Chimcomplex has made a last-day bid for Oltchim and claims to receive support from the 6 billion dollars in turnover Tricon Energy, as a commercial partner, of five European banks coordinated by ING and two investment funds from London And Dubai. Thus, Chimcomplex aims at further setting up the Romanian Chemical Society – an important future player in terms of regional relevance in the chemical industry, says the company.
The business plan of this new entity is based on the relaunch of the Romanian chemistry, including the possibility of increasing the industrial production to more than 1 billion euros annually, in 7 years from the takeover, as well as job creation at over 9.000 directly and indirectly, as well as the diversification of the commercial operations across the region.
“I am optimistic and I believe in the good intentions of the decision-makers, respectively of the legal administrators and creditors of Oltchim, regarding the future of this Combinate – a symbol of the Romanian chemical industry and of all the people in Râmnicu Vâlcea, who are directly dependent on its good operation. The offer, which we have submitted is a fair, sustainable and well-assumed one, and the fact that we have the human resources, the know-how and the financial resources should be decisive in making a decision, so that Oltchim and Chimcomplex will revert to that standard which the Romanian chemical industry deserves internally and regionally through the Romanian Chemical Company”, said Virgiliu Bancilă, president of Chimcomplex, quoted by Agerpres.
The US giant Tricon Energy is reportedly supporting Chimcomplex, as a commercial partner, and also there a re five European banks two investment funds.
The SCR Group, which currently owns Chimcomplex, is the direct guarantor of the transaction, with over 120 million euros of assets. “Under these circumstances, it is obvious that we will not reduce any salary and we want to increase the income of all those who want to be actively involved in the positive restructuring of the company. As in 2003, in the privatization of Chimcomplex, we will do the same for Oltchim: we will know how to smoothly and successfully transition from the state system to the private one”, added Bancila.
The establishment of the Romanian Chemical Company will follow the recent examples from other neighboring countries, such as Poland, where 10 years ago it relaunched the fertilizer production by combining 16 state-own and private chemical plants into a new company – the Azoty Group. Other examples of centralization of operations at European level are BASF Germany, Dow Chemicals, Mol Hungary and Todisco Grup Italia.
The Romanian chemical industry has experienced a strong decline since the 1990s, when it was the world’s 10th largest producer, with a national share of 16,9% of total industrial production. Out of the 72 plants and factories only 14 remained in operation in 2016, which ensures Romania’s chemical production 11 times lower than that registered in 1990.
According to the release, the Romanian Chemical Company wants to be the company that will put again Romania on the map of the chemical industry in Europe, given the commercial force that the two combines will have together. “There are probably other competitors, but the only elite one is the German-Polish PCC giant, with whom we are ready to fight with all the weapons to defeat it. The sale of Oltchim is a major event in the Romanian economy and we would like to have support from the entire business environment, as we have received from the universitar level. We believe that the auction organizer will be fair and will declare us qualified in the direct confrontation with the PCC, following that the best bidder will win. The president of the SCR Group, Mr. Stefan Vuza has carefully prepared this transaction over the past two years, making considerable efforts to bring together caliber investors, such as the two investment funds managing each 11 billion euros, then the five banks that will join the union, as well as the business partners, from US Tricon, to the Romanian ones. We know that no prophet is loved in his own country, but however we hope to be finally selected for the job to begin the restructuring of Oltchim”, said Virgiliu Băncilă.