Sale of Romanian PVC producer Oltchim assets postponed again

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: April 23, 2014 1:35 pm ET
Updated: April 23, 2014 1:38 pm ET

Related to this story

Topics Public Policy, Materials, Materials Suppliers, Europe

The long anticipated privatization of insolvent Romanian PVC producer Oltchim has been postponed yet again, this time until mid-May.

A March 28 deadline for filing binding bids to purchase Oltchim SPV, the “special purchase vehicle” containing core debt free assets of the Oltchim SA, passed with no offers received. One foreign bid is reported to have been received after that deadline.

The Romanian government agreed to a 45-day delay at the request of key potential bidders who are hopeful they could receive an enhanced package, which would also include the Romanian Arpechim oil refinery.

Those would-be investors, said by Oltchim’s administrators to include a Chinese consortium and a Romanian investment fund, are waiting for the government to conclude purchase talks with Pitesti-based Arpechim’s owner Petrom, part of the Austrian OMV oil group.

The government is expected to combine Oltchim SPV assets with the Arpechim refinery, which was shut down by Petrom two years ago.  Oltchim acquired Arpechim’s petrochemicals business, including an ethylene cracker and low density/high density polyethylene extraction, in 2010, but then suffered from a serious feedstock shortage.

Companies in the Chinese consortium interested in buying the enhanced Oltchim package are understood to be Baota Petrochemical Group and Junlun Petroleum, while the Romanian bidder is said to be SIF Transilvania.     

Râmnicu Valcea-based Oltchim, with debts still amounting to 700 million euros ($967.2 million), employs around 2,000 and has been operating at less than 30 percent of capacity.   

The successful buyer of the package is likely to have to deal with environmental liabilities at the Arpechim refinery amounting to several hundred euros, according to Romanian media reports.


Comments

Sale of Romanian PVC producer Oltchim assets postponed again

Richard Higgs
EUROPEAN PLASTICS NEWS

Published: April 23, 2014 1:35 pm ET
Updated: April 23, 2014 1:38 pm ET

Post Your Comments


Back to story


More stories

California lawmakers give final approval to plastic bag ban

August 30, 2014 6:00 am ET

Under the measure, single-use plastic bags will be barred from California retailers, including grocery stores, convenience stores and drug stores, as ...    More

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Poor plastic coating prompts cable recall

August 29, 2014 2:10 pm ET

Australia's competition regulator, the Australian Competition and Consumer Commission (ACCC), has ordered a major recall of 2,485 miles of electrical ...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Chinese compounders seek market shares, often at the expense of margins

August 29, 2014 10:02 am ET

China's largest compounder, Kingfa Sci. & Tech. Co. Ltd., as well as its more automotive-focused counterparts Shanghai Pret Composites Co. Ltd. and Ch...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events