Bratislava, June 1, 2022 – MOL Group invests EUR 63 million in the expansion and modernisation of Slovnaft’s polypropylene production. The investment, which is the third largest in the last 15 years, will increase production capacity, reduce emissions, improve safety and bring greater attractiveness to customers. Linde Engineering, a renowned German company, is the contractor for the comprehensive reconstruction of the existing PP3 production unit. The contract for the modernisation and expansion of the PP3 unit was signed today in Bratislava by representatives of both companies.
“One of the goals of our updated 2030+ strategy is to reduce the production of fossil fuels and strengthen the production of basic plastics. This investment confirms the path we have set out, increasing polypropylene production at the Bratislava refinery to 300 kilotons per year. Linde Engineering is our reliable partner. Less than 20 years ago the company built the PP3 polypropylene production unit in Slovnaft and now it will renovate and modernise it,” said Gabriel Szabó, Executive Vice President of Downstream at MOL Group.
“The revamp will enable Slovnaft to meet rising demands from the polyolefin processing industry. The project is challenging given its complexity: Interdependency with other process facilities allows only a narrow time frame for a shutdown. With our proven expertise and best-in-class services, we will be able to complete all installation works, including construction, commissioning and testing,” said Juergen Nowicki, CEO Linde Engineering.
The annual production capacity of polypropylene, sold on the market under the brand name TATREN, will increase by 33 kilotons (kt) to 300 kt. The capacity increase will focus on strengthening the share of the most in-demand grades of polypropylene, which Slovnaft now produces in around 20 specifications. Storage and logistics infrastructure will also be increased. A further 16 storage silos will be added to the current 45. The adaptation of the technology will reduce emissions and the modern logistics infrastructure will improve safety at work.
The project will commence in the summer of 2022 with the preparation of project documentation and the processing of permits. The actual construction and reconstruction are planned to start in summer 2023 and are scheduled for completion in October 2024. The pre-preparatory phase started in 2015 with market analyses and feasibility studies. “The investment decision was made in September 2021 following by negotiations on the contract with Linde Engineering while the project preparation was also affected by the pandemic and the war in Ukraine,” said Michal Hušek, project manager for SLOVNAFT, a.s., about the preparations for the reconstruction of PP3.
Polypropylene is produced in Slovnaft in the form of milk glass coloured granulate. It is used in the food, textile and furniture industries, in the production of laboratory equipment, non-woven textiles, food and cosmetics containers, toiletries, and even toys.