Chinese and Hungarian Investors Plan Airport near Border With Austria

September 15th 2008

Hungarian and Chinese investors plan to build an airport near the Hungarian city of Szombathely, close to the border with Austria, and turn it into a stopover for freight and passenger traffic bound for Western Europe by 2012, business daily Napi Gazdasag reported on September 15th 2008.
Shanghai International Airlines, Shanghai High Tech Park, Shanghai Construction Group and a Chinese investment fund would join Hungarian private investors, as well as state and local governments, to build the airport along with a technology park and logistics centre.
The airport could handle an annual 250,000 passengers and 100,000-170,000 tons of freight.

INA Board Terms MOL Offer "Acceptable"

September 15th 2008

The board of Croatian oil company INA has taken a stand on a public offer made by Hungary's MOL on all outstanding INA shares except those held by the Croatian state, and found it "acceptable". The board's stand was announced by the Zagreb stock exchange on September 15th 2008, the Austrian press agency APA reported.
MOL is offering HRK 2,800 per share (EUR 394) for a 30 pct stake in INA in a public offer running until October the 3rd 2008.
MOL already owns 25 pct of INA and it is in talks with the government on the sale of the 45 pct state-owned stake in the company.
The price offered by MOL exceeds the legal minimum of HRK 2,573.34 (EUR 362).

Richter, Merck Reach Out-Of-Court Settlement in Patent Case

September 15th 2008

US drug maker Merck and Hungarian peer Richter said in a joint statement on September 15th 2008, that they reached an out-of-court settlement in a patent dispute over a drug against bone loss.
With the agreement, the companies said the case before the Budapest Municipal Court was closed and both sides dropped their claims against each other. The agreement will in no way affect the production and sale of drugs with the active ingredient alendronic acid. Merck's patent for the ingredient was revoked with retroactive effect in 2006.

Plaza-Building Boom Still Healthy in Hungary

September 15th 2008

The plaza-building lull this year is short-lived as ten new malls will be completed in Budapest by 2011, business daily Napi Gazdasag reported on September 15th 2008.
In the coming years another 36 shopping centers, including provincial strip malls and Family Centers, will be built throughout the country, adding over 850,000 square meters (9,150,000 square feet) of shopping space to the total nationwide, the daily wrote.
Hypermarket owners were also caught up in the plaza-building wave, shifting their focus from "big boxes" on the outskirts of Budapest to quality stores located close to major traffic hubs inside the city.

Consumer Price Inflation Slows to 6.5 Pct in August

September 12th 2008

Twelve-month consumer price inflation slowed to 6.5 pct in August from 6.7 pct in July, the Hungarian Central Statistical Office (KSH) said on September 11th 2008. Consumer prices inched down 0.3 pct in August compared to July.
Consumer prices in January-August rose 6.8 pct yr/yr.
The twelve-month CPI was slightly under a 6.6 pct estimate by analysts in a poll by business daily Napi Gazdasag.
Twelve-month inflation was 6.7 pct in July, 6.7 pct in June, 7.0 pct in May and 6.6 pct in April.

Government Guarantees HUF 90 billion Co-Payment toward European Spallation Source

September 11th 2008

Hungary's government would guarantee a co-payment of HUF 90 billion (EUR 375.42 million) toward the establishment of the European Spallation Source (ESS) in Hungary, State Secretary for the Ministry for National Development and Economy Geza Egyed announced at a press conference on September 11th 2008.
Egyed, who is serving as government commissioner in charge of bringing the European Spallation Source to Debrecen, noted that Hungary is in competition with Sweden and Spain to serve as the site for the ESS. Mr Egyed said that the ESS would be awarded to the first country of the three to cover the facility's EUR 1.1 billion investment cost.

Consumer Price Inflation Slows to 6.5 Pct in August

September 12th 2008

Twelve-month consumer price inflation slowed to 6.5 pct in August from 6.7 pct in July, the Hungarian Central Statistical Office (KSH) said on September 11th 2008.
Consumer prices inched down 0.3 pct in August compared to July.
Consumer prices in January-August rose 6.8 pct yr/yr.
The twelve-month CPI was slightly under a 6.6 pct estimate by analysts in a poll by business daily Napi Gazdasag.
Twelve-month inflation was 6.7 pct in July, 6.7 pct in June, 7.0 pct in May and 6.6 pct in April.

OTP Bank Sets up Cyprus-Based Company

September 12th 2008

Hungary's OTP Bank said it has established OTP HOLDING LIMITED, a company registered in Cyprus, transferring into the new company the shares it holds in its insurance unit OTP Garancia, the property unit OTP Ingatlan and the travel agency OTP Travel.The bank announced the news on the website of the Budapest Stock Exchange on September 11th 2008.
Among the units transferred under the new OTP HOLDING, the sale of OTP Garancia shares to France's Groupama is underway.
The OTP announcement stated that the foundation of OTP HOLDING LIMITED was part of the bank's plan to establish an international holding corporate structure.

Borsodi Muhely Inaugurates HUF 1 Billion Plant Expansion in Gyor

September 12th 2008

Borsodi Muhely on September 12th 2008 inaugurated a HUF 1 billion expansion of its plant in Gyor (NW Hungary) where it will make custom-made machine parts and production equipment for the aircraft industry.
Borsodi Muhely was awarded HUF 130 million in state and EU development funding for the investment, which will boost staff at the company's three bases from 103 to 250.
The company expects to be awarded its AS 9100 certification to supply the aircraft industry in November.

Specialists Predict Price of Electricity to Rise in Hungary Over Short- And Mid-Term

September 11th 2008

Power-industry specialists and officials participating in a Magyar Elektrotechnikai Egyesulet (Hungarian Electricity Association) conference on September 10th 2008, predicted that the price of electricity would continue to rise in Hungary over the short- and medium-term.
Department Chief of the Hungarian Energy Office (MEH) Gabor Szorenyi said at the conference in Eger (NE Hungary) that he forecasts a slow, steady rise in the price of electricity in Hungary, adding that the expected annulment of long-term power-procurement contracts on December 31 and the entry on the Hungarian electricity market of several minor producers could result in a slight increase in the country's power supply next year. Mr Szorenyi noted, however, that major new power plants are expected to produce a significant boost in Hungary's electricity supply only in 2010-2011.

Hungary Government Asks Austria to Move Planned Incinerator Away From Border

September 11th 2008

Hungary's government decided on September 10th 2008 to ask Austria to move a waste incinerator planned to be built in the Austrian town of Heiligenkreuz further away from the Hungarian border, Environment Minister Imre Szabo said.
The Hungarian government has decided to submit a request to Austria in response to mounting public protest in Szentgotthard, a Hungarian town on the Austrian border, Mr Szabo said.