Romanian Times reported that the supervisory council of OMV Petrom has decided to close permanently the Arpechim Ploiesti Refinery because the company could not find a buyer for it.
OMV Petrom said in a statement that the Arpechim Refinery was operational for only three months last year, due to economic reasons. The over 700 employees who will be laid off will receive compensatory wages of up to EUR 10 million.
The decision was taken in conformity with Petrom's strategy to maximize profits and to raise efficiency.
The company said that "The option of selling it, which the company analyzed for one year, has not been achieved, as no credible buyer has been identified, one to have expertise and financial capabilities to safely and sustainably operate the refinery."
Arpechim is a refinery which does not have access to the sea, it imports crude oil and exports finite products.
Mr Neil Anthony Morgan, member of the Petrom directorate, responsible for refinery, said in the statement that "In addition to the fundamental economic challenges, a small refinery, inefficient and without sea access, the international environment for this industry is an unfavorable one, with several refineries in Europe closing down, after unsuccessful attempts to sell them."
Petrom estimates the refinery capacity in Europe will be significantly reduced in the next few years, saying that in Romania only 4 out 10 refineries were operating last year.
Parts of the Arpechim headquarters will then be used for storage, it added, saying the fuel supply in Romania will not be affected.
Arpechim Ploiesti refinery was established in 1964 and it was initially built to be part of a petrochemical complex.
OMV Petrom registered in 2010 a record profit of EUR 520.2 million, 2.6 times higher compared to the profit in 2009, this being the highest since its privatization back in 2004.
Austria's OMV owns 51.01% of Petrom stock shares, while Romania's economy ministry holds 20.11%, the European Bank for Reconstruction and Development has a 2.03% stake and 6.21% of shares are traded on the Bucharest Stock Exchange.
(Sourced from www.romaniantimes.at)
