Hungary's MOL announced on July 20 that it has struck licensing deals with Germany's Evonik Industries and Thyssenkrupp that will be essential in its plan to roll out a $1.9bn investment in chemical and petrochemical projects over the next four years.

The contracts involve the acquisition of technology licences and process design packages for hydrogen peroxide to propylene oxide (HPPO) technology. MOL wants to achieve an annual production capacity of 200,000 tonnes of propylene oxide which will be used as raw material by its planned polyether polyols production lines. The Hungarian oil, gas and petrochemicals group aspires to become a major European producer of the polyols, used as high-value intermediates for producing polyurethane plastics required by the automotive, packaging and furniture industries.

The propylene oxide plant alone will require an investment of around $1bn, equivalent to the single largest organic investment planned by MOL for the coming four years.

Last October, MOL's board approved the company's long-term strategy, MOL 2030, with the aim of diversifying its operations and reducing its dependence on refining oil and selling fuel. A priority in MOL’s strategy is moving further along the downstream value chain towards semi-commodity and specialty chemicals products. Over the long term, MOL is intent on becoming the leading chemical producer in Central and Eastern Europe. Another MOL objective is the strengthening of its consumer service units.

Zsolt Hernadi, MOL's chairman-CEO said: “Today’s agreement with our renowned partners marks an important step in the implementation of the MOL Group 2030 strategy, which will transform MOL Group into the leading chemical company in central and eastern Europe. As a first decisive investment step, we will spend up to $1bn on the Polyol Project and thus become a significant European player. The innovative and environmentally friendly technology will not only enable us to become the only integrated polyol producer in our region, but will also be a doorway to enter other, highly profitable areas of the chemical industry.”

Sami Pelkonen, CEO of the electrolysis & polymers business unit at thyssenkrupp Industrial Solutions, said: “We are proud to enter into this long-term licence agreement which will allow MOL to produce high-quality propylene oxide through an extremely cost-effective process. The process, which offers efficient feedstock consumption, environmentally-friendly production and low capital investment, was developed based on our strong expertise in process engineering and the design and construction of chemical and other industrial plants jointly with our partner Evonik.”

Johannes Ohmer, a member of the managemet board of Evonik Resource Efficiency, commented: “The Polyol Project is a good example where strong partners combine their specific strengths to powerfully and successfully join forces and in doing so building the foundation for a long-lasting and trustful strategic partnership. Evonik will contribute with its advanced technology know-how and operation experience as well as the outstanding performance of its proprietary catalysts. As an innovative and reliable partner we stand for resource-efficient and thus sustainable solutions.”