Profit before tax: HUF 6 965 205 thousand

Legal status: A company limited by shares

Date of foundation: 1991

Number and date of registration: 05-10-000054, August 21 1991

Company history

In Central and Eastern Europe, BorsodChem is one of the largest manufacturers and processors of PVC and the only manufacturer of MDI. The company's primary product, PVC is one of the world's most widely used plastic; its major application is associated with construction, building products and consumer durable goods. The PVC resin production capacity of BorsodChem is 250, 000 tons/year. PVC resin is needed for the company's PVC compound products, which are produced by the company itself.

MDI, one of the most versatile products and also a main product of BorsodChem, is used in the production of polyurethane. Polyurethane is used as insulation in construction and refrigeration, as well as for automative components and furniture, coatings, shoe soling, wood bond and other adhesives. The company's MDI production capacity is 32, 500 tons/year, exporting mainly to western Europe.

The Board of Directors at BorsodChem has decided on the expansion of PVC and MDI production capacity. The PVC capacity will be increased by 40, 000 tons and MDI by 7,500 tons.

Plastic end products are manufactured mostly by subsidiaries and joint venture companies operating on site.

The company is vertically integrated in certain areas of its manufacturing chain, producing chlorine, a primary raw material in the production of PVC and MDI, and EDC and VCM, intermediate products from which PVC is manufactured.Raw materials not produced by the company, such as ethylene, used in the production of EDC and VCM, and formaldehyde, used in the production of MDI, are purchased from third parties under supply contracts. The company also purchases additional supplies of chlorine, EDC and VCM from regional manufacturers. As a long-range conception BorsodChem has aimed at the production of formaldehyde, needed for the manufacturing MDI through establishing the joint venture company BC-KC Formalin Ltd with the Austrian Krems Chemie.

During the past few years, the company has under gone reorganisation to:

• focus on its core activities;
• implement cost cutting and efficiency measures;
• streamline operations;
• make it more competitive with western European chemical manufacturers;
• diversify its sales, marketing and commercial operations.

BorsodChem's executive offices and plant facilities are located in the town of Kazincbarcika in north-east Hungary. The company has eight wholly owned subsidiaries and also participates in several joint venture companies with local and/or foreign chemical companies, primarily engaging in plastics processing or the production of PVC compounds, chemicals or MDI systems. In order to manage its commerce directly, it has established trade representations in the Netherlands, Italy, Poland and Austria.

BorsodChem is a privatised international company. A combined transaction, including both international and domestic offerings and a capital increase was successfully implemented in February 1996. After the success of flotation in privatisation, the company has received the title of 'Best Issuer Exchange in 1996' from the Advisory Board of the Stock Exchange of Budapest.

László Ferene Kovács	Chairman Chief Executive
József Molnár	Financial Director, Deputy Chief Executive
László Szentmiklóssy	Technical and Quality Assurance Director, Deputy Chief Executive
Gergely N Gyurácz</TD> <TD> Director of Human Resources</TD> </TR> <TR> <TD>Lajos Szabó</TD> <TD>Director of Utilities </TD> </TR> <TR> <TD>János Fazckas</TD> <TD>Director of PVC Business Unit</TD> </TR> <TR> <TD>Zoltán Bordás</TD> <TD>Director of VCM Business Unit</TD> </TR> <TR> <TD>Tamás Purzsa</TD> <TD>Director of PUR Business Unit</TD> </TR> <TR> <TD>István Szakállas/TD> <TD>Director of Compound Business Unit</TD> </TR> </TABLE> <P><B>Curriculum Vitae of the Chief Executive</B> <UL TYPE=DISC> <LI>László Ferene Kovács, Chairman Chief Executive <LI>Chemical engineer <LI>Date of Birth: 1942 <LI>Place of Birth: Tényó/Hungary <BR><BR><I>Education</I> <LI>1967 University of Veszprém, MSc <LI>1988 University of Economics, Budapest, studies in economics and business administration, engineer/economist <BR><BR><I>Career</I> <LI>1967-68 Hungarian Minerals and Natural Gas Institute, Veszprém, research engineer <LI>1968-71 Leuna Chemical Works, Germany, process engineer <LI>1971-80 BorsodChem Co Ltd, Kazincbarcika, various managerial positions <LI>1980-1990 BorsodChem Co Ltd, Kazincbarcika, Commercial Director <LI>1990-1991 Miskole Plastics Processing Ltd, Managing Director <LI>1991-Present BorsodChem Co Ltd, Kazincbarcika, Chairman Chief Executive <BR><BR><I>Languages</I> <LI> English and German <BR><BR><I>Honours/awards</I> <LI>Silver medal of labour <LI>Eötvös Loránd award <BR><BR><I>Memberships</I> <LI>Member of the Hungarian Atlantic Council <LI>Board Member of Borsod-Abauj-Zemplén County's Chamber of Commerce and Industry <LI>Member of the Local Committee of the Hungarian Academy of Sciences <LI>Chairman of the Advisory Board of the Faculty of Economics, Unbiversity, Miskole</UL></P> <P><B>Registered capital:</B> HUF 10 204 798 thousand <BR><BR><B>Division of the registered capital:</B> <TABLE BORDER="1" CELLPADDING="0" CELLSPACING="0" WIDTH="480"> <TR> <TD>Bank of New York</TD> <TD>46.7%</TD> </TR> <TR> <TD>State privatisation and holding company</TD> <TD> 5.4%</TD> </TR> <TR> <TD>EBRD</TD> <TD>14.7%</TD> </TR> <TR> <TD>Retail</TD> <TD>31.9%</TD> </TR> <TR> <TD>Own shares</TD> <TD>1.3%</TD> </TR> </Table> (Situation as of December 31 1996></P> <B>Activities</B> <P>The company is mainly engaged in the production of plastics, raw materials and semi-finished products. Beyond that it has energy supply at its disposal, with maintenance and transportation units servicing its production facilities and executive offices dealing with accountancy, financial, commercial and social activities, along with human resources, quality assurance, environmental and safety problems. <P> Main products - PVC resin, PVC compound; MID products and chlorine-alkali products (caustic soda, hydrochloric acid, chlorine, hypo). </P> <P><B>Assets/liabilities:</B> see balance sheet <BR><B>Staff:</B> 3, 804 people (consolidated December 31 1996 <BR><B>Bank:</B> Hungarian Credit Bank Co Ltd and Unic Bank Co Ltd <BR><B>Account number:</B> 10200139-27002751-00000000 and 12046102-00135178-00100000</P> <BR> <CENTER><B><A HREF="borsodchem.htm">Previous article</A> <p><IMG SRC="../newpics/igbase.gif" WIDTH="468" HEIGHT="14" VSPACE="6"><BR> <CENTER><B><A HREF=#TOP>Top</A> | <A HREF="../index.html">Home</A></B></CENTER> <CENTER><B><A HREF=#TOP>Top</A> | <A HREF="../Intparts.html">International Participants</A> </TD> </TR> </TABLE> </BODY> </HTML>