MOSCOW (MRC) -- The petrochemical activities of Romanian Rompetrol Group will be integrated in the refinery arm starting November, in a move designed to cut costs and increase the overall efficiency of the group’s operations, said Business-review.
The decision has been taken by the administration board of Rompetrol Rafinare on July 10 and shareholders will need to approve it on August 16.
"The integration of the two companies represents the continuation of Rompetrol Group’s strategy to concentrate the production activity in a single activity", said Rompetrol in a statement.
Rompetrol Petrochemicals is the only producer of propylene and polyethylene in Romania. Its assets amount to USD 132 million, according an estimate of PwC, the professional services firm.
The Rompetrol Group and other group companies control a 54.6% stake in Rompetrol Rafinare, while the state has 44.7% of the shares. Rompetrol Group is owned by KazMunaiGas.
Rompetrol Petrochemicals has Petromidia Petrochemical Complex, which includes 100,000 tonne/year high density polyethylene (HDPE) installation and a 60,000 tonne/year low density polyethylene (LDPE) unit.
As MRC wrote before, this year Ukrainian companies have significantly increased the imports of PP-homo from Saudi Arabia, India and the United States. The share of European producers has declined, the only exception made the material by Rompetrol production.
MRC