Major industrial development in Dunavecce - new concrete element production plant to be built

The MZ Precast Kft. – a member of the MERKBAU group, laid the foundation stone for its new concrete element manufacturing plant in Dunavecse, Bács-Kiskun County, on 10 October, in a ceremony that marked one of the most significant industrial investments in the region in the coming years. The plant is expected to start operating in 2026 and, in addition to serving the industry with the prefabrication of concrete elements, it will also create numerous jobs in Dunavecse, the investor informed our newspaper.

The project is supported by the Government of Hungary and Nemzeti Befektetési Ügynökség (HIPA), while MZ Precast Kft. is a joint venture between MERKBAU Zrt. and KMZ Group, based in Serbia.

The market is turning to precast reinforced concrete structures

The project was necessary because due to the significant increase in the market demand for precast reinforced concrete structures, there have been several occasions when precast structures could not be obtained in time on the Hungarian market. The development will result in a concrete production capacity of 25,000 m³/year, which can be increased up to 50,000 m³/year in the future.

Speakers at the groundbreaking ceremony included József Knáb, Chairman of the MERKBAU Zrt. Board, MP of Parliament Sándor Font and Minister of Foreign Affairs and Trade Péter Szijjártó. Antonio Zanetti, owner of the KMZ Group also contributed to the symbolic event and closed the event with a standing reception.

Taking into account market expectations

In his speech, the Chairman of the MERKBAU Zrt. Board of Directors first outlined how the project went from idea to start of construction. "Due to industrial investments and the significant increase in the market demand for precast reinforced concrete structures, we were unable to obtain precast structures on time on the Hungarian market for several of our projects", said József Knáb, describing the market situation that led to the investment.

He recalled the establishment of contact with Antonio Zanetti, explaining that the leader operates Serbia's largest prefabrication plant with the highest capacity in the neighbourhood of Belgrade. "Cooperation on successful projects has established the trust that has allowed the preparation of the establishment of a joint venture, MZ Precast Kft.", he concluded.

Efficient operation, powered by solar energy

He said that Dunaveche was selected from ten possible sites, with logistics being a key factor in the choice. These factors are expected to improve even further following the construction of the planned M8 and M200 motorways, he added, and thanked Mayor Sándor Vörös for his support, promising a positive partnership with the municipality.

He said that they are building a factory that will produce efficiently even in a tight market, and that green solutions have been an important aspect in the design of the plant, so the new plant will not use natural gas and will source the vast majority of its energy needs from solar energy.

Grant contract signed after six months of intensive negotiations

"As the planning progressed, we also realised that our enthusiasm, our great location, our excellent ideas and plans were in vain: without support, we would not be able to realise our plans. At this point, we approached Sándor Font, MEP, who we would like to thank for his openness and support, and with whom we knocked on HIPA's door a good year ago to outline our plans," he said.

To summarise:

After one and a half years of intensive preparatory work, the grant agreement was signed and mutual commitments were made, the most important of which are that MZ Precast will create a significant number of jobs in Dunavecsé and that the Government of Hungary, through HIPA, will provide a significant non-refundable financial contribution to the investment. József Knáb thanked the Minister present and the CEO of HIPA for their support.

Lower sectoral production is not a concern for the company

He also stressed that the fact that construction volumes have been lower in recent years is not a concern for either MERKBAU or their Serbian partner. He pointed out that Merkbau had also invested in 2008-2010, and that this had worked then too, during the boom period.

The President of the Board concluded his speech with a reflection by the Benedictine monk Anselm Grün: "God's blessing does not mean that everything goes smoothly, but that we are not alone on the path."