Talks with the government and the town of Gyula on a possible financial lifeline are ongoing, but it is too early to speak about details, said CEO János Ruck.

According to Realdeal.hu, a plan to save Hungary’s oldest meat processor and the largest taxpayer in southeast Hungary is before the cabinet, as Gyulai is awaiting formal recognition as a company of national strategic interest.

“The longer we wait for the state to intervene the more dire the situation will become," observed Gyula mayor Ern? Görgényi.

Once the plant is shut down it will be almost impossible to restart production later, he noted.

The meat processor posted a Ft 300 million loss on Ft 7.5 billion in revenues in 2011, due to rising costs for energy and meat.

Gyulai employs 400 staff directly and several hundred more through suppliers.