Grupa Azoty Polyolefins has officially withdrawn from its turnkey contract with Hyundai Engineering for the Polimery Police Project, citing repeated delays and unfulfilled obligations. The decision, delivered on August 14, 2025, comes after milestone acceptance deadlines were missed, test runs were not completed on time, and counterclaims between the two sides remained unresolved.
In tandem with the withdrawal, Grupa Azoty issued a debit note assessing contractual penalties of €111.83 million against Hyundai. Earlier this month, the company had already charged similar penalties for delays and secured more than €107.5 million in guarantees tied to improper contract performance.
The original contract, signed on May 11, 2019, valued the Polimery Police Project at about €1.5 billion, covering both capital and non-capital expenditures. Hyundai Engineering was tasked with designing, building, and commissioning new PDH (propylene) and PP (polypropylene) plants at the site, using advanced Oleflex and Unipol technologies.
Despite attempts to stabilize cooperation through a series of agreements, negotiations ultimately broke down, paving the way for one of the most high-profile contract terminations in Poland’s petrochemical sector.
