05 June 2012

Group DF to develop petrochemical segment of its business

firtash-npzCommunicating with media, Dmitry Firtash, Head of the Board of Directors of Group DF explained that he plans to develop the petrochemical segment of his business expanding the assortment of products manufactured by his companies. The businessman further pointed out that Ukraine’s oil refineries are capable – in case their upgrade is carried out – of meeting the country’s demand in petrol and of providing a powerful impetus for the petrochemical sector advancement.


At an earlier time, interviewed by ‘Expert’ magazine, Mr. Firtash shared his intention to acquire a refinery and a gas stations chain. He also confirmed that he is looking to set up petrochemical production of the oil refinery’s premises.


“We are seriously committed to carrying petrochemical production forward. Benzene, ethyl are absolutely indispensible products. Therefore, we are now negotiating with a number of companies. When one has six plants operating, an impact from outside is a difficult thing. When just three companies work, this is ok. However, when you only have one plant, the price at a gas station mirrors the import price.”


The businessman also noted that at the moment, the oil refinery business in Ukraine is undergoing a crisis and it is only the modernization of domestic refinery facilities that will ensure protection against the national market’s dependence on petrol shipments from abroad.


“Out of the existing six refineries in Ukraine, only the Kremenchuk one is operating. Using the resources of the Federation of Employers of Ukraine, we want to make sure that at least three facilities are put to work. We cannot be completely dependent on imports, the situation must be rectified.”


According to Mr. Firtash, domestic oil refineries are in bad need of modernization, otherwise they are doomed to shutdown due to their low cost-efficiency.  The businessman also emphasized that the petrochemical business is strategically important and unless oil refineries are put into operation, the hard times for the sector are inevitable.