Wednesday, October 3, 2012

Slovnaft to cut 9 % of jobs, increase investments

Slovnaft oil refinery, the Slovak subsidiary of Hungarian MOL Group , follows the path of cutting jobs set by its parent company. MOL recently informed that as a part of optimization process around 700 emplyoees in Hungary will have to be laid off.

The company is struggling with sinking profits due to decrease in oil extraction,  dropping demand for oil products and limited operation of refineries all over Europe. During last four years, the demand for oil products in Europe has fallen by 10 %, with negative outlook.

7 % of 3600 equals 252

In the light of this devolopment also Slovnaft is planning to cut up to 9 percent of jobs. On Monday (October 1) Slovnaft spokesman Anton Molnar confirmed the intent for Slovak press agency TASR.

„I´m not able to state the exact figure of how many people will be affected by the rationalisation measures,“ Molnar said. „This may concern some 7 percent of the total staff at Slovnaft.“

The Slovak company currently employs around 3600 people which means that approximately 250 people might be dismissed. It will actually cut 9 % of jobs, as many of the positions are already vacant. 
On July 26, 2012, MOL Group launched the biggest recruitment campaign in its history named „Be the Change“. In September the second round of search for experts started.

Impact softened by investing

The spokesman of Slovnaft explained that from the perspective of regional employment the announced redundancy is set to be moderated through increase of investments.

Over the last 10 – 15 years Slovnaft annually spent 110 to 120 million euro on various investments. In the following years this amount should rise. In July the EBRD has granted MOL a loan for installation of new petrochemical unit and upgrade of the refinery´s steam cracker in Slovnaft.

On October 1 MOL took over a network of 124 pumping stations branded Pap Oil in the Czech Republic thus increased its national retail fuel market share of close to 5%.

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