New HUF 22 billion vegetable oil refinery to be built by Pannon Növényolajgyártó

Hungarian FM emphasized the importance of the food sector, Hungarian exports and the UK as a trading partner.

Pannon Növényolajgyártó Kft.’s new vegetable oil refinery in Bács-Kiskun County will be implemented with an investment of more than HUF 22 billion and state support of HUF 1.8 billion.

Péter Szijjártó, Minister of Foreign Affairs and Trade, reported at the foundation ceremony that the Hungarian government considers all companies that are investing money to preserve jobs as its partners.

The Minister emphasized that agriculture, as well as the food industry, should be treated as a more strategic, important sector than ever before. He also noted that the food industry is one of the few sectors that was able to maintain its growth rate in the first half of this year.

Hungary is one of the ten “most open countries” in the world, with a ratio of exports to GDP of 86.5 percent, so the performance of exports can fundamentally determine the performance of the national economy as a whole, he added.

Szijjártó called parent company Glencore’s new investment an important milestone, pointing out that companies from the United Kingdom are the seventh largest investment community in Hungary today and that the UK is Hungary’s twelfth most important trading partner.

Csaba Juhász, Managing Director of the Hungarian Glencore Agriculture Group, said at the foundation ceremony that the Hungarian division has spent a total of USD 260 million on investments since 1996. As a result of one investment worth HUF 40 billion, its plant in Foktő was able to start operating in 2012 as one of the largest and most modern pressing plants in Central Europe; it has so far processed roughly 5 million tons of sunflowers.

With this new development, Pannon Növényolajgyártó Kft. will expand its plant with a vegetable oil refinery in connection with the existing crude oil production to produce refined oil from the extracted crude oil. The primary processed crop is sunflowers, but the plant is also suitable for processing rapeseed, soybeans and corn germ.

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