MOL Group is to carry out the largest Hungarian project to date in Hungary

MOL Group is to carry out the largest Hungarian project to date in Hungary

Zsolt Hernádi, CEO of MOL Group and Péter Szijjártó, Minister of Foreign Affairs and Trade

The Petrochemical Business Unit of the MOL Group is building a complex chemical plant to the value of about EUR 900 million in Tiszaújváros. The establishment of the petrochemical complex suitable for the manufacture of plastic raw material polyols and operating with almost zero emissions is integral with the 2030 strategy of the MOL Group, through which the MOL will be the only integrated polyol manufacturer in Central and Eastern Europe.

Zsolt Hernádi, CEO of MOL Group and Péter Szijjártó, Minister of Foreign Affairs and Trade

Zsolt Hernádi, CEO of MOL Group and Péter Szijjártó, Minister of Foreign Affairs and Trade

When announcing its 2030 long-term strategy, the MOL Group aimed to give a much greater emphasis to petrochemistry, including the manufacture of chemical products and plastic raw materials from hydrocarbon raw materials, in the future within the activities of the Group. As one of the largest chemical companies in Hungary, the Tiszaújváros-based MOL Petrolkémia Zrt. (formerly Tisza Chemical Complex) has been manufacturing polyolefin raw materials of competitive quality for the plastic processing industry for nearly five decades. MOL Petrolkémia has a 3% and 10% market share in the European and Central European polymer markets, respectively, which is expected to significantly increase as a result of the development.

The industrial facility implemented as a result of the just-announced almost EUR 900 million project, the largest ever carried out by any Hungarian company, will produce 200,000 tonnes of propylene oxide a year, which will be converted locally into polyol and propylene glycol products. The complex will have several facilities, i.e. besides a propylene oxide plant, several polyol production lines and a number of ancillary facilities required for the operation of the plants. Polyurethane plastics are widely used worldwide in a number of industries, such as for bed mattresses, car seats and dashboards, but due to their excellent insulation capacity, they are also used in the construction industry and refrigeration units. Due to their diverse and favourable physical properties, they are considered to be the most versatile polymer by the profession.

Within the project, propylene glycols and propylene oxide derivatives constitute a new product line, which are also produced by most leading integrated propylene-oxide manufacturers. Propylene glycols are used, among other things, for the production of unsaturated polyester resins (UPRs) and personal care and pharmaceutical additives, but are also used in other industrial areas.

In conclusion of the international competition for the project, the European Commission has authorised the regional investment aid because the project of the MOL Group will be implemented in the Northern Hungary Region comprising Borsod-Abaúj-Zemplén, Heves and Nógrád Counties, thereby facilitating the development of the region, and will create nearly 200 direct, internationally competitive jobs, which are sustainable also in the long term. Due to the new plant, the manufacturing of another, internationally sought-after, high-quality product will begin in Borsod, which will also contribute to the recognition of Tiszaújváros in the international chemical industry. What is more, during its implementation, in the construction phase, the project is expected to create several thousand indirect jobs, which will significantly stimulate the local economy.

MOL Petrolkémia is already one of the largest employers in the Northern Hungary Region. The company employs nearly 1,600 people in Tiszaújváros. Many work there not only from the city, but also from the surrounding municipalities.