Chemical sector zł. 1.4 billion restructuring strategy passed

Following several months of consultations, the government yesterday accepted a plan to restructure and privatize the chemical industry. The cost of the new strategy is estimated at zł. 1.4 billion, of which zł. 831 million will be covered by Nafta Polska (NP). The restructuring program envisages consolidation of fertilizer production around the plants in Police and Puławy, which will also encompass production facilities in Tarnów and Kędzierzyn-Koźle. As of August 31, chemical sector companies had liabilities of zł. 2.48 billion, of which zł. 888 million are credits and loans. The first phase of financial restructuring envisages the collection of the restructuring funds by NP. The government has given the green light for the company to embark in a bond issue, while the rest of the capital will be raised from European Bank of Reconstruction and Development loans. In return NP expects to receive the remaining shares the State Treasury has in chemical and oil industry companies. (Parkiet, p. 3; Puls Biznesu, p. 5) A.K.