More salt to Hungary

The Presov salt-works increase exports and competition drive

There is a wide range of salt types. Quality and purity of cooking salt is estimated primarily by its sodium chloride content. The Presov salt, produced in the centre of Saris region ever since 1571, has the sodium chloride concentration as high as 99,87 %, which is well comparable with cooking salt of Austrian and German origin.

This tremendous advantage allows the company Solivary Presov, a.s. a breakthrough into foreign Central and East European markets, competing successfully with the Austrian salt and especially Romanian, Polish, Ukrainian and Belorussian producers of cheaper and lower grade cooking salt.

"With 10 % sales of our annual production Hungary is our largest and most important export market. Hungary has no salt deposits and depends on imports," says Ing. Juraj Hudac, general director, Solivary Presov, a.s.

The Presov salt producers did not export their salt directly until 1989. Until then it was exported from the former Czecho-Slovakia under a central barter trade agreement, and salt was used for example to pay off the Hungarian imports of video technology produced by Videoton.

The first significant Hungarian demand of the Presov salt was noted in 1993-1994, with annual "white gold" export volumes in excess of 10 thousand tons of salt.

The company management founded then a Slovak - Hungarian joint venture Dunasol Kft. in Tatabanya, western Hungary, regularly supplying Hungarian market with the Presov salt.

"The principal idea behind the joint venture establishment was to build own storage and packing facilities in Hungary to upgrade our marketing efforts. As the sole importer we provide full service to our consumers. I must admit, that we have strong competition on this market," says Juraj Hudac.

According to the Solivar management, the most salt is sold in fifty- and five-kilogram packing through the Metro trading network.

A continuously growing demand of the Slovak salt, allegedly the most favourite salt brand in Hungary, resulted in a new Solivar expansion on this market. The company management established its second business centre in Vasarosnameny. Here they installed a one-kilogram packing plant to meet the market demand, competing successfully with the cheaper Ukrainian, Belorussian and Romanian salts.

The Solivar's expansion to Hungary is facilitated also by favourable import terms. No limitation apart from the import customs apply to the salt imports to Hungary.

It is expected that after completion of the salt mine development in Zbudza in the Michalovce district Solivary would increase their Hungarian exports four times to reach 40 thousand tons of cooking and technical salts.

By Robert Matejovic
Photo: Robert Matejovic

Slovak Trade FORUM