They are racing against time: the Sarkpont chestnut factory is being rebuilt

By: Trademagazin Date: 2025. 06. 27. 11:00

The reconstruction of Sarkpont Zrt.’s chestnut processing plant in Kadarkút is underway at full speed, after a serious fire almost completely destroyed the country’s largest chestnut processor on March 27. The damage exceeds 3.5 billion forints, and the reconstruction costs could reach 2.5 billion. The factory, which specializes in frozen products, is scheduled to restart by the end of September, as 80–85 percent of its annual sales revenue falls on the seasonal period, the autumn chestnut harvest.

The fire broke out during the testing of a newly installed freezing belt, when an external company was performing welding work. The line caught fire, and the fire quickly spread to the entire plant area. The insurer has so far offered only 850 million forints, even though the belt in question alone was worth 600 million forints and was supposed to be put into operation that very day.

The family-owned Sarkpont is currently trying to finance the reconstruction with its own capital and loans, while its income has also fallen due to the lack of production. The local community and suppliers have assured the company of their support – the Hencse municipality, private individuals and even a travel agency have provided assistance – but so far they have only received state funding at the level of promises.

The company is a supplier to Lidl, Auchan and Hipp, and its products reach several countries from Austria to Serbia. If the October launch fails, they will not only have to count on billions in losses, but they could also lose significant market share. The research and development department and chestnut plantation program operating alongside the plant could also be at risk.

“The chestnuts have to be processed – if we don’t succeed, it could practically mean the end of the company,” said CEO Károly Egyed. The expertise and commitment are there, but resources are scarce: the future of Sarkpont may depend on whether the reconstruction can be completed in time and production restarted.

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