Restructuring and reopening of Croatia’s Dioki imminent: ministry

31 January 2012 16:45  [Source: ICIS news]

LONDON (ICIS)—The Croatian Labour Ministry has assured workers of debt-ridden Dioki Group that an ownership restructuring of the low density polyethylene (LDPE) producer which would allow production to resume is imminent, the ministry said on Tuesday.

Five months of overdue wages would also be paid as soon as the deal, involving banks and other creditors receiving stakes in Dioki, went through, it added.

Government officials responded after trade union-organised demonstrations demanding more and faster government action to resolve the crisis at the company took place outside the labour ministry and the economy ministry.

Dioki’s plants, including a 90,000 tonne/year ethylene cracker in Zagreb and a 200,000 tonne/year vinyl chloride monomer (VCM) plant on the Adriatic island of Krk, have been mothballed since the end of last year when the company’s bank accounts were frozen following legal action from creditors.

The creditors include the gas division of Croatian group INA, which provides Dioki with ethane, and state-owned electricity provider HEP.

For more on Dioki and INA visit ICIS company intelligence

By: Will Conroy
+44 20 8652 3214

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