Polish oil refiner and petrol retailer PKN Orlen has announced its plan to invest PLN8.3bn ($2.2bn) by 2023 to expand its petrochemical assets and boost production in the country.

ORLEN - widok z wiezy TE

Image: A PKN Orlen’s production facility. Photo: courtesy of PKN ORLEN S.A

The investment will see expansion of petrochemical projects at the Płock and Włocławek sites over the next five years.

The firm expects the investment program to add as much as PLN1.5bn to the annual EBITDA and solidify the Orlen’s position in Europe and bring substantial benefits to the economy, including by improving the balance of trade with the petrochemical products.

Additionally, the new plan is expected to help the country to transition from a net importer to a net exporter of petrochemicals, Orlen noted.

PKN Orlen management board CEO and president Daniel Obajtek said: “The investment projects implemented under the program to expand the Polish petrochemical assets will enable deeper integration of the refining and petrochemical segments and help to further diversify the Group’s revenue sources.

“The reward is worth the effort as the annual EBITDA will increase by an estimated PLN 1.5bn following completion of the projects.

“This means the investment will be returned in five to six years, which is great news for our shareholders.”

Under the investment program, PKN Orlen plans to construct new and expand the existing production capacities of aromatic derivatives, olefins, and phenol.

The program will also see investment in the company’s Research and Development Centre to strengthen its R&D capabilities.

Obajtek added: “The value of the petrochemicals and base plastics market will double by 2040. PKN ORLEN wants to and must make the best use of its potential in this business area. This is why we have spent the past weeks selecting the optimum path for expanding our production assets.

“The investment programme will increase our petrochemical production capacity by approximately 30%. Importantly, the new products will be sold on the local market, improving Poland’s balance of trade in petrochemicals.”

Separately, PKN Orlen said it is on scheduled for proceeding with the construction of the Metathesis Unit in Płock, to produce polymer-grade propylene.