October 13 (SeeNews) - Bulgarian oil refinery Lukoil Neftochim, majority-owned by Russian giant Lukoil, said on Tuesday it has shut down its polymer and petrochemical units because of shrinking demand.
The units have been idled since September, a refinery official who declined to be named told SeeNews.
The official added it was unclear how long the temporary closure will last but the refinery will use the pause for maintenance, upgrades and repairs. All employees at the two units have reported for work, the official said but declined to comment whether there will be lay-offs.
The refinery's crude processing operations have remained unaffected, Reuters reported earlier on Tuesday, quoting a refinery spokesman.
Lukoil Neftochim processed 7.116 million tonnes of crude oil last year, above its plan of 7.083 million tonnes. In 2007 it processed 7.063 million tonnes of crude oil.
Lukoil Neftochim's sales rose over 23% to 7.13 billion levs ($5.39 billion/3.64 billion euro) in 2008, local media reported earlier this year. However, the refinery turned to a 479.6 million levs pre-tax loss last year from a net profit of 104 million levs in 2007 due to the volatility of international oil prices. The refinery has said it plans to invest $319 million this year.
In 2005, Lukoil unveiled plans to invest $750 million in raising the processing capacity of Neftochim to 7.5 million tonnes of crude oil a year from five million tonnes, and another $250 million in fuel retail network in Bulgaria by 2011.
Lukoil Neftochim meets about 80% of demand for motor fuels in Bulgaria.
(1 euro = 1.95583 Bulgarian levs)