Midtown Blogger/Manhattan Valley Follies: Warsaw Voice- Building Europe's Biggest PDH Propylene Plant

The Warsaw Voice » Business » March 30, 2015

Grupa Azoty to build Europe’s biggest PDH propylene plant

March 30, 2015

Article's tools:

Poland’s chemical giant Grupa Azoty has approved a PLN 1.7 billion investment in a new Propane DeHydrogenation (PDH) propylene production installation at its Police unit, the largest in the company’s history, Grupa Azoty said in a market filing citing a decision from its supervisory board.

The investment, which will create Europe’s biggest production plant for propylene by 2019, will increase security of Police's propylene supply and allow for now development paths thanks to broader possibilities of propylene processing, the filing reads. Propylene is a key chemical in the production of plastics and solvents.

Azoty expects ca. PLN 2 billion revenue growth and several hundred million zloty profit increase thanks to the investment,

"The investment will be realized over the coming four years, and its impact on financial results will be visible already in 2019," the statement reads. "Revenues of Grupa Azoty Police will increase by around PLN 2 billion, while its profits - by hundreds of million zloty."

The new installation is expected to produce 400,000 tons of propylene a year, making Azoty an important European exporter, the firm said in the press statement.

"According to our estimates, around 60% of the output will be allocated for exports or used in subsequent installations," Police CEO Krzysztof Jalosinski is cited as saying.

Azoty estimates propylene deficit in Germany alone at ca. 850,000 tons a year and in Poland at ca. 150,000 tons, CFO said.

After the production launch, the plant will employ around 200 people, the firm also said.

Grupa Azoty sported PLN 9.9 billion in consolidated revenues in 2014. Police's group revenues measured PLN 2.4 billion.