Czech petrochemical company Unipetrol has signed a contract with Italian Technip to construct a new polyethylene unit at its Litvinov plant. The €212m ($235m) investment is the largest in the history of the Czech petrochemical industry and will create one of the most modern production facilities of its kind in Europe. The new unit, which is expected to be operational by mid-2018, will have a production capacity of up to 270 kt per year and will replace an existing unit. The investment will increase the utilisation of the ethylene unit and allow Unipetrol to expand into new industrial segments.
Unipetrol and Italian Technip signed today a contract on construction of a new polyethylene unit (PE3) at Litvinov plant. The biggest investment in the history of the Czech petrochemical industry will be one of the most modern production facilities of this kind in Europe. The value of the signed agreement amounts to € 212 million. The overall project costs are estimated at € 310 million. The unit is expected to be put into operation in the middle of 2018.
The new polyethylene unit PE3 will have a production capacity of up to 270 kt per year and will replace polyethylene unit PE1. The polyethylene unit PE2 (with a capacity of 200 kt per year) is remaining in the operation. The investment will help to increase the utilization of the ethylene unit and will contribute to greater integration of the petrochemical and refining production of Unipetrol Group. With the new technology, the company will be able to reach out for new industrial segments, including cosmetic or packaging industry.
"The construction of the new polyethylene unit is a key investment not only within our mid-term strategy but also for the development of the Czech petrochemical industry, both because of the capital invested and the most advanced technology to be used. The technology will move Unipetrol to the European elite in the area of product quality and at the same time ensure even better safety and reliability of the production. This is also a clear indication of our long term commitment to the strategic development on the Czech market,” said CEO and Chairman of the Board of Directors of Unipetrol Marek Świtajewski.
The beginning of the construction works is scheduled for the second quarter of the next year. There will be approx. 1,000 workers operating during most intensive phases of the construction at the site. Most of the subcontractors are planned to be hired from the local market. At the moment, companies Metrostav and ČKD Praha DIZ are already present on the site at Litvínov plant carrying out the necessary preparation works for construction of the production units.
The new polyethylene unit will be built on the basis of the technology license from the company INEOS that Unipetrol gained at the end of 2013.