"InterAgro" looking to become its own energy supplier

• The group will invest another 40 million Euros in energy production

• Niculae: "In the coming period, we will focus on the energy industry"

The InterAgro group, one of the largest players in the domestic agricultural and chemical sectors, intends to invest in energy production from now on.

Businessman Ioan Niculae, the chairman of the InterAgro group, said: "We will focus on the energy sector, from now on. I think the energy industry has a bright future ahead. I"m talking major investments in the sector, people capable of making that kind of investments, and I think the InterAgro group has this kind of people".

Niculae said that, aside from biofuel, InterAgro will also invest in the production of electricity: "We are also talking about producing electricity in a highly efficient, cogeneration system. Cogeneration means that the same energy source - in our case, natural gas - generates both steam and electricity at the same time. Otherwise, we will be forced to buy electricity from the system, which is usually very expensive and has a lot of distribution and transport fees, and at the same time, burn gas to generate the steam that we need anyway to manufacture biofuel and to use in the chemical industry".

The businessman said that he hasn"t yet drawn up the investment budget of the group for 2011, but said that InterAgro wants to invest about 40 million Euros in the energy sector. Ioan Niculae explained: "There are several ongoing investments, in the energy sector in particular. The total investment in energy is about 75 million Euros, of which 35 have already been spent. That leaves another 40 million Euros to complete the five cogeneration plants of Turnu Măgurele, Slobozia, Bacău, Piatra Neamţ and Făgăraş".

The company officials said that the design of the coal-based thermoelectric plant of Turnu Măgurele is at an advanced stage.

The last major investment of the InterAgro group in the energy sector was that of 100 million Euros in the bioethanol plant of Zimnicea - "Bio Fuel Energy", which is the first of its kind in Eastern Europe and was launched in 2009.

• "We await the answer of OMV for the acquisition of Doljchim"

Businessman Ioan Niculae mentioned that he is waiting for an answer from "OMV-Petrom" on the takeover of chemical plant Doljchim. He said: "We are still negotiating, for our part we did what all they asked. We made them an offer in which we take on all the environmental duties and all the obligations arising from the labor contracts. Moreover, there is the guarantee that within five years, the plant will resume its operations and will return to its basic activities. We are awaiting their answer; they promised that they would reach a decision by the end of 2010".

• "I don"t know what I"m going to do with the chemical plants in 2011"

Even though the chemical industry accounts for 75% of the turnover of the InterAgro group, Ioan Niculae claims that he doesn"t know what he is going to do with the chemical plants next year. He is extremely unhappy with the fact that his plants no longer benefit from the exclusive use of natural gas produced domestically.

Niculae also said that, starting with January 1st, 2011, his companies will also no longer benefit from the discount of 30 dollars per one thousand cubic meters for gas bought from Romgaz. "I don"t know what the price we are going to pay for gas next year will be; with this government, you can"t even plan ahead for one month, let alone for a year", Niculae said.

The businessman warned that he is considering shutting down all the chemical plants on April 10th, if things in the chemical industry don"t improve.