29 July 2013 14:41 [Source: ICIS news]
BUCHAREST (ICIS)--Romania-based petrochemical and plastics manufacturer Oltchim is to temporarily cut 715 jobs at its site in Ramnicu Valcea in the country until the end of September in order to reduce costs, the company said on Monday.
Oltchim, which employs around 2,400 people, cited reduced activity in recent months and feedstock supply problems as a reason for its decision. The temporary cuts will begin this week.
The company will pay the employees with 80% of their wages during the break period, Oltchim added.
Production at Oltchim’s units is currently severely restricted because of a lack of working capital.
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.
In May, Oltchim started to cut 900 jobs at its Ramnicu Valcea site, in order to reduce costs.
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.
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