“Naftan” and “Palimir” Get Ready For Issuing Shares :: Charter'97 :: News

Employees of the two largest enterprises of the oil chemical industry “Naftan” and “Palimir” at the ir conferences in February has decided on issuing shares. The both plants need reconstruction and upgrading of the equipment badly. Only the upgrading of the units of the “Naftan” would cost USD 246 million. Besides, it is planned to revive the unit AT-8, that has been standing still for more than 10 years. “Palimir” has similar problems. The warehouses are full to capacity with the products. It cannot compete. To cut down the expenses for its manufacturing and improve its quality, the modernization is needed as well. The companies lose markets, and it would not be easy to return to them. “Naftan” has already been ousted from Ukraine.

Even though in the last two years raw materials’ processing has grown by 20%, and the quantity of the export has grown by 10%, it is getting harder to hold positions at the market. There is only one way out – to attract investments.

‘Naftan” was offered investments by the Russoan company “Surgutneftegas”. Companies “Slavneft”, “LUKoil” and “Itera” seem to be interested too. But the working control of shares would remain in the hands of the state.

There is a possibility of merging of “Naftan”, “Polimir” in one holding. The registration of the new joint-stock companies is planned for the end of March.