Poland's chemical conglomerate Grupa Azoty is nearing a sale of its 437,000 t/yr propane dehydrogenation (PDH) and 429,000 t/yr polypropylene (PP) plant to compatriot oil company Orlen.
Azoty and Orlen have been discussing potential partnerships over the PDH/PP plant, in Police, since September 2024. Those talks "clearly confirm" the aim of the negotiations would be to sell the entire plant, or at least a stake in it, to Orlen, Azoty said.
The companies agreed to negotiate a potential transaction by 31 March, although the deadline can be extended if required.
Azoty is intensifying efforts to divest assets as it tries to turn around loss-making operations and offload more than 9bn zlotys ($2.17bn) in debt that is predominantly loans taken out to build the PDH/PP plant.
In November Azoty said the PDH/PP plant is gradually ramping up production, but that it needs time to stabilise output and reach capacity to ensure economic feasibility.