From the very beginning in late 1977, capacity and product range of HIP-Petrohemija was designed to satisfy the needs of the former Yugoslav market. HIP-Petrohemija was the only petrochemical company in former Yugoslavia with a complete production cycle – from marketing of the basic products (ethylene, C4 fraction, propylene, vinyl-chloride monomer) to production (PENG, PEVG, PVC, SBR) and processing of polymers (Panonijaplast, Petroplast), and the important factor was the vicinity of the refinery complex RNP-NIS (today GaspromNeft).
Due to its complete process, in the early years of its operations HIP-Petrohemija had a dominant position in this part of the Balkans. Since the technology level of its plants in the 70s was very high (factories Etilen, PENG, PEVG, VCM), there was no need for special investments in development of technology. It can be said that for this reason early 80s were the most fruitful years in the history of HIP-Petrohemija.
In late 80s, development plans were aimed at investments in chlorine line (Electrolysis→VCM→PVC), in order to modernize Chloralkali Electrolysis and PVC plants. These two plants were at much lower technology level than any other HIP-Petrohemija factory. Advantages of new technologies were lower production costs, better work safety, automation of work and compliance with much stricter environmental laws.
The hardest business period was late 20th century, after dissolution of Yugoslavia and drastic decrease of the market for basic and final products of HIP-Petrohemija. After enactment of trade embargo in Federal Republic of Yugoslavia in 1992, HIP-Petrohemija completely stopped its production until 1996. HIP-Petrohemija plants, after abolishment of international sanctions, were restarted in September 1996, and the company successfully returned to domestic and European markets. Until 1999, petrochemical complex produced over one million tons of petrochemical products per year.
NATO intervention in 1999 was especially hard period for HIP-Petrohemija, when it suffered two direct bomb attacks on 15th and 18th of April. The bombing destroyed VCM plant and seriously damaged Electrolysis plant (which later stopped to operate), thus leaving HIP-Petrohemija without 40% of its production capacities. Total damage was estimated at USD 449 million. With the loss of chlorine line, ethylene line was out of balance resulting from surplus capacity in Ethylene factory of cca. 100,000 t/year. PVC plant, which was connected with VCM plant in terms of raw material, was left without its basic raw material, although it was not damaged in the bombing.
Today, HIP-Petrohemija as the only producer of polyethylene and synthetic rubber in Serbia and one of the most important suppliers of domestic and foreign markets, produces more than 600,000 tons of petrochemical products.
