According to the plans, propylene producing installations and a power unit will have been erected by 2019. What is more, a terminal for liquid chemicals will also have been added to the Police port within that deadline. Ultimately, the terminal will be able to serve the largest in Poland LPG-carrying ships, and its operational capacity will increase twofold. The project will have been completed within the nearest four years, and its effects should be visible as soon as in 2019. The revenue of Grupa Azoty Police is expected to go up by circa PLN 2 billion and the profit - by hundreds of millions. Approximately 1000 people will be hired at the construction site, and after the plant becomes operational - about 200 persons will find permanent jobs there. A special vehicle called Grupa Azoty Celowa (project finance) will be responsible for the financial security of the transaction. 

 

According to the investor’s assumptions, due to the close-down of old plants that rely on outdated technologies and the growing demand for propylene, over the nearest years Europe is bound to become a net propylene importer. Only in Germany the yearly deficit of that material amounts to approx. 850 thousand tons.  For that reason - with the production at the level of 400 thousand tons, 150 thousand of which will be used for Grupa Azoty’s own purposes - Poland is sure to become an important producer of this key chemical semi-processed product.

 

Propylene and ethylene are two most crucial materials used in the chemical industry. Propylene is a necessary component in the manufacturing of plastics, it is also a base for other key in-process materials used in the production of OXO alcohol (solvents, acrylic paints, plasticizers) acrylic acid (acrylic paints, super-absorbing polymers), polypropylene used by textile and automotive industries (bumpers and battery castings) and package production (crates, containers, foil). 

 

“We can take pride in the fact that our national champion has decided to carry out investment projects that are of key importance for the future of the Polish economy.  The new investment fits into the European re-industrialization movement aiming to constrain industry development in Europe. The production of propylene (an important chemical semi-processed product) paths the way for further investments – thanks to this investment Poland may become an important manufacturer of even more advanced plastics. Having familiarised myself with the Police project, I am convinced that Grupa Azoty’s development strategy is effectively enacted”, - says Włodzimierz Karpiński, the Minister of Treasury. “Last year I talked about the increased presence of the Police port in Europe. The process is evolving and in effect, the operational capacity of the port is expanding. Today it is a platform between Poland and Africa. In 2019 – after the new terminal becomes operational – besides the solids, it will also be possible to offload liquid chemicals and fuels at the port. The maximum utilisation of the port and the geographic location of Police will allow us to boost the trade with our neighbours”, adds the Minister.

 

“We began constructing the currently operating installations half a century ago. Today we are rising to generational challenges by undertaking innovative investment projects.  Next generations will also benefit from our efforts”, says Paweł Jarczewski, the President of Grupa Azoty’s Management Board. “By making investments in key semi-processed chemical products we are building innovative Polish chemical industry and thus, we are gaining a competitive edge.  At the same time, Grupa Azoty effectively pursues the strategy it announced last year, which is to build the company’s value through organic growth.  In effect, its revenue structure should become more diversified thus improving the company’s business security and allowing it to enter a new market segment which is characterised by different business cycles.  The bottom line is that Grupa Azoty will extend its product offer and gain new markets and new sales opportunities”, he adds.

 

Grupa Azoty is on its way to increase its global footprint and to become an important European propylene exporter.  “We are working on the assumption that our output should reach approx. 400 thousand tons. About 60% of the output will be exported or used up by further installations, whereas the remainder is planned to be sold internally within Grupa Azoty, inter alia to the Kędzierzyn plant whose propylene demand should thus be covered in full”, says Krzysztof Jałosiński, the President of Grupa Azoty Police Management Board. “The name Grupa Azoty Police 2 was not selected at random, because we are in fact planning to build a new, equally productive plant.  This is a truly pivotal moment in the history of Grupa Azoty - the largest chemical company in Poland and one of the European leaders in the sector”, adds Krzysztof Jałosiński.

 

mab