Oltchim Could Take Over Remaining Activities At Arpechim

04.12.2011 By Florentina Dragu

Romania’s Economy Ministry Tuesday said chemical plant Oltchim (OLT.RO) might take over the entire activity at troubled supplier Arpechim, after the refinery was shut down because of lack of demand.

Romania's Economy Ministry Tuesday said chemical plant Oltchim (OLT.RO) might take over the entire activity at troubled supplier Arpechim, after the refinery was shut down because of lack of demand.

Arpechim refinery will hopefully be transferred "under acceptable terms" to chemical plant Oltchim, said Vlad Cazana, head of the ministry's privatization and participations administration unit OPSPI.

End-2009, Oltchim bought the petrochemical business of Arpechim refinery, a unit of Romanian leading oil company OMV Petrom (SNP.

Petrom announced last month it would shut down the remaining operations at Arpechim, because it couldn't find a suitable buyer.

Attending the MEDIAFAX Talks about the Restructuring of Loss-Making Companies conference, Cazana said the privatization authority will present an action plan shortly.

"It's a matter of days until we come with a plan. Arpechim's takeover by Oltchim is a sensitive matter and Petrom is probably expecting to hear a certain number. However, it's too early to advance any figures," he added.

Cazana said Oltchim would need between EUR50 million and EUR100 million to turn the refinery profitable, adding that the chemical plant doesn't have the cash at the moment.

"We're trying to attract net capital or to reorganize things at Oltchim," he added.

Oltchim is majority owned by the Economy Ministry, with a 54.79% stake.

Tuesday in Bucharest, Oltchim shares were flat at RON0.43.