Romania's Petrom may shut struggling ferts, methanol subsidiary

07 August 2009 16:23  [Source: ICIS news]

PRAGUE (ICIS news)--Petrom may close its struggling Doljchim Craiova chemical fertilizer and methanol subsidiary either temporarily or permanently, the Romanian oil and chemicals group said on Friday.

Petrom, majority-owned by Austria's OMV, said it had searched in vain for a partner to take over management of the company's plants so all options were now being considered.

Doljchim Craiova's overall sales fell 37% in the first half of this year compared to the same period last year to 173,000 tonnes, on lower demand and difficult financing conditions, Petrom added. The subsidiary includes a 230,000 tonne/year methanol plant.

The company is more than 40 years old and is the sole producer of chemical fertilizers in the south-west of Romania where there is an important agricultural area, Petrom said.

Its fertilizer business products included ammonia, nitric acid, ammonium nitrate, calcium ammonium nitrate and urea.

Petrom's revised business strategy has already seen it commit to moving out of petrochemicals. It hopes to soon sell its Arpechim petrochemical unit to fellow Romanian company Oltchim.

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By: Will Conroy
+44 20 8652 3214

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