The History of “Dunai Vasmű”: A Reflection of the Future of Current Industrial Development
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The construction of “Dunai Vasmű” (Danube Ironworks) began in 1950, along with the new city of Sztálinváros (today’s Dunaújváros) built to support it. The construction required immense human and material resources, and it was one of the key projects of the country’s industrialization. During the construction, the government of the time aimed to make Hungary a country of iron and steel, despite the heavy financial burden that heavy industrial development placed on the country.
The first factories started operating in 1951. Production expanded continuously, and the ironworks soon became one of the most important industrial centers in the country.
In the following decades, “Dunai Vasmű” continued to develop and expand. New factories were built, and both the volume of production and the range of products increased. The lives of the ironworks and Dunaújváros became closely intertwined. The factory was the city’s largest employer and shaped the character and development of the settlement.
After the regime change, “Dunai Vasmű” was also privatized. The new owners were Hungarian business circles, and they managed to maintain the level of production and profitability.
In 2002, the privatization of Dunaferr began, with its integration into the Ukrainian Donbass business group. Negotiations started in the fall of 2003, and the document on the closing conditions stipulated in the share subscription and investment agreement was signed on September 30, 2004. In January 2006, the name of the ironworks was changed to Dunaferr Dunai Vasmű Joint Stock Company. However, the Donbass group was unable to ensure continuous and successful operation, and due to disputes between the owners, the Ironworks was put up for sale again. In 2023, the British-Indian Liberty Steel signed a letter of intent to restart the factory.
The hot rolling mill was restarted, but the blast furnace was shut down, so there is no steel production either. The steel billets were transported from their Romanian factories.
Currently, there is no production at the “Dunai Vasmű” site. The owner promises large-scale developments, but in June, even the wages were not paid. Experts agree that restarting the shut-down metallurgical equipment is not possible, and new investments in the current global economic situation have questionable returns.
After 70 years, the leading company of the Hungarian national economy’s industry has become nothing more than a collection of environmental and social problems.
The future success of the current government’s industrial policy, tied to developments related to battery factories, cannot be assessed 70 years from now, as many similarities can be found between “Dunai Vasmű” and the current industrial development. High energy demand, long-distance transportation of raw materials, increased environmental burden, changes in applied technology, and uncertainty in product demand are all factors to consider.