In early December Paweł Jarczewski and Paweł Olechnowicz, on behalf of Grupa Azoty S.A. and Grupa Lotos S.A. respectively, signed an agreement concerning the establishment of a new company. The task for the business entity is to prepare the construction of a new petrochemical complex at the Polish seaside.
The aim of the new enterprise
The manufacturing installations erected in this project will serve for production of propylene, xylene, benzene, as well as polyethylene based on crude petroleum, and LPG produced by Lotos. Grupa Azoty S.A. would be one of the main purchasers of those products. The project may help reduce the foreign trade deficit of the Polish chemical sector. Additionally, new jobs would be created, while merging the potential of two giant corporations could bring many synergistic effects.
Grupa Azoty S.A. and Lotos S.A. have already prepared the preliminary feasibility study. Next, the proper study is to be prepared. An analysis of the profitability of the investment may last the whole 2014. Both companies are also seeking other investors ready to join in the project. One of such potential partners is Polish Investments for Development (PIR), a government agency with which we have signed a draft cooperation agreement.
A huge project for the economy
The value of this new joint investment by Grupa Azoty S.A. and Lotos S.A. is estimated to be 12 billion PLN, with the contribution of PIR at 750 million PLN. Should the decision to launch the investment be taken, the new installations will be built in Gdańsk in 2016-2018, so that in 2019 they could be started up. 5,000-7,000 people are to find jobs at the construction site, while the staff of the finished installations will reach c. 2,000.