A day after the government opened the door to the legal action against the firm, which has battled to keep its operations going and employs thousands of people, Budapest's municipal court ordered the liquidation of steel plant ISD Dunaferr.
Since its construction in the 1950s, Dunaferr has served as a symbol of heavy industry in Hungary. However, it is currently struggling to deal with a coking coal scarcity, the potential shutdown of its smelters, and significant debt.
The liquidation process was started by the Budapest municipal court based on a government directive that was made public on Tuesday, but the court did not provide a justification for it in its statement.
Steelhold Limited, a company located in Cyprus, owns 99.6% of the factory. Russian development bank VEB, on whom the United States slapped sanctions earlier this year, is one of the Steelhold's partners, according to Hungarian media sites.
A new investor for the company may be found by the government thanks to the liquidation.
The crude steel manufacturing capacity of Dunaferr is 1.4 million tons. The business makes galvanized steel, HR, and CR.
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