17 December 2012 15:45 [Source: ICIS news]
LONDON (ICIS)--Oil and gas retailer Crodux Plin has signed a letter of intent stating that it plans to become the strategic investor in fellow Croatian company Dioki Group, a petrochemical producer set to undergo restructuring, Crodux said on Monday.
Crodux Plin is planning to invest in a relaunch of the 50,000 tonne/year polystyrene (PS) plant and in other production projects at Dioki's Zagreb site, it added.
Dioki mothballed all of its plants late last year after the courts froze its bank accounts at the request of major creditors that were pursuing unpaid debts.
On 30 October, Dioki announced a restructuring plan that would mean the permanent closure of its 90,000 tonne/year ethylene cracker and 140,000 tonne/year low density polyethylene (LDPE) operation, and the possible relaunch of the PS unit with the backing of a strategic investor.
Following Crodux Plin's signing of the letter of intent, Dioki said it would look at working with the investor to achieve the restart of the PS plant as soon as possible, along with and its possible expansion in the not too distant future.
The PS plant was the only potentially profitable unit at Dioki, it added.
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