EMCC European Monitoring Centre on Change

AES Borsodi Energetikai

Company/Organisation:
AES Borsodi Energetikai

Geographic Location

Country: Hungary
Location of affected unit(s): Tiszapalkonya and Kazincbarcika

Company

Sector: Utilities
Electricity, gas, steam and air conditioning supply
35.11 - Production of electricity
Group: AES

Employment Effects

Announcement Date: 29-12-2011
Planned Job Reductions min: 132
Type of Restructuring: Bankruptcy
Employment Effect Start: 01-01-2012

Additional Information

AES Borsodi Energetikai, the Hungarian subsidiary of the US-based global power company AES, is to dismiss some 132 employees as of January 2012. The company filed for bankruptcy protection in July 2011 and liquidation proceedings started in November 2011. 

The company operated power plants in Tiszapalkonya and Kazincbarcika, but the production was no longer profitable. According to press reports, this loss of profits is due to a long-term fall in wholesale electricity prices, rising coal and biomass prices, and increasing carbon dioxide emission costs.