Banner
Falorni Tech Glass Melting Technology
Filtraglass

Tokodi glass factory files for bankruptcy, blames bureaucracy

Tokodi Uveggyar Kft, Hungary“s third largest blown glass manufacturer, said it suspended production on 2 March 2004 and filed for bankruptcy, blaming environmental authorities for a delay to a key eq…

Tokodi Uveggyar Kft, Hungary“s third largest blown glass manufacturer, said it suspended production on 2 March 2004 and filed for bankruptcy, blaming environmental authorities for a delay to a key equipment upgrade. The firm said it was unable to commence the HUF 2 billion project to install a new furnace along with other production equipment and machinery because it did not receive a permit from the environmental authorities on time. The delay prompted creditor banks Raiffeisen, Konzumbank and Hitelgarancia to withdraw from the project. The loss of the plant would put 320 employees out of work, as well as meaning the end of a company that sells 40% of its output on foreign markets. Claiming losses of HUF 1.5 billion, the glass company filed an application at court to establish the liability of environmental authorities and claim compensation. An official at the environmental authority said on 3 March 2004 that the permit would be issued the following week. He said disputes with concerned parties, including neighbouring local authorities, delayed the procedure, but that no legal deadlines were exceeded. The Tokod glass factory, a market leader in the industry, produces recyclable bottles for alcoholic beverages, soft drinks and food products. It also produces glass for lighting fixtures and decorative glass objects. (HUF 100 = EUR 0.3899)

Sign up for free to the glassOnline.com daily newsletter

Subscribe now to our daily newsletter for full coverage of everything you need to know about the world glass industry!

We don't send spam! Read our Privacy Policy for more information.

Share this article
Related news