A joint investment by chemical holding Grupa Azoty with oil firm Grupa Lotos is likely to be postponed, according to sources cited by business daily Parkiet.
The two companies had planned to build a petrochemical production unit in Gdańsk for an estimated zł.5-6 billion.
The unit would comprise an installation for the production of raw materials used in plastics processing, as well as an essence production unit. Lotos would provide its existing infrastructure, while Azoty would be the main recipient of the produced goods.
However, according to sources quoted by the daily, the companies are far from completing the studies necessary before the project is launched. Furthermore, both parties may have trouble with financing the investment. Support from the government's Polish Investments program is possible, but it cannot exceed zł.750 million.
“If Azoty will be forced to spend several billion złoty on this project, I think they could have a problem with financing,” Łukasz Siwek from Millennium brokers told the daily, adding that he has doubts whether the company will decide to take out a loan to cover the costs. “My guess is that they will issue bonds,” Siwek said.
Grupa Lotos spokesperson Marcin Zachowicz is optimistic, however. “Analyses are in progress and at this stage we do not see threats to this investment,” he told the daily.
Meanwhile, Lotos CEO Paweł Olechnowicz told ISBnews that more information about the project would be available in late November.
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