Romanian Petrom Considers Shutting Down Doljchim Chemical Plant

Romania's largest oil company Petrom (SNP.RO) might shut down its chemical plant Doljchim, unless it can find a solution to continue operations, Petrom chief executive Mariana Gheorghe said Wednesday.

She said the company is considering either a temporary suspension in Doljchim operations or a permanent shut down.

"Unless we find a solution for Doljchim' situation, any option remains open," Gheorghe told MEDIAFAX.

Petrom officials have been searching for a partner to manage Doljchim, but with no results so far.

Doljchim's sales fell 37% on the year to 173,000 tons in the first semester, on lower demand.

Romania's chemical products market also decreased on scarce demand and difficult financing conditions, which triggered price cuts in return.

Petrom, owned by Austrian oil group OMV, Wednesday reported a net profit of 923 million lei (EUR1=RON4.2124) in the first semester, down 45% compared with RON1.66 billion in the same period a year before.

mediafax.ro