The closure of the Arpechim Refinery in south Romania may have a domino effect among other refineries in the petrochemical and chemical industry, including Oltchim, a major plant in south Romania.

Oltchim trade union leader Mihai Diculoiu told that the closure of Arpechim would be a “disaster” for the Ramnicu Valcea-based Oltchim, considering that the main raw material used there, ethylene, is provided by Arpechim.

UPDATE 1: A top environment official, Emilia Dumitrescu of the Environment Commissioner’s Body for the county of Arges, says the refinery will not close immediately. She told that there was no precise deadline for the suspension of activities at the Arpechim Pitesti refinery. Activity at the plant was running in normal conditions on Tuesday.

UPDATE2: Petrom shares fell 4.72% on closing bell on Tuesday following news that the company starts closing down the Arpechim Refinery temporarily. Company shares were suspended from trading in the first hours in the morning.

Arpechim’s integrated environment authorization was suspended on Monday because the plant failed to accomplish two measures of improving environment protection and safety, which were needed to fall in line with EU demands. Arpechim is owned by Romanian oil company Petrom, a member of the OMVgroup.

Diculoiu said that a halt in ethylene deliveries would stop the installations used in PVC production. PVC covers some 70% of Oltchim’s turnover.

A member of the Oltchim board who refused to reveal his name also told that the withdrawal of Arpechim’s environment authorization may have a terrible effect in terms of ethylene deliveries. Ethylene, he said, cannot be taken from anywhere else because it can’t be transported through pipelines.