- The contract is worth EUR 992,811,000 net for the basic scope.
- The total estimated budget is about EUR 1.5 billion.
- Hyundai and Korea Overseas Infrastructure & Urban Development Corporation may invest USD 80 million and USD 50 million respectively.
- Grupa Lotos may contribute up to PLN 500 million.
Contract Overview
PDH Polska S.A. has signed an EPC LSTK Contract with Hyundai Engineering Co., Ltd. for the comprehensive realization of the "Polimery Police" project. This contract marks a significant milestone in Poland's chemical sector.
Project Scope
The contract involves developing a new petrochemical complex, ensuring the achievement and maintenance of guaranteed parameters specified in license agreements for PDH and PP installations. The contractor will also obtain all necessary administrative decisions, consents, approvals, certificates, and opinions required by law, and conduct training for the company's personnel.
Project Components
The "Polimery Police" project consists of five sub-projects: a propane dehydrogenation installation (PDH Installation), a polypropylene production installation (PP Installation), a polypropylene packaging, storage, logistics, and forwarding system, an auxiliary system, and a Handling and Storage Terminal (gas terminal).
Financial Details
The contractor's remuneration is a lump sum of EUR 992,811,000 net for the basic scope. The total estimated budget for the project is about EUR 1.5 billion, with approximately EUR 1.2 billion allocated for investment outlays, including the contractor's remuneration, license purchases, preparatory works, and capitalized wage costs. The remaining amount will cover non-capitalized costs of PDH functioning, financial costs during the construction period, and reserves for debt service and potential cost overruns.
Investment and Financing
Grupa Azoty is nearing the development of the project's target financing structure. Initial capital investment declarations have been made by Hyundai and Korea Overseas Infrastructure & Urban Development Corporation, with potential contributions of USD 80 million and USD 50 million, respectively. Additionally, Grupa Lotos has signed a letter of intent to potentially invest up to PLN 500 million in the project.
