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MOL signs contracts with thyssenkrupp for Polyol Project

Hungarian oil and gas company MOL said yesterday that its subsidiary MOL Petrochemicals is entering into four separate engineering, procurement and construction contracts with thyssenkrupp Industrial Solutions AG, Hungarian news agency MTI reported.

The agreements will cover the implementation of the hydrogen-peroxide and propylene-oxide plants, the polyol plant, the propylene-glycol plant and the off-site and utility units of MOL’s so-called Polyol Project.

The contracts cover virtually the entire technical scope of the project apart from certain elements mainly relating to project management, site integration and infrastructural costs and commissioning of the assets.

The total capex of the project is EUR 1.2 billion, including already incurred costs. The new chemical complex, also including a propylene glycol production unit, will have an annual polyether polyol production capacity of 200,000 tons. This is larger than originally envisaged and will be capable of producing a wider range of end-products than foreseen at the time of the announcement of the long-term strategy of MOL in 2016.

The manufacturing complex will be built in Tiszaújváros (173 km northeast of Budapest) and is planned to be operational by the second half of 2021. Ground works and basic construction activities are set to begin in Q4 2018. The investment will create 200 workplaces locally.

Zsolt Hernádi, MOL Group’s chairman-CEO says signing the contracts was "another major milestone of our transformational strategy, MOL 2030". He added that MOL will be entering a knowledge-intensive, high value-added chemicals market with innovative and environmentally friendly technology, allowing it to capitalize on rising regional demand and to exploit additional growth opportunities in CEE. The project has been approved by the European Commission and Hungarian government is supporting it with EUR 131 million of funding.

Marcel Fasswald, chief operating officer of thyssenkrupp Industrial Solutions says the polyol complex is an important flagship project. The German company looks forward to further cooperation and at the same time is strengthening its plant engineering business, he said.