Synthos selling butadiene extraction unit to Orlen

Warsaw – Synthos SA has announced that it has signed an agreement with Polish petrochemicals group Orlen SA to sell 100% of shares in the company S54, which is building a new butadiene extraction unit in Plock, in central Poland.

The deal is valued at PLN692 million (€165 million) and also includes a package of accompanying contracts, said Synthos 18 Dec.

The two companies have been collaboration on the new butadiene unit "for several years" as part of the petrochemical development programme in Plock.

The current agreement, said Synthos, is part of its initiated investment reorganisation process.

Synthos went on to add that the decision to sell the assets was due to ongoing delays in Orlen’s Olefin III project.

The divestment, it noted, creates “a stable framework for further business cooperation between the two companies.”

“As a long-term business partner of Orlen, we have signed an agreement which – considering the circumstances – is the most beneficial solution for both parties and strengthens the foundations of long-term partnership.” said Zbigniew Warmuz, CEO of Synthos SA.

Synthos started construction work on the butadiene extraction facility in 2021 with commissioning scheduled for 2024.

At the time, the company said the unit will have a butadiene production capacity of 120 kilotonnes per annum, and was being constructed by Air Liquide Engineering and Construction, using BASF NMP butadiene extraction technology.