MOL’s New Complex Could Put Hungary at the Forefront of the Chemical Industry

Thanks to the Polyol Complex built in cooperation with Thyssenkrupp, MOL is set to become the leading chemical company in the region. The new plant was built in Tiszaújváros (northern Hungary) with a total investment of EUR 1.3 billion. The Prime Minister, who attended the inauguration ceremony, promised the establishment of the most advanced industries in Hungary.

This is the largest organic investment ever made by the Hungarian multinational oil and gas company. Organic investments use the most advanced, safe, and environmentally friendly technologies currently available on the market to produce a product that can be used in a wide range of applications.

MOL Group is one of Hungary’s greatest companies, and the country has always been able to count on it, even in difficult times.

Twenty years ago, MOL was only involved in the oil trade, buying and selling the raw material, but the world has changed a lot since then. Under the leadership of Zsolt Hernádi, MOL has expanded regionally, built new plants, started waste management and many other areas,” stressed the Prime Minister.

“We need to move up the production chain, and MOL has done just that. In Tiszaújváros, it has set up a complex where it can carry out every step of polyol production,” he continued his speech.

Mr. Orbán underlined that “in order to protect the sovereignty of our country, we must take our energy supply into our own hands. MOL Group has a huge role in this, as the company is continuously discovering new oil and gas deposits.” He added that

securing energy supply is one of the Hungarian government’s most important tasks, and that is why MOL is working on developing additional energy supply routes for both fossil and green energy.

The Prime Minister emphasized that Hungarian industry is now so big that it has outgrown the country’s borders, thus he is encouraging Hungarian industrial companies to expand abroad. “Bring home the profits,” he noted. To help Hungarian firms spread as widely as possible around the world, the government is working on a new program to support thousands of Hungarian SMEs, he announced.

Viktor Orbán highlighted that the greatest danger today is war. “War means destruction, the loss of homes, the devaluation of money. (…) Labor does not go to the factory, it is taken to the front, there is no one to work in the factory, hence there is no purchasing power to stimulate the economy,” he pointed out, adding: “look at Ukraine, in war everything declines.” The Prime Minister cautioned that Brussels was trying to dismantle European industry under the banner of a green shift in the European Union. Therefore, he urged everyone to participate in the election of local leaders on June 9, but also in the European elections.

MOL Group Chairman-CEO Zsolt Hernádi said that the company’s investment in Tiszaújváros is one of the largest developments in modern Hungary, reports Világgazdaság.

The Polyol Complex opens a new era for the chemical industry in the whole region.

We will be the first in the region to manage the production process from crude oil to polyol in one company. This will strengthen the security of supply and the country’s sovereignty,” emphasized the CEO.

As Hungary Today previously wrote, the Polyol Complex could contribute to MOL Group’s performance with an annual EBITDA (earnings before interest, taxes, depreciation, and amortization) of USD 150 million. The EUR 1.3 billion investment was launched by the oil company at the end of 2018, and the project, approved by the European Commission, was supported by the Hungarian government with HUF 12 billion (EUR 31 million) in investment subsidies and HUF 28 billion (EUR 72 million) in tax incentives. According to an earlier announcement made by MOL, the new complex will have an annual capacity of 200,000 tons and will create around 200-300 jobs in Tiszaújváros, which will be sustainable in the long term. The plant is located on 35 hectares.

Via MTI; Világgazdaság; Featured image via Facebook/Orbán Viktor