Bulgaria Chemical Industry Collapses over Global Financial Crisis

For the last three months of 2008 the total income of the five companies, Neochim PLC, Orgachim, Kauchuk J.S.CO., BG Polymers LTD, and Vidachim JSC, has decreased by 46,2%. Photo by photobucket.com

Bulgarian chemical companies have already been hit by the global financial crisis, and have seen a marked fall in profit.

This conclusion was made by the Pari Daily newspaper after analyzing the 2008 last quarter financial reports of the five biggest Bulgarian companies in the chemical business.

For the last three months of 2008 the total income of the five companies, Neochim PLC, Orgachim, Kauchuk J.S.CO., BG Polymers LTD, and Vidachim JSC, has decreased by 46,2%. The turnover lowered from BGN 159,7 M, for the third quarter of 2008, to BGN 85,9 M, for the October-December period.

"The chemical industry companies in Bulgaria indeed are the most severely affected by the financial crisis... The first half of 2009 results will be completely different from the results of the same period in 2008", the financial and investment company Bench Mark Group's Portfolio Manager, Konstantin Abrashev, commented.

Vidachim JSC, the biggest tyre production plant in Bulgaria, is the only one with positive results. Its turnover for the last quarter of 2008 increased by 63,1% compared to the previous period.

The fertilizer production plant, Neochim PLC, recorded a 65,3% decrese of its turnover for the last three months of 2008.

Orgachim, a leader on the paints and varnishes market in Bulgaria, lost 54,1% of its overall income for the 2008 last quarter. It is unlikely to expect positive results soon from the company, as the construction and real estate markets have collapsed since last year, Investment Advisor in KD Securities, Razvigor Hristov, said.

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