Duisberg, Germany - PCC SE and Carlson Ventures International signed a Memorandum of Understanding (MOU) on 17 June, establishing an agreement to work together regarding troubled chemical producer Oltchem.
German company PCC and investment fund Carlson jointly own 31.3 percent of the majority state-owned Romanian company, which currently has debts of Euro 550 million ($793 million).
The two companies, who are the biggest minority shareholders in the firm, agreed in the MOU to participate jointly at the privatisation of Oltchim, once that process has been initiated.
This will allow PCC to implement its business plan for Oltchim, which produces polyether polyols and blends for use in rigid foam. PCC said in a statement that Carlson agreed with its belief that Oltchim needs urgent restructuring after holding meetings with Oltchim's management. "Following these meetings Carlson believes that the management of Oltchim SA does not have a real restructuring plan," the statement said.
Despite Oltchim's financial struggle, PCC said Oltchim's management have been focusing on acquisitions of devastated assets such as OMV's closed-down refinery in Pitesti, Romania. According to Carlson, the current management's strategy of entering the oil refining market and investing extremely high amounts into closed sites is irresponsible and unrealistic.
PCC's business plan highlights investments into Oltchim's products which can generate profitability, such as polyols and oxo alcohols, as well as greenfield projects which could increase the company's competitiveness.
Romania has said it will privatise the company at the request of the International Monetary Fund. The Romanian state is the company's main shareholder with 54.8 percent of the shares.