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Borsodchem expands production at its Polish unit Petrochemia

BorsodChem Rt the biggest maker of PVC plastic in eastern Europe, said it spent 8 million zloty ($2.46 million) to expand production capacity at its Polish subsidiary, Petrochemia-Blachownia. The investment will finance production expansion and strengthen safety and technical engineering, Borsodchem said in a statement to the Budapest Stock Exchange today. Kazincbarcika, Hungary-based BorsodChem bought Petrochemia in October from Chiech SA for an undisclosed purchase price. The Polish subsidiary provides base materials for Borsodchem's production of MDI and TDI, foams used in the construction and auto industries. The capital increase is in line with the strategy BorsodChem disclosed last year in the acquisition announcement of Petrochemia-Blachownia, BorsodChem said. BorsodChem acquired 100% of Petrochemia-Blachownia for an undisclosed sum in January 2006. The capital increase will contribute to ongoing capacity expansion on the site, which will enhance the quality of Petrochemia-Blachownia 19/64s aromatics products, thereby increasing the profitability and overall corporate value of BorsodChem, the company said. The expansion project had a budget worth Ft 2 billion according to earlier information. BorsodChem said earlier that Petrochemia-Blachownia will supply most of BorsodChem's benzene and one-third of its toluene. BorsodChem needs benzene to make MDI, and ethylene to produce polyvinyl chloride (PVC). Petrochemia-Blachownia is the only Polish producer of high-purity ethylbenzene, the raw material for the production of styrene, polystyrene and synthetic rubber. Petrochemia-Blachownia also produces an annual 12,000 tones of bioethanol. BorsodChem is the biggest maker of toluene diisocyanate (TDI) in Central and Eastern Europe, and the only maker of methylene diphenylene diisocyanate (MDI). (Bg)