Anvil, a subsidiary of PKN Orlen producing PVC, has put a new chlorine gas installation on stream, which would lower production cost of PVC. The installation has an annual capacity of 195 000t of chlorine, and has cost PLN 247m to build. The project has been partially financed by EU funding.
Separately, a PKN Orlen spokesman denied press speculation that the company has been preparing a joint bid with a Russian partner for Lithuania's Mazeikiu refinery. PKN Orlen chances to win the deal, which has been stalled recently, seem to be small.
We do not expect any major trading impact from the news today and reiterate our Buy rating for PKN Orlen, with a PLN 67.1 fair value per share.