Hungarian oil and petrochemicals group MOL has entered into engineering, procurement and construction (EPC) contracts with Thyssenkrupp Industrial Solutions for its proposed polyether polyols complex at Tiszaujvaros.

The complex, set to cost €1.2 billion, will produce 200,000 t/y of polyether polyols and also include a propylene glycol plant. The facility is due to go into operation by the second half of 2021. Groundworks and basic construction are planned to start in the fourth quarter of 2018.

The EPC contracts cover the entire technical scope of the project apart from certain elements that mostly relate to project management, site integration and infrastructural costs, and commissioning of the assets.

“Reaching the final investment decision on the polyol project and the signing of the EPC contracts with our renowned strategic partner, Thyssenkrupp, is another major milestone of our transformational strategy, MOL 2030,” said MOL’s CEO, Zsolt Hernadi. “We will be entering a knowledge-intensive, high value-added chemicals market with an innovative and environmentally friendly technology, allowing us to capitalize on rising regional demand and to exploit additional growth opportunities in central-eastern Europe.”

MOL signed technology license agreements for the polyols complex with German specialty chemicals producer Evonik and Thyssenkrupp last July.

The Hungarian company’s board of directors approved in October 2016 the 2030 transformation plan, under which it intends to move further along the petrochemicals chain toward making semi-commodity and specialty chemical products.

Polyether polyols, a feedstock for polyurethane foams used in a variety of applications such as automotive, construction, packaging and furniture, are as a major focus of MOL’s expansion plans. The company added that it aims to become a strategic partner of polyurethane producers in central-eastern Europe.