Oltchim postpones investments worth €300 mln due to the crisis

“We have foregone a large part of our investment program, due to the fall of the markets. We are now focusing on Oltchim’s basic needs and will reduce capacities even there,” Roibu said.

However, the crisis will not change Oltchim’s immediate priorities, according to the General Manager. The company’s management is in advanced negotiations with major local banks for a loan of some €50 million, to finance the acquisition of Petrochemicals Arges, for sale by Petrom, Romania’s largest company, owned by the Austrian OMV group.

“We hope that the Petrochemicals takeover is finalized by the beginning of next month, and that we can start producing at full capacity in one month at most,” Roibu added.

The complex, which is now functioning at half its capacity, could register monthly losses worth €4-5 million, and would end 2009 with €350 mln in net sales if the integration of Petrom’s petrochemical division is not finalized. In case the integration is finalized, the complex estimates €635 mln in net sales by year-end and a net profit worth €5 mln.