RSS
The government decides to place Oltchim privatization on “stand-by”
The privatization process of the Oltchim unit was placed “ on stand-by” and the procedures will be launched when the market insures favourable conditions to allow the maintainance of working places, the company being supported by state aids approved by the European Commission. “Today we decided regarding some measures regarding the privatization process and, now, we place the privatization process on stand by. It is not a market to allow this process and we want the privatization to be made under good conditions so that we could guarantee the working places. We will find ways to support Oltchim, including by requiring state aid with the European Commission approval, to continue the functioning and the insurance of those who work in this industry” premier Tariceanu said, at the end of the Wendsday meeting of the government. He showed that the AVAS and the economy minister should settle some commercial relationships between Oltchim and Petrom, the main supplier of raw material and, he mentioned he had talked to president Traian Basescu about this issue. President Traian Basescu visited on Monday the Oltchim unit and insured the 550 employees that they are not facing “ unemployment”. The chemical unit Oltchim Ramnicu Valcea, state-owned, reduced by 20% its activity for November, up to 40% of its capacity, as a result of the company’s decision to buy fewer raw materials from the main supplier Petrom, due to the reduction of demand on the market. The Oltchim decision was made on the basis of the normal drop in consumption for petro-chemical products during winter and the normal interruption of activity of the companies in western Europe, as well as a result of the drop in prices for petro-chemical products much under the level of production costs made by the company. Oltchim registered over the first nine months revenues up by 18%, from 1,414 billion lei at 1,67 billion lei and losses of 27,68 billion lei, after getting 3,36 million lei during the similar period of 2007. The company activity was affected over the first nine months, among others, by the increase in price for oil which determined increase in prices at derivative products, used as raw materials, as well as electricity. Another factor which influenced the evolution of the company’s indices during the interval mentioned was a technical incident in the Arpechim Pitesti Refinery of Petrom which led to production interruptions in August and September. Due to this, Oltchim had production losses for PVC and caustic soda of over 17 million euro.