Soda ash producer Ciech Soda Romania, part of the Polish Ciech group, could initiate closing the production at its factory in Râmnicu Vâlcea (southern Romania), starting September 18, 2019. The process could affect 500 of the company’s 600 employees, the company announced in a press release.

The Polish group said it could be forced to close production due to the surge in costs with raw materials.

Following an accident in June, Ciech’s industrial steam supplier CET Govora had to terminate the contract with a three month notice period. After the accident, CET Govora has to outsource coal production, which resulted in a 135% higher price asked to Ciech, which the Polish group doesn’t see as viable to continue production.

“Advanced analyses of available scenarios are underway, including the possibility of acquiring a new, cost-effective source of steam in cooperation with external partners. Further decisions in this regard will be made towards the end of the year,” the press release issued by Ciech reads.

Ciech bought soda producer Uzinele Sodice Govora in December 2006 from local investors Marius and Emil Cristescu.

The Polish group had clashes with steam supplier CET Govora in the past and threatened to lose production several times when CET Govora increased prices. CSR produces soda ash, water glass, sodium silicate, and soda derivatives. 

(Photo: ciechgroup.com)

editor@romania-insider.com