05 June 2013 11:26 [Source: ICIS news]
LONDON (ICIS)--Unipetrol has announced a tender for the sale of its urea production hardware, the Czech refining and petrochemical group said on Wednesday.
The company permanently ceased production of urea at the start of this year, after concluding the urea unit had not contributed to group profitability in the previous two years.
When shutting down urea production, the company stated that the agro technology of its subsidiary Unipetrol RPA was “based on a heavy oil residue which implies for the urea unit a significant feedstock cost disadvantage as compared with urea competitors and complicates unit utilisation due to changing feedstock material availability”.
The urea unit was put into production in 1972 under a licence from Stamicarbon, although its reactor, stripper and high-pressure condenser parts were all replaced at various points in the 1990s, Unipetrol said.
The unit’s production capacity utilisation rates ranged from 75% to 90% in the 2002-2011 period, according to Unipetrol figures.
Applicants for the tender must announce their participation within the next three weeks, Unipetrol said.
Unipetrol is majority-owned by Poland’s PKN Orlen oil and petrochemicals group.
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