OMV Petrom in Romania has had to close its Arpechim Ploiesti Refinery because the company did not manage to find a buyer for the business.
In 2010, the refinery was not in operation for nine months because it could not fund its operations and now because of the closure, 700 employees have been laid off although they will receive payouts.
The company says in a statement that: ‘The option of selling it, which the company analysed for one year, has not been achieved, as no credible buyer has been identified, one to have expertise and financial capabilities to safely and sustainably operate the refinery.’
It is thought that one of the reasons why the refinery was not economically viable was because the site did not have access to the sea.
Petrom says it expects more refineries to shut throughout Europe over the coming years and says last year only 4 in 10 refineries were still functional.
However, Petrom’s closure does not seem to have harmed business. The company says in 2010 it made a record profit of €520 million, more than 2.5 times its profit in 2009.