No. 6/2000 | 27-01-2000
Polyethylene Plant II
Under Art. 81 par.1of the Law on Public Trading of Securities dated 21 August, 1997 (Official Journal of Bills No 118, item 754 with the later amendments) The Management Board of Polski Koncern Naftowy S.A. informs that after explosion and fire on Polyethylene Plant II (taking place on 18th August 1999) the Emergency Inspection appointed by President and the CEO of Polski Koncern Naftowy S.A. affirmed that the event in question was an act of God.
Having entirely detected the broken gasket the Independent Experts from the Warsaw University of Science and Technology found a simultaneous occurrence of numerous unfavourable factors in the structure and properties of the material to be the cause of the gasket’s fracture. Line 11 of Polyethylene Plant II was resumed as early as end of October 1999. Line 12 is still undergoing intensive repairs and its resumption is scheduled for the end of the second quarter 2000.
Polyethylene Plant II, like other production facilities in Polski Koncern Naftowy S.A., had been insured in PZU S.A., the leading Polish insurance entity, against property losses and business interruptions. Thus, the accident of 18 August 1999 shall not affect PKN’s profits. PZU S.A. is regularly paying the insurance money due to business interruption and plant reconstruction costs.