09 May 2013 12:33 [Source: ICIS news]
BUCHAREST (ICIS)--Petrochemical and plastics manufacturer Oltchim is to cut 900 jobs starting next week at its site in Ramnicu Valcea, Romania in order to reduce costs, the company said on Thursday.
“We will save around 1 million euros per month following this first cut in jobs. People made redundant will receive compensation packages,” said Gheorghe Piperea, a representative of the judiciary administrator.
The Romanian government, which has a majority stake in the company, decided on 23 January to begin insolvency procedures in a move intended to pave the way for a future privatisation, as a result of the group’s economic problems. According to government officials, the Oltchim privatisation process is to be restarted in June.
Oltchim has around 3,300 employees many of whom have staged protests in recent months over unpaid wages and prospective job cuts.
Production at Oltchim’s units is currently severely restricted because of a lack of working capital to secure feedstock supplies.
The Romanian state holds a 54.8% stake in the company with Germany-based chemical producer PCC holding 18.3% and Cyprus-based Nachbar Services holding 14.3%. Smaller shareholders hold the balance.
($1 = €0.76)
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