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Propylene Production Polish Grupa Azoty to Start Large Modernisation Project

| Editor: Manja Wühr

With its new modernisation project worth 1,7 Milliarden PLN the Grupa Azoty wants to become Europe's major propylene exporter. The chemical group expects a growing demand for propylene in Europe.

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Grupa Azoty's largest project to date covers among others a PDH unit for propylene production.
Grupa Azoty's largest project to date covers among others a PDH unit for propylene production.
(Picture: ZIMMER DIMITRI/Fotolia)

Tarnow/Poland – By 2019 the Group aims to build Europe's largest and most advanced PDH unit for propylene production, sited in the town of Police. 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. Ultimately, the terminal will serve the largest LPG vessels in Poland, with its capacity expected to double. 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.

"Our projected output is approximately 400 thousand tonnes. Of that amount, around 60% will be sold for export or used in other process units. The remainder will be sold internally to other Group companies, including the Kędzierzyn plant, fully covering their propylene consumption needs," commented Krzysztof Jałosiński, President of the Grupa Azoty Police Management Board.

Polish Chemical Industry

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 2bn in revenue and hundreds of millions of złoty in net profit every year. A total of 1,7 Milliarden PLN are provided for this project. The financing for the project will be secured through a dedicated project finance SPV.

“The production of propylene, as a key chemical intermediate, paves the way for building other process plants capable of making Poland an important producer of technologically advanced plastics,” said Włodzimierz Karpiński, the Minister of State Treasury.

“The existing process plant dates back to half a century ago. Today we are facing challenges that will have implications for future generations, and in tackling them we plan for and implement innovative projects. And future generations will be among the beneficiaries,” said Paweł Jarczewski, President of the Grupa Azoty Management Board. “Through investments in key chemical intermediates we are building an innovative chemical industry with a global competitive advantage.”

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