Close to end of privatization process, Romania hopes to re-start Oltchim plant in maximum one month

Romania's Economy Ministry is expecting the Oltchim chemical plant to be re-started in between two and four weeks, after having talked to the plant's management. Oltchim, which is currently subject to a privatization bid due to end today (September 20 ), also needs a loan of EUR 20 million that can only be granted after the Romanian state deposits a guarantee at EximBank. The plant halted operations due to lack of funding. “From our information, there are already more investors interested in placing offers for the plant, companies from the West, I mean. The two Romanian companies which withdrew their offers will improve them,” said Economy Minister Daniel Chitoiu. Friday (September 21 ) at noon the name of the Oltchim privatization winner will be announced. Representatives of the Economy Ministry also met representatives of the Oltchim employees, who have been on strike in recent weeks. The Government decided to offer emergency social aid, some RON 1,400 (the equivalent of some EUR 311 ), but only for employees who have a monthly salary below the gross average salary. The first attempt to end the privatization for Oltchim earlier this week ended with only three Romanian investors filing offers. PCC, currently minority shareholders in the company, Romanian investor Stefan Vuza, via Chimcomplex, and politician and media mogul Dan Diaconescu submitted offers for the chemical producer. The bid deadline was delayed from Monday to Thursday this week to allow Russian investor Gazprom to study the offer more, after Dan Diaconescu filed a law suit hoping to block the privatization process. Diaconescu asked the court to cancel the Emergency Ordinance that approved the privatization procedure, which now includes a RON 1.8 billion (just over EUR 400 million at the current exchange rate) debt to the Authority for State Assets Recovery (AVAS). Diaconescu submitted two more requests on September 17, asking for the cancellation of privatization procedures and the suspension of all privatization measures until the court has decided on the first request. editor@romania-insider.com