Romanian railway group takes over bankrupt refinery Rafo to turn it into logistics hub

Romanian railway transport group Grampet, controlled by local businessman Gruia Stoica, took over the bankrupt refinery Rafo Onesti.

The value of the transaction is USD 6 million plus VAT according to official sources quoted by local Profit.ro.

The group plans to turn the refinery into a logistics center for containers and oil products.

Rafo Onesti went bankrupt last September after it had not operated since 2008 and had changed several shareholders in the last ten years. Roserv Oil, part of Grampet Group, took over the refinery's assets following an auction carried out by the court-appointed liquidator CITR.

The starting price announced in September was USD 44.6 million, and the minimum accepted price at that time was USD 29.75 mln.

"Unfortunately, the situation of the refinery, which has not been operating for more than ten years, did not benefit from investments in modernizing its technologies at the level of competitors and market requirements, relatively low production capacity and high costs for resuming operations, have made this sale procedure very difficult," CITR representatives said in a press release.

CITR has made ten attempts to sell the Rafo assets in the last three years.

The refinery's new owner plans to turn it into the biggest logistic center for containers and petroleum products in the northeastern region of Romania. Grampet will also assess the state of the equipment left on the industrial site and plans to restart some of them in partnership with specialized companies. The group estimates that the platform could generate over 600 jobs in the long term.

Founded almost 20 years ago, Grampet Group is one of the first multinationals founded in Romania and the largest railway group and private logistics operator in South-Eastern Europe. Its flagship company - Grup Feroviar Român (GFR), is the largest private railway operator in Romania. Through the Reva Simeria, Electroputere VFU Paşcani, Reloc Craiova, and Electroputere VFU Craiova factories, Grampet Group also holds a significant share of the rolling stock repair market in Romania.

(Photo: citr.ro)