PKN Orlen to buy Polmos as entry into bio fuel sector

Oil concern PKN Orlen is seeking to enter the bio fuels market through participating in the privatization of the Polmos Wroclaw spirits producer. "There have been several offers from investors. Two of them have been chosen and they have already begun due diligence," said Grazyna Magdziak, the president of BAA, a company that is advising the Treasury Ministry. According to a credible source, one of these investors is PKN Orlen, while the other remains unknown. Polmos produces bioetanol, a component in bio fuels and also owns the famous Krakus vodka brand. The company produces 18 million to 20 million liters of pure spirit a year, eight million to nine million of which is used to help make bio fuels. Buying shares in Polmos would be a good investment, as many of companies active in the industrial chemicals sector wants to secure a foothold in the bio fuels market. The production of such fuels is expected to return good profits in a few years. Today, the government will discuss draft regulations on the production of bio fuels. (Puls Biznesu, pp. 1, 7) A.D.