Constantin Roibu, Oltchim general manager for the past 20 years, says he is willing to resign if German-held PCC pledges to restructure the company.
Roibu’s statement comes as Oltchim has recently temporarily laid off one third of employees until the end of this month as the company is unable to secure its working capital. This is not the first time Constantin Roibu resorts to such a move, as the Ramnicu-Valcea company has been making losses and has been operating way below projected capacity for around three years, pointing to the critical situation the company is now in.
German-held PCC, which owns 18.2% in Oltchim stock, rejected Roibu’s proposal, though, and said it will turn around and restructure the complex only after it takes over control in a transparent privatization process.
PCC has blocked Oltchim management’s efforts to cut debts over the past three years and has thus entered an open conflict with Roibu, who accuses it of intending to take over the plant and close it down to get rid of competition.
The government has pledged to start Oltchim privatization by yearend, and PCC teamed up with Britain’s investment fund Carlson Ventures to take part in the privatization. PCC and Carlson jointly own 33% in Oltchim stock and the state has 55%.
Oltchim general shareholder meeting is scheduled for next week, with one of the heaviest agendas in terms of the number of proposals to be discussed by the company’s shareholders.
One of the most important issues on the agenda is the proposal by the Finance Ministry regarding separating the chairman and general manager positions. If accepted, Roibu will lose the chairman position and his influence inside the company will be significantly reduced.
Oltchim shareholders will also discuss taking out loans worth EUR150 million for the working capital needed for Oltchim-Arpechim to operate at full capacity, and another EUR100 million for investments in the unit and in the petrochemical business.
(English version by Catalina Apostoiu; Editing by Loredana Fratila-Cristescu)