Petrochemical Development Project

As part of the Petrochemical Development Project, worth EUR 430 million, implemented in record time even by international standards, we have successfully expanded our capacity in three key areas.

Worth EUR 430 million (almost HUF 110 billion), the Petrochemical Development Project has been implemented in record time, even by international standards.

The Project focused on: capacity expansion

As part of the Petrochemical Development Project implemented between Y2002-2005, we expanded our capacity in three areas. The ethylene production capacity almost doubled (reaching 620 kt) with the installation of the new olefin plant; the high-density polyethylene capacity doubled (reaching 400 kt), and our polypropylene capacity also increased following a plant upgrade.

Response to competitive challenges of the petrochemical business

Harmonised with other developments within the Group, the Petrochemical Development Project is responding appropriately to competitive challenges of the petrochemical business. It is bringing marketing and sales aspects into focus and creates a competitive portfolio (the new HDPE technology of TVK is capable of making modern pipe grade products), and it has been implemented ahead of regional developments of other companies.

Major milestone of both the Company and of Hungarian industry

To finance the Project, TVK concluded a credit agreement for EUR 280 million in Y2002. TVK used its own funds to finance the remaining CAPEX requirement of EUR 150 million.

In terms of size and effect, the significance of this development is comparable to the foundation of Tiszai Vegyi Kombinát. It is therefore a major milestone of both the Company and of Hungarian industry. Completion of this capital expenditure project provides an economies of scale that enables us to retain our leading position in the CEE region and to strengthen our market presence in the European Union.