The special manager of the company, namely the corporation consisting of Rominsolv SPRL and BDO Business Restructuring RPRL stated in a press release that starting yesterday, the activity of Oltchim Ramnicu Valcea will be temporarily cut down for two months (July 29 and September 8, 2013) on ‘economic and technological grounds’, and 715 company employees will be sent into technical unemployment with compensatory allowance worth 80 per cent of the employee’s basic wage on 28 July 2013. The temporary cutback in activity resulted from the lack of raw materials, work capital and the reduced work capacity of several facilities.
According to the cited press release, the work schedule for the duration of the interval mentioned above will be five to four days a week for employees of the Petrochemical Department of Oltchim.
The Oltchim Ramnicu Valcea chemical production facility has been undergoing insolvency procedures since January 2013 and had been eligible for privatisation until June 2013. At the moment, the company is at 27 per cent work capacity. The memorandum with regard to rendering SC Oltchim SA insolvent was approved by the government on January 23, 2013. According to the legal administrator of Oltchim, the company reported an increase in the usage degree of production capacity of 21.83 per cent in June, compared to just 6.02 per cent in February this year, and a 23.52 per cent rate was estimated for July. For the following month, another increase in the usage degree of production capacity is expected, reaching 23.07 per cent.
The legal administrator claims that the production increase is reflected by the increase in turnover from EUR 5.4 million in February 2013 to EUR 9.1 million in June, translating into a 70 per cent bump in a 4-month-interval. Rominsolv SPRL and BDO Business Restructuring RPRL data show that a EUR 2.6 million reduction of losses was reported within the 4 months, the estimated EBIDTA for August being approximately EUR 0.8 million.