Roibu, Oltchim: Mowing the grass alone cost 2m euros at Arpechim's petrochemical unit
Constantin Roibu, who has been at the helm of Romania's biggest
chemical plant, Oltchim Ramnicu-Valcea (OLT), over the last twenty
years, believes he can turn around the petrochemical unit in
Pitesti, which he has recently acquired.
The Austrians at OMV Petrom sold the assets of the petrochemical
unit of Arpechim refinery to state-owned Oltchim at the end of last
year, in a deal worth 12.9 million euros. The deal also included
the hydrocarbon stocks, the other circulating assets involved in
the petrochemical operations and 560 employees who moved from
Petrom to Oltchim.
"Given what we found there, there was no way for Arpechim's
petrochemical unit to be profitable. Mowing the grass alone cost
two million euros in 2008," Constantin Roibu said.
He added the wear and tear of the equipment in the factory was
another obstacle in the way of a profitable operation at
Arpechim.
The sale of the petrochemical assets by the Austrians came after
the business had been making losses for a few years before being
shut down.
Oltchim on the other hand is not doing any better, either, having
posted cumulated losses worth 592.5 million RON (about 148 million
euros) over the last three years, which the management blames on
the closure of Arpechim, the main raw material supplier.