A STRATEGIC PRIVATIZATION: Oltchim, the Odyssey goes on

Economy Minister Constantin Nita paid a visit to Oltchim petrochemical plant at the beginning of April, having talks with the company’s management and with the employees’ representatives. Judicial administrators and the special administrator also took part to the discussions. Minister Nita told the participants that “the privatization process must go on with determination, more efforts being needed to find solutions for financing the plant.”

The government is looking for a correct solution for such a huge plant as Oltchim, while “maintaining an active and open attitude in relation with the interested investors,” Minister Constantin Nita said.

In their turn, Oltchim representatives informed the minister regarding the problems they are facing, i.e. financing needs estimated to some 15 million euro to restart the equipment designed to increase the efficiency of the production capacities in order to reach the needed level of profitableness. The management also presented to the minister the planning for payment of due salaries to Oltchim employees. The employees are paid monthly, starting with September last year, with a delay of two months. Efforts are being made to reduce the time gap.

The Economy Minister thanked the employees’ representatives for their confidence and patience during this difficult period of time and asked them to further take a responsible attitude for everybody’s interests. “I want to send the government’s clear message. We want to find a solution to develop the plant, not to close it down. We all must be patient and have confidence that, in the shortest timeframe, Oltchim troubles will be over,” minister Nita said. He underscored the strategic importance Oltchim has in the government program, both from the from the jobs point of view, directly and horizontally, and from the point of view of the part Oltchim is playing for the national economy, being the sole producer of some basic produce for Romanian industry. New occupational chart

A new occupational chart of Oltchim petrochemical plant has come into force by April 8, 2014. The main organizational changes promoted by the special administrator targeted the reducing of hierarchical levels, eliminating responsibilities and authority overlapping between the Special Administrator (according to Law 85/2006) and the plant’s Director General. It also aimed the merging of functional and operational divisions.

The new occupational chart was presented during a meeting of the social dialogue partners at the Ministry of Economy. Oltchim employees’ representatives submitted in their turn suggestions in this regard.

“The changes to be operated in the company’s management structure aim at improving the management’s performance, while not affecting the selling procedure. We are not giving up Oltchim’s privatization. All our current efforts are meant to attract investments needed for running the integrated system of Otchim and the Bradu platform of Arpechim plant,” Minister Nita underscored.

Started two years ago, the Odyssey of privatizing the greatest industrial plant is far from reaching an end. It remains to be seen what kind of solution would be found and how fast, as none of the announced investors has taken any further steps beside statements.

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June 2017