Romania’s Oltchim Q1 net loss widens as sales tumble

13 May 2013 15:18  [Source: ICIS news]

BUCHAREST (ICIS)--Oltchim’s first-quarter net loss widened to Romania New Lei (New Lei) 85.9m (€19.9m, $25.8m) from a net loss of New Lei 82.8m in the same period last year as sales fell steeply, the Romanian chemical producer said on Monday.

Sales for the January to March period 2013 decreased threefold year on year to New Lei 82.77m, the group added.

Oltchim officials declined to make any further comments on the poor earnings.

Production at Oltchim’s units was severely restricted last year because of a lack of working capital to secure feedstock supplies.

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.

Starting this week, Oltchim is to cut 900 jobs at its site in Ramnicu Valcea, in order to reduce costs. Oltchim has around 3,300 employees many of whom have staged protests in recent months over unpaid wages and prospective job cuts.

The company produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including polyvinyl chloride (PVC) for panels, doors and window frames.

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 = New Lei 4.32, $1 = New Lei 3.33)

By: Marian Chiriac
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index