Mobile Navigation

Business & Economics

View Comments

MOL Petrochemicals lays foundation for new propylene plant

| By Scott Jenkins

An official foundation stone-laying ceremony of the new propylene plant of MOL Petrochemicals Co. Ltd. (Tiszaújváros, Hungary;, took place in Tiszaújváros, Hungary today. The plant is built as a greenfield investment for 65 billion HUF and will produce 100,000 tons of propylene, covering a significant rate of MOL’s chemical material need, increasing the self-sufficiency of the company. This plant will provide propylene for the polyol complex already under construction, turning Tiszaújváros into the chemical capital of the region. Building of the propylene plant provides thousands of job opportunities and creates competitive workplace in the long run.

The construction of the new propylene plant fits into MOL Group’s updated SHAPE TOMORROW 2030+ strategy, since with the help of this development the company can constantly increase the ratio of non-fuel products in its portfolio. MOL Group provides approximately USD 4.5 billion for investments that will turn Tiszaújváros into the main chemical capital of the region. The new plant has an important role in the course of developments, since it will provide stable supply of materials in three product lines of MOL  Petrochemicals. The 100,000 tons of propylene provides a quarter of the company’s total need.

Building the plant provides job opportunities for several thousand of people, the ratio of Hungarian contractors reaches approximately 50%. According to plans, the plant will start its operation in 2024 and it creates around 30-40 new competitive workplaces in the long run.

The investment represents the next milestone of a long-term process: MOL Group is running several developments in Tiszaújváros. The butadiene extraction unit and the synthetic rubber plant are already operating, and building the polyol complex is in its final stage as well, which is one of the greatest domestic industrial investments. Additionally, the process of modernization and extending the life of the Olefin-1 plant is also progressing well, which is currently the biggest efficiency improvement program on existing equipment in Hungary.

The Hungarian Government is supporting the investment with HUF 5 billion. At the ceremony, Péter Szijjártó Minister of Foreign Affairs, Zsolt Hernádi Chairman-CEO of MOL Group and Zsófia Koncz, Member of the Hungarian Parliament laid down the foundation stone of the plant.