Oltchim plant cuts losses by 30 pc

Chemical plant Oltchim Ramnicu Valcea, currently in insolvency, reported for Q1 a turnover of RON 136.2 M (EUR 30.2 M), 64.7 pc higher than a year ago, when it posted RON 82.7 M. The state company reported for January-March losses of RON 56.2 M (EUR 12.5 M), down 34.6 pc against the negative result of RON 86 M in the similar quarter of 2013. Nearly 67 pc of Oltchim’s turnover, i.e. RON 91.1 M, is generated by petrochemical operations.  “Cutting the losses was possible by better using financial resources, eliminating all the expenses that were not tightly related to the production activity (we reduced to minimum the expenses with third parties, service providing contracts, all consultancy contracts were terminated), and also by reducing the personnel through layoffs operated in June 2013,” reads the quarterly report of the company, sent Wednesday to the Bucharest Stock Exchange. At the end of Q1, Oltchim had total losses of RON 3,659 bln, insignificantly smaller than RON 3.662 bln in the first three months of last year, reveals the report.
Former employees continue their protests
Despite all these, some 60 employees of Oltchim yesterday morning launched a new protest in front of the Valcea Prefect’s office, demanding the due compensatory payments promised when they were made redundant in 2013, romaniatv.net reports. The former employees are upset because they were ignored by authorities, and shouted slogans against the government, the prefect, the Local Council and the management of the plant. The threatened to go on hunger strike if they are not paid the overdue compensations. Prefect Dumitru Cornoiu attempted a dialogue with the protesters and invited 15 of them for talks, but they turned down the offer saying that they want all to participate. Both the prefect ad the vice-president of CJ Valcea informed the protesters that the government has not provided in the budget the compensatory payments for those who lose their job and the money will be certainly paid after the privatisation of the chemical works. In June 2013, over 900 Oltchim employees were made redundant and the due compensatory payments were included in the debts of the company, which is insolvent since January 2013. At the end of Q1, Oltchim had 2,297 employees, down 30 pc from 3,272 in the first three months of 2013.
The state controls 54.7 pc of Oltchim, through the Ministry of Economy. The plant entered insolvency in January 2013. The numerous attempts to sell it these years failed. The latest was in March, when the state received no purchase offer.

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