The BOP Group* today announced its intent to sell its business and assets related to the production and sale of low-density polyethylene (‘LDPE’)to PKN ORLEN SA (PKN). On 06th July 2022, a Preliminary Sale and Purchase Agreement was signed between the BOP Group and BOP’s shareholders PKN ORLEN and LyondellBasell Industries Holdings BV (LyondellBasell). The transaction is anticipated to be completed by the end of 2022 and is subject to customary completion conditions. Carving out this production-business unit from the BOP Group is in line with the strategies of its shareholders with respect to BOP, which refocuses the BOP Joint Venture in Poland on LyondellBasell proprietary and core Spheripol polypropylene and Hostalen high-density polyethylene technologies.
“We are investing in petrochemicals as we realize their crucial role in ensuring the ORLEN Group’s future, but also in strengthening Poland’s economy. According to global forecasts, the value of the petrochemicals and base plastics market is expected to double by 2030. Our acquisition of a part of BOP assets and development of a plastic for which demand is steadily growing are set to entrench our position among Europe’s leading petrochemical producers. The purchase of the business is tied in with the expansion of the olefins complex in Płock, launched last year. We intend to utilize its ethylene output in the production of polyethylene, thus extending the value chain. The extended petrochemical portfolio will support quick profit generation for the benefit of the Company and its shareholders. At the same time, as a shareholder of BOP Basell Orlen Polyolefins, we will continue to develop its remaining product portfolio,” said Daniel Obajtek, CEO of PKN ORLEN.
“After analyzing the BOP Joint Venture strategy, we believe the best strategic option for the longer term is for the low-density polyethylene business in Poland to become part of PKN ORLEN’s growth opportunities”, said Richard Roudeix, Senior Vice President Olefins & Polyolefins EMEAI. “We recognize the value of this asset and see this transaction as the best strategic fit for both parties moving forward.”
“After finalizing the transaction, our priority will be to concentrate on our remaining business areas – we will focus on operational excellence for our world class assets, which are the Spheripol plant producing PP and the Hostalen plant producing HDPE, both licensed by LyondellBasell,” said Laurent Hautier, President of the Management Board and CEO of BOP. ”Through BOPS, we will also continue to develop the Polish polyolefin market, offering a wide portfolio of innovative PP and HDPE grades to converters in Poland, both from Płock and other LyondellBasell plants in Europe.”
*The BOP Group is constituted by Basell Orlen Polyolefins Sp. z o.o. (BOP) and Basell Orlen Polyolefins Sprzedaż Sp. z o.o. (BOPS).
Spheripol and Hostalen are trademarks of LyondellBasell.