Arpechim refinery in Romania set to return to state ownership

The Romanian state will take back the Arpechim refinery in Arges county, with state officials currently in talks with OMV Petrom representatives concerning the handover process, according to Gheorghe Davidescu, the Arges county prefect. The refinery should start working under state rule in April this year at the latest, according to Davidescu. It is set to be included in the privatization package together with Oltchim, which is due for sale to a private investor this year. Arpechim is the raw material supplier for Oltchim.

Over 250 employees of Arpechim refinery's 600 staff will be unemployed from March. The state could however ask laid off employees back to work after the takeover. OMV Petrom decided in March last year to close down the refinery and to lay off its employees. Later it decided to delay closing it down by six more months. In 2004, OMV bought Petrom, which owns the Arpechim refinery. A letter of intent agreed by Romania with the International Monetary Fund (IMF) in December last year however stated that the Government would not buy the refinery before Oltchim's privatization. editor@romania-insider.com