Tarnów stuck
The Tarnów chemical works is facing a serious problem in its privatisation bid. No-one wants to buy it as a whole. The problems appear to be its unprofitable PVC and fertiliser production. The treasury is adamant that it will sell the firm as a whole only despite the fact that this decision is clearly the reason why the plant cannot be sold. However when the whole situation is considered this standpoint is difficult to justify. The plant employs 3,705 people and some of them would lose their jobs if an investor bought only the most attractive elements of it. The situation would be all the more difficult now that Tarnow must compete with the other soon to be privatised chemical plants at Pulawy, Kędzierzyn and Police. Management at Tarnów is doing what it can to find a consortium to take the plant or other solution although it does not wish to comment on the situation. It is rumoured that Tarnów is trying to open a consortium with the Polish Ciech, Solvay, the Ukrainian Orian which is part of Lukoil as well as the Italian Aquafil. It is possible that a financial backer is also involved. The money could be obtained from a German bank and invested in PVC production. Solvay has denied its involvement in a consortium although the German BASF which has shown an interest for some time continues to push its case. Perhaps it is worth remembering that in PVC production BASF and Solvay have a joint venture called Solvin.