Azoty chemicals lacks funds to complete PDH investment, in talks with Orlen - CEO

The company expects to begin talks with Orlen within the next few days to agree on scenarios for a potential transaction involving the purchase of all or part of Azoty Polyolefins' shares.

"We have resumed talks with Orlen to find a solution. We are doing everything we can to stabilize the financial situation of Grupa Azoty Polyolefins and complete the Polimery project in Police. We are supplementing the signed annex with a possible transaction to sell the shares of Grupa Azoty Polyolefins," Andrzej Skolmowski told a videoconference on Thursday.

"We do not intend to present solutions that are unrealistic for the group. We cannot solve this problem on our own for an important reason. We do not have sufficient funds to complete and commercialize this investment," he added.

The CEO of Grupa Azoty says that the group has prepared to complete the project in difficult market conditions, using the means at its disposal.

"We have obtained the necessary funds for this from the general contractor's performance bond, in accordance with its intended purpose," said Andrzej Skolmowski.

Grupa Azoty, Grupa Azoty Zakłady Chemiczne Police, Grupa Azoty Polyolefins, and Orlen signed an annex to the Memorandum of Understanding on Wednesday, effective July 31, 2025.

The annex extends the cooperation between the parties to include an analysis of the possibility of a potential sale of all or part of the shares of Grupa Azoty Polyolefins by Grupa Azoty and Grupa Azoty Police.

The purpose of the Memorandum of Understanding was to define the framework for cooperation between the parties in the area of a potential transaction involving the use of selected assets belonging to GA Polyolefins and the Police Seaport Authority, including the transshipment and storage terminal and port plots used by GA Polyolefins.

"We have just signed the annex. We are working intensively on possible scenarios. Both parties will proceed to agree on the scenarios without undue delay within the next dozen or so days,” Andrzej Skolmowski told the teleconference.

When asked which party initiated the return to talks, the president of Grupa Azoty replied: “This is a mutual result of the analyses carried out and a new look at the assets owned by Polimery Police."

"For our part, we are constantly analyzing and modeling the group's forecasts regarding, among other things, the alternative use of its assets, including port assets,” he added.

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