Polish chemical company Grupa Azoty has resumed talks to sell its troubled 437,000 t/yr propane dehydrogenation (PDH) and polypropylene (PP) plant in Poland to integrated oil firm Orlen.
In July, Orlen dropped plans to buy the entire plant and limited its interest to port and storage assets. But it has now agreed to reopen talks to acquire the whole PDH/PP facility or a stake in it, Azoty said.
The plant is in Police near Szczecin. The amended memorandum aims to conclude negotiations by the end of this year, Azoty said.
Azoty president Andrzej Skolmowski said the project needs a new owner or at least "a partner" because continuing alone is beyond the firm's financial capacity. "We do not have sufficient funds to complete and commercialise the project," he said. "We have come back to talks with Orlen to find a solution."
Orlen confirmed the talks have restarted but said it would not comment further. The company earlier this week reshuffled its management board, appointing a new chief financial officer and a board member for energy transition.
The Polish government holds effective control of both firms, with stakes of 33pc in Azoty and 49.9pc in Orlen.
Azoty said PDH/PP operations have been halted since July after a PDH unit malfunction. The firm decided to shut the unit for extended repairs. If polypropylene demand improves, it said it could restart the PP unit without completing PDH repairs.
Azoty said the PDH/PP project — which began operations in 2023 but has not yet been fully commissioned — is a key reason for its continued losses.
Azoty posted a loss of 878mn zlotys ($242mn) in the first half of 2025, widening from a 748mn zlotys loss a year earlier.
