MOL Nyrt. (MOL.BU) said Wednesday it has started building a rubber bitumen plant in western Hungary that will have a total investment of 300 million forints ($1.3 million).

MAIN FACTS:

-The facility will manufacture a patented rubber bitumen from a mixture of bitumen and used tires.

-The plant is being built at MOL's refinery in Zalaegerszeg.

-MOL has been approved HUF128 million in state funds for the project.

-Trial production is expected to start in the summer.

-MOL said rubber bitumen is recognized as an improved pavement solution and is also environmentally friendly because it is produced through reusing old tires.

-Budapest Bureau, Dow Jones Newswires; +36-1-267-0622; budapest@dowjones.com