Constantin Roibu, who has been at the helm of Romania's biggestchemical plant, Oltchim Ramnicu-Valcea (OLT), over the last twentyyears, believes he can turn around the petrochemical unit inPitesti, which he has recently acquired.
The Austrians at OMV Petrom sold the assets of the petrochemicalunit of Arpechim refinery to state-owned Oltchim at the end of lastyear, in a deal worth 12.9 million euros. The deal also includedthe hydrocarbon stocks, the other circulating assets involved inthe petrochemical operations and 560 employees who moved fromPetrom to Oltchim.
"Given what we found there, there was no way for Arpechim'spetrochemical unit to be profitable. Mowing the grass alone costtwo million euros in 2008," Constantin Roibu said.
He added the wear and tear of the equipment in the factory wasanother obstacle in the way of a profitable operation atArpechim.
The sale of the petrochemical assets by the Austrians came afterthe business had been making losses for a few years before beingshut down.
Oltchim on the other hand is not doing any better, either, havingposted cumulated losses worth 592.5 million RON (about 148 millioneuros) over the last three years, which the management blames onthe closure of Arpechim, the main raw material supplier.
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