MOL Group's petrochemical projects in Hungary and Slovakia have reached significant milestones, including the inauguration of a new butadiene extraction unit and the completion of a new LDPE4 unit. The company is investing in new plants to manufacture synthetic rubber and increase production flexibility, aiming to strengthen its position in the petrochemical market.
Budapest – MOL Group’s strategic petrochemical projects have reached important milestones. In Hungary, a new butadiene extraction unit has been inaugurated today, while the construction groundwork of the new 60 kt/year capacity plant will begin in November 2015 at the site of MOL Petrochemicals in Tiszaújváros (Hungary). At the same time the new LDPE4 unit in Slovakia has reached mechanical completion and will start commercial production at the beginning of 2016.
MOL Group has been strengthening the competitiveness of its Petrochemicals business with significant investments at its plants in Hungary and Slovakia. In parallel, the new 130 kt/year butadiene extraction unit has been commissioned and full commercial operations are expected to begin in the current quarter. The unit, constructed at the site of MOL Petrochemicals in Tiszaújváros, will produce feedstock material for synthetic rubber. The unit has required capital expenditures of around USD 150mn to date.
Through a joint venture with JSR Corporation (JSR), MOL Group will start the construction of a new plant to manufacture synthetic rubber (S-SBR). This product is one of the most innovative raw materials for safe and fuel efficient tires. The construction groundwork of the new 60,000 tons per annum capacity plant will begin in November 2015 adjacent to the butadiene plant. The partnership with JSR provides MOL Group with the possibility to further expand its petrochemical product portfolio along the value chain, as a stable supply of feedstock material to the new plant will be secured from the butadiene extraction unit. It is expected that mechanical completion of the new S-SBR plant will take place within 2017. MOL Group holds a 49% stake in the joint venture whilst the remaining 51% is held by JSR.
In Bratislava, the construction of the new 220,000 tons per year capacity LDPE4 unit has reached mechanical completion and commercial production is expected to begin in Q1 2016. The new unit, which will replace three out-of-date units with a combined capacity of 180,000 tons per year, will increase production flexibility, reduce production costs, improve product qualities and ensure higher naphtha off-take from the refinery. The unit has required capital expenditures of around USD 350mn to date.
With 1.1 million tons per year external sales, MOL Group holds a leading position in the petrochemicals market in Central Eastern Europe and it’s a top ten polymer producer in Europe. MOL Group’s petrochemical business plays an important role in the company’s integrated Downstream value chain as 11% of the production of its refineries are destined for the two petrochemical plants in Hungary and Slovakia. In the first nine months of this year, MOL Group’s petrochemicals business segment represented 35% of the total Downstream clean EBITDA result.