Ukraine's ISD second metallurgical giant goes bankrupt

Ukraine's ISD second metallurgical giant goes bankrupt in Hungary. Almost all workers have been fired from the bankrupt Hungary-based DAM 2004 ACEL- ES HENGERMU Ltd., owned by Ukraine-based Industrial Union of Donbass (ISD). This is already fifth bankruptcy of the Hungarian company with more than a 200-year long history over the past 20 years. A production process was halted at the plant even late in 2008 because of lack of demand. This February, the plant leadership announced dismissal of 878 out of 984 employees. The workers were paid wages, but there is no information yet about intentions of the Ukrainian owners. About 300 workers out of almost 8,000-strong staff have been also dismissed at Hungary's largest iron and steel works, ISD Dunaferr Zrt., a daughter company of the ISD corporation. Several hundreds of employees were pensioned off early. The Ukrainian owners of the plant are trying to prevent bankruptcy at Hungary's biggest metallurgical plant. They elaborated an anti-crisis plan that envisages further production and charges reduction, as well as switching to a 4-day working week. The Industrial Union of Donbass acquired these two Hungarian iron and steel works in autumn 2004.