November 9 (SeeNews) - Romanian chemicals producer Chimcomplex Borzesti SA Onesti [BSE:CHOB] said on Tuesday it has won a tender for the sale of a package of assets owned by insolvent local heat and electricity producer CET Govora worth 8.22 million euro ($9.53 million).
The package consists of a 110 kV electrical substation, equipment and installations for demineralized and softened water production, a natural gas connection in the network, a coal deposit as well as buildings and land, Chimcomplex said in a filing to the Bucharest Stock Exchange, BVB.
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"For sustainable development, Chimcomplex needs a balance between operational efficiency and energy efficiency in the current context, in which we are witnessing major changes in the energy market. The desire to reach this balance was one of the basic arguments that led to this acquisition. It is a strategic investment, with good potential for both the company and Ramnicu Valcea local community," Chimcomplex director of operations Victor Avram said.
In the short and medium term, Chimcomplex will focus on modernizing CET Govora's existing facilities as well as building new cogeneration high efficiency capacities based on natural gas.
"New capacities must cover the industrial platform's consumption of electricity and heat and hopefully, in collaboration with local authorities, thermal energy needed for the city. These investments will solve several important issues: they will ensure energy security and will make it possible for us to develop sustainably and remain competitive, while reducing the region's carbon footprint," Victor Avram said.
In the following years, Chimcomplex intends to implement complex solutions that include high efficiency gas turbines, photovoltaic parks and energy production from hydrogen, as required by European directives in order to reduce the impact of carbon dioxide emissions.
CET Govora, located in Ramnicu Valcea, in southern Romania, is insolvent since May 2016.
Chimcomplex was founded in 1954 as a state-owned chemicals producer and became a joint stock company in 1991. Romanian Commercial Services Group (SCR Group) became the main shareholder of Chimcomplex in 2003.
Chimcomplex shares last traded on the alternative segment of the BVB, AeRO, on November 2 when they closed 5.71% higher at 22.2 lei ($5.2/ 4.5 euro).
(1 euro=4.9482 lei)