Poland's Grupa Azoty To Build New Propylene Unit Via Propane Dehydrogenation

Grupa Azoty, the Warsaw-listed leading chemical company in Central and Eastern Europe, has announced today its decision to invest PLN 1.7bn ($450M, €416M) in a propane dehydrogenation plant near its already existing facilities in Police at northwestern Poland.

The investment is the largest in the company's history.

The new plant, due to be launched in 2019, will be among the largest of its kind in the world, and the largest in the European Union.

"This investment confirms Grupa Azoty's position as Poland's leading chemical company and Europe's emerging player on the chemical market," said Pawel Jarczewski, CEO of Grupa Azoty.

"Our decision to invest further in Police is part of our global strategy of expanding internationally and strengthening our position in the EU markets using the Polish experiences," he added.

In the first year after the completion, the plant is expected to elevate the revenues of Grupa Azoty Police, a subsidiary of Grupa Azoty, by approximately PLN 2bn. The capacity of the plant is estimated at 400,000 tons.

Approximately 40% of it will be used for internal group purposes, which the remaining 60% being destined for export, mostly to Germany.

"The government is extremely proud that Poland's national champion Grupa Azoty works on such an innovative investment of strategic importance for the country and the continent," said Treasury Minister Wlodzimierz Karpinski.

"The new venture fits very well indeed in the process of the re-industrialization of Europe, and makes me assured that Grupa Azoty's strategy to 2020 is being successfully implemented," he added.