PKN Orlen to become major producer of polyolefines

Plock-based national oil giant PKN Orlen has signed an agreement to create a joint venture with Dutch concern Basell Europe Holdings. According to PKN Orlen this is the first step in establishing a new firm in Plock which will be responsible for the production and distribution of polyolefines. The two partners will each have a 50% stake in the new enterprise whose operation is slated to start in January. The total cost of the project has been estimated at euro 500 million. The venture will help increase PKN Orlen's share on the petrochemical products market. To begin with, the new company will use the existing PKN facilities, but new plants with larger production capacities will be built by 2005. "This venture is good news for the Polish oil company, it will be able to use its resources to greater effect and obtain access to a world-wide distribution network. We have received signals that huge investments are likely," said Michal Mierzwa, an analyst with Erste Securities Polska. (Parkiet, p. 4) A.Z.