LONDON (ICIS)--Oil and gas retailer Crodux Plin on Tuesday announced it has plans to start up both the polystyrene (PS) and expandable polystyrene (EPS) plants at fellow Croatia-based Dioki Group if its bid to become a strategic investor in the mothballed firm is successful.
An initial cash injection of €5m ($6.6m) would form part of its commitment to restart the PS and EPS facilities and examine other production possibilities at Dioki which were likely to be profitable, it added.
Dioki mothballed all of its plants, including its 50,000 tonne/year PS insallation and 15,000 tonne/year EPS facility in Zagreb, late last year after the courts froze its bank accounts at the request of major creditors that were pursuing unpaid debts.
On 17 December, Crodux Plin signed a letter of intent stating that it wishes to become the strategic investor in Dioki. Once installed as the investor, it would also look at the possibility of a PS expansion, it added.
On 30 October, Dioki said its approach to restructuring would mean the permanent closure of its 90,000 tonne/year ethylene cracker and 140,000 tonne/year low density polyethylene (LDPE) operation.
($1 = €0.76)