ORLEN ORLEN Group 2017
Integrated Report

Suppliers and Customers

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SUPPLIERS

The rules of cooperation with suppliers have been changing since 2015 with the Procurement Area’s administrative and support function gaining a proactive and business-minded role.

 
Supplier Code of Conduct
 
Over 13,000 procurement processes
 
Working with more than 17,000 suppliers
 
300+ procurement categories
 
 
 
 

To achieve our strategic objectives we chiefly focus on implementing a method of comprehensive management of procurement categories, a supplier management model (its elements include segmentation, classification, management rules) and global procurement standards.

548 detailed categories

 
 
 
 
 
 

86 second-level categories

 
 

13 main categories

 
 
  • Administration and general procurement
  • Investments (production, infrastructure, terminals and pipelines)
  • IT and telecommunications
  • Logistics
  • Protection of people and property
  • Crude oil
  • Service stations
  • Energy sources, energy and fuels
  • Raw materials, chemicals, catalysts and fillings
  • Equipment, materials and spare parts
  • Services related to hydrocarbon exploration and production
  • Professional services
  • Maintenance, repair and operation services

 

The procurement categories in the Central Category Tree form an orderly and extensive procurement directory used at PKN ORLEN and the key companies of the ORLEN Group. The Central Category Tree has three levels of detail. The first level comprises 13 main categories. The second and third level are detailed category levels, corresponding to various product and service groups for a wide range of business needs.

In a significant step towards ensuring sustainable development and responsible supply chain, PKN ORLEN incorporated the responsible business and sustainable growth criteria in its procurement management standard. The Company promotes social responsibility among its suppliers and seeks to cooperate with trading partners that respect human rights and operate in compliance with the law, ensure safe and fair working conditions, follow the best standards of ethical conduct and care for the environment. CSR criteria have been defined and compiled into a single document entitled Supplier Code of Conduct. As of April 2016, compliance with the Code is a mandatory criterion in the process of trading partner selection at PKN ORLEN. In 2017, the Supplier Code of Conduct was implemented at other ORLEN Group companies. Selection of suppliers is now based on standardised and uniform social, environmental, legal, and ethical criteria applied across the Group.

More than 13,000 procurement processes were carried out at the ORLEN Group in 2017. We worked with over 17,000 suppliers. In most cases, our trading relations with suppliers are long-term to ensure that the ORLEN Group’s requirements are satisfied in a reliable manner. The suppliers provide raw materials and services necessary for the ORLEN Group to run its operations. Our purchases are related to investment, production and maintenance projects; we buy electricity, biocomponents, supplies for service stations, production chemicals, and general-purpose supplies (administration, IT, professional services, logistics). In 2017, we purchased goods and services in more than 360 procurement categories.

CUSTOMERS

The ORLEN Group sells its products and services to customers in more than 90 countries across 6 continents. The client base includes both private customers (such as motorists) and institutional clients representing the majority of industries – including the chemical, automotive, aviation, power, construction, packaging, agricultural, and food production sectors.

 
over 50 top-quality petrochemical and refining products
 
more than 90 export markets
 
6 continents

 

We reach private customers mainly through service station networks spanning across Poland, the Czech Republic, Germany and Lithuania. Customers can rest assured that all our products meet exacting quality standards. As a result of substantial investments in our production facilities, unleaded petrol and diesel fuels produced by the ORLEN Group refineries fully satisfy all European standards, and even exceed them with respect to some of the parameters.

In terms of company size, our institutional client base is highly diversified – from small local companies up to Poland’s and the world’s largest corporations.

Our petrochemical products serve as the basis for the manufacture of other products and delivery of services we use in our everyday lives. We produce fuels for road vehicles, aircraft, ships and power plants, as well as lubricants, bitumens, and a whole range of other basic organic substances used to make plastics, pharmaceuticals, and virtually all other chemicals.

ANWIL is a leading manufacturer of nitrogen fertilizers (ammonium nitrate and calcium ammonium nitrate, marketed under CANWIL brand), ranking second in Poland and tenth in Europe. The company is also Poland’s only and Europe’s eighth manufacturer of suspension polyvinyl chloride (Polanvil), a material for the production of building profiles, water and sewage piping, wire and electric cable insulation and coating, as well as small medical equipment. Almost a half of Polanvil volumes are sold to demanding EU markets. ANWIL also offers PVC plates and cable compounds, PVC-based blends, and rigid technical PVC compounds e.g. for the production of wall panels, building profiles and electro-installation profiles. ANWIL is the largest producer of sodium hydroxide (marketed mainly as caustic soda solution) and prilled caustic soda in Poland. Sodium hydroxide is one of the primary chemicals used in virtually all industries, both as a feedstock in various types of organic and inorganic synthesis, and as an auxiliary material, e.g. in the aluminium, cellulose and paper, textile and viscose industries, but also in the processing of crude oil and treatment of water for industrial applications.  The company also offers other chloralkali (chlorine, sodium hypochlorite, sodium chloride and hydrochloric acid) and chemicals (ammonia, ammonia water, liquid nitrogen and liquid oxygen). ANWIL sells its impressive range of products to almost 40 countries across the globe, including to Germany, UK, France, Scandinavia, Algeria, and Turkey.

Inowrocławskie Kopalnie Soli Solino S.A. is Poland’s largest producer of brine and the only supplier of the product to the chemical industry in the region. Brine is made in two salt mines − in Góra near Inowrocław and Przyjma near Mogilno. From both locations, the product is delivered to customers via pipelines − from the mine in Przyjma to the CIECH Group’s production plant in Janikowo, and from the mine in Góra to ANWIL and to the CIECH Group’s production plant in Inowrocław.

IKS Solino’s portfolio includes salt products as well, Including salt pellets, which are used to regenerate the ion exchange bed in water softening stations, and granulated salt, used in dishwashers. The company produces table salt, curing salt for the meat industry, feed salt used in the manufacturing of fodder and compound animal feed, and industrial salt used as an ingredient in washing powders, dishwashing liquids, soap and detergents, as well as road salt for winter road maintenance.

ORLEN Paliwa is the leader on the fuel wholesale market. The company offers a broad range of fuel products, including gasoline (Pb95, Pb98), diesel oil, heating oil (Ekoterm Plus), propane, butane and propane-butane mixtures (LPG). Its gas products are compliant with Polish standard PN C-96008 and European standard EN-589, as evidenced by quality certificates. ORLEN Paliwa  also provides wholesale gas and electricity services to small and medium-sized enterprises. The company designs and builds end-to-end industrial liquid gas installations used both for heating purposes and in various technological processes, such as drying of agricultural produce, metalworking, manufacture of glass, construction industry and road engineering.

ORLEN Południe is a pioneer on Poland’s biofuels and biocomponents market, offering both biocomponents that can be blended with traditional diesel oils and those used as a standalone fuel. ORLEN Południe also markets fuel oils obtained exclusively from the highest quality components produced through atmospheric distillation of crude oil. The company’s portfolio features a broad range of products for households, public buildings, small and medium-sized enterprises, as well as specialist installations and industrial facilities. ORLEN Południe’s offering includes products for applications in various branches of the chemical industry, including large- and low-volume chemical products. Solvents manufactured by ORLEN Południe are used for the preparation of solutions in many industrial processes, or as extraction solvents. They are also used to produce paints, varnishes, adhesives, home care products, cosmetics, waterproofing emulsions, and polymers. Glycerin, a by-product in the biodiesel manufacturing process, can be used not only in the animal feed industry but also for technical applications in the manufacture of antifreeze, anti-caking, or anti-adhesive agents. Distilled glycerin is a raw material for the manufacture of explosives. It also finds its applications in the cosmetics and animal feed industries or in home care products. Potassium sulfate, a component of fertilizers, is also used in the manufacture of glass and alum and in the maintenance of stadium turf, playing fields, and golf courses. ORLEN Południe is a manufacturer of paraffins and special waxes, highly valued both in Poland and in Europe. Its business also includes regeneration of waste oils to obtain high-quality deep-refined base oils for the manufacture of lubricating oils.

The ORLEN Group’s portfolio also includes a broad range of services, such as transport services, maintenance of service stations and fuel depots, repairs of various types of machinery, environmental protection, health and safety and fire prevention services.



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