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Romanian Oltchim Employees Ask For State Aid, Threaten Protests

Autor: Dragos Serban

Publicat la data de 31 Dec. 2008 in: Stiri

The employees with Romanian state-owned chemical plant Oltchim Ramnicu Valcea SA (OLT.RO) asked the country’s Premier Emil Boc for state aid to resume production at full capacity and threaten to take to the streets.
Also, the local authorities meet Tuesday at the Prefecture with the trade unions and the plant’s employers’ association.

According to Oltchim’s trade union leader Mihai Diculoiu, the plant is currently working at 60% of its capacityy and 550 people are subject to layoffs.

Oltchim cut operations by 20% in November, to 40% of its capability, on the plant’s decision to temporarily buy fewer raw materials from its main supplier, oil company Petrom.

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The plant’s decision was taken on the backdrop of lower demand in petrochemical products during the winter period and following the price decrease of petrochemical products.

The plant reported 1.67 billion lei (EUR1=RON 3.9964) in revenue in the first nine months of the year, up 18% from RON1.414 billion in the similar period a year earlier.

Oltchim switched to a RON27.68 million loss in January-September, from a RON3.36 million net profit in the corresponding period a year before.

In the analyzed period, the company posted RON1.6 billion in turnover, up 22% compared with RON1.3 billion in the similar period of 2007.

Romania, through privatization agency AVAS, owns a 53.26% stake in state-owned Oltchim, followed by Germany’s Petro Carbo Chem (PCC), with a 12.89%, regional investment fund SIF Oltenia (SIF5.RO), with a 6.89% stake, and other shareholders.

Autor: Dragos Serban

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