Joining a growing list of companies from over 30 counties that discharged approximately 50,000 employees, Rompetrol, Romania’s fourth largest companies in terms of earnings, gets a blow from the economic crisis, through its petrochemical division, Rompetrol Petrochemicals.
130 employees will take temporary layoff
Petrochemical division of Rompetrol will cut production of polymers in December 2008 – January 2009 and approximately 130 employees, namely 24% of its employees will take temporary layoff, as a result of the international crisis impacts, both national and international.
“It is a temporary measure that arises in the context of the market shrinkage, the focus being to re-balance production in terms with polymers demand, but also to avert the stockpiling polymers. Therefore, we decided to cut the polymer production by shutting down LDPE (low density polyethylene)plants in December 10, 2008 – January 31, 2009 interval and HDPE (high-density polyethylene) plants in December 1, 2008 – January 31 2009 interval”, said Dumitru Niculi, managing director of Rompetrol Petrochemicals.
Rompetrol is the fourth biggest companies in Romania in terms of earnings from sales registered in 2007.
The measure will affect employees in production and maintenance sectors, approximately 24% of them following to take a temporary layoff in December-January, under the provisions of the employment contract.
Although in January-September 2008 interval the company has raised its sales of end products by 40% (182, 000 tons) and by 61% its turnover (over 300 million US dollars), the operating profit was directly influenced by the hard market conditions and by the high costs of raw materials (propylene and ethylene).
Worldwide, the benchmark prices for petrochemical products registered a major downdraft in August-November 2008, of over 41% for polypr
