The Glimar refinery at Gorlice is facing serious competition from PKN Orlen and nearby refineries in the Czech Republic and Slovakia. Due to profit margins being ever tightened, losses are building up. The company is counting on a capital injection from its owner the treasury through Nafta Polska.
The company believes that without this support it has no chance. It needs around PLN40m. Nafta Polska agree but finding the money may not be easy.
Nafta Polska has only money for restructuring and privatisation. It is unlikely that the cabinet would agree to putting cash into this refinery.
If the government were to agree to maintaining tax breaks on the production of diesel fuel using components from used oil then there may be a chance to turn the plant around. This week representatives from Glimar will be meeting with the treasury to discuss this further. The budget for next year proposes liquidating this break which would be the final nail in the coffin of the refinery.
If the plant can be saved then it hopes to build a hydrocomplex for special oil bi products. This would allow the refinery to pull out of unprofitable petroleum production. This investment is believed to cost around EUR103.6m and would need to be finished within three years. Around eighty percent would come from banks although the refinery would have to find the rest. The first EUR34m installment was received at the beginning of June from Hypovereinsbank.