Pannonia Bio joins forces to ensure vital supply

Pannonia Bio Zrt., along with a number of Hungarian food, agricultural and pharmaceutical companies, joined forces with authorities to ensure continued (domestic and international) supply of vital products for the coming months. 

As an essential company, Pannonia Bio will be cooperating with the national defence force to ensure ongoing supply of feed ingredients and disinfectants to the population. The company will also maintain international supply during this time.

Cooperation between authorities and local businesses have remained smooth and supportive thus far.
 

Lajos Dobai and Gábor Kovács (left side) negotiates with authorities – photo: honvedelem.hu

 
Pannonia Bio processes over 1.3 million tons of feed corn annually to produce over 500 million litres of bioethanol, 325 000 tons of DDGS (a sought-after protein-rich animal feed ingredient) and more than 12 000 tons of corn oil each year. 

The company will work towards providing much needed animal feed ingredients to reach food producers and disinfectants to reach health institutions during this time.
 

Defense Force at Pannonia Bio Ltd
Transcript of video:
Reporter: The National Defense Force administrative division has started working with Pannonia Bio Zrt. as well, ensuring the smooth operation of economically vital companies and enterprises during the pandemic. At the meeting, parties sought points where they could work together and discussed the conditions necessary for the factory to be able to operate continuously. The biorefinery located in Dunaföldvár, Tolna County, produces more than 500 million litres of fuel-grade bioethanol, as well as animal feed and 12,000 tons of corn oil by processing 1.3 million tons of Hungarian feed corn annually.

Lajos Dobai, Finance Director of Pannonia Bio Zrt.: Ethanol is used to blend into fuel, but in the present situation, due to the disinfecting properties of alcohol, it is suitable to help by providing disinfectants for surface treatment and hand sanitizers for organisations in need. An offer was made on our part to the nearby Councils. We have dispatched disinfectant solutions and are preparing for further offers. We have asked for assistance in this regard, and as a result of this meeting, it seems that the Defense Force is able to contribute to the logistical distribution and delivery of the provision to those in need.

 

M1 national television report
Transcript of video:
Presenter: The Hungarian Armed Forces already supports the operation of more than 100 Hungarian companies. The task force is responsible for ensuring the safe operation of corporations in times of emergency. Based on the experience so far, cooperation is smooth and problem-free.

Reporter: Members of the National Defence Force arrived on Friday morning at the headquarters of one of the major domestic plant processing companies in Budapest. According to the decision of the Task Force, established in mid-March, responsible for the security of vital Hungarian companies, such units already ensure the operation of more than 100 companies. Their task is to provide the safe and continuous operation of vital Hungarian companies during these times. Selected corporations, for example, play a key role in oxygen production and food supply. Pannonia Bio Ltd produces ethanol, animal feed and corn oil from 1.3 million tons of Hungarian corn.

Lajos Dobai, CFO of Pannonia Bio Ltd: The disinfectant property of ethanol is well known. We originally produced and sold it as a petrol blend, but given the current situation, we have been licensed to produce it as a disinfectant and our production has become suitable for surface treatment and now for the production of hand sanitizers.

Reporter: By Friday the Defence Force was present at 10 further companies. About one and a half million poultry are processed weekly at Master Good's Kisvárda plant. In Hungary, 40% of the processed chicken comes from this factory.

László Bárány, managing director of Master Good Ltd: They didn’t come to tell us how to cut the chicken because that’s what we know better. They have come to ensure that the day-to-day operation goes smoothly and they also confirmed that if this pandemic situation worsens, they can help us to set up a contingency plan to ensure the smooth running of the plant even in an escalated lockdown restriction or curfew situation.

Reporter: Production is continuous at the Kecskemét Cannery. 150 million cans of food are produced here every year. To keep things running smoothly, members of the Task Force will be assisting this location also as of Friday.

Gárbor Bus, Engineer Colonel, Defence Leader: Whatever predicaments arise in both production and transportation, or in the operation of the company, which they cannot solve themselves or need a faster solution, then our job is to pass on these opportunities, or opportunities to the central Defence Force, or if we can, we would solve them locally.

Reporter: The Defence Force is not there to take control of the companies concerned. Based on the experience so far, the cooperation with the participating companies is smooth.