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The revival of the Polish petrochemicals industry is being led by domestic consumption, with export markets of domestic plastics transformers set to remain in the doldrums, according to BMIs latest Poland Petrochemicals Report.
A return to solid growth in the construction sector, assisted by developments related to the Euro 2012 Championship, should ensure that Anwils VCM-PVC operations at Wloclawek sustain full capacity production. However, the continued lacklustre performance in consumer products and packaging could hamper polyethylene margins at Basell Orlen Polyolefins plant in Plock. While its 400,000tpa PP production facility will benefit from upward pressure on prices due to a tightening in supply caused in part to a force majeure at the Plock PP plant in May as well as other European PP facilities the restriction on propylene feedstock supply will continue to undermine PP margins. Added to this is the effect of the weakening of the European automotive market on domestic carmakers. With the end of scrappage schemes in most countries in Europe, sales have fallen back to lower levels, ending the short term increase created by the incentive packages and giving a bleak outlook for the market.
There are likely to be further challenges to the industry in the wake of the eurozone debt crisis, which will lead to fiscal austerity measures that should dampen consumer demand in major export markets, thereby depressing demand for moulded plastics used in consumer goods as well as engineering plastics used in the automotive industry. Nevertheless, as the only major CEE economy to avoid recession in 2009 (instead expanding by 1.7%), Poland is gearing up to post a healthy rate of growth in 2010 that should feed into an expansion of polymer resins demand.
The future of the Polish petrochemicals industry will be determined by the restructuring and divestment of local petrochemicals producer PKN Orlens assets. Burdened with debt, PKN Orlen is selling off several non-core subsidiaries as part of its strategy for the period up to 2013. As part of its restructuring plan, PKN Orlen has cut back on its annual investment plans and sought to increase its operating efficiency. However, it is pressing ahead with several major expansion schemes, including the construction of a 400,000tpa plant to produce paraxylene and purified terephthalic acid (PTA), scheduled for completion in H210.
In July 2010, reports surfaced that PKN Orlen may sell its Orlen Lietuva (formerly Maeikių Nafta) refinery in Maeikiai, Lithuania. The final decision is due to be made by Orlen’s management, in consultation with the Polish Treasury, in September, after the expiry of an ultimatum on rail infrastructure and freight charges by Poland. BMI believes it is likely Orlen will seek to sell the refinery, which would effectively end Orlens plans for expanding propylene production at the refinery. Meanwhile, PKN Orlens talks to sell Anwil to Polands Zakłady Azotowe Puławy (ZAP), the leading maker of fertilisers and a world-leader in the production of melamine, collapsed in June 2010. The parties decided to terminate discussions due to differences in views over price and non-price conditions of the proposed transaction, according to PKN Orlen which is now reported to be willing to consider selling off the Anwil business in two separate parts, based on its polymers division and the fertiliser operations. Polands score has risen by 0.1 points to 57.8 points due to a modest improvement in its country risk ratings, maintaining its second place position in our Central and Eastern European Petrochemicals Business Environment matrix. A significant improvement in its country risk profile now puts Poland just 0.3 points below regional leader Russia and 2.2 points ahead of Hungary. Meanwhile, petrochemicalsspecific scores remain unchanged, with BMI casting doubt on any major capacity additions over the medium-term. Diversification of market suppliers and increased feedstock availability could improve Polands score, although it stands little chance of exceeding Russia which should retain its dominant position in Eastern Europe.
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Browse All Business Monitor International Market Research Reports
The revival of the Polish petrochemicals industry is being led by domestic consumption, with export markets of domestic plastics transformers set to remain in the doldrums, according to BMIs latest Poland Petrochemicals Report.
A return to solid growth in the construction sector, assisted by developments related to the Euro 2012 Championship, should ensure that Anwils VCM-PVC operations at Wloclawek sustain full capacity production. However, the continued lacklustre performance in consumer products and packaging could hamper polyethylene margins at Basell Orlen Polyolefins plant in Plock. While its 400,000tpa PP production facility will benefit from upward pressure on prices due to a tightening in supply caused in part to a force majeure at the Plock PP plant in May as well as other European PP facilities the restriction on propylene feedstock supply will continue to undermine PP margins. Added to this is the effect of the weakening of the European automotive market on domestic carmakers. With the end of scrappage schemes in most countries in Europe, sales have fallen back to lower levels, ending the short term increase created by the incentive packages and giving a bleak outlook for the market.
There are likely to be further challenges to the industry in the wake of the eurozone debt crisis, which will lead to fiscal austerity measures that should dampen consumer demand in major export markets, thereby depressing demand for moulded plastics used in consumer goods as well as engineering plastics used in the automotive industry. Nevertheless, as the only major CEE economy to avoid recession in 2009 (instead expanding by 1.7%), Poland is gearing up to post a healthy rate of growth in 2010 that should feed into an expansion of polymer resins demand.
The future of the Polish petrochemicals industry will be determined by the restructuring and divestment of local petrochemicals producer PKN Orlens assets. Burdened with debt, PKN Orlen is selling off several non-core subsidiaries as part of its strategy for the period up to 2013. As part of its restructuring plan, PKN Orlen has cut back on its annual investment plans and sought to increase its operating efficiency. However, it is pressing ahead with several major expansion schemes, including the construction of a 400,000tpa plant to produce paraxylene and purified terephthalic acid (PTA), scheduled for completion in H210.
In July 2010, reports surfaced that PKN Orlen may sell its Orlen Lietuva (formerly Maeikių Nafta) refinery in Maeikiai, Lithuania. The final decision is due to be made by Orlen’s management, in consultation with the Polish Treasury, in September, after the expiry of an ultimatum on rail infrastructure and freight charges by Poland. BMI believes it is likely Orlen will seek to sell the refinery, which would effectively end Orlens plans for expanding propylene production at the refinery. Meanwhile, PKN Orlens talks to sell Anwil to Polands Zakłady Azotowe Puławy (ZAP), the leading maker of fertilisers and a world-leader in the production of melamine, collapsed in June 2010. The parties decided to terminate discussions due to differences in views over price and non-price conditions of the proposed transaction, according to PKN Orlen which is now reported to be willing to consider selling off the Anwil business in two separate parts, based on its polymers division and the fertiliser operations. Polands score has risen by 0.1 points to 57.8 points due to a modest improvement in its country risk ratings, maintaining its second place position in our Central and Eastern European Petrochemicals Business Environment matrix. A significant improvement in its country risk profile now puts Poland just 0.3 points below regional leader Russia and 2.2 points ahead of Hungary. Meanwhile, petrochemicalsspecific scores remain unchanged, with BMI casting doubt on any major capacity additions over the medium-term. Diversification of market suppliers and increased feedstock availability could improve Polands score, although it stands little chance of exceeding Russia which should retain its dominant position in Eastern Europe.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
