Treasury against consolidation of state chemical plants

IBM&F, Treasury Ministry adviser on privatization of heavy-duty chemical manufacturers, is recommending that the Treasury not consolidate its four main plants, as earlier planned. According to IBM&F, such a solution would be too costly, since the four companies, from Pu3awy, Kedzierzyn, Police, Tarnów, are diverse in terms of their product offering and financial situations. Analysts say that potential sector investors would not welcome consolidation, as they would prefer to invest in the most profitable divisions of specific plants. However, Treasury Minister Andrzej Chronowski, as well as the managers of the Pu3awy and Police plants, would prefer financial investors. Either way, the companies badly need cash, as the investment needs of the Pu3awy plant alone, for example, are estimated at $200 million. (Puls Biznesu, p.4)