“We focus on building new cogeneration high-efficiency capacities based on natural gas”

Chimcomplex (CHOB symbol) shares soared 11 times in 2021, registered an increase of over 1,000 percent since the beginning of the year, resulting in a market capitalization of 7.2 billion RON (1.4 billion Euro).

“Besides the reported very positive production and financial results I am glad that we kicked-off a competence development program for employees, encouraging them to participate on professional, digital and language trainings. This program provides a good platform to develop the new generation of leaders and managers,“ Tivadar Runtag, CEO Chimcomplex told The Diplomat-Bucharest.

“Chimcomplex successfully completed the three-year development plan 2018-2021 that began with taking over the core assets of Oltchim. By now we drafted the strategy for the coming years until 2030. Financial and ecological sustainability remain the guiding principle. We will explore group-level synergies under the umbrella of CRC (Compania Romana de Chimie) and integrate our activities into the European circular economy.“

COMMITMENT TO PERFORMANCE | BUSINESS EVOLUTION,  PROJECTS, PERFORMANCE, FIGURES  

“2021 was a year of rapid growth based on clarity, focus – and good luck. Chimcomplex – similar to peers in the global chemical industry – benefited from the abruptly increasing demand for flexible Polyols. However, we could have not capitalise on the market trend, should we not sharpen our strategy one year ago. Back in July 2020 we performed an analysis and made a conscious decision to become „Polyol Professionals“. We increased our production and sales exactly when the demand for our products started to boom. As in every business, being at the right place in the right time has an element of luck – but not only that.

The latest estimate of 2021 Sales, EBITDA and NIAT exceed by far the Business Plan. Chimcomplex paid back a big part of the loans, concluded new financing contracts of EUR 56.7 million with CEC Bank and Alpha Bank for the full refinancing of existing loans and for the development of new projects. The strong financial performance allows us to speed up the strategic investments in the area of Polyols specialities production and energy efficiency. Our strategic investment in the acquisition of CET Govora`s assets create a good potential both for the company and for the local community in Rm. Vâlcea.

Chimcomplex (CHOB symbol) shares soared 11 times, registered an increase of over 1,000 perrcent since the beginning of the year, resulting in a market capitalization of RON 7.2 bln (EUR 1.4 bln).

Besides the reported very positive production and financial results I am glad that we kicked-off a competence development program for employees, encouraging them to participate on professional, digital and language trainings. This program provides a good platform to develop the new generation of leaders and managers.“

STRATEGY & VISION |  RETHINK STRATEGY   & PRIORITIES

“Maintain focus is not easy when the World changes so fast. „Disturbing changes“ can be positive or negative. I give you an example for both. At the beginning of the year basic raw materials were missing from the market. Several competitors declared Force Majeure and let their Customers down. We took a different approach, we decided to deliver Polyols to every contracted Client of us. Therefore we accepted to pay higher price for imported raw materials, invested in extra logistics, re-organised the production units – and thus fulfilled our commitments. It was not an easy decision, but the feedback from our Customers confirmed that it was right. A „positive disturbance“ was in the middle of 2021, when we realised extraordinary revenues and the temptation was high to jump into new projects. It took us heated debates in the Management Team to conclude that the strategic investments in special Polyols, a high efficiency co-generation unit and the upgrade of electrolyzers remain priority. These are the basis of our sutainable growth.

Chimcomplex successfully completed the three-year development plan 2018-2021 that began with taking over the core assets of Oltchim. By now we drafted the strategy for the coming years until 2030. Financial and ecological sustainability remain the guiding principle. We will explore group-level synergies under the umbrella of CRC (Compania Romana de Chimie) and integrate our activities into the European circular economy.

In the short and medium-term, Chimcomplex will focus on modernizing CET Govora’s existing facilities as well as building new cogeneration high-efficiency capacities based on natural gas.

In the following years, Chimcomplex intends to implement complex solutions that include high-efficiency gas turbines, photovoltaic parks and energy production from hydrogen, as required by European directives to reduce the impact of carbon dioxide emissions.

Modernization of the electrolysis plants will strengthen the company’s position as a national leader in the production of hydrogen from water. At the same time, the emphasis is on digitalization and the start of green chemistry projects through which a new segment with sustainable products will open in the company’s portfolio.“

PEOPLE & COMMUNITY | FOCUS ON SAFETY, SOCIAL APPROACH, LEVERAGE THE POWER OF COMMUNITY

“This year we planted trees in Borzesti and Ramnicu Valcea, granted Christmas packages to families in need, supported students in their academic development. The action that mobilized most of our colleagues was a volunteering event with our employees, on the Olt riverside near our plant in Ramnicu Valcea. Beth Hart (Grammy-nominated internationally renowned blues artist) joined our volunteers in giving an example of responsible action towards the environment. Together we collected in a few hours 16 kg of plastic waste, 163 kg of bottles, 5 kg of cans and 23 kg of cardboard thrown away on the bank of the Olt River. The collected waste was taken by our partner the Children without Childhood Association who monetized it and with the money received helped children in need to go to school.

Involvement in education, environment and culture is the company’s commitment to actively participate in the life of the cities we operate and to positively influence the development of young people. We also supported Mentor Rock Association to organize the Open Air Blues Festival in Brezoi, Valcea.“

KEEN ON GREEN  |  SUSTAINABLE, GREENER,  COMMUNITY & ENVIRONMENTALLY-FOCUS

“Corporate Social Responsibility and Sustainable Development are not only slogans for us. We work every day for these.

We measure and report our carbon footprint in the European „Responsible Care“ program. Every investment proposal has an „Ecological Impact“ chapter – and this has to be supported with hard figures, based on the European „Taxonomy“ recommendations.

Our products are part of the solution to reduce CO2 emissions. At EU level, 40% of electricity consumption and 36% of CO2 emissions are generated by the building sector. Chimcomplex produces polyols, part of the polyurethane foams that represent the most efficient method of insulating buildings.

Increasing energy efficiency, capturing and re-cycling CO2 and plastic waste, the development and production of products that are part of the solution to reduce emissions – these are programs heavily promoted by the European Green Deal. We want to benefit from the available funds in order to put Romania on the World’s green map.”

DIGITAL DNA  | GRASPING TECH, DIGITAL INNOVATION, CUSTOMER -DRIVEN, BUILDING NEW BRIDGES

“The integration of the ERP and SCADA (production) systems is close to completion. A newly established Digital Transformation Department started to shape the way forward. As a first step, our employees participate on Digital Competence Development programs, that is a big success so far.

Already running projects address the activities in maintenance (Entreprise Asset Management System) and energy efficiency (Energy Management System). We are over the test period for a Customer Relation Management System (CRM) and the learnings will be used for the next stage. We are in the process to digitalise every document and there is a good chance to implement a system for logistics, too.

The main challenge for our Digital team will be to coordinate all these initiatives, to ensure that the processes are integrated, so that the created database can be used for optimised decision making.“

2021 IN  3 KEY WORDS

“Consolidation, growth and new perspectives”

2022 IN 3 KEY WORDS OR MORE

“Based on the achieved strong position, new horizons open for Chimcomplex. Being a member of CRC Group (Compania Romana de Chimie), the diversified new portfolio of activities will attract leading global and regional investors.”