Romania's Petrom to close Doljchim plants despite late buying interest

12 May 2011 17:18  [Source: ICIS news]

LONDON (ICIS)--Petrom will proceed with the dismantling and closure of its subsidiary Doljchim’s chemical fertilizer and methanol plants, despite late interest from potential bidders, the Romanian company said on Thursday.

Anglo-Romanian fertilizer producer InterAgro and an American investment fund expressed interest in acquiring Doljchim but no acceptable bids materialised, Petrom sources said.

Giving its latest official position on the subsidiary, Petrom stated: “In line with management’s decision to exit the chemicals business, Petrom has continued with the implementation of the Doljchim closure.”

Petrom added that in the second quarter of 2011 it would progress “with the dismantling and decontamination of the plants in compliance with European environmental and safety standards”.

The company said its management had decided there was no prospect of Doljchim progressing from its poor financial position in the foreseeable future.

Throughout 2010, Doljchim’s fertilizer production and its 230,000 tonne/year methanol plant were run on an “as-needed” basis.

Doljchim, in Craiova, is the sole producer of chemical fertilizers in southwestern Romania, an important agricultural area.

Petrom is majority-owned by Austria’s OMV.

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By: Will Conroy
+44 20 8652 3214

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