Czech Unipetrol sells bitumen unit to PKN Orlen subsidiary

23 October 2012 10:56  [Source: ICIS news]

LONDON (ICIS)--Paramo Asfalt, a wholly-owned bitumen unit of Czech oil and petrochemical producer Unipetrol’s Paramo subsidiary, has been sold to Poland’s Orlen Asfalt, Unipetrol said on Tuesday.

Orlen Asfalt, a subsidiary of Poland’s oil and petrochemical group PKN Orlen, was sold for koruna (Kc) 116.1m ($6.1m, €4.7m), it added.

The price was determined by a court-appointed valuation expert, Unipetrol said. Unipetrol is 63%-owned by Polish oil and petrochemicals group PKN Orlen.

In July, Unipetrol decided to permanently shut the 20,000 bbl/day crude oil refining unit at Paramo, located in Pardubice, east of Prague, citing increasing losses, low demand and refining overcapacity in Europe.

“The sale of subsidiary company Paramo Asfalt to Orlen Asfalt is part of the asphalt business restructuralisation process in the whole Unipetrol group,” said Milar Kuncir, Paramo CEO.

“A long-term contract is concluded on asphalt deliveries from Paramo production, which guarantees the asphalt purchase volumes by Paramo Asfalt,” he added.

Unipetrol and Orlen are due to present their delayed 2012-2017 five-year company strategies in December, Orlen said.

($1 = Kc19.07, €1 = Kc24.88)

By: Will Conroy
+44 20 8652 3214

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