Propylene Production Azoty to Build its Largest Project to Date

Editor: Dr. Jörg Kempf

By 2019 the Grupa Azoty Group aims to build Europe’s largest and most advanced PDH unit for propylene production, sited in the town of Police. With its new project worth PLN 1.7 bn (€ 0.4 bn), the largest in its history, the Group confirms it is ready to deliver on its ambitious plans for domestic and international expansion.

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Once completed, the new propylene unit will also significantly strengthen the Group’s position in the Oxoplast segment.
Once completed, the new propylene unit will also significantly strengthen the Group’s position in the Oxoplast segment.
(Picture: Azoty)

Police/Poland – In addition to the PDH unit, the project involves the construction of a power generating unit and expansion of the chemicals terminal in the port facilities owned by the Group. In terms of its size, the project is comparable to building an entirely new chemical plant in the Szczecin region.

Following successful consolidation of the Polish chemical industry, in which Poland’s four largest chemical companies were combined into a single entity, the Grupa Azoty Group has been able to grow its top-line by the year, while expanding its own feedstock supply and production base. From 2010 to the end of the consolidation process, the Group's revenue climbed from PLN 1.9 bn to PLN 9.8 bn. We expect the new project to ultimately add another PLN 2 bn to our annual revenue.

The PLN 1.7 bn Capex project involves the construction of propylene production and power generating units and extension of the Police port facilities to include a liquid chemicals handling terminal. Ultimately, the terminal will serve the largest LPG vessels in Poland, with its capacity expected to double.

The project is scheduled for completion within the next four years. Its first effects on the financial performance are expected to be seen as early as 2019. It will contribute around PLN 2 bn in revenue and hundreds of millions of złoty in net profit every year. Some 1,000 staff will work on the project construction site, and following the launch of commercial operation the plant will give permanent employment to around 200 people.

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