Romanian Petrochemical Producer Oltchim To Lower Capacity Utilisation to 40% This Month

Oltchim also said in a statement it has decided to temporarily cut the supplies of ethylene and propylene it obtains from oil and gas group Petrom, taking into account the latest developments in the context of the global financial crisis, which has led to a slump of more than 50% in demand of petrochemicals on both the local and foreign markets.

Petrom said in a separate statement it has agreed to Oltchim’s decision and would not charge it any penalties. Oltchim’s decision has no material impact on Petrom, the group added.

Last week Oltchim reported a net loss of 27.7 million lei ($9.0 million/7.2 million euro) through September, compared to a net profit of 3.37 million lei a year earlier.

Oltchim shares closed 9.27% down at 0.235 lei on the Bucharest Stock Exchange on Wednesday.

The company said earlier it planned to turn to net profit of 9.3 million lei this year from a net loss of 95.89 million lei in 2007. It has estimated that in 2013 its annual consolidated net profit will reach 200 million euro ($251 million) and its consolidated turnover will rise to 2.5 billion euro.

Oltchim (www.oltchim.ro) was founded in Ramnicu Valcea, southwestern Romania, in 1966. It operates one of the largest chemical plants in Romania, employing 4,492 people.

(1 euro = 3.8428 Romanian lei)