PKN ORLEN and SYNTHOS canceled contract for delivery of ethylobenzene
PKN ORLEN announces that with regard to the agreement signed with Synthos SA, both sides have decided to cancel the realization of the contract, signed at the begining of the year 2007, which was conected with the building of the instalation for production of ethylobenzene and delivering it to SYNTHOS SA.
As a result of conversations which were conducted between PKN ORLEN and SYNTHOS, the sides has established that in the current market situation , the most important thing is to aim for elaboration of more effective and optimal ways of gathering the materials for chemical production and for more effective ways of realizing investments.
PKN ORLEN and SYNTHOS have reviewed their plans concerning the partnership within the production and delivery of ethylobenzene (the basic mineral used by Synthos for the production of styrene) and they have canceled the construction of a new, modern unit in Płock. The cost of the whole investment was estimated at almost 200 mln zlotych, and the expected rate of return was lower than PKN ORLEN’s current criteria.
The start of the delivery of ethylobenzene in accordance with the agreement from 2007 was supposed to be the first day of January 2011. Dissolution of the contract does not bring any consequences for the Company. Thanks to this cancelation, PKN ORLEN will be able to use the freed financial resources from the projects with a higher rate of return, and to optimize the management of the delivery chain for orders.
Ethylobenzene is an organic compound from the group of aromatic hydrocarbons. It is used as a half-product for the synthesis of styrene, polystyrene, synthetic rubber and as a solvent.
