June 26th, 2012

Chinese firm seen pulling out of HUF 20 billion investment in Hungary due to failure of government on incentives

China’s BBCA Group will probably cancel its plans to build a citric acid factory in Szolnok as Hungary has not fulfilled its duties and has not made its required financial contribution, Napi Gazdaság reports.

BBCA is looking for an alternative location, possibly Miskolc or a site in Veszprém county, but possibly also Belgium.

The Ft 20 billion project was agreed between Prime Minister Viktor Orbán and his counterpart Wen Jiabao in May of last year. Joint venture vehicle BBCA Szolnok Biokémiai was founded last autumn.

However, Hungary has not provided the promised Ft 4 billion investment and has yet to grant the project VIP status.

“If no solution is found in the next few weeks then the project will be cancelled,” according to the head of the Szolnok industrial park, Imre Andrási.
The factory would process Hungarian corn to produce an annual 60,000 tons of citric acid, creating 1,000 jobs.

  • procastinator

    At least the Chinese know how to do business with Hungary , one day maybe the smart ppl in this country will realize they have been getting a free ride from Europe and once it stops they will be hung out to dry , probably not though and the country will crumble.
    God knows why the rest of Europe has so much patience ,
    I do wonder how long it will last …

  • Rabbi Sholomon

    Can’t we divert some of all those European funds to the Chinese?

  • Democrat

    Could we not have used some of the famous Chinese credit line to fund this project?

    Since OV agreed this project at head-of-state level. Some heads in Szolnok will roll……sorry, forgot we are in Hungary.

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