Poland’s Zachem restructuring targets another 150 lay-offs

07 February 2012 16:23  [Source: ICIS news]

LONDON (ICIS)--Poland’s Zaklady Chemiczne (Zachem) will this year target a further reduction in its workforce, with plans to lay off around 150 of its remaining 800 employees because of low toluene di-isocyanate (TDI) prices, the chemical company said on Tuesday.

Zachem, which has already cut 300 jobs since 2010, said its ongoing restructuring by parent company Ciech could not be completed without the additional lay-offs.

The latest reduction in the workforce would save Zachem around zlotych (Zl) 10m ($3.1m, €2.4m) annually, Erste Group Bank estimated.

“The restructuring is needed, as Zachem is the weakest link in the Ciech group, due to low toluene di-isocyanate (TDI) prices,” the bank said.

Zachem, located in Bydgoszcz in northern Poland, makes epoxy resins, and is the country’s only producer of TDI and epichlorohydrin (ECH).

In June last year, Ciech, which is pursuing a group-wide restructuring, broke away the polyurethane (PU) foams division of Zachem into a separate business unit.

The Polish Treasury Ministry intended to privatise its controlling stake in the Ciech group, but in late January, it cancelled a tender to select an adviser for the sell-off, saying the economic situation was too “volatile and unpredictable” to guarantee the sale process would fetch a reasonable price for its shares.

($1 = €0.76, $1 = Zl3.18, €1 = Zl4.18)

Read Paul Hodges’ Chemicals and the Economy blog

By: Will Conroy
+44 20 8652 3214

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