OREANDA-NEWS. OMV has taken a strategic investment decision for butadiene production at its two refinery sites, Burghausen (Germany) and Schwechat (Austria) as part of its Refining & Marketing strategy. Around EUR 230 mn has been earmarked for building a new butadiene plant in the Burghausen refinery’s petrochemical part and upgrading the existing plant in Schwechat. Butadiene is a key material for the plastics industry and is mainly used in the automotive sector and for producing tires. 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 optimization and integration of its multiple refineries.

Manfred Leitner, OMV Executive Board member responsible for Refining and Marketing, emphasizes the strategic importance of this decision: “We are investing in these facilities in order to build on the synergies from our sites in Burghausen and Schwechat as regards petrochemicals. By optimizing 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. “This is why OMV’s refining focus continues to involve petrochemicals and the investment in producing essential materials for the emerging growth markets”, continues Leitner. “OMV has been producing butadiene in Schwechat for decades. We are convinced that we can exploit economies of scale and synergies between the two refineries as regards the planned extension and new construction at the butadiene plants at our Schwechat and Burghausen sites. In future these two sites will enable OMV to cover around six percent of total butadiene production in Europe.”

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.

Butadiene – a key material for the plastics industry

Butadiene is an unsaturated, gaseous hydrocarbon produced in the petrochemicals section of the refinery as a byproduct of the C4 generated by a cracking process in the production of ethylene. It is an important material for the plastics industry which is very difficult to substitute with other materials. The gas is primarily used in the production of automobile tires. In combination with other materials it exhibits properties such as good traction in any weather conditions, higher mileage, lower tire noise, lighter weight, and lower rolling resistance. These factors make an important contribution to safety, reducing fuel consumption and cutting a vehicle’s CO2 emissions. Furthermore, butadiene plays a key role in plastics processing for the automotive industry and manufacturing high-quality rubber and latex products, for example in the medical sector.