MOL Group has begun restoration work at its damaged chemical facility in Tiszaujvaros following an explosion last week. The company said production at the affected Olefin-1 unit is expected to remain offline for several months. MOL also stated that official site investigations have been completed and that all immediate safety risks have been eliminated.
Authorities have issued the necessary permits to start reconstruction activities, and MOL has set up a dedicated technical team to oversee the recovery process. Current work is focused on the safe removal of remaining hydrocarbons from the damaged installation. After that phase, restoration will move to cleaning activities, technical inspections, and the installation of scaffolding around the affected sections of the facility.
Reconstruction steps and timeline for restarting production
MOL said a more precise restart timeline will be available only after detailed engineering assessments are finalized. Preliminary expectations indicate that the shutdown could last several months, reflecting the scale of the damage. The company did not provide an exact date for when operations could resume.
The explosion occurred on 22 May at the Olefin-1 unit within MOL’s petrochemical complex in Tiszaujvaros. The incident resulted in one fatality and left nine people injured. Despite the operational disruption, MOL emphasized that Hungary’s fuel supply remains stable and unaffected by the temporary shutdown of the unit.
Financial impact estimate from Erste Bank
Erste Bank’s preliminary analysis said the incident could reduce MOL’s annual profit by between $100 million and $150 million, depending on how long repairs take. Direct damages were estimated at around $100 million. The bank noted that part of the losses is expected to be covered by insurance.
Erste Bank also said that, despite the seriousness of the incident, any long-term impact on MOL’s market valuation is likely to remain limited.
