30 October 2012 17:07 [Source: ICIS news]
LONDON (ICIS)--Croatia's Dioki Group is pushing ahead with a restructuring plan that will see the permanent closure of its ethylene and low-density polyethylene (LDPE) units and a possible relaunch of its polystyrene (PS) plant, the company said on Tuesday.
Dioki, which mothballed all its plants late last year after major creditors turned to the courts to have its accounts frozen, said it hoped to restart the 50,000 tonne/year PS unit in the not too distant future in cooperation with a strategic partner that it hoped to secure in ongoing talks.
Approximately 300 to 400 jobs would be lost from the closure of the 90,000 tonne/year ethylene cracker in Zagreb and the 140,000 tonne/year LDPE operation, Dioki said.
Workers' redundancy rights would be fulfilled in line with the company's collective agreement with the unions, it added.
In September, Dioki Group agreed to sell petrochemical product marketing subsidiary Adriaoil to Turkey's Caliskan group to raise funds to pay wages owed to employees.
Efforts to find a strategic investor for the whole of Dioki, which were backed by the Croatian government during the first half of this year, failed when major creditors declined to agree to a debt-to-equity deal regarding sums they were owed by the company.
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