Arpechim Refinery Employees Protest Shutdown

05.10.2011 By Gavrila Oana

Over 200 employees of Romania’s Arpechim refinery protested outside the local prefect’s office Tuesday accusing the Government of stalling moves to save the plant from shutting down.

Employees said it has been over a month since the Government promised to find solutions to prevent the refinery from closing, but no measures have been taken.

The Government in April launched talks with OMV Petrom (SNP.RO) in a bid to have it reopen the Arpechim refinery. The Economy Ministry said chemical plant Oltchim (OLT.RO) might take over the entire activity at troubled supplier Arpechim.

OMV Petrom's supervisory board on March 24 said it would permanently shut down the Arpechim refinery because it was unable to find "credible" buyers.

In 2010, the Arpechim refinery was only active for three months.

After the shutdown, the refinery's logistics will be used for storage, which means that some of the employees will be kept, the oil company said in a statement at that time, adding the employees laid off would receive severance pay worth a total EUR10 million.

According to union leader Ion Popescu, the refinery has 700 employees and its shutdown would also affect about 10,000 jobs in supporting industries.

The Arpechim refinery has a nominal capacity of 3.5 million tons per year and it was launched in 1971.