Oltchim cuts output in September and prepares for privatization

Newsroom 29/08/2011 | 13:26

The Romanian Oltchim chemical company has issued an official statement announcing that cost containment measures that were implemented as of August will also continue in September. The company can’t finance its working capital and there is a lack of raw materials. Thus, employees will continue to remain into technical unemployment for the following 30 days and will receive 80 percent of their salaries. A number of 1161 persons who make up approximately a third of total employees will be affected by this measure.

Oltchim’s director, Constantin Roibu has also been under fire from one of its minoritary shareholders PCC SE for failing to restructure the chemical company. Roibu says that he is ready to step down, although the difficult situation in Oltchim is the fault of the minority shareholder.

Musat& Asociatii was selected by the Economy and Commerce ministry to provide legal consultancy to the Office of State Participations in Privatizations and Industry OPSPI in the privatization of Oltchim Ramnicu Valcea.

The Romanian Ministry of Economy owns a 54.79 stake in Oltchim, while PCC SE owns 12.15 percent. The chemical is listed on the Bucharest Stock Exchange (OLT symbol) and posted a turnover of RON 915 million for the first semester of 2011, which is a 69 percent increase to values in the similar period of 2010. The losses were also reduced by 60 percent, from RON 177 million in the first half of 2010 to RON 70 million.

Ovidiu Posirca