Chimcomplex Borzești, a member of the local SCR group owned by the Romanian investor Stefan Vuza, has submitted a bid to take over the assets of insolvent local chemical producer Oltchim Râmnicu Vâlcea, reports local Agerpres.

The bid is part of the group’s plan to set up a large, regionally-relevant, local chemical industry player, Compania Română de Chimie.

Eight investors submitted bids for Oltchim’s assets by the July 6 deadline set by the company’s judicial administrator. Among them are American group Louisiana Chemical and local railway freight carrier GFR Group, owned by Romanian investor Gruia Stoica. Other offers came from local companies. Meanwhile, German – Polish group PCC, a minority shareholder of Oltchim, hasn’t filed an offer.

Chimcomplex said it was joined by US giant Tricon Energy as a commercial partner, five European banks coordinated by ING, and two investment funds based in London and Dubai. The SCR group, which owns Chimcomplex, will be the director guarantor of the transaction, alongside four business partners. Out of these, one comes from Turkey, the other from Italy.

Chimcomplex has assets worth over EUR 120 million. The business plan of the planned new entity Compania Română de Chimie is based on re-launching the local chemical industry. It includes the prospect of increasing industrial production to EUR 1 billion yearly, seven years after the takeover. It also entails adding 9,000 jobs and diversifying commercial operations throughout the region.

Oltchim, which used to be the country’s largest chemical producer, entered insolvency in 2013.

Stefan Vuza previously said he was willing to invest up to EUR 100 million in Oltchim. He was only interested in the Oltchim plant near Ramnicu Valcea, without the Bradu petrochemical platform next to the Arpechim Pitesti refinery. In 2013, the group took part in the public auction to buy Oltchim, but lost to Romanian media owner Dan Diaconescu, who failed to pay the price and compromised the tender.

Oltchim reported a net profit of EUR 1.68 million in the first quarter of 2017, up 76% on the similar period of 2016. It posted a turnover of EUR 49 million during the same period.

editor@romania-insider.com