The oil and gas company MOL Group is investing a total of EUR 1.2 billion ($1.33 billion)  – the largest organic investment to date – in a new polyol complex, which is being built by thyssenkrupp in Hungary.

The foundation for the polyol production plant was laid on September 27 in Tiszaújváros. The new plant complex is expected to go into operation in 2021 and produce around 200,000 tonnes of polyols per year.

MOL Petrochemicals in Tiszaújváros will be the only company in Hungary and the entire Central and Eastern European region with an integrated value chain from crude oil extraction to the production of polyether polyols (widely used raw materials in plastics). The polyol project will provide long-term employment opportunity for 200 people, MOL said in a statement. 

“The laying of the foundation stone is an important step for the transformation of the chemical industry in Hungary and for the partnership between MOL and thyssenkrupp,” said Sami Pelkonen, CEO of Chemical & Process Technologies at thyssenkrupp Industrial Solutions. “With its Vision 2030, MOL is pursuing an ambitious growth agenda. We are proud to support this vision and to contribute with our technologies and know-how to an innovative and sustainable chemical sector, “he added.

Polyol is an important and highly demanded raw material for plastics, which is used in many industries– from automotive to construction to the textile industry. Polyol is produced in the new plant complex in Tiszaújváros using efficient and environmentally friendly technologies, including the HPPO process (propylene oxide from hydrogen peroxide) developed by thyssenkrupp and Evonik.

“This investment project the MOL Group becomes one of the most important regional players in the chemical industry. MOL will be the only company in Central and Eastern Europe that covers the entire value chain from crude oil production to polyol production,” said Zsolt Hernádi, CEO of MOL. “After commissioning in 2021, the plant will contribute to strengthening the chemical site of Tiszaújváros. The know-how and the newly emerging infrastructure can attract further investors to the region in the future. “