Wednesday, 30. November 2011.
Ciric and Kravchenko in Petrohemija
First they joined an organized tour to the High Density Polyethylene Plant (HDPE), and then took part in a press conference where the Agreement was presented by Ciric, Kravchenko and Petrohemija’s CEO, Sasa Pavlov. They all expressed their beliefs that the signed Agreement on Strategic Cooperation makes a ground for Petrohemija profitable operations in future with no losses after 2014.
“This Agreement provides financial restructuring, investment program and changes in the company management“ – said Minister Ciric. He also said that Petrohemija would get a loan, having the Republic of Serbia as a guarantor, for financing the first phase of investments in the amount of 62 million euros, which will cover HDPE and LDPE plants capacity increase in 2012 and 2013. In the second phase of investments, which will take place in 2014 and 2015, further 175 million euros will be invested in energy efficiency increase in the Ethylene Plant, and for erection of a new plant for polypropylene production.
Petrohemija’s CEO, Sasa Pavlov, pointed out that as from 2014, Petrohemija shall be profitable company along with Pancevo Oil Refinery. He also anounced changes in Petrohemija’s management system in a short time, where shareholders NIS and Srbijagas will take higher share, and also some recognized experts from the international labour market will be engaged. For Petrohemija’s Managing Board Srbijagas will appoint Ms Mila Mladenovic, and NIS’s representative will be Mr Nicholas Petri, Deputy CEO in NIS, while Mr Ivan Soucek, former CEO of Czech Refineries, will be engaged as an independent expert.
NIS CEO, Kirill Kravchenko said that he expects Petrohemija will reach success similar to that of NIS. He also said that after restructuring of Petrohemija’s obligations towards the government, NIS will become the largest shareholder of the company (33.6 %) and that after the investments completion Petrohemija will become profitable, and able to even more enlarge its export.
After the press conference, Minister of Economy and Regional Development, Nebojsa Ciric, NIS CEO, Kirill Kravchenko, and Petrohemija’s management had a meeting with representatives of Petrohemija’s three Trade Unions.