PCC and Oltchim chairman at loggerheads

The ongoing two-year conflict between the management of the Oltchim Râmnicu-Vâlcea plant (OLT) and the Germans at PCC, has in the past few months escalated amid allegations thrown around by both sides.

PCC has filed a complaint with the DNA (National Anticorruption Directorate) against Oltchim boss Constantin Roibu based on allegations published in the local Râmnicu Vâlcea press on activities that would have prejudiced the company, while Oltchim wants to bring a court case against the Germans for allegedly abusing their status as minority shareholders and for keeping the company from achieving the budgeted indicators for 2009 and 2010.
At stake is control over Romania’s biggest chemical plant, which Roibu has been running for 20 years as a representative of the state, as the majority shareholder, with PCC being a minority shareholder with a 12.1% stake. At play are the privatisation of the plant, which has been recently brought up again by the IMF, and the fate of the company’s over 3,400 employees. PCC, which owns a chemical plant in Poland and is in competition with Oltchim on certain product segments, has expressed its intention to take part in the plant’s privatisation.
The Economy Ministry, which is Oltchim’s majority shareholder, has so far endorsed Roibu, voting in favour of the chairman’s proposals in the General Meeting of Shareholders.