Oltchim shareholder protests at possible Arpechim refinery move
07 August 2009 15:18 [Source: ICIS news]
PRAGUE (ICIS news)--A shareholder in Romanian chemical company Oltchim is protesting against a possible move by the firm to radically widen its survival and development plan to acquire the Arpechim refinery, it said on Friday.
Germany's Petro Carbo Chem (PCC) - which earlier disclosed it had complained to the European Commission over an Oltchim loan guarantee - said such an "over-investment" in the 1960s facility was "funamentally flawed".
In a statement, PCC said the acquisition posed an "immediate threat" to the company survival since Oltchim would not be in a position to service the large debt involved.
Buying the Arpechim refinery from Romania's Petrom group would cost at least €1.3bn ($1.9bn) on top of the approximate €400m needed to purchase the petrochemical unit, revamp it and increase its ethylene steam cracker's capacity, estimated Adam Lamentowicz, project development manager for PCC.
PCC noted that if the refinery was closed the petrochemical facility's ethylene cracker, the output of which is supplied to state-controlled Oltchim by local pipeline, would have no ready supply of naphtha.
"But that does not mean Oltchim should jump into buying this old refinery even if it can raise the money," said Lamentowicz.
"Arpechim's ethylene supplies could for instance be replaced with ethylene dichloride (EDC) shipments from the middle east," he added.
Oltchim spokesman Silviu Pandrea said that any possible move for the refinery was "only at an idea stage".
($1 = €0.70)
To discuss issues facing the chemical industry go to ICIS connectBy: Will Conroy
+44 20 8652 3214
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
| ICIS news FREE TRIAL |
| Get access to breaking chemical news as it happens. |
| ICIS Global Petrochemical Index (IPEX) |
| ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index |
Related Articles
- 10 Aug 09 04:21 China’s WEPEC sells Sep heavy naphtha at discount of $4-5/tonne
- 22 Sep 09 15:03 Oltchim vows no Arpechim job cuts if Petrom takeover happens
- 17 Sep 09 16:50 Oltchim to push ahead with purchase of Arpechim assets
- 16 Sep 09 11:21 Oltchim confident of EU approval of Romanian finance package
- 15 Sep 09 15:53 Arpechim workers to protest over fears of unit’s closure
- 13 Aug 09 14:58 Petro Carbo Chem petitions Romania court over Oltchim loan
- 07 Aug 09 20:52 US Gulf to Asia freight rates fall in seasonal slump - brokers
- 10 Aug 09 16:47 Romania's Oltchim to cut workforce by one third
- 07 Aug 09 16:23 Romania's Petrom may shut struggling ferts, methanol subsidiary
- 07 Aug 09 13:32 Petro Carbo Chem files complaint with EC over Oltchim loan
- 05 Aug 09 14:13 Mothballed Arpechim unit cost Petrom €15m in H1 - OMV
- 27 Jul 09 11:43 Oltchim shareholders approve €62m loan for Petrom assets
- 22 Jul 09 14:37 Oltchim rescue plan cleared by Romania's competition watchdog
- 16 Jul 09 14:29 Romania approves Oltchim rescue plan, awaits EC approval
- 10 Jul 09 15:07 Oltchim rescue plan includes converting $160m of debt to stock
Latest News
- 23 May 13 23:59 Europe ETBE premium increases for second consecutive week
- 23 May 13 23:38 Calif city to review safety rules after Chevron refinery fire
- 23 May 13 23:26 Footwear is the leading TPU consuming industry in Brazil
- 23 May 13 23:14 Forecasters see May auto sales up by 9.4% at 15.2m annual units
- 23 May 13 23:00 EVENING SNAPSHOT - Americas Markets Summary