MOL Group lays foundation stone for £1bn petrochemical plant in Hungary

WCN Editorial Team 30 Sep 2019 EUROPE BUILDINGS

Hungarian oil and gas company MOL Group has laid the foundation stone for its €1.2bn (£1.06bn) petrochemical plant in Tiszaújváros, Hungary.

MOL Group chairman and C-CEO Zsolt Hernádi, thyssenkrupp Industrial Solutions Chemical & Process Technologies CEO, Sami Pelkonen, Hungarian Parliament Member Ferenc Koncz and Hungarian Finance Minister Mihály Varga took part at the foundation stone laying ceremony.

The Government of Hungary has provided an investment aid of €131m (£116m), which includes a combination of corporate tax allowance and cash investment grant, for the project. The plant represents the largest investment in MOL’s history.

Upon completion, the plant will be able to produce 200,000 tons of polyols annually. Polyol is a highly sought-after plastic raw material that is used across several industries ranging from automotive manufacturing to construction to the clothing industry.

MOL claims that the Tiszaújváros complex will produce polyol using efficient and environmentally friendly technologies including the HPPO process (propylene oxide from hydrogen peroxide) developed by thyssenkrupp and Evonik.

The new plant is expected to contribute nearly €150m per annum to the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA).

The petrochemical plantis expected to begin production in 2021. It will provide 200 permanent jobs in the region.

Hernádi said: “This investment project will make MOL Group one of the most important players in the region’s chemical industry, with MOL being the only Central and Eastern European company to control the entire value chain from crude oil extraction to polyol production.

“Once commissioned in 2021, the plant will further enhance the position of Tiszaújváros in the chemical industry, as the expertise and the new production infrastructure established here may attract additional investors to the area.”

Sami Pelkonen said: “Today marks an important step for the transformation of the chemical industry in Hungary as well as for the cooperation between MOL and thyssenkrupp.

“With its Vision 2030, MOL is pursuing an ambitious growth agenda. We are proud and sustainably committed to support this vision and to contribute with our technologies and know-how to an innovative and sustainable chemical sector.”

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Image: Ferenc Koncz, Zsolt Hernádi, Sami Pelkonen and Mihály Varga at the foundation stone laying ceremony. Photo: Courtesy of MOL GROUP.

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