MOL Group’s Slovnaft invested EUR 300 million in new facility for the production of low density polyethylene – LDPE4

• More than EUR 300 million have been invested by Slovnaft in the new production unit and its components
• Low density polyethylene production capacity will reach 220,000 tons per annum
• The contractor was a Maire Tecnimont Group, Italy
• After successful technology testing, start-up and guarantee testing, commercial production will start in early 2016

BRATISLAVA, 15-9-2015 — /EuropaWire/ — Slovnaft, a member of MOL Group, has completed installation of technology in new facility for the production of low density polyethylene – LDPE4. The company has invested more than EUR 300 million in units with the latest technology and other petrochemicals components which include reconstruction of steam cracker, construction of a logistics infrastructure and other technology. The production unit was today inaugurated at the Slovnaft refinery by State Secretary of Slovak Ministry of Economy Miroslav Obert, Chairman and CEO of SLOVNAFT, a.s., Oszkár Világi and representatives of contractors, Maire Tecnimont Chairman, Fabrizio Di Amato and TALKE Group CEO, Alfred Talke.

The production unit is capable of producing new types of higher quality polyethylene with minimal emissions, greater operating security and lower energy consumption. The LDPE4 will replace all Slovnaft’s previous operations in polyethylene production. Annual low density polyethylene production capacity will increase by 40,000 tons to 220,000 tons, mainly to be sold in foreign marketplaces. Slovnaft not only exports polyethylene to neighbouring countries such as the Czech Republic, Poland, Hungary and Austria but also to demanding West European markets including Germany, France and Italy.

“This new production unit improves our competitiveness and offers the chance to further expand to new markets. It also means long-term stability for the region in which we operate, for our employees and also for hundreds of our suppliers and clients,” said Chairman and CEO of SLOVNAFT, a.s., Oszkár Világi.

After completion of construction, technology testing, start-up and guarantee tests will run up to the end of November. Commercial production will then start at the beginning of 2016. The production unit will produce a plastic granulate which is further processed by customers to produce end products. Low density polyethylene is the basic foodstock of a wide range of products such as food and agricultural wrapping, toys, insulation, medical and hygiene aids as well as many materials used in construction and motor vehicle manufacture. Investments into petrochemicals production were financed in combination of own capital, loans from the EBRD, Eximbanka and commercial loans.

The new Slovnaft polyethylene production unit was built by Maire Tecnimont Group, through a consortium of affiliated companies comprising its main subsidiary Tecnimont, Italy, as well as Tecnimont Planung und Industrieanlagenbau, Germany.

Slovnaft is one of the largest investors in Slovakia. According to the current ranking by Trend Weekly, the company was the second largest investor in the country in 2014. Average annual Slovnaft investment over the last 10 years reached about EUR 130 million while over the last 3 years it has invested more than half a billion. Slovnaft also invests a significant amount in environmental protection projects, spending more than EUR 250 million in the last 12 years for this purpose.

SOURCE: Slovnaft

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