|The project involves building an ethylene and propylene production plant.|
Courtesy of Lotos
Chemical holding Grupa Azoty and oil firm Grupa Lotos have announced plans to carry out a zł.12 billion petrochemical investment. On Tuesday, the companies signed an agreement to establish an SPV responsible for the investment and to carry out a full feasibility study, having already undertaken initial research.
Grupa Azoty and Grupa Lotos also signed an agreement with state investment vehicle Polskie Inwestycje Rozwojowe, which will provide financing of up to zł.750 million for the project.
Both companies might look for a third partner, possibly from abroad. “If another company would be interested in acquiring large quantities of semi-finished products from the facility it would be logical if they would join our enterprise,” said Grupa Azoty deputy CEO Witold Szczypiński.
Lotos CEO Paweł Olechnowicz added that the number of shares for each investor shouldn't exceed 30-35 percent. He also said that going public with the project is also a possibility.
The project involves building an ethylene and propylene production plant. The companies plan to make a final investment decision in 2014 and construction could take place in 2016-2018. The plant would then launch production in 2019.
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