Czech Unipetrol permanently closes Paramo refining unit

02 July 2012 11:26  [Source: ICIS news]

LONDON (ICIS)--Unipetrol has decided to permanently shut the crude oil refining unit at its Paramo subsidiary because of increasing losses, low demand and refining overcapacity in Europe, the Czech Republic-based oil and petrochemical group said on Monday.

Paramo's production of bitumen and oil lubricants would, however, be maintained, it added.

Refining at the 20,000 bbl/day Paramo refinery in Pardubice, east of Prague, was indefinitely shut by Unipetrol at the end of May pending a review of future operations.

"In recent years, the Paramo refinery has seen deepening losses. Bad business results were caused by unfavourable macroeconomic conditions, low refining margins, refining over-capacity in Europe, and also by the low complexity and capacity of the refinery," said Paramo chief executive Milan Kuncir.

“The oil products and bitumen segments are not threatened by the changes. On the contrary, we are working on a project which should upgrade them and make them more attractive units,” he added.

The closure of the refining unit at Paramo will cost approximately 60 jobs, Paramo said.

Unipetrol is 63% owned by Poland's PKN Orlen oil and petrochemicals group.

By: Will Conroy
+44 20 8652 3214

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