Grupa Kapitałowa Grupa Azoty
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On October 31, 2024, following discussions and agreements with banks, Grupa Azoty Polyolefins signed an Amendment Agreement to the Stabilization Agreement dated December 15, 2023, regarding the financing of the Polimery Police project. The parties have agreed to the terms under which financial institutions will continue providing financing for the project during the extended term of the Stabilization Agreement, which now runs until November 29, 2024. The Amendment Agreement was signed with 15 financial institutions.
The extension stipulates that Grupa Azoty S.A. and Grupa Azoty Police will contribute the remaining portion of the support loan to the subsidiary, amounting to a total of EUR 105 million (upper limit), no later than November 28, 2024.
“We are steadily progressing toward the final acceptance of the installations from the General Contractor. Following the conditional interim acceptance of the polypropylene installation and the Terminal Unloading and Storage subproject in July 2024, the company has full control over its production portfolio, which is tailored to market conditions. Our goal remains ensuring the availability of polypropylene in the quality expected by our clients while achieving satisfactory sales profitability. By October 23, 2024, Grupa Azoty Polyolefins had produced a total of 200,000 tons of polypropylene, with production capacities at the new installations gradually ramping up to the project’s targets of 429,000 tons of propylene per year and 437,000 tons of polypropylene per year,” said Krzysztof Kołodziejczyk, Acting President of the Management Board of Grupa Azoty Polyolefins and Vice President of Grupa Azoty S.A..
The market will ultimately offer more than 30 types of polypropylene under the Gryfilen® brand. New products are being introduced gradually, in line with a planned schedule, and following successful validation of their production and processing by clients. Simultaneously, the company is negotiating with Hyundai Engineering regarding an annex to the EPC Agreement. This annex will address the final approval of the Integrity Test and the settlement terms for the Polimery Police project. The ongoing negotiations do not affect current production, sales, or delivery processes.
Under the EPC Agreement, the General Contractor is comprehensively responsible for implementing the Polimery Police project. Completion of the project requires achieving and maintaining the Guaranteed Parameters outlined in the license agreements for the Propylene Production Installation (PDH) and the Polypropylene Production Installation (PP).
The Stabilization Agreement was signed with the following financial institutions:
Alior Bank S.A., Bank Gospodarstwa Krajowego, Bank Ochrony Środowiska S.A., Bank Polska Kasa Opieki S.A., BNP Paribas Bank Polska S.A., European Bank for Reconstruction and Development, Haitong Bank Polska S.A., ICBC Standard Bank PLC, Industrial and Commercial Bank of China (Europe) S.A., Poland Branch, mBank S.A., Powszechna Kasa Oszczędności Bank Polski S.A., Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A., PZU Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych BIS 2, and Santander Bank Polska S.A.