It was also agreed that the remaining loan amount, up to EUR 105 million, from the Primary Sponsors, Grupa Azoty S.A. and Grupa Azoty Zakłady Chemiczne "Police" S.A., will be contributed no later than March 27, 2024.

"The signed agreement is a significant step towards the commercial operation of our plant. We plan to have the Integrity Test of the Installation completed by the General Contractor and commence the operational phase by Grupa Azoty Polyolefins by the end of the second quarter. Importantly, all commissioning work is proceeding according to the updated schedule, and the polypropylene production capacities have reached the nominal value set in the project," said Wojciech Blew, Acting President of the Management Board of Grupa Azoty Polyolefins.

The agreement was signed by Grupa Azoty Polyolefins, the special-purpose entity executing the Polimery Police investment, with the following financial institutions: Alior Bank S.A., Bank Gospodarstwa Krajowego, Bank Ochrony Środowiska S.A., Bank Polska Kasa Opieki S.A., BNP Paribas Bank Polska S.A., European Bank for Reconstruction and Development, Haitong Bank Polska S.A., ICBC Standard Bank PLC, Industrial and Commercial Bank of China (Europe) S.A. Poland Branch, mBank S.A., Powszechna Kasa Oszczędności Bank Polski S.A., Powszechny Zakład Ubezpieczeń S.A., Powszechny Zakład Ubezpieczeń na Życie S.A., PZU Closed Investment Fund of Non-Public Assets BIS 2, and Santander Bank Polska S.A.

The General Contractor, under the EPC contract, is comprehensively responsible for the implementation of the Polimery Police project. Completion of the project is associated with achieving and maintaining the Guaranteed Parameters specified in the license agreements for the PDH propylene production plant and the PP polypropylene production plant. Achieving the Guaranteed Parameters is closely linked to conducting the Integrity Test of all sub-projects. After successfully conducting the 72-hour continuous Integrity Test and achieving all Guaranteed Parameters, the General Contractor will proceed with the full handover of the installation to Grupa Azoty Polyolefins, marking the completion of the Polimery Police project. Until then, Hyundai Engineering is responsible for the project and all existing infrastructure.

The extension of the Polimery Police project due to delays by Hyundai Engineering Co., Ltd. is currently being thoroughly analyzed and verified by Grupa Azoty Polyolefins for its validity in light of the comprehensive project implementation agreement. Grupa Azoty Polyolefins preliminarily views the submitted proposals skeptically.