MOL has planned to invest $4.5 billion in petrochemical and chemical growth projects until the end of the next decade.
Hungarian oil and gas company MOL has reportedly signed a sales-purchase agreement for the acquisition of German company Aurora. The acquisition is part of the 2030 strategy of the oil and gas company to extend petrochemical portfolio with higher value-added products.
According to the Hydrocarbon Engineering, the acquisition will enable MOL to provide a wide-range of high-quality polypropylene, polyamide and other recycled-based compounds. This will complement the company’s existing portfolio of polyethylene and polypropylene. MOL will leverage Aurora’s loop logistic system and know-how and will enable the customers to reach higher content of recycled material in their end products, in an efficient way.
Ferenc Horvath, Executive Vice President of Downstream, MOL Group, reportedly stated that the company has reached another milestone in line with the MOL 2030 strategy to become the leading chemical player in the CEE region. The collaboration will help the company to grow and add value to petrochemical business, and to increase footprint in automotive supplier market, he further added.
Gerhard Schweinle, Founder and Member of the Management Board, Aurora, was quoted stating that MOL is the ideal partner company to advance ambitious goals with regard to sustainability and environmental protection more intensively. MOL’s many years of experience and Aurora’s extensive range of sustainably manufactured products will help in protecting raw material resources and release the burden on environment, he further stated.
The expansion of MOL’s petrochemicals value chain is one of the cornerstones of the company’s 2030 strategy. The company has planned to invest $4.5 billion in petrochemical and chemical growth projects until the end of the next decade. The automotive sector is the strategic sector where both the companies have recognized an increasing demand for recycled materials. One of the key areas in MOL’s 2030 strategy is compounding and recycling.
The completion of the transaction is subject to the relevant merger control approvals. The value of the transaction has not been disclosed yet.