20 November 2013 17:26 [Source: ICIS news]
LONDON (ICIS)--Russia'-based company Oil Gas Trade has made an informal offer to take over largest Romanian chemical producer Oltchim and to invest €300m ($405m) in re-establishing the company as a successful petrochemicals producer, Romania's economy ministry said on Wednesday.
The Moscow-based firm, which trades in petrochemicals, pharmaceuticals and oil, would be invited to submit a formal offer in the ministry's upcoming renewal of the privatisation process for Oltchim, it added.
Part of the investment made by Oil Gas Trade in getting Oltchim back up on its feet would be aimed at revamping the 200,000 tonne/year ethylene cracker at the Arpechim complex, which is currently not in an operational condition, the ministry said.
The ministry, which holds a controlling stake in Oltchim of 54.8%, entered the company into insolvency proceedings in January after last year's attempt at privatising it collapsed.
Sources at the company say its production rate has fallen to around 20% of capacity because of a lack of feedstock and working capital.
Oltchim's product slate includes polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.
($1 = $0.74)
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