Balan will replace Constantin Roibu, who stepped down from his general manager position in mid-September at the government’s request.
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.
The government will also lodge a legal complaint against Dan Diaconescu, the winner of the auction, alleging he hasn’t acted in good faith.
Additionally, the head of the Economy Ministry’s privatization office will be dismissed in a few days, once the privatization process is officially annulled, Ponta said.
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.