Hungarian nitrogen company Nitrogenmuvek Zrt will not close down entirely and vows to continue a legal fight against the government due to new carbon taxes, according to CEO and owner Laszlo Bige, according to a Nov. 15 Bloomberg report citing Agrarszektor, a news website. Bige also now promises no layoffs.
Just a day earlier, Bige had told the same news media that the company was closing down fertilizer production indefinitely, citing the rise in taxes, and following a series of setbacks due to gas prices and pressure from Hungarian authorities. At the time, he said that “due to the drastic deterioration of the business environment, the company does not plan to restart.”
The company is losing €40/mt on each ton of fertilizer it produces due to higher energy prices, rising fees, and the carbon tax, according to a report by bne IntelliNews.
Bige maintains that the pressure his company has faced in recent years in the form of taxes, fines, prosecution, etc. (GM Dec. 10, 2021; Oct. 22, 2021; Dec. 18, 2020) all arise from his opposition to Hungarian Prime Minister Viktor Orban.
Nitrogenmuvek produces anhydrous ammonia, CAN, AN, urea, and UAN, and is one of the biggest producers of ammonia and CAN in eastern Europe.