Chimcomplex, the largest chemical complex in Romania, temporarily suspended production activity at its Borzeşti industrial platform for a period of 14 days starting on August 18.
The company said the decision was made "taking into account increasing prices for electricity and natural gas", according to a note to investors published by the Bucharest Stock Exchange.
At the beginning of the month, the company temporarily closed its other industrial platform located at Râmnicu Vâlcea, “until the problems are fixed and the supply of energy and steam is resumed”. The Râmnicu Vâlcea platform was closed for a period of 14 days starting on August 4.
In separate news, Chimcomplex reported its profit plummeted in H1 and announced that it expects the negative trend to continue until the end of this year.
The company’s net profit shrank by 42% y/y to RON166mn (€33mn) in H1, while its turnover increased by 7% to RON1.2bn.
The expenses, however, rose by 37% to close to RON1.2bn, putting pressure on the net result.
Chimcomplex shares lost 21% in 2022, but were up 110% in the last 12 months, on transactions of RON66.3mn, Bucharest Stock Exchange data show. The market value of the company is RON6bn.
In 2018, Chimcomplex, controlled by businessman Stefan Vuza, started building a regional chemicals giant with its takeover of Oltchim, another major chemicals company in Romania. Later that year it announced ambitious investment plans for the next five years, including investments of €115mn in its production platforms at Borzesti and Ramnicu Valcea.
It said at the time that the group plans to increase its output from 500,000 tonnes, which is the combined output of Chimcomplex and Oltchim before the takeover, to 700,000 tonnes within five years. In value terms, Chimcomplex envisages €1bn overall turnover at the end of the five-year period.
Before Russia’s invasion of Ukraine sent energy prices soaring, Chimcomplex made a strong start to 2022, when it was promoted to the main market of the Bucharest Stock Exchange after its shares soared tenfold over the year.