disadvantage. Construction works for the power plant started today. Even Hungarian Prime Minister Viktor Orban attended the ceremony of the laying of the foundation stone.

The new heat and power plant, which comes at € 150m investment costs, is expected to start operations in the second half of 2015 and will be fuelled by coal, biomass and other solid fuels, among them residues from the production of paper. During the construction phase around 300 persons will be employed while after it is completed the power plant will provide 60 new jobs and the number of employees at the paper production site in Dunaujvaros will increase to more than 550. The group has been operating in Hungary since 1990.