Romania's Oltchim will cut output to 30 percent in August

Romania’s Oltchim will cut output to 30 percent in August

Newsroom 09/08/2011 | 15:46

The Romanian Oltchim chemical company has issued a statement announcing cost containment measures for August. Output will be cut to 30 percent of installed capacity because it can’t finance its working capital. In addition, employees will be sent into technical unemployment in the following 20 days and will receive 80 percent of their salaries. A number of 1025 persons who make up approximately a third of total employees will be affected by this measure.

The Romanian Ministry of Economy owns a 54.79 stake in Oltchim, while PCC Duisburg DEU owns 12.15 percent. The chemical is listed on the Bucharest Stock Exchange (OLT symbol) and posted a turnover of RON 464 billion for the first trimester of 2011, a 94 percent increase to the first trimester of 2010.

Olthcim is one of the state-owned companies that are currently under IMF monitoring. The letter of intent agreed by the IMF and the Romanian government stipulates that Oltchim should be privatized by the end of 2011.