Swiss United Energy Commodities bids for Croatian Dioki’s LDPE unit

23 July 2012 17:29  [Source: ICIS news]

LONDON (ICIS)--Croatia-based Dioki group is considering a €20m ($24m) offer from Switzerland-based United Energy Commodities for its low density polyethylene subsidiary Dina Petrokemija and petrochemical product marketing company Adriaoil, Dioki said on Monday.

The 90,000 tonne/year installation of Dina has, in common with all Dioki group plants, been mothballed indefinitely since the end of last year when major creditors turned to the courts to have Dioki’s bank accounts frozen.

If the Dina acquisition went ahead, the Croatian government would provide a state guarantee covering €5m which United Energy Commodities, an international petrochemicals trading and distribution company, would have to commit to cover unpaid back wages for 320 workers, the Croatian finance ministry said.

The remaining €15m of the acquisition price would be used to purchase raw materials and re-launch production as well as on restructuring initiatives, Dioki said.

Adriaoil is responsible for the marketing of Dioki group products in Italy and Russia.

Dina, located in Omisalj on the Croatian island of Krk in the Adriatic Sea, uses Lupotech T LDPE technology licensed by LyondellBasell.

In early June, Croatian government officials announced they were looking for a strategic investor for the whole of the Dioki group, which in all employs a workforce of 450, after conceding a debt-to-restructuring rescue deal for the firm, to be arranged with the major creditors, was not attainable.

There was now a prospect that Dina and Adriaoil would be saved while the rest of Dioki, based in Zagreb, would be placed in bankruptcy, the finance ministry added.

($1 = €0.83)

By: Will Conroy
+44 20 8652 3214

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