Polski Koncern Naftowy (PKN) Orlen is one of the largest refiners of crude oil in Poland and Central Europe and a manufacture of petrochemicals and plastics. It specialises in processing crude oil into petrol, diesel, heating oil, and aviation fuel as well as plastics and other petroleum related products. It operates seven refineries, of which three are located in Plock, Trzebinia and Jedlicze, Poland and another three in Litvinov, Kralupy and Pardubice, the Czech Republic and one at Mazeikiu, Lithuania. 
The company also operates a retail network that comprises of approximately 2,700 outlets offering services in Poland, Germany and Czech Republic. In Poland petrol stations operate under three brands: Orlen (premium brand), Petrochemia Plock and Bliska (economy brand).
History
PKN Orlen was created from the merger, which took effect in September 1999, of PKN (formerly Petrochemia Plock), the largest crude oil refiner and manufacturer of petrochemical products in Poland, and CPN, supplier of motor fuels in Poland.
On 19 May 1999, the general shareholders' meetings of each of Petrochemia and CPN adopted resolutions approving the merger by way of transfer of all of the assets and liabilities of CPN to Petrochemia. On 7 September 1999, CPN was deleted from the Commercial Register in Warsaw and the merger process was completed. On 12 April 2000, the dominant entity changed its name to PKN Orlen.
Company movements
Please see Potential bidders express interest in acquiring Anwil on ICIS news.
The company reports in the following business segments:
Petrochemicals
The petrochemical production of PKN Orlen in Poland is concentrated in Basell orlen Polyolefins (BOP), a joint venture with Basell Europe Holdings, a manufacturer of polyolefin’s. The joint venture is capable of producing 400,000 tonnes/year polypropylene and 470,000 tonnes/year of polyethylene (PE) of which 150,000 tonnes/year accounts for low density polyethylene (LDPE) and 320,000 tonnes/year for high density polyethylene (HDPE).
Other petrochemical operations in the Orlen group include Zaklady Azotowe (nitrogen plant), Anwil in Wtoclawel, Poland, a producer of nitrogen fertilisers and polyvinyl chloride (PVC).
Unipetrol
On 24 May 2005, PKN Orlen purchased 63% of shares in Unipetrol oil and petrochemicals group from the Czech state.
In December 2006, Unipetrol decided on a full merger of its key petrochemicals subsidiary Chemopetrol and refinery planning and wholesale unit Unipetrol Rafinerie (Uniraf). The merger became effective on 1 January 2007.
Uniraf, which is 100% owned by Unipetrol, holds a 51% stake in Ceska Rafinerska, the refinery company that supplies Chemopetrol with its feedstock.
Wholesale and refining
In Poland PKN Orlen operate three refineries located in Plock, Trzebinia and Jedlicze. It processes mainly URAL blend crude oil, shipped from Russia via the Friendship pipeline. Alternative supplies of crude oil to Plock may be sourced via the Pomerania pipeline, which connects the fuel reloading facility on the Baltic Sea with the Plock refinery.
The refining and petrochemical complex in Plock is ranked amongst the most advanced and modern facilities of its kind in Europe. The processing capacity of the Plock refinery exceeds 13.5m tonnes/year of crude oil.
The southern refineries in Trzebinia and Jedlicze focus their activities on the production of supplementary products such as lube oils, asphalt products and bio-components.
Wholesale operations
In the area of wholesale liquid fuels Orlen controls some 60% of the Polish market. Orlen has for years been the main supplier of fuels to the foreign operators functioning in Poland.
Retail
PKN Orlen’s retail network in Poland is made of 1,326 company owned stations, 504 affiliated stations and 87 franchised stations, its two main brands are Orlen and Petrochemia Plock.
Other
PKN Orlen’s logistics infrastructure comprises of 24 ground storage depots and an 800km network of pipelines. It also own underground storage facilities at Solino, Poland. The salt caverns used for storing PKN Orlen’s products are regarded as some of the biggest, most advanced and environmentally-friendly underground storages facilities for liquid hydrocarbons in Europe.
PKN Orlen
Strategy & Financial Highlights
PKN Orlen will focus on its updated strategy named “the creation of the company’s value” for the years 2006-2009. The strategy is based on three pillars: continuation of performance enhancing measures, strengthening of core operations in home markets and active searching for new development possibilities in new markets, including mergers and acquisitions. (Edited from annual report and company website). ICIS also provides you with key financial data listed in table form.
More about PKN Orlen Strategy & Financial Highlights
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