The Oltchim Union: The privatization of the plant should include the Arpechim refinery

• "We don't rule out starting a protest"

The Oltchim Free Union wants the privatization of the plant to include the Arpechim Piteşti refinery, said Mihai Diculoiu, the president of the organization. He says: "We are asking for a true privatization, in the interest of the future development of Oltchim.

This integrated system has worked since the creation of Oltchim, in 1966. The refinery and the petrochemical division of Arpechim Piteşti were supplying the basic raw materials, ethylene and propylene, for 70% of the output capacity of Oltchim.

Moreover, for the privatization to be a success, we want, prior to that, for Oltchim to access, based on the European and national legislation, a loan of 40 million Euros necessary for working capital (for raw materials, utilities, salaries), which would allow the functioning of the installations in Râmnicu Vâlcea at a 65% production capacity, while turning out an operating profit".

In order to privatize the plant in an integrated manner, the plant must first take over the Arpechim refinery from Petrom, the union leader says.

On the other hand, he pointed his finger at the Ministry of the Economy, unhappy with the fact that it has not yet implemented the decisions of Prime Minister Victor Ponta of July 19th, 2012, to increase the share capital of Oltchim, by converting the debt towards the AVAS into equity, as per the approval of the European Commission, and the accessing of a loan of 40 million Euros for working capital, in the pre-privatization period.

If the privatization of Oltchim will be conducted in the manner suggested by the union, the situation will improve for the employees of the plant, Mihai Diculoiu considers. He went on to say: "On the other hand, if the privatization will be done with minority shareholder PCC, which said that it opposes the takeover of the Arpechim refinery, it will only maintain three installations in the production stream of Râmnicu Vâlcea, keeping only 500-700 employees out of the nearly 3,400, it currently has".

If the privatization of Oltchim were done in an integrated manner, including Arpechim, the two entities would have about 4,500 employees, because the refinery will have to hire 1,000 people, after being taken over.

On the other hand, 7,000 more jobs depend on Oltchim continuing to function, from companies in Vâlcea and Argeş, which provide the raw materials, prime, utilities and maintenance.

Mihai Diculoiu also said that the close to 3,400 employees of Oltchim haven't been paid since June, which amounts to about 7 million Euros in back wages.