Slovnaft Petrochemicals will merge with its parent company Slovnaft
- Suppliers of raw materials
Slovnaft Petrochemicals, s.r.o. (SPC) is planning to merge with its parent company SLOVNAFT, a.s. on January, 1, 2013. The competent authorities of both companies have decided upon this intention. General assembly of the SPC will definitely decide upon the petrochemical production incorporation into the parent company in the last quarter of this year. Merger of these companies should contribute to the costs reduction, efficiency gains and improvement of approach to financing the development activities in plastics production. Slovnaft intends to invest almost EUR 320 million in petrochemical industry until 2015 and to construct a new polyethylene production unit for EUR 204 million.
Plastics production formed part of Slovnaft until 2006 when it was separated from a stand-alone subsidiary Slovnaft Petrochemicals. Consolidation of petrochemical activities within the MOL Group was the reason for such action. After 2008, the business conditions in this sector deteriorated significantly - that was a reflection of global economic situation. At present, the petrochemical segment is being negatively influenced by low margins on the side of basic plastics production and by increasing pressure by new producers from the Middle and Far East areas.
“Merger of these two companies will enable us to ensure more favorable conditions to finance our petrochemical projects. After the global economy recovery, these investments are a key criterion for the results improvement in the production and sale of plastics,” said Oszkár Világi, the Chairman of the Board of Directors and CEO of SLOVNAFT, a.s. company.
Construction of a new unit for polyethylene production belongs to the biggest investments in the plastics segment in this region. Slovnaft intends to use resources from the European Bank for Reconstruction and Development, commercial loan and its own resources for this purpose. A part of the company development plans is the ethylene unit reconstruction and construction of a new logistics infrastructure for the new polyethylene production unit. Improving competitiveness of the company, better ecological parameters regarding the production and product portfolio diversification will be the result of these investments.
Further information regarding the proposed merger of Slovnaft Petrochemicals and Slovnaft company will be placed on www.slovnaft.sk webpage in accordance with legislative requirements.
- Anton Molnár SLOVNAFT, a.s.