The single largest organic investment in the history of MOL Group
MOL Petrochemicals is expanding with the construction of a new polyol complex that is unique in its region.
This EUR 1.2 billion development in Tiszaújváros is the largest single organic investment in the history of MOL Group. The plant will use the most advanced, safest and most environmentallyfriendly technology currently available on the market to produce this versatile material.
Polyol is an innovative and highly sought-after commodity chemical, for which the demand will continue to grow in the upcoming decades. lt is the base component of polyurethane, a polymer used by various industries including the construction, insulation, furniture manufacturing, automotive and textile industries. Polyol production will begin within a few years.
This will make MOL Group the first company in the CEE region to have a fully-integrated value chain from crude oil to polyol production.
The polyol complex will be one of the flagship investments of the MOL Group 2030 Enter Tomorrow strategy, transforming MOL Group from fuels to chemicals to become the first choice of investors and customers. This highlights our commitment and contribution to the growth of the Hungarian economy.
The project in figures
National Office for Research, Development and Innovation - Project implemented from the NKFI Fund
MOL has started polyol research and development
The Polyol Research and Development Project aims to develop polyether-polyol product grades with which MOL Group can strengthen its future position and competitiveness in the polyurethane feedstock market.
Name of the beneficiary: MOL Hungarian Oil and Gas Public Limited Company (MOL Plc.)
Project title: Research and development of polyether-polyol product grades with market potential (Polyol R&D Project) Contracted grant amount: HUF 483 269 279
Presentation of the project content:
MOL Group's 2030 strategy sets the goal of increasing the contribution of the petrochemical business to the results of the entire group. To this end, MOL is building a polyol complex in Tiszaújváros for 1.2 billion EUR. In this context, MOL is embarking on a polyol research and development (R&D) project.
For the successful operation of the polyol complex being built, it is also essential to develop products with market potential that meet the needs of the customer, which will take place in the Polyol R&D project.
The Polyol R&D project will develop at least 10 polyols with significant market potential based on preliminary evaluations, with better properties compared to similar competing products, using a modern technology that is a pioneer in the field of polyols. These products will be manufactured and launched on the market after the startup of the polyol complex in Tiszaújváros.
The market for polyether polyols is developing dynamically both globally and in Central Europe, with global demand expected to grow by 3.4% per year until 2025 and, according to market forecasts, this expansion will continue in the long run. The main engine of growth is the fact that polyols are one of the main raw materials for polyurethanes, which are some of the most widely used plastics. Polyurethanes are used in significant quantities in the automotive, packaging, construction and convenience sectors, among others, so the end-users of the chemical products developed under the project will be millions of people buying the products manufactured by these sectors.
MOL takes full acquisition of the German recyclate-based compounding company and its value chain covering the disposal of plastics and the production of sustainable plastic compounds.
MOL Group completed the acquisition of Aurora Kunststoffe GmbH in 2019. With the successful closing of the deal, MOL Group strengthened its position as an automotive supplier and widened its portfolio to include recyclate-based, sustainable plastic compounds. The acquisition is part of MOL Group’s Enter Tomorrow 2030 strategy, which will see the transition from a traditional fuel-based downstream business model to a higher value-added petrochemical product portfolio.
Aurora, with its innovative products, perfectly complements MOL Group’s petrochemical portfolio and adds to its sustainability objectives. The company, which enjoys a unique and lean closed-loop business model, has production plants located at nearby automotive manufacturers as well as plastics conversion clusters in Baden-Württemberg, Germany. Aurora collects industrial plastic waste, recycles it, and then upgrades the properties of the material into an enhanced plastic that suits the requirements of customers in the car manufacturing industry and other businesses with high-quality standards. MOL Group is committed to further grow this business model within Central and Eastern Europe. By combining MOL Group’s business experience and Aurora’s recycling know-how, MOL Group will continue to support the circular economy.
The joint development between Aurora and MOL Petrochemical Product Development has already reached some milestones in 2020. The first glass-fiber reinforced and talcum filled PP compounds were developed for automotive applications, upscaled at Aurora’s Neuenstein site and are commercially available now. Other new products are in the pipeline like the glass and talcum filled PP grades with PIR and PCR content. During 2021, recipe development will continue in close collaboration between Aurora, MOL Group, OEMs and automotive TIERs to further broaden the portfolio, adding also some more special and high-performance materials. At this stage all customer samples and initial commercial quantities will be produced using the flexible and state-of-the-art facilities at Aurora.
MOL Group is committed to further grow the compounding business based on MOL’s virgin PP grades and Aurora’s versatile recyclate-based portfolio.
For further information:
As a sustainably responsible company that always follows the newest market trends and is attune to customers’ requirements, MOL Group increased its role in the recycling of plastics in recent years. As a result, a strategic partnership with the German plastics recycling company, APK AG, was established in 2018.
APK AG was founded in 2008 and is located at Merseburg, Germany (near Leipzig). As a first step in the strategic cooperation between the two companies, MOL Group supported the mechanical completion of APK’s 8 kt Newcycling® plant in Merseburg. The plant serves as a pilot for an innovative recycling process, Newcycling®. Newcycling® technology is a solvent-based process that enables the selective separation of polymers in mixed plastic waste. The result is pure granulates that have virgin-like properties. Such waste streams cannot be recycled using conventional mechanical recycling technologies.
MOL Group and APK AG are collaborating strategically on plastics recycling. Both parties are investigating the possibility of building an advanced recycling plant based on Newcycling® technology together within MOL’s core region.
MOL Group acquired ReMat Zrt., a recycler with production plants located in Tiszaújváros and Rakamaz, Hungary, and a logistics hub in Bratislava, Slovakia. ReMat is a market leading plastics recycler in Hungary with an annual processing capacity of 25,000 tons and almost 200 employees. The transaction fits into MOL’s portfolio and its goal to become a key player in the low carbon circular economy in Central and Eastern Europe.
ReMat is Hungary’s market leader in plastics recycling, using plastic waste from communal and industrial sources. The company prepares a wide range of polyethylene and polypropylene regranules and tailor-made products. ReMat has automatic selecting system, cleaning and regranulating equipment from leading manufacturers that can process up to 25,000 tons annually. With this acquisition, MOL will be able to develop tailor-made virgin and recyclate solutions to fulfill the ever-increasing demand of its customers for circular materials.
“We have come a long way since our foundation and are incredibly proud to be a pioneer within Hungary’s plastic recycling industry. Over the last two decades we have invested into state-of-the-art facilities and constantly expanded our processing capacities capable of supporting Hungary’s obligations towards the European Union regarding plastic recycling. We are excited to be joining MOL and look forward to continuing to drive growth for this attractive business” -said László Olasz, CEO of ReMat.