CEO and management team of Romania’s Oltchim step down

05 September 2012 16:25  [Source: ICIS news]

BUCHAREST (ICIS)--Constantin Roibu, the chief executive of Romanian chemical producer Oltchim, has resigned along with 16 other directors from the management team, the company said on Wednesday.

Other members of the management team understood to have stepped down include the company’s chief financial officer and its director for production and investment.

“We decided to renounce to our positions due the lack of dialogue with Romanian Economy Ministry, whose reluctance to co-operate with us led to a blockage of activity at the company,” a company statement said.

Roibu had been Oltchim’s CEO since 1990. He was also a member of the company’s board of directors.

In recent weeks, he has come under fire from Romanian authorities for failing to restructure Oltchim.

Pressure has also been applied by Oltchim backers, with minority shareholder PCC SE calling for Roibu to step down to allow private sector managers to take on the running of the company.

Oltchim is in the process of privatisation, with the government trying to sell its 54.8% stake in Oltchim in one package together with debt worth of New Lei 1.79 bn ($501m) in an auction scheduled for September 18.

The privatisation process has been postponed several times.

In a related development, Romania’s Prime Minister Victor Ponta said on Wednesday that “there are two big companies from two different geographical areas interested in acquiring Oltchim”. No further information was revealed.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.

PCC and Cyprus-based Nachbar Services own 18.3% and 14.3% of Oltchim, respectively. Smaller shareholders held the balance.

($1 = €0.80)
(€1 = New Lei 4.49)

By: Marian Chiriac
+44 20 8652 3214

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