Orlen has signed a final contract with Hyundai Engineering and Técnicas Reunidas for the implementation of the largest petrochemical investment in Europe, according to Daniel Obajtek, on signing the contract with the contractor for the construction of the Olefin III installation complex.
The total cost of the investment is estimated at approximately PLN 13.5 billion.
- Installation complex in the EPCC formula (Engineering, Procurement, Construction and Commissioning) for the ISBL scope with Hyundai Engineering and Técnicas Reunidas, the company from Płock said in a statement.
- As the concern estimates, the new Olefin complex in Płock will contribute to an increase in Orlen’s EBITDA by approximately PLN 1 billion annually and a reduction of CO2 emissions by 30%. per ton of product.
- The investment is part of the Petrochemical Development Program, which was announced on June 12, 2018.
As Orlen emphasizes, the investment brings specific benefits to the region and Płock. The extension of the Olefin Complex means new jobs. As a result of the project, ultimately employment at PKN Orlen will increase by approx. 380 jobs. The entire petrochemical investment will generate taxes for the budget in the amount of PLN 160 million.
The investment is part of the Petrochemical Development Program, which was announced on June 12, 2018. Apart from the extension of the olefin complex, the program also includes construction of the Aromas Derivatives Complex and expansion of phenol production capacity
The company’s strategy until 2030 assumed that the petrochemical segment would generate approximately half of the group’s profits from the processing of crude oil. The aim was, inter alia, “strengthening the position of the leading petrochemical producer in Central Europe”, assessing that it will be possible “thanks to the development of the current product portfolio and entering new business areas”.
“The concern will expand its capacity in olefins and other base products. It will also strengthen its position in the promising area of polymers, extending the value chain and entering the area of compounding and concentrates. At the same time, the share of specialized, high-margin products, such as phenol and aromatic derivatives, will increase in the Group’s portfolio from the current 16 percent to about 25 percent. ” – informed the concern from Płock, presenting the Orlen2030 strategy.