The Turkish Yildirim Group stated on Monday it had so far delivered on all its promises regarding Petrokemija and offered reassurances that it would streamline the Kutina-based artificial fertiliser producer and boost its production.

“We would like to purchase Petrokemija and we undertake to implement all the projects under the investment plan which have not yet been carried out. We have the know-how for a turnaround,” says this Turkish group privately owned by the Yildirim family, based in İstanbul, with operations in 53 countries on five continents.

We will enhance the quality of products and excellence in business processes as well as awareness of environment protection through our investments, reads the group’s press release.

In order to corroborate these claims, Yildirim says that they have already made successful improvements in the Turkish Gemlik manufacturer of artificial fertilisers and that they have taken over the Belgian-Dutch Rosier and salvaged that company when it was on the verge of bankruptcy.

The group says that it has fulfilled all the requirements in the last two years and provided the Croatian Ministry of Economy with the explanations of it investment plan and business plan for Petrokemija.

The press release reads that the group is currently supporting Petrokemija with €15 million, despite the fact that the transaction has not yet been finalised.

All that is prof that Yildirim is making efforts to prevent the deterioration of the situation in Petrokemija, it says.

Yildirim agrees with the 10-year investment plan which envisages HRK 600 million in investment in ecological improvements and strategic plans to streamline Petrokemija.

Yildirim says that in their capacity as the future owner of a 54% stake in Petrokemija, they are ready, together with other shareholders, to make financial investments in the development of the company “or find on the financial market the optimum financial structure for financing the company”.

They are agreed with the adopted five-year business plan for operation at full capacity, provided that market conditions allow that, reads the press release.

Ministry participating in talks on investments, not on ownership of Petrokemija

On 20 March, the Economy Ministry said  it is participating in talks on further investments in Petrokemija, as envisaged by a contract for a fresh capital injection in the fertiliser manufacturer, but the ministry is not taking part in the negotiations on a majority owner.

The ministry said then that it is taking part in talks on further investments envisaged under the contract for the restructuring and recapitalisation of Petrokemija in order to protect the interests of the investors and other shareholders in this Kutina-based company.

As for the negotiations conducted by INA and the PPD company with the Yildirim Holding on a majority owner of Petrokemija, the Ministry of Economy an Sustainable Development is not taking part in them, nor is it acquainted with the relevant contract, the Ministry told Hina.

The fact is that Yildirim Holding can become a majority owner by purchasing the majority stake, the Ministry noted in its response to Hina’s query, explaining that there is no need for its consent for the ownership transfer.

The Yildirim Group has begun the process of acquisition of Terra Mineralna Gnojiva, which owns 54.52% of shares in Petrokemija, INA, PPD and the Yildirim Group said in a joint statement on 11 November 2022.

Due diligence and negotiations took slightly more than two years. The value of the transaction was not disclosed.

However, the transaction has not yet been finished, and the developments prompted the trade unions active within Petrokemija to call for restarting production at the company after a year-long break and completing the transfer of ownership of a portion of the shares.

About 1,300 workers are fearing for their jobs.