PM says agreement reached to continue supplying Petrokemija with gas

Prime Minister Andrej Plenkovic said on Friday that agreement had been reached that Prvo Plinarsko Drustvo (PPD) should continue supplying gas to the Petrokemija artificial fertiliser producer, after he met with PPD and Petrokemija representatives.

Addressing the press at the government offices, Plenkovic called on Petrokemija's workers unions and employees to continue with their work, underlining the importance of Petrokemija's normal operations for Kutina, where the company is located, the region of Moslavina and Croatian agriculture.

"The Croatian government, as the majority owner of Petrokemija, will see to it that funds are ensured for Petrokemija's solvency. In the coming period, a solid and serious process of restructuring awaits us, including recapitalisation to ensure the company's long-term sustainability," said Plenkovic.

In the night between Thursday and Friday Petrokemija stopped producing ammonia, the basic material for the production of artificial fertilisers, and on Friday morning the company's workers sent a letter to the government fearing a complete production stoppage and expressing their concern about the uncertain fate of their jobs and the town itself.

Petrokemija employs 1,650 workers.

The workers said that as Petrokemija's majority owner, the Croatian government must say what it plans to do to ensure the stability of the company's operations and when it plans to do it.

Petrokemija CEO Djuro Popijac expressed confidence that the PPD's suspension of gas supply was only temporary while INA would continue supplying gas as it had so far.

Popijac also said that he was in contact with the government regarding the process of restructuring and that he expected a favourable outcome.

PPD CEO Pavao Vujnovac said that Petrokemija owed more than HRK 300 million to the PPD and that his company had given Petrokemija and the government, as its owner, time to "find a solution in the coming period that will stabilise the company's operations and reduce the PPD's risk exposure.

Text: Hina

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