Basell Orlen Polyolefins Polyethylene and Polypropylene Plant, Plock, Poland

During October 2005, Basell Orlen Polyolefins (BOP) announced that it had begun producing polypropylene (PP) and high density polyethylene (hdPE) at its plants located in Plock, Poland.

The PP plant, based on Spheripol technology, has a capacity of 400,000tpa, while the 320,000tpa hdPE plant is based on Hostalen process technology.

The plants, including the logistics platform, required an investment of €500 million. The project was completed on time.

BOP is a joint venture between Basell Europe Holdings and PKN Orlen and is Poland's only polyolefin producer.

DISTRIBUTORS FOR BOP AND BASELL

During May 2005 BOP signed an agreement with Poland's Polimer Centrum in which the company became BOP's authorised distributor for BOP and Basell products. The company joins two other distributors, Krakchemia and Brenntag.

ADVISORS

Clifford Chance advised in the engineering, procurement and construction contract negotiations for the petrochemical plant. ABN Amro served as financial advisor to PKN Orlen with respect to the setting up of the joint venture between PKN Orlen and Basell European Holding.

PRODUCTION PLANTS

The new production facilities will produce 400,000tpa of polypropylene (PP), using Basell's Spheripol technology. The high-density polyethylene (hdPE) plant will have an output of 320,000tpa and use Basell's Hostalen technology.

CONSTRUCTION

During the final quarter of 2003, Italy's Tecnimont announced that it had been awarded a lump sum turnkey contract for the engineering, procurement and construction of the polyolefin production facilities at Plock, Poland. The value of the contract was not revealed. Construction work began at the site in June 2003. In May 2004, Poland's Polimex-Cekop announced that it had been selected as the main subcontractor for the polyolefin project.

PRODUCTION TECHNOLOGY

Basell is providing its Hostalen, low-pressure slurry process for the production of bimodal hdPE on the new plant. The process is said to account for 3.8 million tpa of licensed capacity. At the same time, Basell's Spheripol process will be used on the plant. The process is used for the manufacture of PP homopolymer plus random and heterophasic copolymers. The process is said to have excellent investment and operating costs.

POLYOLEFIN PROCESSING

Coperion Werner & Pfleiderer, based in Stuttgart, Germany, was awarded a contract to build a line for pelletizing the polypropylene. The system is designed to have a throughput rate of 55t/h to 60t/h.

AUTOMATION CONTRACT

During the final quarter of 2003, Tecnimont awarded Honeywell Process Solutions a contract valued at $2.7 million for a comprehensive automation system. Honeywell will supply Experion PKS and its Fail Safe Controller (FSC). The contract includes supply of hardware and a series of engineering services from Honeywell Italy's project operation team.

FEEDSTOCK SUPPLY

PKN Orlen will supply BOP with propylene and ethylene feedstock from its existing olefin production facilities in Plock, Poland.

OFF TAKE AGREEMENT

BOP and Basell Polyolefin Company have entered into an off take agreement for the exclusive sale and purchase of polyolefin grades produced by BOP. Basell Polyolefin will determine annually the quantity of material it will purchase.

LOGISTICS AND DISTRIBUTION CENTRE

In preparation for the opening of the production facilities, BOP will build a logistics and distribution centre. Netherlands-based VOS Logistics has been engaged to support the installation of these facilities.

BACKGROUND

As well as Basell and PKN Orlen bringing their strengths to the new joint venture, the project is also expected to have a 'strong demonstration' effect on the Polish petrochemical industry. In particular, it is expected to show the advantages of promoting sector modernisation through attracting foreign direct investment and state-of-the-art technologies.