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SIFs plan joining into consortium to refloat insolvent company Oltchim

The five Financial Investment Companies (SIFs) plan to join into a consortium that should step into refloating the Oltchim chemical plant, envisaging investments in a project that should integrate the Ramnicu Valcea-based Oltchim and the Chimcomplex Borzesti facility.

This intention was announced on Thursday during the talks Economy Minister Varujan Vosganian has had with Deloitte Romania chairman George Mucibabici, SCR Group president Stefan Vuza and SIF Moldova president Costel Ceocea regarding the recovery of the facility and ways to attract investments to Oltchim, the Ministry of Economy informed in a release.

Also attending the talks were Deloitte partner Hein van Dam, SCR Group executive president Virgiliu Bancila, and Paul Miclaus, personal advisor to Minister Vosganian.

'In this context, the president of SIF Moldova announced the imminent establishment of a consortium of the SIFs that plans to get involved in settling the situation of Oltchim, which is considered a project of national interest. In the opinion of the dialogue partners, the consortium is interested in keeping the plant operational after privatization and therefore, their intention is to invest in a project that integrates Oltchim Ramnicu Valcea and Chimcomplex Borzesti and whose strengths would be the advantageous geographical position, the international outlet markets that can absorb 70% of the Oltchim and Chimcomplex joint output, and the mostly upgraded installations, which are competitive in terms of costs,' the release mentions.

In the opinion of the participants, another advantage is that Oltchim is the only capacity of its kind in the European Union and would bring added value to the Romanian economy.

Information was requested during the talks on the stage of the plant's insolvency, as well as additional details on the company's economic and financial situation.

 

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