Tuesday, 18. December 2012.
HIP-Petrohemija visited by representatives of Ministry of Finance and Economy of Serbia and NIS
HIP-Petrohemija on Tuesday, 18 December, was visited by the Minister of the Finance and Economy of Serbia, Mlađan Dinkic. Accompanied by Director General of HIP- Petrohemija, Milan Teofilović and Director General of NIS, Kiril Kravčenko, the guests visited the plant for the production of high density polyethylene (HDPE), which reconstruction and increase of the capacity was in the first phase of the program of revitalization of the company, and which was carried out with logistical and consultation support of NIS and the Government of the Republic of Serbia.
The total amount of investment for the modernization of HDPE plants at this stage amounted 6.1 million euros, of which 2.5 million euros were spent for the performance of the works, and another 3.6 million euros have been invested in the purchase of modern technological equipment. Funding for activities on modernization of the plants are provided from the cash flow of HIP-Petrohemija, with full support of the government and representatives of NIS, which provided to the company-partner logistical assistance and consultation on this project.
Production capacity of the factory after the investment has been increased from 70 to 90 thousand tons of HDPE per year. It is expected that this investment will repair the company's financial results significantly, and as such represents an important step in the recovery of the company. As an additional positive effect due to the start of HDPE plant with increased capacity can be considered that in this way increases the capacity of the Ethylene plant, but also allows the recovery of production in the Panonijaplast plant, where it was stopped the production in 2009.
During the visit, the members of delegation discussed the parameters of the second phase of the investment cycle, which is expected to start in January 2013. Planned amount of investment should be around 60 million euros, the deadline for the project realization is 2 years, after which is planned that HIP Petrohemija achieve a positive operating result.
"Management of HIP Petrohemija, despite the complex situation in which the company is located, is doing everything possible to restore the production potential of the company. For several months we were able to implement the first part of the investment program, and that way to create a solid foundation for the successful future of the company. The credit for that belongs largely to our strategic partners from NIS, providing all this time extremely useful and effective assistance, " said the general manager of HIP Petrohemija, Milan Teofilovic.
"Our strategic partnership with HIP-Petrohemija, for which the agreement was signed in 2011, has mutually beneficial character. Let me remind you that Petrohemija is associated with Rafinerija Pančevo, not only through the delivery of virgin naphtha, but also through the elements of the infrastructure, so that our work together has completely natural character. Petrohemija is one of the most important buyers of NIS, and that is why we are interested in the recovery of the company as soon as possible and start its work at full capacity, "- said General Director of NIS, Kirill Kravčenko.