DUNAÚJVÁROS, Hungary, May 21, 2014 (Press Release) -Prinzhorn Group today held a foundation stone laying ceremony to mark the start of construction works for a new power plant at its paper production site in Dunaújváros. With an investment of about EUR 150 mill.the powerplant will significantly improve energy efficiency of Hamburger Hungária, one of Europe's leading paper mills.
Foundation stone laying ceremony in Dunaújváros
Prime Minister Viktor Orbánand CEO of Prinzhorn Holding Cord Prinzhorn as well as Managing Director of Hamburger Hungária Attila Bencsand the Managing Director of the Hamburger Containerboard Division Harald Ganster laid down the foundation stone of the new power plant. The ceremony took place at Hamburger Hungária Plant in Dunaújváros, and was witnessed by key customers, suppliers, business partners and guests from local, regional and national Hungarian politics.
Reasonable energy costs key requirement for competitiveness
For Prinzhorn Group, to increase competitiveness on the European and the CEE markets is the key reason for investing into an independent power plant for its Hungarian paper mill. The new power plant will enable Hamburger Hungária, one of Europe's most modern paper mills, to further increase its efficiency in the production of top-quality containerboard from recycled paper by reducing energy cost and implementing full-scale recovered paper utilization.
Cord Prinzhorn, CEO of Prinzhorn Holding said: "Our competitiveness in Europe depends on energy solutions with high efficiency and low cost. We are dedicated to the region as we provide packaging for important sectors of the Hungarian economy and for export. Our customers value the environmental advantages of recycled paper and our high product quality in printing and packaging."
State-of-the-art co-generation plant to allow for energy self-sufficiency
The new co-generation power plant, with a value of approximately EUR 150 mill., will use solid fuels, including the paper mill's own residual waste from paper production, but also biomass and coal. Due to its state-of-the-art design the plant will generate both heat and electricity, thus ensuring the plant's energy self-sufficiency and the recovery of wastepaper that was earlier deposited at landfill sites in the vicinity. The power plant will have a capacity of 172 MW in used fuels, 158 MW in generated heat and 42 MW in generated electricity.
The power plant will generate energy with an outstanding high efficiency of 75% which, together with the beneficial fuel combination, will decrease the plant's carbon dioxide emission by 35%. In order to minimize the power plant's environmental impact, it will be equipped with state-of-the-art flue gas cleaning equipment to ensure that the plant may remain unnoticed for the residents of the surrounding communities.
The construction will also create new jobs and will be an attractive boost to regional economy in Dunaújváros. 300 people will be working during the 1 ½ yearsconstruction period. Once in operation in the second half of 2015, the power plant will supply 60 directjobs with outstanding salaries thus increasing the number of Prinzhorn Holding employees in Dunaújváros to over 550. The power plant will use the services of manymore companies from the region of Dunaújváros and from Hungary.
"We are proud that due to our investments of around EUR 250 mill. in the past six years, Dunaújváros became one of the centers of European paper production. With the new power plant we will further strengthen this leading position," says Harald Ganster, Managing Director of Hamburger Containerboard Division and in this function responsible for the overall containerboard production of the Group.
Attila Bencs, Managing Director of Hamburger Hungaria explained: "This investment will significantly strengthen our paper mill's market position. The planned power plant, however, will benefit not only Dunaújváros, but also the whole country. The power plant will use resources with exceptionally high efficiency and will allow the utilization of renewable energy sources, thus contributing to fulfilling Hungary's EU commitments and to achieve the objectives of the National Action Plan."
About Prinzhorn Group
Prinzhorn Holding employs 4.704 people in 13 countries and ranks among the European market leaders in the recycling, paper and packaging industry. With an annual production of 1,7 million tons of corrugated board produced from recycled paper and an annual turnover of approximately 1,1 billion Euros, the company is number three in Europe in this segment. The family owned Prinzhorn Holding has its headquarters in Wiener Neudorf / Austria and is structured in three divisions: Hamburger Recycling Group (collection and trading of waste-paper), Hamburger Containerboard (production of corrugated board) and Dunapack Packaging (corrugated packaging solutions).
In Hungary, Prinzhorn Group is present since 1990, as an important waste collector (Duparec Kft.), as the most important Hungarian waste recovery and paper production facility (Hamburger Hungária Kft.) and as the largest producer of packaging paper (Dunapack Kft.). Operations in Hungary, creating high added value with annual turnover of €400mn, have invested around €600 mn. in the last 20 years in Hungary. As a local market leader, Prinzhorn employs over 1.100 people in Hungary.
About Hamburger Hungária
Hamburger Hungária is a leading containerboard manufacturer in Europe. The two paper machines located in Dunaújváros produce annually about 650.000 tons of brown containerboard which accounts for 85% of all paper grades produced in Hungary. Hamburger Hungária has 440 employees and a yearly revenue of 70 billion HUF. The company exports the majority, an approximate 85% of its products to European and Middle Eastern markets. Hamburger Hungária creates high quality containerboard from waste paper which marks its role as one of Hungary's most important environmental industrial companies as the company produces high added-value product by recycling instead of transporting waste paper to waste disposal sites or waste incinerating furnaces. Hamburger Hungária uses only secondary materials for production which enables the preservation of natural resources and the recycling of large amounts of waste paper.