01 December 2011 12:17 [Source: ICIS news]
LONDON (ICIS)--Slovnaft is to realise a €300m ($405m) investment programme that will include the construction of a 220,000 tonne/year low density polyethylene (LDPE) installation and the reconstruction of the company’s 210,000 tonne/year ethylene plant, the Slovak producer said on Thursday.
“Due to modern technologies, the new production unit, LDPE 4, will not only be able to replace all seven of our polyethylene [PE] production lines, it will also ensure an increase in polymer production by 42,000 tonnes/year [from the present 178,000 tonnes/year],” said Ivan Dezd, the director of Slovnaft Petrochemicals.
“The construction of the new installation is a key investment for the whole plastics market in central Europe and will ensure a long-term sustainable competitive advantage for our company,” he added.
“The economic crisis also affects our company but we do not regard reducing manufacturing activities and employment as the rational solution,” said Oszkar Vilagi, CEO of Slovnaft, which is owned by Hungary’s MOL Group.
“We orientate our business philosophy to social responsibility in this region,” he added.
LDPE 4, due to be in operation by November 2015 after two years of construction work, would produce 30 types of PE, enabling Slovnaft to pursue new customers throughout the EU, Slovnaft added.
The reconstruction of the ethylene unit would start next year, the company added.
Proven German technology would be used for LDPE 4, Slovnaft said, adding that the investment programme would include €150m to modernise the company’s heat plant and aim at reducing power consumption in the production of PE by 5%.
Between 500 and 1,000 people would be employed in rolling out the investment project, Slovnaft added.
($1 = €0.74)
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