Oltchim said it has difficulties in funding working capital and it had to reduce its production to 30% of capacity.
Employees will take leave of absence by rotation between August 10 and August 31, and they will receive 80% of the base salary, according to a note sent to the Bucharest stosk exchange.
Currently, Oltchim has 3,454 employees, Constantin Roibu, company president and general manager, told MEDIAFAX.
End July, Oltchim’s board called a shareholders meeting to approve a plan to borrow a total EUR250 million. Oltchim intends to take two loans, of which EUR100 million would fund current investment and other upcoming projects, while EUR150 million would be used as working capital.
The company is 54.8% owned by the Romanian Economy Ministry, while German PCC SE holds 17.28% and British Carlson Ventures holds 14.02%.
Oltchim shares were down 15% Tuesday, the maximum allowed variation, while the market was losing 6% on average.