Orlen approves the budget of New Chemistry. The investment worth PLN 35.8 billion is starting in Płock
Decision of the supervisory board concerns, among others, completion of the construction of the installation, which will achieve a target production capacity of 740,000 tons of ethylene per year in 2029.
“The Supervisory Board of the Company approved the updated budget of the New Chemistry project in the amount of PLN 35.8 billion, including PLN 4.6 billion of financing costs,” the official stock exchange announcement said.
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The project also assumes the gradual shutdown of the currently operating Olefin II installation, which will allow for a smooth transition to the new system and increase the production capacity of the plant in Płock. According to the concern, in 2035, the implementation of the project is expected to bring additional EBITDA profit of PLN 0.6 billion.
“New Chemistry” with a budget. Orlen's great project
Orlen's management board accepted the updated budget on April 8 this year. The “New Chemistry” project itself was announced in December 2024, when the company decided to suspend the construction of the Olefins III complex to the current extent. The reason was the need to rationalize costs.
As Orlen reminds, the original cost of the investment was estimated at PLN 8.3 billionhowever, in 2023, the previous management increased expenditure to PLN 25 billion, while limiting the scope of the project. In fact, the costs, including the construction of infrastructure, could amount to as much as PLN 51 billion. The decision to abandon the original plan allowed us to avoid a loss estimated at approximately PLN 15 billion.
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Orlen emphasizes that the funds saved by suspending the construction of Olefin III will be allocated to projects that will permanently increase the competitiveness of the company and the Polish economy.
