Future of chemical plant ZAK in doubt after Ciech decision

One of the biggest domestic chemical plants, Zaklady Azotowe Kedzierzyn (ZAK), faces an uncertain future, in the wake of the refusal by shareholders to increase the capital of the company that had been lined up to buy it, Warsaw-based chemicals concern Ciech. ZAK had hoped to finalize the privatization quickly, after successfully completing negotiations with Ciech on investment and social programs. However, these hopes were dashed by the shareholders' decision, which means that Ciech cannot guarantee the financing of its bid. The deal was supported by former Treasury Minister Aldona Kamela-Sowinska, but now ZAK will have to wait for the new government to decide on a strategy for the chemicals sector. Any delay could prove fatal for the company, which is trying to cope with debts of several hundred million zloty. The works made a loss in the third quarter and faces further problems because of stagnation on the fertilizer market. It suffered another blow when the Energy Regulation Office (URE) refused to grant it a license to sell natural gas. (Puls Biznesu, p. 6) M.K.