Oltchim puts 1,140 workers on forced leave

Romanian state-owned petrochemicals producer Oltchim Ramnicu Valcea has announced that 1,140 employees will go on a period of forced leave by the end of this month. The decision was taken due to difficulties in keeping the company’s installations functioning at normal capacity, on the back of the lack of raw materials on the market.

Oltchim has called a meeting with its shareholders on March 19 to discuss the EUR 13 million acquisition of the petrochemical activity unit at the Arpechim refinery, previously owned by Petrom, from the beginning of this year and the company’s plans for 2010.

Oltchim officials estimate that once the unit becomes operational in April, its turnover will more than double in 2010.

Oltchim reported a turnover of RON 1.07 billion last year, down 44 percent from RON 1.94 billion the year before. The plant’s 2009 loss narrowed 10 percent to RON 209.8 million, while total revenue nearly halved on the year before at RON 1.095 billion.

The company’s majority shareholder is the Economy Ministry, with a 54.79 percent stake, while Germany’s PCC holds about 12.16 percent of the company’s shares.

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Dana Ciuraru