Petrohemija to invest EUR 15.4 million in processing capacity increase

The Supervisory Board of HIP Petrohemija has considered the planned investments of EUR 15.4 million for 2020 and concluded that the key change was to increase the processing capacities, as announced in the state company's journal.

As said, petrochemical processing should increase from the current 1,370 tons a day to 1,550 tons a day, which, as added, is a great challenge and will provide the company with the possibility of “increasing the market presence”, while also being a step toward a maximum usage of the capacities of the ethylene factory.

The Supervisory Board adopted the business report for October and the first ten months of the year and expressed concern over the business result trends, since the EBITDA in the first ten months is “minus RSD 740 million”, which, as said, is lower than planned.

– The next year will be a challenge for the petrochemical industry due to the negative trend of the prices of petrochemical products in the world market, and the business plan for 2020 envisages an EBITDA of plus RSD 100 million – the journal writes.

HIP-Petrohemija a.d. Pančevo

HIP Petrohemija

Etilen

ethylene factory

processing

EBITDA

income tax

price of petrochemical products