25 September 2012 13:22 [Source: ICIS news]
LONDON (ICIS)--MOL is to invest forint (Ft) 30bn ($137.2m, €106.1m) in a planned butadiene (BD) plant as part of a Ft300bn three-year investment programme in its home market of Hungary, the oil, gas and petrochemicals group said late on Monday.
Announced in February this year, the plant is to be located in Tiszaujvaros, the base of the company’s petrochemical subsidiary TVK, and is to be completed “within the next three years”, according to a statement filed with the Budapest Stock Exchange.
MOL also plans to reconstruct a pipeline between its Tiszaujvaros petrochemical plant and its Duna refinery, which is located in Szazhalombatta, near the Hungarian capital of Budapest. The measure is part of several investments intended to increase capacity and security of supply, the company said. Plans are also in place to reconstruct an oil pipeline between Hungary and Slovakia.
The investment programme, of which roughly half is expected to be spent on oil exploration and field development in Hungary, is intended to allow the group to stay competitive in a difficult market environment, according to CEO Jozsef Molnar.
He said: “We have no other choice but to outgrow the crisis: we want to regain our leading position among European refineries with the execution of our advanced investments in parallel with the reduction of our costs.”
MOL's range of petrochemicals produced currently includes polypropylene and polyethylene materials, including high density polyethylene and homopolymers. BD is commonly used in the manufacture of synthetic rubber products such as tyres.
($1 = Ft218.64, €1 = Ft282.68)
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