Borsodchem expands production at its Polish unit Petrochemia

Pharma

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)

ADVERTISEMENT

Varga puts 2021 GDP growth at 7-7.5% Analysis

Varga puts 2021 GDP growth at 7-7.5%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.