Saturday, March 28, 2009

Romania's Oltchim to invest 500 mln euros by 2012

BUCHAREST, March 27 (Reuters) - Romanian state-owned chemical plant Oltchim will invest roughly 500 million euros ($670 million) by 2012, mainly on acquisitions, upgrades and boosting production, the economy ministry said on Friday.

The company, which plans to borrow the cash, has asked the government to guarantee 80 percent of the loans. European Union state Romania will wait for EU approval before issuing guarantees, the ministry said.

Oltchim had long-term debt of 637 million lei ($201 million) at the end of 2008.
Its investment plans includes buying the Arpechim petrochemical refinery from the country's top oil and gas group Petrom, owned by Austria's OMV.

On Friday, Oltchim shares traded 2.4 percent up on the day at 0.1720 lei, compared with a year low of 0.1090 hit on March 2.

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