NIS Acquires Petrohemija Pancevo – Russian Owners to Invest in New Facility

The Ministry of Economy of Serbia, NIS and Petrohemija have signed the agreement on a strategic partnership whereby NIS will become the owner of a 90% stake in Petrohemija, finish the recapitalization in the amount of EUR 150 million and the construction of the facility for the production of polypropylene.

The agreement was signed at the Ministry of Economy by minister Andjelka Atanaskovic, the CEO of NIS, Kirill Tyurdenev, and the managing director of Petrohemija, Velimir Unkovic.

The agreement envisages for NIS to increase its stake in Petrohemija from the current 20.86% to 90% and to build a polypropylene facility of a capacity of at least 140,000 tons a year in a period of six years.

As announced, the strategy of the further development of Petrohemija will be based on the modernization of the basic production capacities and the construction of new facilities, and then also on increasing the energy efficiency and the efficiency of business operations, as well as the realization of environmental protection projects.

The aim of the strategic partnership is to secure long-term sustainable operations of HIP Petrohemija and the strengthening of its competitiveness in the market.

By making this business step, NIS continues diversifying its operations and enters the petrochemical business.

Ministarstvo privrede Republike Srbije

NIS a.d. Novi Sad

HIP-Petrohemija a.d. Pančevo

Ministry of Economy

NIS

HIP Petrohemija

Petrohemija

Anđelka Atanasković

Kirill Tyurdenev

Velimir Unković

strategic partnership agreement

facility for production of polypropylene

polypropylene