At the beginning of October this year, PKN ORLEN closed the deal to purchase 100 percent of shares in Czech Republic’s Unipetrol.
This means a better use of the resulting synergies and more effective ways to implement optimisation processes within the ORLEN Group. It will also bring tangible benefits to the Czech company, by significantly strengthening its competitive position in the region.
The purpose of the integration process is to create an entity that will operate much more efficiently as a whole and will be better positioned in the competitive market. The Unipetrol acquisition will make the ORLEN Group stronger. Coupled with the planned takeover of LOTOS Group, it will allow it to compete more successfully on the demanding European market.
The closing of the Unipetrol acquisition is a major step on the path towards further growth of the ORLEN Group. One of its strategic goals is to intensify production in the company’s petrochemical arm, with the construction of the polyethylene (PE3) unit in Litvinov as the key project in this area. This production unit will significantly strengthen Unipetrol’s position in the dynamic petrochemical sector both in the Czech Republic and at group level.
The share acquisition process was conducted in accordance with applicable Czech regulations: the decision of the General Meeting of 28 August 2018 was preceded by submission of the required documents and approval by the Czech National Bank of the share purchase for the proposed price of CZK 380 per share.
Unipetrol a.s. is the largest refining and petrochemical group in the Czech Republic. It consists of refineries in Litvinov and Kralupy, the “Benzina” chain, the biggest network of filling stations on the local market (more than 400 stations) and Spolana, the only PVC and caprolactam manufacturer in the Czech Republic. The company’s petrochemical arm is a very important area of its business; it is located in Litvinov, where the construction of a polyethylene (PE3) unit is currently underway with the aim of strengthening the position of the ORLEN Group on the chemical and petrochemical market in Central Europe. Completion of the Litvinov unit, with capacity of around 270 thousand tonnes a year, will provide for better use of the Olefins’ installation and a deeper integration of petrochemical and refinery production. Efficient execution of the project will strengthen Unipetrol’s position in one of the world’s most promising industries.
Unipetrol a.s. is the largest refining and petrochemical group in the Czech Republic. It owns 406 Benzina filling stations. It includes the refineries in Litvinov and Kralupy.