MOSCOW (MRC) -- Poland's state-controlled companies Grupa Lotos SA and Grupa Azoty SA plan to build a 12 billion zloty (USD3.9 bln) petrochemical plant as part of the government's plan to strengthen national champions, as per 4-traders.
Seeking ways to give the economy a boost, the government has turned away from its pre-crisis declarations of continuing asset sales while keeping only a handful of companies it sees as strategic. It has adopted a more hands-on approach that focuses on strengthening the state companies it still has and using them to start new projects, mostly in heavy industries.
The two companies, Lotos and Azoty, signed a deal on Tuesday to conduct a feasibility study for a petrochemical plant to be located near Lotos' refinery with the chemical group Azoty the main customer.
The companies have up to PLN750 million tentatively available in financing from the government's investment vehicle, Polskie Inwestycje Rozwojowe.
Last year Prime Minister Donald Tusk said the government wants the corporate sector to increase its investment drive, making up for weak public investments in the face of public spending limits.
In order to make financing of such ventures easier, the government set up the PIR investment vehicle, which has only signed one financing deal--with the Lotos refinery.
As informed previously, the project will cost 5-6 billion zlotys (USD1.6-1.9 billion) and its construction is scheduled to begin in 2014 or 2015. The plant should be ready by 2018. The new plant would be adjacent to the Gdansk-based Lotos refinery and would use its products.
As MRC reported earlier, in November 2013, Grupa Lotos selected Axens to provide the technology license for a new Coker Naphtha Hydrotreater at its Gdansk refinery. This contract is part of the Gdansk refinery development and modernization program based on heavy residue coking technology.
Grupa LOTOS is one of the largest companies in Poland. It is an oil company operating both in Poland and abroad, whose business consists in the extraction and processing of crude oil, as well as wholesale and retail sale of high-quality petroleum products. Apart from Grupa LOTOS, which manages the refinery in Gdansk, the LOTOS Group currently comprises 15 other companies operating under the LOTOS name. One of them is based in Lithuania and another one in Norway.
MRC