Monday, 21. November 2011.
Signed agreement on strategic cooperation
The Agreement provides three supports for economic-financial recovery of Petrohemija: restructuring of claims,realization of investment program and amendment of management system.
Under financial restructuring there is to be understood reduction of the level of total debts of the company for more than 150 million Eur (abt. 60%),with simultaneous change of share capital structure.By credit indebtedness of Petrohemija with guarantee of Republic of Serbia for financing the first phase of investment program (2012-2013) amounting 62 million Eur there will be increased production capacity of polyethylene in LDPE Plant (reconstruction) and HDPE Plant (capacity expansion) and enabled reaching positive cash flow from operational activity in 2014.
After that,there is foreseen realization of second phase of investment program (2014-2015) amounting 175 million Eur which includes increasing of energy efficiency in Ethylene Plant (reconstruction) and valorisation of propylene produced in NIS and Petrohemija (construction of a new plant for production of polypropylene) which will enable business growth by 2020.
Amendment of management system foresees increasing of participation in management by shareholders with significant share in capital,NIS and Srbijagas,but also engagement of recognized experts from international labour market in Managing and Executive Board of the company.