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Ciech Soda Romania signs steam delivery deal with insolvent heat producer CET Govora

Ciech Soda Romania signs steam delivery deal with insolvent heat producer CET Govora hq

BUCHAREST (Romania), April 2 (SeeNews) - Polish chemicals firm Ciech said that its Romanian unit has signed a deal with insolvent local heat and electricity producer CET Govora for industrial steam deliveries worth 330.6 million zlotys ($86 million/77 million euro).

Under the contract, CET Govora would deliver steam to Ciech Soda Romania for 21 months until the end of 2020, Ciech said in a statement filed with the Warsaw Stock Exchange on Monday.

The two parties also agreed to continue negotiations on the price formula for 2021-2026 and if those negotiations fail, the deal will expire at the end of 2020.

CET Govora, located in Ramnicu Valcea, in southern Romania, has 4 generation units of 50 MW each. It is insolvent since May 2016.

Ciech Soda Romania, formerly known as Uzinele Sodice Govora, is located in the southern county of Valcea, in Govora. The soda factory was the first foreign subsidiary acquired by Ciech in December 2006.

Ciech Soda Romania produces soda ash, water glass, sodium silicate and soda derivatives.

(1 zloty=0.2325 euro)

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