Repsol in $779MM Portugal Site Expansion
Repsol has announced that it will expand its industrial complex in Sines, Portugal, to make it one of the most advanced in Europe.
The company said it will build two polymer materials plants at its Sines site, which it highlighted represents the largest industrial investment in Portugal in the last ten years at $779 million (EUR 657 million). The plants comprise a linear polyethylene (PEL) plant and a polypropylene (PP) plant, each with a capacity of 300,000 tons per year. Repsol outlined that they will produce 100 recyclable materials that can be used for applications aligned with the energy transition in the pharmaceutical, automotive, and food industries.
The facilities will be operational in 2025 and will make the Sines Industrial Complex one of the most advanced in Europe due to its flexibility, high degree of integration, and competitiveness, Repsol noted. The complex will also receive new logistics facilities, incorporating the possibility of using rail transport, which the company said will improve connection with the European market and reduce the carbon footprint of product transportation.
Repsol stated that the new investment project has been designed to accompany Repsol’s goals of being a net zero emissions company by 2050 and is aligned with the Paris Agreement. The Portuguese government has considered this investment one of national interest and has granted tax incentives worth up to $74.6 million (EUR 63 million), Repsol highlighted.
During the construction phase of the project, an average of 550 direct and indirect jobs are expected to be generated, with a peak of more than 1,000, Repsol revealed. Once in operation, the net increase in personnel will be approximately 75 direct jobs and about 300 indirect jobs, Repsol said.
“This investment demonstrates Repsol's commitment to its industrial complex in Portugal,” Josu Jon Imaz, Repsol’s chief executive officer, said in a company statement.
“The company is supporting industrial development that enables the energy transition while creating wealth and quality employment,” Imaz added in the statement.
Spain-headquartered Repsol revealed in December 2019 that it aimed to be a net zero emissions company by 2050. The company started operating in Portugal in 1990, its website shows.
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