Azoty to go ahead with €1.27 billion integrated PP complex in Poland

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European chemicals and polymers company Grupa Azoty is to proceed with the construction of an integrated plant to produce both polypropylene and propylene at the port city of Police in northern Poland.

Confirmation of the ambitious project, which will see the new facility reach 400,000tpa PP capacity, came at the end of last week (6/10) with the green light from the board of group offshoot PDH Polska. Azoty group’s supervisory board and Annual General Meeting must still approve the scheme.

In August, Azoty won development consent for its planned complex in the Pomeranian Special Economic Zone and will receive regional aid towards its investment in the project.

The new complex, due to include construction of a special port area with tank storage facilities along with auxiliary and transport infrastructure, will see work begin at the end of 2019 with full commercial operation scheduled for 2022.

Since Azoty conceived the original plan for a propylene plant using the propane dehydrogenation (PDH) process at Police, the net cost has escalated sharply from around €420m to €1.27 billion.

“The expansion of the polypropylene investment project is of strategic importance to Grupa Azoty, enabling us to further develop our business outside fertiliser production, and thus a true diversification of our sales and additional profits,” commented Azoty group executive director Wojciech Wardacki.

The leading Polish chemicals, fertilisers and polymers group is confident that its latest investment plan will yield generous returns with European polypropylene markets set to expand strongly in coming years.

“Demand for PP in central and Eastern Europe is expected to grow rapidly, by 4.7% per year on average until 2025”, predicted PDH Polska president Andrzej Niewiński earlier this year.

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