11 July 2012 12:10 [Source: ICIS news]
LONDON (ICIS)--Polish refiner Grupa LOTOS has made its first move into petrochemical production with the opening of a 120,000 tonne/year mixed xylenes (MX) plant, the company said on Wednesday.
The output of the installation in Gdansk, on the northern coast of Poland, will be sold to Mitsubishi International Corporation in Dusseldorf, Germany – a wholly-owned subsidiary of Japan’s Mitsubishi Corporation – under a 42-month MX contract worth zlotych (Zl) 805.3m ($235.5m, €192.2m), it added.
Grupa LOTOS can be expected to expand further into the petrochemical industry, chief executive Pawel Olechnowicz said at the MX plant opening ceremony.
The MX plant will process surplus volumes of reformate from the Gdansk refinery's catalytic reforming unit, which was previously exported.
MX, which is used as a petrochemical feedstock for polyester production, fetches higher margins than reformate, noted Grupa LOTOS director of operations Marek Sokolowski.
“Looking ahead, we see attractive profit margins on sales of xylenes,” he added.
With less demand for gasoline, Grupa LOTOS is keen to support profits by diversifying into the alternative production lines offered by the petrochemical sphere, Sokolowski said.
($1 = €0.82)
($1 = Zl3.42, €1 = Zl4.19)
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