Press release
March 18th, 2009
PCC rejects conflict of interest claim over Oltchim buyout
17 March 2009 15:32 [Source: ICIS news]
PRAGUE (ICIS news)--Germany's Petro Carbo Chem (PCC) on Tuesday rejected claims that it is attempting to take control of Romania's Oltchim because its Polish subsidiary PCC Rokita is a direct competitor of the firm.
PCC said that Oltchim was mostly involved in polyvinyl chloride (PVC) production whereas the Polish company concentrated on polyols.
“It was correct to say Oltchim also had polyols capacity but the two companies are very much different in their product range and geographical target markets,” said PCC development manager Wojciech Zaremba.
Oltchim spokeswoman Mirela Pitu had earlier said: “PCC is preparing and developing capacities of production in segments similar to those included in Oltchim's development programme… this betrays a conflict of interests.”
“It's not correct to accuse PCC of being interested in Oltchim having difficulties as we perceive Oltchim as having a great chance for development under PCC,” Zaremba said.
PCC, which holds 12.9% of state-controlled Oltchim, wants to negotiate a takeover and rescue plan for the loss-making and debt-ridden pesticide and plastics manufacturer with the Romanian government.
By: Will Conroy
Oltchim risks bankruptcy over investment strategy - PCC
16 March 2009 16:32 [Source: ICIS news]
PRAGUE (ICIS news)--Romanian pesticide and plastics manufacturer Oltchim will very likely suffer a "huge-scale bankruptcy" if it persists with its current investment programme, Germany's Petro Carbo Chem (PCC) said on Monday.
PCC, which holds 12.9% of the state-controlled company, wants to negotiate a takeover and rescue plan for Oltchim with the Romanian government.
"Oltchim management wants to run away from the factory’s problems by implementing a large investment programme instead of analysing the reasons why Oltchim generates losses first … Investing large amounts into a company without prior restructuring is like pouring water into a bucket without a bottom,“ the company said in a statement released by PCC development manager Wojciech Zaremba.
Oltchim last year reported "frightening losses" including a net loss of €52.8m ($68.1m), twice as high as the loss suffered in 2007, said Zaremba.
"PCC observes a very high risk that the €440m debt of the company will escalate to €1bn in a very short time," the statement added.
"The financial condition of Oltchim has steadily deteriorated over the last few years despite the fact that the chemical industry worldwide enjoyed a period of great prosperity from 2003 to mid-2008 … this company was in difficulty way before the financial crisis started," Zaremba said.
Oltchim's current strategy has seen it begin negotiations with a local bank to secure a €100m loan for the acquisition of the petrochemical operations of Romanian Arpechim, owned by Petrom. It also wants to secure the conversion into equity of debts owed to state privatisation agency AVAS.
"We will be releasing an official rebuttal of PCC's claims and plans in coming days but I can tell you for now that any privatisation plan, any company sale plan in this financial crisis is crazy,“ said Oltchim deputy general director Radu Olaru.
"PCC has no solution and no plan for this company,“ he added.
Oltchim's product range includes caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including polyvinyl chloride (PVC) insulating products.
By: Will Conroy
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