Ciech to become vehicle for chemical sector's consolidation

The Treasury Ministry managed to make changes in the chemical trading company Ciech's management at the company's shareholders meeting yesterday. The Treasury, which holds a 51.88% stake in Ciech, wants the company to become a vehicle for consolidation of the chemical and pharmaceutical sectors. The company will incorporate other state-owned enterprises (Chemia Polska and Miedzynarodowa Korporacja Gwarancyjna) and be floated on the stock exchange in 2003. First, however, Ciech will issue new shares, which will be given to the current shareholders, and thus increasing the control of the Treasury in the company. The newly appointed CEO Ludwik Klinkosz said Ciech would dispose of unprofitable or non-core assets, and focus production in its two soda producing plants Soda Matwy and Janikosoda. He also said Ciech was interested in acquiring selected installations from companies in the heavy chemicals sector. kp,bb