PKN Orlen has applied for a EUR300m subsidy with the European Investment Bank to start a profitable polyester investment. Orlen wants to build terephtalic acid (PTA) production plant. The substance is being used in the production of soda bottles and polyester fibres. The bank would finance half of the investment. Experts have praised Orlen's plans, claiming Poland suffers from a deficit of petrochemical raw materials and the new installation will help the refiner to meet the growing demand.

This is one of the key reasons for almost EUR8bn deficit in Poland's foreign trade of chemicals. "It's a badly-needed investment and should be followed by similar ones, not only in raw materials but also in the higher-processed products," said Wojciech Lubiewa-Wielezynski, head of Polish Chamber of Chemical Industry. Orlen estimates the demand for PTA will grow by 8-10 percent a year. The installations will be built by 2011and will enable the manufacture of 600,000 tonnes of PTA annually.

Source: Polish News Bulletin