BorsodChem and Wanhua merger plans on hold

Yantai, Shandong – Wanhua Industrial Group said it has no plans to merge its Wanhua Chemical subsidiary with Hungary’s BorsodChem in 2014.

Wanhua Industrial stated, shortly after it purchased a 96% stake in BorsodChem in January 2011, was that it would merge Wanhua Chemical and BorsodChem when the correct conditions were met.

One of the key conditions was that BorsodChem would make sufficient profit. Wanhua initially suggested it would like to merge the units by August 2012. According to figures filed in Hungary in 2012 BorsodChem had sales of Euro 14.28m ($19.7m) and made an operating profit of Euro 16,400. 2012 is the last year for which figures are available

Wanhua declined to comment on when it expects to see an improvement in performance at BorsodChem.

Currency translation 24 February 2014,