Budapest meeting spawns new globalisation strategy

09 August 1997 00:00  [Source: ICB]

Several central European petrochemical companies have joined forces to plan the industry's future following a conference organised by Hungarian firm TVK.

At a recent meeting in Budapest the region's major players, including Chemopetrol from the Czech Republic, Borsodchem of Hungary, Dow Europe and experts from Chem Systems, decided on a strategy to combat the globalisation of the petrochemicals industry, which threatens to marginalise smaller producers.

Top of the agenda was the construction of a central European ethylene pipeline providing the companies with a regular supply of feedstock. There are already several smaller pipelines in the area, such as TVK and Borsodchem's link with Oriana in the Ukraine, but the lack of a comprehensive system means many countries face supply problems. TVK chairman Miklos Varhegyi has been pushing for such a project for some time.

'The basic idea behind the discussion was to try and smooth the ethylene supply system,' said TVK spokeswoman Laura Dosa. 'An additional topic was the potential construction of an ethylene cracker alongside a pipeline.'

A cracker would require cooperation between the companies as none yet has the capability to build one on its own. No concrete plans were laid down at the meeting.

'It was a useful meeting,' said Dosa. We are starting to think together, which is important for the future of the industry in this part of Europe.'

Those attending agreed to meet for further discussions in Prague this autumn.

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