Russian fuel giant Lukoil is likely to set up a joint venture with a Polish nitrogen plant, Zakłady Azotowe Tarnów-Mościce (ZATM), negotiations for which are currently in progress. If the two companies reach an agreement, the European market will gain an important new polyvinyl chloride (PVC) producer.

Previously, ZATM representatives conducted negotiations with a Ukrainian company, Oriana Kalusz, signing a letter of intent under which a new company was to produce 250,000-300,000 tonnes of PVC a year. In December last year, Oriana was acquired by Lukoil, which expressed interest in the deal with the nitrogen producer.

“As far as the investment is concerned, our company is now negotiating the issue in Moscow,” an anonymous informer from ZATM told Parkiet. Last year, the nitrogen plant recorded zł. 180 million in losses. Along with other companies from the chemicals sector, ZATM is included in the government’s restructuring and privatization program.

(WBJ 18.x.02)