Serbia's HIP Petrohemija reopens Panonijaplast HDPE, PVC unit

17 May 2013 15:54  [Source: ICIS news]

LONDON (ICIS)--Serbia's HIP Petrohemija has restarted production at its Panonijaplast high-density polyethylene (HDPE) compound plastics and polyvinyl chloride (PVC) resin pellets unit, where output ceased in 2009, the company said on Friday.

Panonijaplast was closed during financial difficulties that beset HIP Petrohemija, but the subidiary – located in Crepaja, near HIP Petrohemija's main production complex in Pancevo, northeast of Belgrade – has been reopened as part of a company restructuring drive backed by state-guaranteed loans, it added.

The relaunch of the subsidiary's installations – with an HDPE compound plastics capacity of 12,000 tonnes/year and a PVC resin pellets capacity of 16,000 tonnes a year – was achieved as part of a €60m ($76.9m) second phase of the restructuring, state-controlled HIP Petrohemija, said.

The first phase of the programme, completed at the end of last year, saw the relaunch of HIP Petrohemija's 200,000 tonne/year ethylene plant and the start-up of the company's reconstructed and expanded HDPE plant, the capacity of which was increased 30% to slightly more than 90,000 tonnes/year.

NIS, the refiner owned by Russia's Gazprom Neft, located adjacent to HIP Petrohemija in Pancevo, is considering increasing its 12.72% shareholding in the restructured company to around 35%.

By: Will Conroy
+44 20 8652 3214

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