History

In the late sixties of the last century, during the economic development of the former Yugoslavia, it was recognized the need to build a petrochemical complex in order to reduce the import of basic chemical products and improve the country's payment balance. Available raw material base, already formed experienced personnel and highly affordable transport options in all types of transport have led to the decision to build this industry within the existing Chemical Industry in Pancevo.

In the period from 1971 to 1980, after selecting the most advanced technology and equipment originating mainly from the USA, six factories were built: HDPE, LDPE, VCM, PVC, Ethylene and Chlor-Alkali Electrolysis, technologically inter-related by ethylene and chlorine lines. The entity was completed with the construction of Utility Plant and Waste Water Treatment Plant, as well as many specialized sectors.

With the Statute of Chemical Industry in Pancevo, Petrohemija receives a status of work unit under construction.

Work organization for the production of petrochemical products, raw materials and chemicals, Petrohemija - under establishment, was founded.

On the 25^th September, work organization Petrohemija was constituted.

All the loans taken for the construction of petrochemical complex were repaid.

Through the transformation of complex corporate organization - SOUR, HIP-Petrohemija was separated as a socially-owned company for the production of petrochemical products, raw materials and chemicals HIP-Petrohemija, unlimited, Pancevo.

Synthetic rubber factory in Elemir near Zrenjanin was associated to Petrohemija. A factory for the production of polyethylene pipes and fittings Petroplast was put into operation, as well as two more plants for wastewater treatment.

The sanctions, lack of raw materials, the impossibility of import and export and the termination of preferential treatment, completely blocked the work of the factory. After stopping the production, plants were conserved, properly maintained and prepared for the re-start.

A new start of Petrohemija after years of sanctions followed in September. Petrohemija successfully returnes to domestic and foreign markets.

Factory Panonijaplast from Crepaja was associated to Petrohemija, with the product line of PVC and HDPE compounds.

In April, during the NATO bombing, two plants were destroyed: Electrolysis and VCM, while the third one – PVC, was put out of operation. Result was destruction of 40 percent of total production capacities. ​​Eco-system was degraded in the wider area.

In September, production was re-started in all plants not damaged by the bombing.

Debt to equty swap made by Public Revenue Administration of the Republic of Serbia, Development Fund and the Petroleum Industry of Serbia (NIS) ended in March. In accordance with the changed capital structure, the form of the company was changed into the joint-stock company.

Due to the extremely difficult financial situation, HIP-Petrohemija enters the process of restructuring in 2009, and in June it stops the production. After a three-month break, with the financial help from the state and after debt rescheduling with NIS, on 17th September 2009 the production was restored. Among many measures necessary for the re-start, the number of employees was rationalized, and HIP-Petrohemija successfully returned to domestic and foreign markets.

After less than a year, on 15 July 2010, the Minister of Economy and Regional Development of Serbia Mladjan Dinkic and Director General of NIS Kiril Kravchenko, signed the agreement on long-term strategic cooperation between NIS and HIP-Petrohemija, which enables HIP-Petrohemija to be supplied with naphtha by NIS in the next 10 years.

On 21 November 2011, the Minister of Economy and Regional Development of Serbia Nebojsa Ciric and Director General of NIS Kiril Kravchenko, signed the agreement on strategic cooperation between NIS and HIP-Petrohemija in the field of production efficiency increase and financial stability of the company. The investments envisaged by this Agreement are the main condition for a stable future of HIP-Petrohemija.

PF section of HDPE Plant was reconstructed according to Chevron Phillips Chemical Company – USA license, by which the production capacity was increased at 90kt/year with the possibility of attaining the capacity of 110 kt/year.

The Government of the Republic of Serbia enacted Action Plan for termination of restructuring. According to the enacted Action Plan, HIP- Petrohemija was included into the group of 16 companies which have real possibility to realize sustainable operating.

In HDPE Plant maximum annual capacity of 89,14 kt/year was realized, while in LDPE Plant record production of 61,5 kt polyethylene was realized.

Initiated consideration of possible conceptions of Prepacked Reorganization Plan containing the measures of financial, business and organization consolidation, as well as the way of realization of investment program.

Pursuant to Privatization Law „in restructuring“ was deleted from the name of the company.

Completed investment and overhaul operations in the amount of 3.9 million Euro during which there were performed reconstruction and replacement of the parts of installations in Utility Plant,Ethylene Plant, LDPE Plant, HDPE Plant and Styrene-Butadiene-Rubber Plant as well as the increase of energy efficiency in SBR Plant.

Commercial Court in Pančevo made a Decision on initiating of Prepacked Reorganization Plan which was adopted by Company’s Shareholders Assembly before that,as well as a stopgap measure by which the protection of the company from creditors was extended within the next six months.

The proposal for withrdawal of Prepacked Reorganization Plan was submitted to Commercial Court in Pančevo,for the purpose of making a new one.

Settled the liabilities provided by the Agreement on Extra judical settlement with „Lukoil Serbia“ ad New Belgrade.

Making of new Prepacked Reorganization Plan was started by which the state creditors and NISdebts (Oil Industry of Serbia) will be solved.

Reaching the agreement with NIS and commercial creditors has opened the possibility for „HIP-Petrohemija“ to be practically released from all the historical debts which could be partially writen-off,and partially converted into capital through new Prepacked Reorganization Plan,and from another side there were provided predictable long-term business relations with NIS.

By the Decision of Commercial Court in Pančevo the new Prepacked Reorganization Plan has become effective.The measures provided by Prepacked Reorganization Plan will be realized by the end of the year. After realization of Prepacked Reorganization Plan the Company gets the preconditions for reaching sustainable operating and finding the strategic partner.