Orlen China to open in second half of 2020

Orlen, a Polish oil behemoth, will open Orlen China in the second half of 2020, the company stated in a press release. The first stage of its activity will include the sale of engine oils, which until now have been distributed in China through external partners. The change in the oil sales model will allow it to generate several times more operating profit over the next three years than if the current sales model was continued, according to Orlen’s estimates.

“We are gradually increasing the export of our products. Over 60 percent of Orlen’s revenue comes from foreign markets. The establishment of Orlen China is a strategic decision aimed at strengthening the company’s position on the prospective Chinese market and also in neighboring countries. Building our own sales competences on the Chinese market will allow not only increasing sales but also optimizing costs and delivery times,” said Daniel Obajtek, head of Orlen.

“Along with strengthening sales competences, Orlen China may become a platform for placing other products, including petrochemicals, on the Asian market,” he added.

Orlen is present in 116 countries on six continents. In Asia, the company’s products are sold in 20 countries, several companies belonging to the group, including Orlen Oil.

(PAP)