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Rompetrol Petrochemicals reduces 55% polymer production

Rompetrol Petrochemicals, the petrochemistry arm of Rompetrol Group, will reduce, December 2008 - January 2009, its polymer production by 55%, due to the influences of the economic crisis, and 24% of the employees will be placed on short-time working this period, the company informs.

'This is a temporary measures brought by the constraints of the relevant market, being necessary to adjust the production to the polymer demand. Thus, we have decided to reduce the polymer production by shutting down the LDPE (low-density polyethylene) installations 10 December 2008 - 31 January 2009 and HDPE (high-density polyethylene) December 2008 - 31 January 2009', explained Dumitru Niculi, CEO of Rompetrol Petrochemicals.

Although the company increased by 40%, January through September 2008, its sales of finished products (182,000 tonnes) and by 61% the turnover (over 300 million dollars), the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were directly influenced by the unfavorable market conditions and the high costs of the raw materials (propylene, ethylene).

Rompetrol Petrochemicals will continue the development of the investment plans, with the main objective being the re-start the pyrolysis installation that will ensure the necessary raw material for the LDPE and HDPE installations. The company's investments in 2008 are estimated at 9.5 million dollars, whereas their total for the 2003-2007 period amounted to over 67 million dollars.

The said installations have a nominal capacity of 60,000 tonnes and entered conservation in 1996 due to the lack of the raw material - the ethylene. The company allocated over 30 million dollars in 2006 (LDPE) and over 14.5 million dollars in 2007 (HDPE) to restart these installations and to build a maritime terminal of liquefied gas.

At present, the company numbers 531 employees, and in the first 9 months of 2008 it posted some 300 million dollars in turnover, up 61% against the similar period in 2007.

 

Sursa: http://www.rompress.ro

Tags: million dollars production polymer petrochemicals rompetrol