Azoty and Lotos postpone their joint project

After an additional phase of a feasibility study on the construction of a new petrochemical complex was completed in December 2014, Grupa Azoty and Grupa Lotos have decided to postpone implementing their joint investment. "As the environment has been changing so dynamically, it is necessary to postpone the project. If the situation in the market changes, it will be possible to get back to work on it," Lotos CEO Paweł Olechnowicz explained. The economic parameters that were received due to the study are below the initial assumptions of the project, the companies informed. "Prices of petrochemical products and raw materials and the tense geopolitical situation introduced uncertainty in the markets. This state of suspension is one of the main issues of chemical and petrochemical firms worldwide," said Azoty CEO Paweł Jarczewski.

Nevertheless, the investment may be economically attractive in the future. In December 2013, Azoty Group and Lotos Group signed an agreement on the establishment of a common special purpose vehicle that was to deal with the construction of a petrochemical complex, worth PLN 12 billion.