Polymers MOL Collaborates with PRS for Supplying Circular PE and PP

Editor: Ahlam Rais

Under the strategic supply chain partnership, the MOL Group and PRS will work together to deliver packaged polyethylene and polypropylene created from reusable pallets at MOL’s sites in Tiszaújváros, Hungary and Slovnaft in Slovakia. With this move, the Group aims to become a vital player in the circular economy in Central and Eastern Europe.

Related Companies

The partnership is in line with MOL Group’s long-term ‘Shape Tomorrow’ Strategy 2030+ for both optimizing the efficiencies of the supply chain and reducing the company’s carbon footprint.
The partnership is in line with MOL Group’s long-term ‘Shape Tomorrow’ Strategy 2030+ for both optimizing the efficiencies of the supply chain and reducing the company’s carbon footprint.
(Source: Deposit Photos)

Budapest/Hungary – MOL Group has recently signed a strategic supply chain partnership with PRS, a leading supplier of sustainable wooden pallets to the polymer and petrochemical industry. The partnership will ensure the deliveries of packaged polyethylene (PE), and polypropylene (PP) from MOL Petrochemicals’ sites in Tiszaújváros, Hungary and Slovnaft in Bratislava, Slovakia on pooled reusable pallets, creating a seamless and more environmental-friendly logistics process.

The process involves the retrieval, repair and recycling of pallets – a circular movement of hundreds of thousands of sustainable wooden pallets which, compared to the previous one-way pallet model, saves up to 54,000 mature trees from being cut every year. This partnership is fully in line with MOL Group’s long-term ‘Shape Tomorrow’ Strategy 2030+ for both optimizing the efficiencies of the supply chain and reducing the company’s carbon footprint, as well as becoming the key player in the circular economy in Central and Eastern Europe.

PROCESS Insights 2020-01
Current Challenges for Polyethylene Market and Projects

Polyethylene is one of the most widely used plastic resins in the world, accounting for over 1/3rd of the global plastics market.

While the market has been growing in the past, it is now experiencing a reduction in price that can be traced back to several factors including trade disputes, bans on single use plastics as well as overproduction. These factors are further exacerbated by the recent outbreak of COVID-19, which has an effect on the global economy.

This 11-page Expert Insight further explores reasons for the decline as well as possible strategies to mitigate these problems.

PRS, a subsidiary of the Faber Halbertsma Group, operates a pooling system which repatriates, repairs and reuses pallets as part of a perpetual cycle. “Within the partnership, we are working collaboratively with the whole MOL organization – from procurement to sales and logistics. The additional benefit of our partnership with the MOL Group is an easier collaboration with our converter community,” said Rinus de Kok, Commercial Director at PRS.

“This is a major shift for MOL Group, moving from a position of a buyer to becoming a fully-active player in the circular economy. Besides very important environmental sustainability, we significantly improved our operational sustainability as well as the quality of our packaging material, which is appreciated by the customers and also logistics employees,” said Tomáš Marek, from MOL Downstream Petchem Logistics.

Bence Körmendi, MOL Group’s Petrochemicals Business Unit director, said: “Circularity in our complex supply chain is the only way forward for MOL Group as it helps reduce our environmental impact at a time when many multinational organizations are committing to more sustainable approaches. PRS has a strong legacy over many years of working collaboratively and cost-effectively in the pan-European circular economy - experience that makes them a reliable business partner.”

Subscribe to the newsletter now

Don't Miss out on Our Best Content

By clicking on „Subscribe to Newsletter“ I agree to the processing and use of my data according to the consent form (please expand for details) and accept the Terms of Use. For more information, please see our Privacy Policy.

Unfold for details of your consent

(ID:47343312)