MOL inaugurated €1.3 billion polyol complex in Tiszaújváros, Hungary

• The €1.3 billion project is MOL's largest organic investment to date, for which it has also received support from the Hungarian state
• The complex will produce raw materials for durable plastic consumer goods such as bed mattresses, moulded car seats, insulation for houses and elastic rubber soles for sports shoes
• Thanks to the innovative technology of Germany's thyssenkrupp Uhde and Evonik, the plant is operating with the most advanced technology available

Tiszaújváros, May 14, 2024 - MOL's EUR 1.3 billion polyol complex in Tiszaújváros, boasting a capacity of around 200,000 tonnes of polyol per year, has been inaugurated. The ceremony, addressed by Prime Minister of Hungary Viktor Orbán, MOL's Chairman-CEO, Zsolt Hernádi, and thyssenkrupp Board member Ilse Henne, marks a significant milestone for the company. MOL Group stands as the sole entity in Hungary and in Central and Eastern Europe to cover the entire value chain, from petroleum processing to polyol production (a widely used plastic raw material).

MOL Group held an inauguration ceremony in Tiszaújváros to celebrate the completion of its largest organic investment, the polyol complex. MOL, thyssenkrupp and Evonik IP signed the licence agreement in summer 2017, and the foundation stone of the complex was laid in September 2019.

The main units were transported to Tiszaújváros between 2019 and 2020, mainly by water, and were followed by the completion of the complex's hydrogen peroxide, propylene oxide, polyol and propylene glycol plants. In addition to the four main plants, a pilot polyol plant, a quality assurance laboratory and, in Százhalombatta, a Research and Development Center were also built.

"I am proud that we have completed the polyol complex. It was a true international team effort, a great collaboration involving thousands of people over the past six years that enabled us to deliver MOL Group's largest investment ever, perhaps the biggest development in modern Hungarian history. We have come a long way, but the road ahead is even longer. The polyol complex will significantly strengthen our company's position and competitiveness, with the entire value chain from petroleum processing to polyol production. This investment has put Tiszaújváros back on the map of the European chemical industry, making it one of the most important industrial centers in the region. It will enhance the industrial competitiveness of our country and could catalyze economic growth as well. Through this investment, Hungary will be stronger, as MOL's success is the success of the whole country," said Zsolt Hernádi, Chairman and CEO of MOL Group.

“With this new MOL polyol-complex we establish new standards in terms of efficiency, environmental friendliness and automation by combining proven technologies with innovative solutions”, said Nadja Håkansson, CEO of thyssenkrupp Uhde. “We are grateful for the deep and trustful partnership with MOL. This polyol plant is a true landmark project and a great demonstration of how we at thyssenkrupp Uhde enable the industrial green transformation. With fully integrated and highly automated plant units, the valuable polyol chemicals will be produced in a highly efficient and sustainable way.”

The project involved an international team of thousands of experts, with engineering design work carried out in Germany, Thailand, India and Hungary. The plant equipment came from 24 countries. The construction of the complex involved 75 000 cubic metres of concrete, 13 000 tonnes of steel, 2 500 kilometres of cable and 700 km of pipelines laid in more than 18 million working-hours. The Hungarian government contributed with €131.5 million to the project: a €93.6 million corporate tax credit, which can be claimed once the investment is operational, and a €37.9 million investment grant based on an individual government decision.

Polyol is one of the most sought-after plastics raw materials, used in a wide range of industries from car manufacturing to clothing and insulation. Polyurethane is made from polyol and is the base material for many of the durable consumer goods that everyone encounters in their everyday lives.

Polyurethane made from polyol is needed:

• for the production of foam mattresses, bed mattresses, foam for comfortable seating on sofas and armchairs, and rigid foams for insulating refrigerators;
• for the production of insulating materials used in the construction industry, whether for the insulation of the facade of a building or a pipeline;
• for the production of sealants and adhesives familiar from DIY stores, and the elastic rubber soles of running shoes.

The Tiszaújváros plant will produce polyol using one of the most efficient and environmentally friendly methods available today. According to MOL's calculations, the plant will contribute nearly EUR 150 million annually to the MOL Group's financial results and will provide long-term employment for nearly 300 people.

MOL Group has been strengthening its chemical business for almost ten years: the new butadiene extraction plant was completed in 2015 with a HUF 35 billion investment, followed by the synthetic rubber (S-SBR) plant in 2018 with a HUF 100 billion investment. In 2016, the company announced a major strategic shift to prepare for the energy transition and the post-fossil fuel world by expanding its portfolio. As part of the third and largest wave of investment in the petrochemicals business, next to the polyol complex, the polypropylene plant is the most important element, which is a HUF 65 billion investment, and there are nearly EUR 2 billion of life cycle investments that will secure the long-term future of the chemicals business.