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Ciech Soda Romania announces that they will stop the production in the factory în Ramnicu Valcea starting next month

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The leadership of the company Ciech Soda Romania, the owner of the only factory of sodium carbonate in the country, announces that, starting with September they will stop production in the unit in Valcea,  hundreds of employees being in danger of being laid off.

The representatives of the company with Pole capital informed on Friday in a press release that  the main reason for which they have to take such a measure is the increase of the price of industrial steam, by the supplier CET Govora, company which is in insolvency.


‘Until the company identifies a solution to get steam on a long term at technical level, in quantities and corresponding costs Ciech Soda Romania needs to start the process of stopping the production – the installations will be stopped gradually starting with 18 September, and during the following period they will be kept in conservation, to avoid any irreversible stop .(…) Industrial steam is a raw material necessary to produce sodium carbonate and its price is a significant part of the expenses for exploitation.

Insufficient steam or too expensive affects the increase of the costs at levels which cannot be considered economically sustainable. This is the reason for which, although it was a solid business, Ciech Soda  Romania  was affected by the issues registered by its only steam supplier CET Govora (…) In Q1 2019 the monthly bill for the steam supplied by CET was 55% higher against the bills of 2018 (partly due to the CO2 certificates). On 1 April, Ciech Soda Romania and CET signed a new agreement referring to the new price of the steam, which should have been valid until 31 December 2020’ the respective press release says.

The representatives of the company mentioned that, on 18 July the contract of this year for the supply of the steam was annulled unilaterally by CET Govora which reduced its activity after the crash, following a land slide of the main exploitation equipment in the Alunu quarry.


The company in Ramnicu Valcea had last month the first laid-offs, 25 employees being fired due to the reduction of 20% of the quantity of steam supplied by CET Govora, and the Ciech leadership warns that other 500 employees who work in production could lose their workplaces.

‘Unfortunately, in case of suspension on a long term of the production,  other 500 employees out of the 600 will be affected. Almost 100 will be kept in the factory for maintenance. Other 100 will be offered workplaces in the Ciech Group by relocation to the factories in Poland and Germany. The others will be offered the chance to voluntarily leave, with an adequate package. Supplimentarily, they will be able  to ask for support from the company to find new jobs, due to a special programme for workforce recruitment  ( career counseling, skills development, professional retraining, assistance in finding a workplace) the  press release says.

The Polish Ciech group took over the Uzinele sodice Govora in 2006 from the Valcea County council, which  owned the company until then through CET Govora.

 

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