Slovnaft, the Slovakian unit of Hungarian oil and gas company MOL, plans to invest €300m in plastics production, Slovnaft chairman Oszkar Vilagi said at a press conference on Thursday.

Slovnaft aims to boost its competitiveness in the area of plastic products and improve the ecological parameters of production, Mr Vilagi said. The investment, together with others, is expected to “contribute to the reinforcement of (the company’s) financial and operating security”, he added.

Slovnaft is investing €150m in the modernisation and expansion of its heat plant and another €60m in the reconstruction of the Adria oil pipeline.

Slovnaft’s new plastics production unit will not only replace capacity of its existing seven production lines, but will raise polyethylene output by 42,000 tonnes to 220,000, Mr Vilagi said. The plant will use less energy too, he added.

The new plant is expected to be completed in 2015. It will employ 500-600 people.

The plant will be built by Slovnaft’s wholly-owned subsidiary Slovnaft Petrochemicals, which turns out an annual 435,000 tonnes of polyethylene a year.