OLTCHIM

Type
Internal restructuring
Country
Romania
Region
Macroregiunea Patru; Sud-Vest Oltenia; Vâlcea
Location of affected unit(s)
Râmnicu Vâlcea
Sector
Manufacturing
(20 - 21) Manufacture of chemicals and pharmaceuticals
20.1 - Manufacture of basic chemicals, fertilisers and nitrogen compounds, plastics and synthetic rubber in primary forms
20.13 - Manufacture of other inorganic basic chemicals
1,000 - 1,300 jobs
Number of planned job losses
Job loss
Announcement Date
18 February 2015
Employment effect (start)
Foreseen end date

Description

Oltchim chemical plant in Râmnicu Vâlcea will reduce the number of its employees by 1,000 in 2015. The company, which is controlled by the state, is preparing for privatisation ever since it entered insolvency two years ago. According to the unions, the restructuring disposes of over 17 million Euros for severance payments in 2015.

On 9 March 2015, the Oltchim creditors approved the reorganization plan, as proposed by its consortium of trustees. The plan is based on operational restructuring, corporate restructuring, partial or total conversion of debt into shares and the sale of the business. The plan is to become operational after its approval by the Court, set for 22 April 2015.

Currently, Oltchim operates at 30% of its capacity and 70% of its production is being exported.

Sources

  • 18 February 2015: Adevarul
  • 24 February 2015: Mediafax
  • 10 April 2015: Monitorul de Valcea

Citation

Eurofound (2015), OLTCHIM, Internal restructuring in Romania, factsheet number 78657, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/78657.