Renewed production in "Petrohemija" - agreement on cooperation between Government of Serbia and NIS

Pančevo-based chemical industry "Petrohemija" renewed the production today (September 17, 2009) after a three-month break by putting the ethylene production unit in operation.

At the same time, the agreement on strategic cooperation between the Government of Serbia, as the owner of the Pančevo-based factory, and "Petroleum Industry of Serbia" (NIS) was signed in "Petrohemija".

The Deputy Prime Minister of Serbia and the Minister of Economy, Mlađan Dinkić, announced that 30m EUR would be invested in modernization of existing units and expansion of production in "Petrohemija" by the end of year 2009 and in 2010.

Strategic contract with NIS and the contract with "Lukoil", as he pointed out, will make it possible for "Petrohemija" to save 14m EUR per year in procurement of raw materials.

- According to these contracts, "Petrohemija" will be receiving 40,000 tons of raw gasoline every month within the next year, which will enable continuous and profitable production - said Dinkić.

As it was explained on the occasion of the renewal of production in "Petrohemija", the strategic agreement stipulates that NIS delivers complete production of raw gasoline to "Petrohemija".

The Management of "Petrohemija" signed the contracts with NIS and "Lukoil" on Monday (September 14, 2009), which regulate repayment of the debt of 200m EUR and continuous supply of raw gasoline for further production.