Orlen will absorb Orlen Olefiny. This will limit the negative effects of the investment

Orlen intends to merge with Orlen Olefiny created in 2021 to obtain financing and implementation of the Olefiny III complex project – said the Płock concern on Tuesday.

The Płock concern pointed out in Tuesday's announcement that the merger of Orlen with Orlen Olefiny will take place by transferring all the Orlen Olefina assets to the acquiring company, i.e. to Orlen, without having to increase the share capital or make in connection with such a combination of changes in the company's statute.

It was added that on April 22, both companies agreed in writing a merger plan. It was also emphasized that the merger requires a resolution of the general meeting (meeting of partners) of each of the merging companies.

“In order to adopt a connection resolution, the company will convene a general meeting for a day not earlier than June 2, 2025.” – stated in a message.

In December 2024, the Orlen management board decided to stop the Olefina III project, whose actual implementation costs, as estimated at that time, would exceed the original assumptions six times. According to the management of Orlen, this was to protect the company from a loss of approx. PLN 15 billion.

“These funds will be allocated to projects that permanently increase the competitiveness of the company and the Polish economy” – assured.

Orlen announced that, seeking to limit the negative economic effects of investments in Olefina III, he would use the resulting infrastructure as a base for the implementation of the New Chemistry project. It was reported that it was a project based on new technological, operational and business assumptions as part of which a modern installation for the production of monomers will be created and the sales capabilities of the Company in the area of ​​ethylene and glycols, styrene and C4 butadein faction in the volume optimized for market needs will be increased. The Płock concern assumes that the new chemistry from around 2030 will take over the functions of the installation currently operating as part of the Olefin II complex. (PAP)

AB/ Mick/ ASA/