MOL Group Expands with New Butadiene Plant in Hungary
- A new 130 kt/year butadiene unit in Hungary cost USD 150mn and starts commercial operations this quarter.
- A 60 kt/year synthetic rubber plant, in partnership with JSR, begins construction in November 2015.
- A 220 kt/year LDPE unit in Slovakia, costing USD 350mn, starts commercial production in Q1 2016.
- MOL Group's petrochemicals business represented 35% of total Downstream clean EBITDA in the first nine months.
New Butadiene Unit in Hungary
A new butadiene extraction unit with a capacity of 130 kt/year has been inaugurated in Tiszaújváros, Hungary. The unit, which required capital expenditures of around USD 150 million, will produce feedstock material for synthetic rubber. Full commercial operations are expected to begin in the current quarter.
Synthetic Rubber Plant
In partnership with JSR Corporation, MOL Group will start constructing a new synthetic rubber (S-SBR) plant with a capacity of 60,000 tons per annum. The construction groundwork will begin in November 2015, adjacent to the butadiene plant. Mechanical completion is expected within 2017. MOL Group holds a 49% stake in the joint venture, while JSR holds 51%.
LDPE Unit in Slovakia
The new LDPE4 unit in Bratislava, Slovakia, has reached mechanical completion and will start commercial production in Q1 2016. This unit, with a capacity of 220,000 tons per year, replaces three outdated units with a combined capacity of 180,000 tons per year. The project has required capital expenditures of around USD 350 million.
Market Position
With 1.1 million tons per year in external sales, MOL Group is a leading player in the Central Eastern European petrochemicals market and a top ten polymer producer in Europe. The petrochemical business is integral to MOL Group’s Downstream value chain, with 11% of refinery production destined for its plants in Hungary and Slovakia. In the first nine months of the year, the petrochemicals segment accounted for 35% of the total Downstream clean EBITDA.