Petrochemicals

By 2030, the petrochemical segment will generate approximately half of the ORLEN Group's profits from the processing of crude oil. Strengthening the position of the leading petrochemical producer in Central Europe will be possible thanks to the development of the current product portfolio and entering new business areas.

GRI Disclosures:

GRI 103-1
GRI 103-2
GRI 103-3

SDGs:

Goal 9
Goal 11
Goal 12

Capitals:

103-1
103-2
103-3

Main production assets of the ORLEN Group

The key production facility of the Petrochemicals segment is the Olefins unit, with a maximum capacity of approximately 700,000 tonnes of ethylene and approximately 380,000 tonnes of propylene. Monomers manufactured at PKN ORLEN are used as feedstock for the polymer units at Basell ORLEN Polyolefins and the PVC unit at ANWIL. PKN ORLEN also operates a modern PX/PTA complex with an annual capacity of around 690 thousand tonnes of terephthalic acid.
In 2025, PKN ORLEN plans to complete the expansion of the Olefins complex under the Petrochemical Development Programme. The project is expected to position the Płock production plant among Europe’s largest and most advanced facilities of its type.

TheORLEN Unipetrol Group owns petrochemical assets with combined annual production capacities of approximately 600 thousand tonnes, including 320 thousand tonnes of polyethylene and approximately 280 thousand tonnes of polypropylene. 2020 saw the launch of a new Polyethylene 3 unit, with an annual capacity of approximately 270,000 tonnes, allowing Unipetrol to increase the use of the Olefins unit and further integrate the petrochemical and refining operations.

The Włocławek-based ANWIL is the only producer of polyvinyl chloride (PVC) in Poland and one of the major manufacturers of sodium hydroxide and fertilizers in the country. Its annual production capacity is ca. 1 million tonnes of nitrogen fertilizers, 0.4 million tonnes of PVC and granulates, and 0.2 million tonnes of sodium hydroxide. The planned construction of a third nitrogen fertilizer unit will increase Anwil’s annual production capacity to approximately 1.5 million tonnes from 2023 onwards.

Basell ORLEN Polyolefins in Płock operates facilities with a total production capacity of 900 thousand tonnes (420 thousand tonnes of polyethylene and 480 thousand tonnes of polypropylene). Its products are marketed both in Poland and in foreign markets.

For more information on the competitive environment, see `Competitive Environment`.

ORLEN Group’s market shares

Wholesale of petrochemical products

The ORLEN Group is the largest petrochemical company in Central and Eastern Europe, the only manufacturer of monomers and polymers on the Polish market, and the manufacturer of most of the petrochemical products available on the Czech market.

Source: In-house analysis based on POLYGLOBE.

Europe’s production capacities for high-density (HDPE) and low-density (LDPE) polyethylene are currently at around 12,512,000 tonnes per year.
Lyondell Basell Industries – the largest polyethylene manufacturer, with an annual production capacity of approximately 2,165,000 tonnes (including its 50% share in Basell ORLEN Polyolefins Sp. z o.o. (BOP) and production assets in Germany, France and Poland.
Ineos Olefins & Polymers Europe, with an annual production capacity of approximately 2,130,000 tonnes of polyethylene (HPDE, LDPE, LLDPE) with assets based in Belgium, France, Germany, Italy, Norway and the UK.
The total production capacity of the ORLEN Group, with production sites in Poland and the Czech Republic (including its 50% share in BOP), is approximately 900,000 tonnes per year.

Source: In-house analysis based on POLYGLOBE.

Europe’s annual production capacities for polypropylene are at around 11,749,000 tonnes.
Lyondell Basell Industries has an annual production capacity of around 2,405,000 tonnes (including its 50% share in BOP) and assets in Germany, France, Italy, Spain, UK and Poland.
Borealis – with an annual production capacity of approximately 2,000,000 tonnes and assets in Belgium, Germany, Austria and Finland;
Total Petrochemicals – with an annual production capacity of around 1,110,000 tonnes and assets in Belgium and France.
The total production capacity of the ORLEN Group, with production sites in Poland and the Czech Republic (including its 50% share in BOP), is approximately 520,000 tonnes per year.

Source: In-house analysis based on PCI.

The European nominal PTA production capacities total 3,985,000 tonnes per year.
Indorama – Europe’s largest PTA manufacturer (following the acquisition of Artlant), with a nominal production capacity of 1,750,000 tonnes per year and assets located in Portugal, Spain and the Netherlands.
Ineos (after the acqisition of BP Chembel NV in 2020) – Europe’s second largest PTA manufacturer, with an annual production capacity of 1,400,000 tonnes, located in Belgium.
PKN ORLEN is the only manufacturer in Europe to have production units fully integrated with paraxylene production, and its production capacity totals 690,000 tonnes per year.

Source: In-house analysis based on Market Analytics – Vinyls – 2020 (Nexant) report.

The European nominal PVC production capacities total 8,293,000 tonnes per year.
Inovyn, was formed following the combination of Ineos Chlor and Solvay; its annual production capacity is 2,255,000 tonnes.
Other manufacturers, such as Vinnolit, Kem One and Vynova, have annual PVC production capacities estimated at 885,000, 882,000 and 830,000 tonnes, respectively.
The ORLEN Group, with the annual production capacity of its Anwil and Spolana units at 475,000 tonnes, ranks fifth on the European plastics market.
Anwil’s key competitors are Inovyn and Vynowa in Europe and BorsodChem (the Wanhua Group) in Poland.

For a description of the ORLEN Group’s sales by product groups, see below.

Petrochemicals sales volumes

In 2021, sales of the ORLEN Group’s Petrochemicals segment totalled 4,906 thousand tonnes, less than in 2020, mainly on lower petrochemical sales in Poland, with growing sales on other markets.

Sales of the ORLEN Group’s Petrochemicals segment [PLN million / '000 tonnes]

Sales	2021		2020		change %
Sales	Value	Volume	Value	Volume	change %
1	2	3	4	5	6=(2-4)/4	7=(3-5)/5
Monomers¹	3,685	794	2,806	959	31.3%	(17.2%)
Polymers²	3,726	603	1,869	498	99.4%	21.1%
Aromatics³	1,315	347	716	373	83.7%	(7.0%)
Artificial fertilizers⁴	1,375	1,134	820	1,122	67.7%	1.1%
Plastics ⁵	1,911	331	1,304	396	46.5%	(16.4%)
PTA	1,483	518	1,384	631	7.2%	(17.9%)
Other⁶	2,516	1,179	1,688	1,127	49.1%	4.6%
Total	16,011	4,906	10,587	5,106	51.2%	(3.9%)

¹ Ethylene, propylene.
² Polyethylene, polypropylene.
³ Benzene, toluene, paraxylene, orthoxylene.
⁴ Canwil, ammonium sulfate, ammonium nitrate, other fertilizers.
⁵ PVC, PVC granules.
⁶ Other – includes mainly acetone, ammonia, butadiene, phenol, technical gases, glycols, caprolactam, soda lye, and sulfur. Additionally, in value terms, the item includes the segment's revenue from sales of services and materials.

Revenue structure of the ORLEN Group Petrochemicals segment

In 2021, 2020 and 2019 none of the ORLEN Group’s leading customers accounted for more than 10% of the Group’s total revenue.

Sales markets and market shares

Sales volume of the ORLEN Group Petrochemicals segment in home markets¹ [‘000 tonnes]

Sales	2021	2020	change	change %
	2	3	4=(2-3)	5=(2-3)/3
Poland	2,973	3,475	(502)	(14.4%)
Baltic States and Ukraine	73	51	22	43.1%
Czech Republic	1,860	1,580	280	17.7%
Total	4,906	5,106	(200)	(3.9%)

¹ By country of establishment of the relevant company.

Polish market

Sales volume of the ORLEN Group Petrochemicals segment in Poland ['000 tonnes]

Sales	2021	2020	change	change%
	2	3	4=(2-3)	5=(2-3)/3
Monomers	611	811	(200)	(24.7%)
Aromatics	130	197	(67)	(34,0%)
Artificial fertilizers	941	946	(5)	(0.5%)
Plastics	240	298	(58)	(19.5%)
PTA	518	631	(113)	(17.9%)
Other	533	592	(59)	(10.0%)
Total	2,973	3,475	(502)	(14.4%)

Sales structure of the ORLEN Group Petrochemicals segment in Poland

In 2021, sales of the ORLEN Group’s Petrochemicals segment in Poland were 2,973 thousand tonnes, down by (502) thousand tonnes year on year. Sales declined across all products, primarily monomers down by (24.7)% (y/y) as a result of unstable operation of the Olefins unit following the overhaul in the second quarter of 2021, and PTA down by (17.9)% (y/y) as a result of ongoing maintenance shutdowns of the PTA unit.

The Baltic States and Ukraine

Sales volume of the ORLEN Group Petrochemicals segment in markets served by ORLEN Lietuva Group ['000 tonnes]

Sales	2021	2020	change	change%
	2	3	5=(2-3)	6=(2-3)/3
Monomers	73	51	22	43.1%
Total	73	51	22	43.1%

In 2021, the ORLEN Lietuva Group’s monomer sales reached 73 thousand tonnes, up 22 thousand tonnes year on year, driven by improving macroeconomic situation and absence of the effect of a maintenance shutdown recorded in 2020.

Czech market

Sales volume of the ORLEN Group Petrochemicals segment in the Czech Republic ['000 tonnes]

Sales	2021	2020	change	change%
	2	3	5=(2-3)	6=(2-3)/3
Monomers	110	97	13	13.4%
Polimers	603	498	105	21.1%
Aromatics	217	176	41	23.3%
Artificial fertilizers	193	176	17	9.7%
Plastics	91	98	(7)	(7.1%)
Other	646	535	111	20.7%
Total	1,860	1,580	280	17.7%

Sales structure of the ORLEN Group Petrochemicals segment in the Czech Republic

In 2021, the volume of sales in the ORLEN Group Petrochemicals segment in the Czech Republic stood at 1,860 thousand tonnes, having increased by 280 thousand tonnes year on year, chiefly on higher sales of polymers up 21.1% (y/y), after the operating parameters of the PE3 unit improved and aromatics up 23.3% (y/y). Sales of PVC on the Czech market dropped by 7.1%.