Slovnaft invests in manufacturing of plastics

Slovnaft invests in manufacturing of plastics
Slovnaft plans to implement three large investment projects in Bratislava refinery in next 42 months with total value more then 300 million euro.

The aim of the projects is to enhance competitiveness in sale of plastics, as well as improvement of ecologic parameters of manufacture. Currently the largest investment in the chemical industry in Central Europe, during the implementation can work from 500 to 1000 people through the delivery companies.

The construction of new line for the manufacture of polyethylene (LDPE 4) with the utilization of proved German technology will be the main part of the investments. The reconstruction of ethylene unit as the source of material for polyethylene links will be realized before these investments. The reconstruction will start in next year. New line should be built by the end of 2015.

"Today, as well as in past decades, Slovnaft invested to progressive technologies and always attempted to be a leader in technological equipment. We continue in foresighted investments in future and we work without the support of state, without tax holiday or other easements which are today required by other foreigner investors in Slovakia. Economic crisis affects also our company, but we do not regard the reduction of manufacture and employment as rational solution. We are the company which wants to run business in the next decades and provide our employees and their families a solid standard of living. We orientate our business philosophy to social responsibility towards this region," said Oszkár Világi, the chairman of board of directors and director general of Slovnaft, a.s. Company.

Slovnaft, Bratislava

New production unit will be able to produce nearly 30 types of polyethylene. Due to the extension of portfolio Slovnaft will be able to address new customers and expand to new markets within EU.

"Due to modern technologies the new production unit will be not only able to replace all present 7 lines for the production of polyethylene, but also ensure the increase of polymers production by 42 thousand tones. The construction of new line is a key investment for the whole market of plastics in Central Europe and ensures long- term sustainable competitive advantage for our company," said Ivan Dežď, the director of Slovnaft Petrochemicals.

" I believe that this investment together with the investment into modernization which now takes place and the increase of corporate heat station performance in amount of 150 million EURO, will strengthen financial and operational stability of Slovnaft Group, oil security of Slovakia, the development of the activities of Slovak vendors, as well as the reputation of the company on foreign markets for next decades," added Oszkár Világi.

The production of miscellaneous assortment of polyethylene types from food applications, thick-walled foils and thin-walled foils, products manufactured by injection to the types for the application of extrusion are extraordinarily significant for the future of plastics industry, since they are used in the manufacture of products of daily consumption – from technical products usable also in automobile industry to the solid packages for food used in households. The contribution of new technology for the environment protection will be also significant, since the new technology will not emit any dangerous substances to the atmosphere.

In addition to the increase of production capacity from present 178 kt to 220 kt the new polyethylene unit will positively influence the reduction of power consumption. The power consumption in the manufacture of polyethylene will decrease nearly by 5% and the line will additionally produce the steam usable for power needs of Slovnaft Group. On the contrary the technology of present lines for the production of polyethylene consumes the steam.

In addition, the technology of foremost world licensor of Lyondellbasell Company, which will be used by the new line for polyethylene production, belongs to the safest technologies.

The construction of LDPE 4 should start in 2013 and its start-up is planned to November 2015.