ORLEN ORLEN Group 2017
Integrated Report

Competitive Environment

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Orlen Group is the largest refiner in Central and Eastern Europe.

  • The total production capacities of the ORLEN Group refineries are 35.2m tonnes.
  • The refinery in Płock is one of the most advanced integrated production facilities in Central and Eastern Europe, with an annual production capacity of 16.3m tonnes. In petrochemicals, the key unit (Olefins) has a maximum production capacity of about 700,000 tonnes of ethylene and about 380,000 tonnes of propylene. Monomers manufactured at PKN ORLEN are used as feedstock for the polymer units at Basell Orlen Polyolefins and the PVC unit at ANWIL. PKN ORLEN also operates a modern PX/PTA complex with an annual capacity of around 690,000 tonnes of terephthalic acid.
  • The other Polish refineries, operated by ORLEN Południe and located in Trzebinia and Jedlicze, specialise in the production of biocomponents, base oils, heating oil, hydrotreated paraffin as well as the regeneration of used oil.
  • ORLEN Lietuva's refinery in Mazeikiai, with an annual production capacity of 10.2m tonnes, is the only facility of that type in the Baltic States (Lithuania, Latvia and Estonia).
  • The Unipetrol Group operates refineries in Kralupy and Litvinov, with a combined annual production capacity of 8.7m tonnes. The Unipetrol Group also owns gas petrochemical assets with a combined annual production capacity of approximately 600,000 tonnes, including 320,000 tonnes of polyethylene and approximately 280,000 tonnes of polypropylene. Construction of a new Polyethylene 3 unit, with an annual capacity of approximately 270,000 tonnes, is underway. Once completed, it will allow Unipetrol to increase the use of the Olefins installation and further integrate the petrochemical and refining operations.
  • ANWIL of Włocławek is the only Polish producer of polyvinyl chloride (PVC) and a major producer of fertilisers and sodium hydroxide in Poland. Its annual production capacities are approximately 1,160,000 tonnes of nitrogen fertilizers, 560,000 tonnes of PVC and granulates, and 360,000 tonnes of sodium hydroxide.
  • Basell ORLEN Polyolefins of Płock operates units whose combined production capacity reaches 820,000 tonnes (420,000 tonnes of polyethylene and 400,000 tonnes of polypropylene) and its products are distributed both domestically and on foreign markets.

ORLEN Group production assets and key competitors in CEE / processing capacity [million tonnes]

Main production assets of the ORLEN Group
  • A Maximum annual processing capacity (million tonnes)
Aktywne produkcje Grupy ORLEN

Source: In-house analysis.

The largest competitors of the ORLEN Group are:

  • LOTOS Group of Gdańsk – Poland’s second largest refinery.
  • Mitteldeutschland Refinery in Leuna/Spergau, located in south-eastern Germany, about 150 km from the Polish-German border, the country’s most advanced refinery.
  • PCK Refinery in Schwedt, located north-east of Berlin, about 20 km from the Polish-German border.
  • Slovnaft refinery, an integrated refining and petrochemical group, with a leading position in the Slovak Republic, located near Bratislava.
  • Mozyr refinery, a leading refinery in Belarus, located close to the Ukrainian border.

ORLEN Group's market shares in the Downstream segment

In 2017, the ORLEN Group was involved in wholesale distribution of refining products in Poland, the Czech Republic, Germany, Slovakia, Hungary, Austria, Latvia, Lithuania, Estonia, Finland and Ukraine, and in Western Europe, where products were delivered to transhipment terminals by sea. The ORLEN Group’s home markets are Poland, Lithuania and the Czech Republic. The Group has an extensive portfolio of refining products, including gasoline, diesel oil, A-1 jet fuel, light and heavy heating oil, bitumen, engine oils and a wide range of other refining and petrochemical products.

Share of Polish fuel market 

Source: In-house analysis.

  • The ORLEN Group remains the leader in fuel sales in Poland.

  • A 1.2 pp y/y increase in the ORLEN Group’s share of total sales of diesel oil in Poland, following delivery of ambitious sales targets and successful implementation of a strategy aimed at taking over fuel sales from the grey market and increasing imports.

  • A 2.4 pp decline in the share of total gasoline sales. Despite higher sales volumes, the rate of increase did not match the growth of the market, mainly due to the competitors opting for an aggressive pricing policy stemming from the structural gasoline oversupply in the region.

Share of the Czech wholesale fuel market 

Source: In-house analysis.

  • The ORLEN Group is the leader in fuel sales in the Czech Republic.
  • A 6.8 pp increase in the Group’s share of the diesel oil market on higher availability of the production units.
  • A slight 0.2pp decline in the share of the gasoline market.

Share of the Baltic States fuel market 

Source: In-house analysis.

  • Consolidation of the Group’s position as the market leader in the Baltic States, despite strong price pressures from Finnish, Belarusian and Russian suppliers.
  • Increase in the shares of total gasoline and diesel oil sales on the markets, of 1.2pp and 0.4pp, respectively.

Wholesale of petrochemical products

The ORLEN Group is the largest petrochemical company in Central and Eastern Europe, the only manufacturer of monomers and polymers on the Polish market, and the manufacturer of most of the petrochemical products available on the Czech market.

Polyethylene manufacturers in Europe

Source: In-house analysis based on POLYGLOBE.

  • Europe’s production capacities for high-density polyethylene (HDPE) and low-density polyethylene (LDPE) are currently at around 13,567,000 tonnes per year.
  • Lyondell Basell Industries − the largest polyethylene manufacturer, with an annual production capacity of some 2,195,000 tonnes (including its 50% share in Basell Orlen Polyolefins Sp. z o.o. (BOP) and production assets in Germany, France and Poland.
  • Ineos Olefins & Polymers Europe, with an annual production capacity of approximately 1,745,000 tonnes and assets in Belgium, France, Germany, Italy and Norway; and Sabic – production capacity of around 1,590,000 tonnes per year and assets in Germany, the Netherlands and the UK.
  • The total production capacity of the ORLEN Group, with production sites in Poland and the Czech Republic (including its 50% share in BOP), is ca. 555,000 tonnes per year.
  • The ORLEN Group is building a new Polyethylene 3 unit in the Czech Republic with a production capacity of ca. 270,000 tonnes annually.

Polipropylene manufacturers in Europe

Source: In-house analysis based on POLYGLOBE.

  • Europe’s annual production capacities for polypropylene are at around 11,609,000 tonnes.
  • Lyondell Basell Industries has an annual production capacity of around 2,365,000 tonnes (including its 50% share in BOP) and assets in Germany, France, Italy, Spain, UK and Poland.
  • Borealis, with an annual production capacity of ca. 1,920,000 tonnes and assets in Belgium, Germany, Austria and Finland; and Total Petrochemicals, with a production capacity of around 1,280,000 tonnes per year and assets located in Belgium and France.
  • The total production capacity of the ORLEN Group, with production sites in Poland and the Czech Republic (including its 50% share in BOP), is ca. 480,000 tonnes per year.

PTA manufacturers in Europe

Source: In-house analysis based on POLYGLOBE.

  • The European PTA production in 2017 was approximately 2,663,000 tonnes.
  • BP Chembel NV – the largest PTA manufacturer, with an annual production capacity of 1,400,000 tonnes, located in Belgium.
  • Artlant, with production sites in Portugal and an annual nominal capacity of ca. 750,000 tonnes; owing to long production unit downtimes, since Q3 2014 its output has been limited.
  • PKN ORLEN is the only manufacturer in Europe to have production units fully integrated with paraxylene production, and its production capacity totals 690,000 tonnes per year.

PCW manufacturers in Europe

Source: In-house data based on Petrochemical Market Dynamics, Vinyl – 2017, October 2017 (Nexant).

  • The European nominal PVC production capacities total 7,855,000 tonnes per year.
  • Europe’s leading PVC manufacturer – Inovyn, was formed following the combination of Ineos Chlor and Solvay; its annual production capacity is 2,005,000 tonnes.
  • Other manufacturers, such as Kem One, Vynova, and Vinnolit, have annual PVC production capacities estimated at 882,000, 830,000 and 780,000 tonnes, respectively.
  • The Karpatneftekhim plant, with nominal production capacities of ca. 300,000 tonnes annually, resumed operations in 2017 after a five -year shutdown.
  • The ORLEN Group, with the annual production capacity of its Anwil and Spolana units at 340,000 tonnes, ranks fifth on the European plastics market.
  • Anwil’s principal competitors are Inovyn and Vynowa in Europe and Borsod Chem in Poland. zdolności produkcyjne PCW w Europie wynoszą 7 855 tys. ton/rocznie.


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