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Austrian giant Strabag faces fallout over massive construction failure in Hungary!
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The construction of the M30 motorway, linking Miskolc and Košice, began in 2018 and was completed by 2021. As one of the region’s key transport corridors, it promised substantial economic and logistical benefits for nearby communities.
Built by two Austrian Strabag companies, the project should have been a triumph. However, just two years after its opening, severe structural issues forced the closure of the section between SzikszĂ³ and Miskolc due to subsidence.
JĂ¡nos LĂ¡zĂ¡r, Minister of Construction and Transport, visited the site and sharply criticised Strabag. In his opinion, it was the company’s faulty workmanship that led to the problems that occurred. According to the minister, the track had to be almost completely demolished to ensure its stability by reinforcing the supporting structure. The redesigned section will be reinforced with iron piles, which is expected to provide a long-term solution.
According to Telex, Strabag accepted responsibility and committed to covering the reconstruction costs, estimated at HUF 4–5 billion (EUR 9.7–12.1 million), under their warranty. Originally slated for completion by January 2023, the reconstruction has faced multiple delays, first to the summer, then the autumn, with the latest projections suggesting up to nine months before the road is fully restored.
No more work for Strabag
Strabag has more than 86,000 employees and is active in several countries, including Hungary. The company is one of the largest construction players in the region, but the recent scandal in Hungary has highlighted quality issues that could seriously affect the company’s reputation. Strabag has a strong track record in the European construction industry, but the current case is a warning that there may be a significant gap between its track record and its current performance.
In his statement, LĂ¡zĂ¡r made it clear that they do not wish to cooperate with Strabag in the future, as they do not consider the company’s work to be of sufficient quality. According to LĂ¡zĂ¡r, the lesson to be learned from the case of the M30 motorway is that more stringent requirements should be applied when selecting contractors, especially when they are foreign companies. The Minister of Construction and Transport’s stance extends beyond this issue; he also advocates for banning foreign companies from operating in Hungarian retail markets.
