Written on 27.06.2011 - Industry
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PCC gains support for Oltchim restructuring

PCC is a chemical group occupying market-leading positions in Central Europe in selected product segments. The products are developed and manufactured at the PCC´s production sites in Poland - PCC Rokita S.A. and PCC Synteza S.A. - and at the laboratories of US-based PCC Chemax. Further to recent and ongoing investment in production capacity, the company has agreed to cooperate with Carlson Venture International in calling for an urgent restructuring of Oltchim, the Romanian chemical company ahead of its planned privatisation.

Together PCC and Carlson own 31.3% of the company. Carlson Ventures International bought 14 % in Oltchim earlier this year. With the support of Carlson, PCC plans to pursue its business plan for Oltchim, after having tried for years to impose its ideas, that were rejected by the company’s management.

Despite Oltchim’s financial struggle, the company’s management has continued to focus on buying used assets, such as the Pitesti refinery, which was closed down by OMV. The entire Oltchim management strategy, which aims at entering the oil refining business and investing huge amounts into an installation which has been closed down, which leads to increasing debts, is irresponsible and unrealistic, according to Carlson. PCC’s option focuses on Olthim’s products which can generate profit, as well as on greenfield projects, which will increase the company’s competivity, according to the two shareholders.

Oltchim holds debts of over EUR 550 million. Romania has pledged to privatize Oltchim chemicals producer at the request of the International Monetary Fund. The main shareholder in Oltchim is the Romanian state, with 54.8 % of the shares.

Oltchim currently has a market capitalization of EUR 97.9 million based on today’s exchange rate of RON 4.2635 for an EUR. Its share closing price on Monday was of RON 1.217 on the Bucharest Stock Exchange.
PCC is a chemical producer occupying market-leading positions in Central Europe and also in the whole of Europe in selected product segments such as polyols, chlorine, surfactants, phosphorus derivatives and bisphenol-A. The company’s main production site is located in the region of Lower Silesia in southwest Poland, in Brzeg Dolny near Wroclaw. Here PCC Rokita S.A., one of Poland's largest chemical plants, produces mainly polyether polyols for flexible and rigid PU foams. The production plant of PCC Synteza S.A. in Kędzierzyn-Koźle near Gliwice manufactures bisphenol-A, nonyl phenol, dodecyl phenol and Petrotex. Additionally, the company has an overseas subsidiary, PCC Chemax, Inc. based in Piedmont, SC, USA, runs laboratories for the development of specialty surfactants.