This article was edited from its original version on Nov. 7
Uchenna Izundu
International Editor
LONDON, Nov. 6 -- OMV AG will boost petrochemicals capacity as part of a €1.1 billion investment program in Bavaria over the next 4 years.
It plans to expand ethylene capacity to 450,000 tonnes/year from 340,000 tonnes/year and propylene capacity to 560,000 tonnes/year from 245,000 tonnes/year at its complex in Burghausen.
The expansion projects will absorb €640 million of the overall expansion budget while another €495 million will be committed to OMV's share of the Bayneroil joint-venture refinery network and filling station business.
In the olefins expansion at Burghausen, OMV will build a metathesis plant, enlarge its ethylene plant, and construct a large cracking furnace. It will become sole supplier of propylene to the nearby plastics complex operated by its subsidiary Borealis. The Borealis complex will be expanded with construction of a €200 million, 330,000-tonne/year polypropylene plant. Total polyolefin capacity at the complex will rise to 740,000 tonnes/year. The new plant will use OMV's Borstar technology.
OMV also plans to invest €150 million to lay a 360-km products pipeline between Munchmunster and Ludwigshafen, giving it access to the Western Europe ethylene network. The pipeline will have an initial capacity of 200,000 tonnes/year, expandable to 400,000 tonnes/year.
Other spending planned by OMV in Germany includes €315 million for its share of investment in the upgrade and restructuring of the Bayernoil joint-venture refinery network and €180 million for retail network expansion.
Contact Uchenna Izundu at [email protected].
