Romania sets privatisation timetable for stake in Oltchim

24 February 2011 17:59  [Source: ICIS news]

PRAGUE (ICIS)--Romania’s economy ministry said on Thursday that it has set a privatisation timetable for the disposal of its 54.79% stake in indebted chemical producer Oltchim.

An internationally recognised privatisation consultant would be selected by August this year, while an invitation for bids in the Oltchim sell-off would be issued within the first half of 2012, the ministry said.

The Romanian state was initiating procedures for the privatisation in accordance with a draft letter of intent agreed by the government with the IMF, the World Bank and the European Commission, the ministry said.

Unprofitable Oltchim has pinned its hopes of reviving its fortunes on successfully sourcing feedstock from the newly acquired petrochemical unit Arpechim.

However, Oltchim has been unable to acquire working capital to purchase raw materials to restart its 200,000 tonne/year ethylene cracker.

Oltchim’s main products are polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.

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By: Will Conroy
+44 20 8652 3214

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