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.
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.
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
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