03 January 2013 17:03 [Source: ICIS news]
LONDON (ICIS)--Serbia's HIP Petrohemija is set to embark on the €60m ($78.9m) second phase of its company restructuring investment programme, the firm said on Thursday.
The company intends to revive production at the Panonijaplast HDPE compound plastics and polyvinyl chloride (PVC) resin pellets subsidiary, where there has been no output since 2009, HIP Petrohemija said.
Investments could also be made in raising HIP Petrohemija's low-density polyethylene (LDPE) capacity by 20% to 70,000 tonnes/year, along with various other petrochemical projects that have not yet been through final approval, it added.
State-controlled HIP Petrohemija said it will finance a two-year cycle of investments with state-guaranteed loans.
The first phase of the programme, completed at the end of last year, saw the launch of the company's reconstructed and expanded high-density polyethylene (HDPE) plant, the capacity of which was increased 30% to slightly more than 90,000 tonnes/year, and the relaunch of its 200,000 tonne/year ethylene plant.
NIS, the refiner located adjacent to HIP Petrohemija in Pancevo, northeast of Belgrade, which is owned by Russia's Gazprom Neft, is examining the possibility of increasing its 12.72% shareholding in the restructured company to around 35%.
It has agreed long-term contracts with HIP Petrohemija to provide it with feedstock, including naphtha for the ethylene cracker.
($1 = €0.76)
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