14 November 2011 15:07 [Source: ICIS news]
LONDON (ICIS)--Oltchim suffered a net loss of Romania New Lei (New Lei) 109m in the third quarter compared with a loss of New Lei 1m a year ago, with production restricted because of financial difficulties, the company said on Monday.
Sales revenue fell by 7% year on year to New Lei 342m ($107.9m, €78.1m), while the operating loss grew to New Lei 62m from New Lei 2.6m, the Romanian company added.
In tandem with the release of its latest quarterly results, Oltchim also announced that it would be further cutting production and extending the technical unemployment of 1,025 of its 3,454 employees because it could not finance its working capital to buy raw materials.
In August, Oltchim cut overall output to 30% of installed capacity, while in late October it temporarily suspended all its polyvinyl chloride (PVC) production. Oltchim did not specify by how much more production will now be reduced.
In August employees were placed in technical unemployment for one month, but that period has been extended several times, with the latest announced extension taking it to 30 November.
Each affected employee would continue to receive 75% of their salary, Oltchim said.
The main shareholder in Oltchim is the Romanian state, which owns 54.8% of the firm.
($1 = New Lei 3.17, €1 = New Lei 4.38)
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