The profit of Romanian chemical group Chimcomplex (BVB: CRC) collapsed by 71.5% y/y to RON 76 million (over EUR 15 million), according to the preliminary results published by the company.

"We are above indicators in a context where the European chemical industry is facing its most severe economic recession in the last 6 decades: demand is decreasing, investments are moving to other regions, and energy and gas prices are 400% higher than in the USA, China, and the Arab Countries," said Ștefan Vuza, president of Chimcomplex.

In Europe, chemical plants that continue operations are running at half capacity, and 26 of them have closed permanently (75,000 employees have been laid off), he explained.

Chimcomplex reported its revenues dropped by 43.4% y/y to RON 1.36 billion (EUR 270 million) in 2023.

The company cut expenses by 38.7% y/y to RON 1.29 billion but could not avoid a sharp contraction of the profit.

Chimcomplex CEO Vuza is among the European industry leaders who signed, on February 20, the "Antwerp Declaration" - an urgent call to revitalize European industry, strengthen core industrial sectors, and ensure their competitiveness and resilience in the context of geopolitical changes.

"It is now understood, after 2 years of misinformation, that without industry, Europe will collapse! We hope that the 10 proposals of the declaration will materialize into laws that will then be correctly implemented," he explained.

iulian@romania-insider.com

(Photo source: Facebook/Chimcomplex)