- The new propylene plant, built for HUF 65 billion, creates competitive jobs in the long run
- The plant will produce 100.000 tons of propylene, providing a quarter of the chemical material needs of MOL
- The investment integrates into MOL Group’s updated strategy and is a great leap forward in the company’s chemical transformation
23 March, 2022, Tiszaújváros – Official foundation stone laying ceremony of the new propylene plant of MOL Petrochemicals took place in Tiszaújváros, Hungary. The plant is built as a greenfield investment for 65 billion HUF and will produce 100.000 tons of propylene, covering a significant rate of MOL’s chemical material need, increasing the self-sufficiency of the company. This plant will provide propylene for the polyol complex already under construction, turning Tiszaújváros into the chemical capital of the region. Building of the propylene plant provides thousands of job opportunities and creates competitive workplace in the long run.
The construction of the new propylene plant fits well into MOL Group’s updated SHAPE TOMORROW 2030+ strategy, since with the help of this development the company can constantly increase the ratio of non-fuel products in its portfolio. MOL Group provides approximately USD 4.5 billion for investments that will turn Tiszaújváros into the main chemical capital of the region. The new plant has an important role in the course of developments, since it will provide stable supply of materials in three product lines of MOL Petrochemicals. The 100.000 tons of propylene provides a quater of the company’s total need.
„In the last 5-10 years MOL has turned Tiszaújváros into a unique chemical center so by now the city is undoubtedly considered among the most modern petrochemical metropolises. We have a butadiene plant already built here, as well as a synthetic rubber plant that was built in cooperation with Japanese experts, and the town also hosts Hungary’s largest industrial investment of the last 30 years, the polyol complex built for EUR 1.3 billion”– said Zsolt Hernádi, Chairman-CEO of MOL Group. He highlighted that with the construction of the propylene plant, MOL has reached an important milestone on the road of chemical transformation and energy transition. „This plant strengthens our self-supply capacity which is of great value for the whole country. From time-to-time history proves: we have to do everything to avoid depending on others” – he added.
Building the plant provides job opportunities for several thousand of people, the ratio of Hungarian contractors reaches approximately 50%. According to plans, the plant will start its operation in 2024 and it creates around 30-40 new competitive workplaces in the long run.
The investment represents the next milestone of a long-term process: MOL Group is running several developments in Tiszaújváros. The butadiene extraction unit and the synthetic rubber plant are already operating, and building the polyol complex is in its final stage as well, which is one of the greatest domestic industrial investments. Additionally, the process of modernization and extending the life of the Olefin-1 plant is also progressing well, which is currently the biggest efficiency improvement program on existing equipment in Hungary.
The Hungarian Government is supporting the investment with HUF 5 billion. At the ceremony, Péter Szijjártó Minister of Foreign Affairs, Zsolt Hernádi Chairman-CEO of MOL Group and Zsófia Koncz, Member of the Hungarian Parliament laid down the foundation stone of the plant.