Balan said the halt in production caused the company to lose contracts, which, he went on, will be renegotiated and Oltchim will be able to bounce back and regain ground. He added there will be no restructuring at Oltchim in the next six months.
Balan said he will do his best to set Oltchim in motion and pay the employees their back wages. He stressed it is a rough mission, but he will be able to accomplish it.
Oltchim’s Board on Tuesday appointed Balan as the company’s new general manager, just one day after the government has failed to complete the sale of a 54.8% stake in the financially-troubled company. Balan previously served as general manager of thermal power plant CET Govora.
Oltchim has 54.8% of its shares in the hands of the Economy Ministry, while Germany’s PCC SE holds an 18.32% stake.
The state’s stake was auctioned off for some 203 million lei (EUR45 million) on September 21, but the winner, a controversial local politician and journalist, failed to produce the money by the October 1 deadline.
Prime Minister Victor Ponta said Monday evening that Oltchim’s privatization would be resumed in 2013, pending a restructuring program due for presentation later this week.
Oltchim has total debts worth over EUR700 million. The company reported losses of around EUR42 million in the first half of 2012, more than double on the year.