Oltchim’s judicial administrator Gheorghe Piperea has explained that the decision to resort to lay-offs was triggered by the need to make some savings, as asked by the petrochemical plant’s owners and by its business partners. He has also explained that except for those made redundant, another 500 employees will be affected by technical unemployment. The measure is aimed at ensuring monthly savings of 2 million euros.

After a failed privatization attempt in 2012, Oltchim has been declared insolvent early this year because of a huge debt worth almost 800 million euros. The situation has become even more difficult in time, with the plant’s employees taking to the streets in protest against not having received their salaries for three months and against the absence of a real strategy likely to make Oltchim profitable again. In the meantime, Oltchim employees have finally received their due salaries and Economy Minister Varujan Vosganian said that funds for wages this month have been secured.

Varujan Vosganian: “The salary fund for the month of April has been secured. The emergency ordinance will put an end to any conflict related to salaries, so from that perspective Oltchim’s problems are solved. As far as the other problems facing the company, we will start consultations with potential investors and are working on a rescue plan, so that by mid-year we can come up with a clear solution for Oltchim.”

In an attempt to save Oltchim, the Government is trying to secureloans, after the European Commission rejected the idea of a state subsidy for the plant, arguing Oltchim had already been granted such support in the past. According to Minister Vosganian, 15 million euros are needed for Oltchim to operate at half its potential.

On the other hand, employees with other important state companies struggling with debt and which are to be restructured will benefit from the government’s emergency ordinance. Among them are the National Freight Company CFR Marfa, the airline Tarom, the gas distribution company Transgaz and the NuclearElectrica atomic power plant.