By Veronika Gulyas
BUDAPEST--London-listed commodities giant Glencore Xstrata PLC
(GLEN.LN) on Thursday opened its new oilseed factory in Hungary, a
move the prime minister said is in line with the government's aim
to focus on production and help boost agricultural production.
The company invested 40 billion forints ($183.7 million) in
building one of the largest multi-seed vegetable oil plants in
central and Eastern Europe, Glencore's head of agricultural
products Chris Mahoney said.
Hungary is very rich in sunflower and rape seed but until now
has exported the seed and imported oil. Glencore realized seeds
could be processed locally and oils with higher added value could
be sold locally or for export, Mr. Mahoney said at the ceremony in
eastern Hungary's Fokto.
Prime Minister Viktor Orban said the country was a major
exporter of agricultural products and Glencore's investment will
help boost the country's gross domestic output through higher
agricultural production.
The state subsidized the expansion, which has created 128 new
jobs. The premier didn't provide the amount of the subsidy.
The plant has the capacity to process 600,000 metric tons of
sunflower seed and is also capable of processing rape seed, soybean
and corn germ.
Write to Veronika Gulyas at veronika.gulyas@dowjones.com