Lotos, Azoty sign deal on PLN 12bn petchem project
December 4, 2013
Fuel firm Lotos and chemicals conglomerate Grupa Azoty decided to go ahead with full feasibility study for the joint PLN 12 billion petchem project, with possible participation of Poland's investment vehicle PIR, the companies said in a press release.
On Tuesday, the companies signed a deal on establishing an SPV and preparing a full feasibility study after conducting a pre-feasibility study.
The project may also attract another player, from abroad, officials said.
"We would be most interested in a partner with a technology and a market," Lotos CEO Pawel Olechnowicz said. "The question is if such partner fits in and if its expectations would match ours."
The two firms also inked a preliminary deal with PIR as a potential financial investor for the project. PIR could invest up to PLN 750 million in the project.
If the decision on conducting the investment is positive, construction works will be conducted in years 2016-2018 and the launch of the plant would take place in 2019.
The project is expected to generate internal rate of return (IRR) of 10%.