13.08.2007

Shutdowns at UNIPETROL Group companies will enable equipment upgrades and production capacity increase

Prague, 13 August 2007 – “The investment into maintenance will lead to an improvement of the reliability of all units and to their production capacity increase, which will bring us growth and additional profits in the future,” explains François Vleugels, Chairman of the Board of Directors and CEO of Unipetrol.

Immediately after the stoppage of units, cleaning and maintenance works will start together with a realization of investment projects, paving the way for an upgrade and subsequent production capacity increase by roughly up to 12% of the steam cracker (Chemopetrol) and up to 20% of the hydrocracker (Česká rafinérská).

Production capacity increase of the products after the shutdown (*)
Increase in %

ethylene + 12%
benzene + 28%
polypropylene + 35%
polyethylene + 25%

(*) while most capacity increases will be achieved at the end of the shutdown, the complete level will only be achieved in the course of 2008/2009.

In the past, UNIPETROL companies had shutdowns once every year, then once every two years and finally once in three years. In 2005 it was decided to switch to a four-year shutdown cycle, which is better for both the producer and the customers (Ceska rafinerska is going through the four-year shutdown cycle for the second time now). “This is because the shutdown period also allows, in addition to regular maintenance, investment projects, intensification, and new equipment construction, which improves the quality of the products,” says François Vleugels. The concurrent shutdown is good for both companies, as the negative financial impact is minimised for both parties. The preparation and mutual coordination of the shutdowns has taken almost a year. The customers of Unipetrol have been informed of this planned event over the same period. At the same time, we began the preparation of master agreements with key customers. Since January, customer communication has intensified and the stocks have been gradually replenished so that Unipetrol RPA (former Chemopetrol and Unipetrol rafinérie) can cover the supplies of petchem and refinery products to all major customers in the previously agreed quantities.

In addition to the staff of the shut-down facilities, the shutdown will also affect a number of other employees such as safety technicians and energy and water management staff. Virtually every employee of the Litvínov industrial facility will encounter various measures in September and October. In addition to both companies’ own staff, some 2,000 additional employees of the three main contractors will be found within the facility during the shutdown.

Unipetrol plans the next extensive shutdown for 2011, 4 years from now.