Hungary: Propylene Oxide Production Mol Group Signs Licence Agreements with Evonik and Thyssenkrupp for Polyol Project
For its strategic investment into the propylene oxide value chain, Mol Group is partnering with Evonik and Thyssenkrupp. The company announced that this project would be their largest investment project in 2017-21.
Budapest/Hungary — The license agreements will enable Mol Group to produce propylene oxide, a key component for the production of polyether polyols, the company announced. The Hungarian Group intends to become a significant producer of polyether polyols, high-value intermediates for products applied in the automotive, packaging and furniture industries.
The company has also entered into key contracts related to core technologies of the Polyol Project, which was announced in 2016 as part of the first investment cycle of the 2030 long-term strategy. The contracts concern the purchase of technology licenses and process design packages for the so called HPPO (hydrogen peroxide to propylene oxide) technology of propylene oxide production. The licensor of the hydrogen-peroxide unit for captive use is Evonik, while a consortium formed by Evonik and Thyssenkrupp Industrial Solutions licenses the propylene oxide unit.
The contracts also contain binding offers and pre-agreements regarding the later engineering and execution phases of the HPPO units by Thyssenkrupp and the purchase of proprietary catalysts from Evonik.
In addition, the group has selected Fluor as Project Management Consultant (PMC) for the front end engineering design and engineering, procurement and construction phases of the project. The licensor for polyether polyol technology as well as the contractor for the engineering of the utilities and other facilities are still being selected.
The Mol 2030 long-term strategy is earmarked around $ 1.9 bn in investments for transformational projects in the area of chemicals and petrochemicals for the period of 2017-21.
Propylene oxide based polyols serve as raw materials for polyurethane foams, which are widely applied in the automotive, construction, packaging and furniture industries.
The planned new industrial complex consists of the HPPO plants having 200 kt/year propylene oxide production capacity, several production lines for polyether polyols, utilities and other infrastructural investments.
Zsolt Hernádi, Mol Group Chairman-CEO commented: „Today’s agreement with our renowned partners marks an important step in the implementation of the Mol Group 2030 strategy, which will transform Mol Group into the leading chemical company in CEE. As a first decisive investment step, we will spend up to $ 1 bn on the Polyol Project and thus become a significant European player.”
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