Naftna Industrija Srbije: NIS becomes a strategic partner of HIP Petrohemija

On December 24, 2021, the Ministry of Economy, on behalf of the Government of the Republic of Serbia, the NIS and HIP Petrohemija signed the Strategic Partnership Agreement. With this agreement, NIS will increase the ownership share in HIP Petrohemija from 20.86% to 90% of the previous shares with the obligation of a monetary recapitalization in the amount of 150 million euros and the construction of a factory. polypropylene production capacity of at least 140,000 tonnes per year within six years. The agreement was signed at the Ministry of Economy of the Republic of Serbia by Andjelka Atanasković, Minister of Economy of Serbia, Kiril Tyurdenev, CEO of NIS, and Velimir Unković, CEO of HIP Petrohemija.

The further development strategy of HIP Petrohemija will be based on the modernization of basic production capacities and the construction of new factories, on increasing energy efficiency and commercial efficiency, as well as on the implementation of projects in the field of environmental protection. The aim is to ensure the long-term sustainable operation of HIP Petrohemija and to strengthen its competitiveness in the market. In addition, with this commercial step, NIS continues to diversify its activities and enters the petrochemical sector, following global trends in the petroleum industry.

Andjelka Atanasković, Minister of Economy of Serbia, said:
“By finding a strategic investor, who will invest an amount of 150 million euros in the recapitalization of Petrohemija and build a new polypropylene production plant with a capacity of at least 140,000 tonnes per year, and there are indications that the capacity of the plant to be much higher, the Ministry of Economy has ensured the safe operation of HIP Petrohemija in the coming years, as well as safe workstations and better working conditions for the employees from Petrohemija. By obtaining a new factory, Petrohemija will have the opportunity to improve its business results and confirm its position as one of the largest exporters of the Republic of Serbia. All this will contribute to improving the business climate and to the pursuit of the economic development of the local community and the whole of the Republic. We are confident that with the joint efforts of the Government of the Republic of Serbia and NIS jsc Novi Sad, we will complete another successful privatization that will contribute to its growth of gross national product and better positioning of the Republic of Serbia in economic flows European and global. ”

Kirill Tyurdenev, CEO of NIS, said:
“With the development of NIS since 2009, we have shown that we are a reliable partner of the Republic of Serbia in the modernization of the national oil sector. I am convinced that we will now jointly develop Petrohemija with the same success, and I would like to thank the representatives of the Republic of Serbia for giving us this opportunity. NIS and HIP Petrohemija are long term partners and we see great potential and many opportunities for further synergy and strengthening of our competitiveness in the demanding market. HIP Petrohemija’s development will aim for the long-term sustainable development of the company for the benefit of shareholders, employees and the community.

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