Hyundai Engineering Co wants to increase time and costs of the Polimery Police project
The main contractor of the Polimery Police project, Hyundai Engineering Co, applied to the Azoty Group for an extension of the contract duration by 181 days and an increase in remuneration by €127.4m, as well as an amendment to the annex to the EPC contract in the part concerning the technical aspects of the scope of works provided for by this contract.
The company argues the request with delays related to the Covid-19 pandemic, which affects both timeliness and costs of project implementation. Currently, the proposal is being carefully analyzed in terms of its justifiability.
In October last year, a similar request was granted – an annex was added to the contract, which included an increase in remuneration by €32.2m, and the implementation time by 90 days. The total budget of the project is estimated at over €1.5bn (about PLN 7bn), which makes it the largest investment in the Polish chemical industry. Completion of the project is currently scheduled for 2023.
The investment of Polimery Police is aimed at building a propane dehydrogenation installation, creating a logistic infrastructure with a transshipment and storage port, and erecting a polypropylene production installation. Thanks to the newly established factory, Poland is to come to the forefront in the field of polypropylene producers in Europe. The material produced by Polimery Police is used in the production of packaging for food products, medical equipment, cables, and car parts.
The Azoty Group ranks second in the production of nitrogen and compound fertilizers in the EU. The group also produces products such as melamine, caprolactam, polyamide, OXO alcohols or titanium white, which are also used in many industries, and thus have a strong position in the chemical sector. Grupa Azoty Police’s consolidated revenue is PLN 10.52bn in 2020.
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