PETROCHEMICALS

SDGs:

Main production assetsof the ORLEN Group

ORLEN GROUP

The key production facility of the Petrochemicals segment is the Olefins unit, with a maximum capacity of approximately 700,000 tonnes of ethylene and approximately 380,000 tonnes of propylene. Monomers manufactured at PKN ORLEN are used as feedstock for the polymer units at Basell Orlen Polyolefins and the PVC unit at ANWIL. PKN ORLEN also operates a modern PX/PTA complex with an annual capacity of around 690 thousand tonnes of terephthalic acid.

As part of its Petrochemicals Development Programme, PKN ORLEN intends to expand the Olefins complex between 2023/2024 and constructa new Phenol unit till the end of 2023. After these investments are complete Production Plant in Płock will be one of the biggest and most advanced complex of this type in Europe.

  • The Unipetrol Group owns petrochemical assets with combined annual production capacities of approximately 600 thousand tonnes, including 320 thousand tonnes of polyethylene and approximately 280 thousand tonnes of polypropylene. 2020 saw the launch of a new Polyethylene 3 unit, with an annual capacity of approximately 270 thousand tonnes. The unit will allow Unipetrol to increase the use of the Olefins unit and further integrate the petrochemical and refining operations.
  • The Włocławek-based ANWILis the only producer of polyvinyl chloride (PVC) in Poland and one of the major manufacturers of sodium hydroxide and fertilizers in the country. Its annual production capacity is ca. 1 million tonnes of nitrogen fertilizers, 0.4 million tonnes of PCV and granulates, and 0.2 million tonnes of sodium hydroxide. The planned construction of a third nitrogen fertilizer unit will increase Anwil’s annual production capacity to about 1.5 million tonnes from 2021 onwards.

  • Basell ORLEN Polyolefins in Płock operates facilities with a total production capacity of 900 thousand tonnes (420 thousand tonnes of polyethylene and 480 thousand tonnes of polypropylene). Its products are marketed both in Poland and in foreign markets.

ORLEN Group’smarket share

Wholesale of petrochemical products

The ORLEN Group is the largest petrochemical company in Central and Eastern Europe, the only manufacturer of monomers and polymers on the Polish market, and the manufacturer of most of the petrochemical products available on the Czech market.

Polyethylene manufacturers in Europe Source: In-house analysis based on POLYGLOBE. 17.3% 5.0% 51.1% 13.9% 12.7% Lyondell BasellINEOSSABICORLEN GroupOther 2020
  • Europe’s production capacities for high-density (HDPE) and low-density (LDPE) polyethylene are currently at around 12,512,000 tonnes per year.
  • Lyondell Basell Industries − the largest polyethylene manufacturer, with an annual production capacity of approximately 2,170,000 tonnes (including its 50% share in Basell ORLEN Polyolefins Sp. z o.o. (BOP) and production assets in Germany, France and Poland.
  • Ineos Olefins & Polymers Europe, with an annual production capacity of approximately 1,745,000 tonnes and assets in Belgium, France, Germany, Italy and Norway; and Sabic – production capacity of around 1,590,000 tonnes per year and assets in Germany, the Netherlands and the UK.
  • The total production capacity of the ORLEN Group, with production sites in Poland and the Czech Republic (including its 50% share in BOP), is approximately 630,000 tonnes per year.
  • In 2020, the ORLEN Group completed the construction of a new Polyethylene 3 unit in the Czech Republic with an annual production capacity of approximately 270,000 tonnes.

 

Polypropylene manufacturers in Europe Source: In-house analysis based on POLYGLOBE. 20.5% 8.5% 4.4% 39.2% 16.3% 11.1% Lyondell BasellBorealisTotal PetrochemicalsSABICORLEN GroupOther 2020
  • Europe’s annual production capacities for polypropylene are at around 11,749,000 tonnes.
  • Lyondell Basell Industries has an annual production capacity of around 2,405,000 tonnes (including its 50% share in BOP) and assets in Germany, France, Italy, Spain, UK and Poland.
  • Borealis, with an annual production capacity of approximately 1,920,000 tonnes and assets in Belgium, Germany, Austria and Finland.
  • Total Petrochemicals, with an annual production capacity of around 1,310,000 tonnes and assets located in Belgium and France.
  • The total production capacity of the ORLEN Group, with production sites in Poland and the Czech Republic (including its 50% share in BOP), is approximately 520,000 tonnes per year.
PTA manufacturers in Europe Source: In-house analysis based on PCI. 42.2% 8.1% 33.3% 16.4% 2020 IndoramaBP Chembel NV /IneosORLEN GroupPolief
  • The European nominal PTA production capacities total 4,205,000 tonnes per year.
  • Indorama – Europe’s largest PTA manufacturer (following the acquisition of Artlant), with a nominal production capacity of 1,775,000 tonnes per year and assets located in Portugal, Spain and the Netherlands.
  • BP Chembel NV (acquired by Ineos in 2020) – Europe’s second largest PTA manufacturer, with an annual production capacity of 1,400,000 tonnes, with assets located in Belgium.
  • PKN ORLEN is the only manufacturer in Europe to have production units fully integrated with paraxylene production, and its production capacity totals 690,000 tonnes per year.
PVC manufacturers in Europe Source: In-house analysis based on Market Analytics – Vinyls – 2020 (Nexant) report. 25.9% 5.7% 38.4% 10.6% 10.0% 9.4% InovynKem OneVynovaVinnolitORLEN GroupOther 2020
  • The European nominal PVC production capacities total 8,310,000 tonnes per year.
  • Europe’s leading PVC manufacturer – Inovyn, was formed following the combination of IneosChlor and Solvay; its annual production capacity is 2,155,000 tonnes.
  • Other manufacturers, such as KemOne, Vynova, and Vinnolit, have annual PVC production capacities estimated at 882,000, 830,000 and 780,000 tonnes, respectively.
  • The ORLEN Group, with the annual production capacity of its Anwil and Spolana units at 475,000 tonnes, ranks fifth on the European plastics market.
  • Anwil’s key competitors are Inovyn and Vynowa in Europe and BorsodChem (the Wanhua Group) in Poland.

Petrochemicalssales volumes

In 2020, sales of the ORLEN Group's Petrochemicals segment totalled 5,106 thousand tonnes, less than in 2019, mainly on lower petrochemical sales in the Czech Republic, with growing sales on other markets.

Sales of the ORLEN Group’s Petrochemicals segment [PLN million / '000 tonnes ]

Sales

2020

2019

% change

Value

Volumes

Value

Volumes

1

2

3

4

5

6

7

Monomers1)

2,806

959

3,585

1,022

(21.7%)

(6.2%)

Polymers2)

1,869

498

2,390

519

(21.8%)

(4.0%)

Aromatics3)

716

373

1,080

424

(33.7%)

(12.0%)

Artificial fertilizers4)

820

1,122

903

1,030

(9.2%)

8.9%

Plastics5)

1,304

396

1,218

343

7.1%

15.5%

PTA

1,384

631

1,893

647

(26.9%)

(2.5%)

Other6)

1,688

1,127

2,284

1,202

(26.1%)

(6.2%)

Total

10,587

5,106

13,353

5,187

(20.7%)

(1.6%)

 

1) Ethylene, propylene.
2) Polyethylene, polypropylene.
3) Benzene, toluene, paraxylene, orthoxylene.
4) Canwil, ammonium sulfate, ammonium nitrate, other fertilizers.
5) PVC, PVC granules.
6) Other – includes chiefly acetone, ammonia, butadiene, phenol, technical gases, glycols, caprolactam, soda lye, and sulfur. Additionally, in value terms, the item includes the segment's revenue from sales of services and materials.

Revenue structure of the ORLEN Group Petrochemicals segment MonomersPolimersAromasFertilizersPlasticsPTAOther 26.8% 17.9% 8.1% 6.8% 9.1% 14.2% 17.1% 26.5% 17.7% 6.8% 12.3% 13.1% 15.9% 7.7%

In 2020, 2019 none of the ORLEN Group’s leading customers accounted for more than 10% of the Group’s total revenue.

Sales marketsand market shares

Sales volumes of the ORLEN Group Petrochemicals segment in home markets1) [‘000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Poland

3,475

3,377

 98

2.9%

Baltic States and Ukraine

51

18

 33

183.3%

Czech Republic

1,580

1,792

 (212)

(11.8%)

Total

5,106

5,187

 (81)

(1.6%)


1) By country of establishment of the relevant company.

Polish market

Sales volumes of the ORLEN Group Petrochemicals segment in Poland ['000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Monomers

811

836

 (25)

(3.0%)

Aromatics

197

210

 (13)

(6.2%)

Artificial fertilizers

946

863

 83

9.6%

Plastics

298

252

 46

18.3%

PTA

631

647

 (16)

(2.5%)

Other

592

569

 23

4.0%

Total

3,475

3,377

 98

2.9%

Sales structure of the ORLEN Group Petrochemicals segment in Poland MonomersAromasFertilizersPlasticsPTAOther 23.3% 5.7% 27.2% 8.6% 18.2% 17.0% 24.8% 6.2% 25.6% 7.5% 19.1% 16.8%

In 2020, the ORLEN Group’s Petrochemical sales in Poland reached 3,475 thousand tonnes, up 98 thousand tonnes (y/y). In Poland, sales of PVC and synthetic fertilizers went up by 18.3% and 9.6%, respectively. Sales of monomers, aromatics and PTA fell year on year, by (3.0%), (6.2%) and (2.5%), respectively.

The Baltic States and Ukraine

Sales volumes of the ORLEN Group Petrochemicals segment in markets served by ORLEN Lietuva ['000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Monomers

51

18

 33

183.3%

Total

51

18

 33

183.3%

In 2020, the ORLEN Lietuva Group’s monomer sales reached 51 thousand tonnes, up 33 thousand tonnes (y/y).

Czech market

Sales volumes of the ORLEN Group Petrochemicals segment in the Czech Republic ['000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Monomers

97

168

 (71)

(42.3%)

Polymers

498

519

 (21)

(4.0%)

Aromatics

176

214

 (38)

(17.8%)

Artificial fertilizers

176

167

 9

5.4%

Plastics

98

91

 7

7.7%

Other

535

633

 (98)

(15.5%)

Total

1,580

1,792

 (212)

(11.8%)

 

Sales structure of the ORLEN Group Petrochemicals segment in the Czech Republic 31.5% 29.0% 11.1% 11.9% 9.4% 6.2% 11.1% 9.3% 6.2% 5.1% 33.9% 35.3% MonomersPolimersAromasFertilizersPlasticsOther 2020 2019

In 2020, the volume of sales in the ORLEN Group Petrochemicals segment in the Czech Republic stood at 1,580 thousand tonnes, having decreased by (212) thousand tonnes (y/y), chiefly on lower sales of monomers down (42.3%)(y/y) and aromatics down (17.8%)(y/y). Sales of PVC and synthetic fertilizers on the Czech market grew by 7.7% and 5.4%, respectively.

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