HIP-Petrohemija continuosuly strive to improve its systems and technologies in order to provide higher competitivness and better position in the world market. The Company see the realization of these goals through development projects realization within the company itself as well as within the scope of its technological connection with NIS.
The development plans of HIP-Petrohemija are based on four groups of projects:
Projects where ecological factor dominates
Being ecologically responsible company, HIP-Petrohemija has included in its development plans the projects where ecological factor dominates over economy effects. This group includes projects for reconstruction of the existing production units within the Waste Water Treatment Plant and Synthetic Rubber Plant in Elemir, as well as storage tanks reconstruction in the Ethylene Plant.
Projects where economic factor dominates
Being socially responsible company, with aim to achive better competitivenss in global market, HIP-Petrohemija has included in its development plans the projects whose main purposes are as follows:
·Modernization of the existing and introduction of new technologies
Erection of polypropylene plant is a project which will bring new modern technology to our company and enable it to apply up-to-date solutions quickly and qualitatively.
The modernization of the existing equipment for production process management, in the Ethylene Plant, which is being realized through the reconstruction of the existing management system, will provide cost reduction, facilitate and increase the reliability of production process management.
Projects where economy factor dominates, and which are carried out in order to increase energy efficiency
Realization of these projects whose aim is increasing energy efficiency of the equipment, technologies and plants, leads to realization of the company competency globally, to increase of market share through lowering energy share in products, what brings to costs decrease and profit increase – all in order to have better products and services, and quicker utilization of solutions obtained with high technology. Although the economy factor dominates, ecological factor is also of great influence: increase of energy efficiency brings to protection of natural resources (natural gas, oil and coal) and decrease emissions in the air. Examples of these projects are, first of all, the reconstruction of the existing heating systems and the reconstruction of the system for the production of instrumental air, with the installation larger capacity air compressor.
Projects implemented in order to increase safety in the work of production processes
In order to reduce risks and increase occupational safety, HIP-Petrohemija plans to implement significant investment projects that will increase the level of safety in the field of fire and explosion protection in production units
After the 1999 bombing of HIP-Petrohemija, when the productional-technological cycle was disordered what resulted in bottleneck in production, the joint development programme was created by and between HIP-Petrohemija, Oil Refinery Pancevo, HIP-Fertilizer Plant and Messer-Tehnogas, on the basis of Master Plan made by ABB Lummus. This Plan had several options for possible development of HIP-Petrohemija, and the following ones have been adopted: capacity increase of HDPE Plant to 90,000 t/y and of LDPE Plant to 55,000 t/y, erection of a new 180,000 t/y polypropylene plant, and a new 15.000 t/g carbon black plant. For the multi-option solutions, capital investments estimated to US$ 160-380 million could not be provided in the first years of reconstruction after the NATO bombing. During the years 2009 and 2010, the projects relating to HDPE Plant capacity increase to 90.000 t/y were completed, and purchasing of the equipment for the PF section in this plant was finalized. At the end of 2010, HIP-Petrohemija and SNC Lavalin signed Agreement on producing Master Plan and Feasibility Study for realization of the investment programme on Ethylene, HDPE and LDPE plants reconstruction. This Plan, based on processing and utility connections between NIS Oil Refinery and HIP-Petrohemija, comprises: Ethylene plant reconstruction keeping the existing capacity of 200,000 t/y, HDPE plant capacity increase and LDPE plant capacity increase.
New basis for stable business and further development of HIP-Petrohemija was founded at the end of 2011, and reconfirmed in the beginning of 2013. This basis is aimed to decrease capital investment amount, taking into consideration difficulties in providing banking resources due to HIP-Petrohemija’s operations under crisis and recession conditions. Supported by Government of the Republic of Serbia and Ministry of Economy and Regional Development, within the scope of strategically defined integrated development of NIS and HIP-Petrohemija, the common team consisting of experts from these companies has made HIP-Petrohemija Development Plan. Difficult approach to qualitative financing resources assigned terms for this investment programme to be separated in two phases.
The first phase of the investment programme (2013-2015) includes the HDPE plant capacity increase, the 1st phase of energy efficiency increase in the Ethylene and Utility plants, the Synthetic Rubber and HDPE plants reconstructions, what would bring positive cash flows from operational activities to be realized at the end of 2015.
The second phase of the investment programme (2016-2023) includes realization of the 2nd phase of energy efficiency increase in the Ethylene and Utility plants, and propylene valorization through erection of a new plant for polypropylene production including C3-splitter unit, what would enable business growth.
