Nine-month net turnover halves at Romania's embattled Oltchim

14 November 2013 17:54  [Source: ICIS news]

LONDON (ICIS)--Oltchim suffered a net loss of Romania New Lei (New Lei) 172.7m ($52.01m, €38.7m) in the first three quarters of this year, compared to the New Lei 308.5m loss seen in the same period of last year, with working capital and lack of feestock continuing to greatly restrict production, the company said on Thursday.

Net turnover at Oltchim – entered into insolvency proceedings by its largest shareholder, the economy ministry, in January – fell to New Lei 359.5m from New Lei 693.7m, it added.

A source at the company, Romania’s largest chemical producer, said that production output had fallen to around 20% of capacity.

Following the collapse of an attempt to privatise the company last year, the economy ministry has this year been talking to a range of potential investors that could be interested in bidding during a fresh attempt at selling the state's controlling stake.

Economy minister Andrei Gerea said in October that he believed a restructured Oltchim should be capable of generating annual turnover in excess of €1bn.

When functioning normally, Oltchim's main products are polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.

($1 = €0.74, New Lei 4.46, $1 = New Lei 3.32)

By: Will Conroy
+44 20 8652 3214

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