Austrian petrochemicals firm OMV is to invest around EUR230 million in a new butadiene plant at its Burghausen refinery in Germany and upgrading of  an existing plant in Schwechat, Austria. It also says that in the future these two  sites will enable OMV to cover around 6% of total    butadiene production in Europe.

Butadiene is a key material for the plastics    industry and is mainly used in the automotive sector and for  producing tyres. Demand for butadiene is experiencing    significant growth worldwide. OMV is thereby making another    early move in expanding the refinery market and driving forward    the ongoing optimisation and integration of its multiple  refineries.

The firm says it is investing in these facilities to build on the synergies from its sites in Burghausen and    Schwechat as regards petrochemicals. “By optimising our   production portfolio we gain a significant additional increase    in earnings potential and can improve our competitive position    long-term.”

Global change in the refinery sector means that, in addition    to classic oil products such as diesel, heating oil and fuels,    Europe will see petrochemical oil derivatives taking on a more    important role. OMV has been producing butadiene in Schwechat for  decades and is convinced that it can exploit economies of    scale and synergies between the two refineries as regards the    planned extension and new construction at the butadiene plants.

The extended butadiene plant in Schwechat is expected to    start operations in June 2014, while the operational start of    the new construction in Burghausen is planned for the second    quarter 2015.