Chemicals

In 2009, ORLEN Group’s chemical segment comprised ANWIL in Włocławek and its subsidiary, Spolana, with its offices in Neratowice, the Czech Republic (ANWIL Group).

It was the third year of operational integration of the Polish and Czech Companies. Previously, ANWIL was the key ammonia supplier to Spolana. However, due to the falling ammonia prices, especially in the 2nd half of 2009, caused by the slowdown on the nitrogenous fertiliser market, recipients (including Spolana) started looking for cheaper ammonia among producers from eastern countries.

Finally, the slowdown situation on the caprolactam market reversed late into the year, and we ended up with a total production volume comparable to the 2008 figure. The volume of ammoniu m sulphate, a parallel product generated in the production of caprolactam, manufactured in Spolana, was also similar to the level reported in the previous year.

The production volume of unprocessed PVC in Spolana dropped by over 5%, to a level reflecting the actual market demand. The over 21% reduction in the production of sodium hydroxide at Spolana was due to limited demand for the simultaneously generated chlorine (used in the production of PVC) as well as for sodium hydroxide itself.

Lower demand from the recipients of PVC, in particular among the manufacturers of construction materials (e.g. wires, window profiles and others) meant that the production of processed PVC at the ANWIL plant went down by over 22%. Meanwhile, the production volume of unprocessed PVC went up by over 6%, mainly due to more effective sales of the product on foreign markets (including new markets in Asia). The over 3% increase in sodium hydroxide production volume was due to a higher demand for the simultaneously generated chlorine (used in the production of PVC).