Orlen aims to become most profitable refinery in CEE with huge cost cuts

KPRKO, which was launched in 2003, will bring savings of zł.800 million. Optima, which is planned for 2006-2009, is to reduce costs by zł.600 million. "We estimate that in 2009 the aggregate results of cost reduction [KPRKO and Optima] will bring at least zł.1.4 billion in lasting savings," said Orlen's deputy president Jan Maciejewski. Under Optima, the costs in Orlen's subsidiaries such as Anwil and refineries in Trzebinia and Jedlicze are to decrease by zł.135 million, while the restructuring of the company's retail network will bring another zł.190 million in savings. The cost cuts in the area of production and logistics will amount to zł.125 million. Orlen also plans to reduce its investments. By 2009 it intends to spend a maximum zł.4.7 billion for that purpose instead of the earlier planned zł.5.3 billion. "The improvement of cost and investment effectiveness will allow us to achieve the status of the most profitable refinery in the region, " declared Orlen's president Igor Chalupec. (Puls Biznesu, p. 7) E.B.