PKN Orlen
Encyclopedia
PKN Orlen is a major European oil refiner, and petrol retailer. The company is Poland
's and Central Europe
's largest publicly traded firm with major operations in Poland, Czech Republic
, Germany
, and the Baltic States
. In 2009, it was ranked in the Fortune Global 500
as the world's 31st largest oil company and the world's 249th largest company overall, and was the only Polish company ranked by Fortune. However, it dropped as low as to the position of 398 by the year 2010.
Orlengate
is the biggest corruption scandal in the modern political history of Poland
. It happened during the rule by the leftist government of the postcommunist party SLD (Sojusz Lewicy Demokratycznej, Democratic Left Alliance
). Disclosed in 2004, the scandal started with the arrest on 7 February 2002 by the UOP
(Office for State Protection) of Andrzej Modrzejewski, the CEO of PKN Orlen.
production in Europe. It also has significant investment abroad including the buy out of Mažeikių Nafta
and a majority stake in Unipetrol
, a Czech
refiner. In 2003 PKN Orlen had the chance to acquire 500 filling stations in Northern Germany
from BP under premise of an anti-competition rule when BP
took over Aral
. As of 2007 PKN Orlen has 581 filling stations in Germany (484 under the Star brand, 58 under the Orlen brand and 29 under a supermarket brand).
PKN Orlen was involved in merger talks with MOL Group, a Hungarian oil company in 2005. If merged, the two firms would have created a regional giant, and controlled much of Central Europe's oil industry. However, the planned merger failed due to high politicization. Following the dropped merger plans, PKN Orlen bought a majority stake in Czech Unipetrol. During May 2006, the company announced its largest investment ever when it took over a majority share of Lithuania
's Mažeikių Nafta
, the largest company in the Baltic States, from Yukos
. With the completion of the takeover, PKN Orlen became Central Europe's largest company.
PKN Orlen, under a joint venture
with the Netherlands firm Basell, also owns Poland's largest plastics company.
In 2007, it was ranked 432 in the Fortune Global 500
and 679 in the Forbes Global 2000
list of companies. Orlen employs over 24,000 people in 4 countries.
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
's and Central Europe
Central Europe
Central Europe or alternatively Middle Europe is a region of the European continent lying between the variously defined areas of Eastern and Western Europe...
's largest publicly traded firm with major operations in Poland, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, and the Baltic States
Baltic states
The term Baltic states refers to the Baltic territories which gained independence from the Russian Empire in the wake of World War I: primarily the contiguous trio of Estonia, Latvia, Lithuania ; Finland also fell within the scope of the term after initially gaining independence in the 1920s.The...
. In 2009, it was ranked in the Fortune Global 500
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
as the world's 31st largest oil company and the world's 249th largest company overall, and was the only Polish company ranked by Fortune. However, it dropped as low as to the position of 398 by the year 2010.
Establishment
The firm was created through the merger of Poland's two communist oil monopolies. PKN Orlen has its roots in the creation of C.P.N., Communist Poland's petroleum retail monopoly in 1944. In the 1950s, the second block of PKN Orlen was formed, Petrochemia Płock, a state firm in charge of the refineries in Płock and grew to become the largest complex of its kind in Poland. After the merger of CPN and Petrochemia Plock, the company was renamed into Polski Koncern Naftowy (PKN), with Orlen added several months later as the consortium's brand name. The new name is derived from Orl- for "orzeł" (Polish: eagle) and its adjective "orli", and -en for "energia" (Polish: energy).Privatization and Orlengate
In 1999, both firms were partially privatized and merged to create a retail and refining company under the name PKN Orlen.Orlengate
Orlengate
Orlengate was the biggest corruption scandal in modern Polish political history. Disclosed in 2004, the scandal began with the arrest, on 7 February 2002, by the UOP of Andrzej Modrzejewski, the CEO of PKN Orlen...
is the biggest corruption scandal in the modern political history of Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
. It happened during the rule by the leftist government of the postcommunist party SLD (Sojusz Lewicy Demokratycznej, Democratic Left Alliance
Democratic Left Alliance
Democratic Left Alliance is a social-democratic political party in Poland. Formed in 1991 as a coalition of centre-left parties, it was formally established as a single party on 15 April 1999. It is currently the third largest opposition party in Poland....
). Disclosed in 2004, the scandal started with the arrest on 7 February 2002 by the UOP
Urzad Ochrony Panstwa
Urząd Ochrony Państwa or UOP was the intelligence agency of Poland. It was founded on April 6, 1990, as a department of the Ministry of Internal Affairs. In 1996 it was transformed into a separate government agency under the supervision of the Prime Minister...
(Office for State Protection) of Andrzej Modrzejewski, the CEO of PKN Orlen.
Today
Today, Orlen is the largest fuel retailer in Poland with over 2000 locations. The company runs the most advanced and the second largest complex for terephthalic acidTerephthalic acid
Terephthalic acid is the organic compound with formula C6H42. This colourless solid is a commodity chemical, used principally as a precursor to the polyester PET, used to make clothing and plastic bottles. Several billion kilograms are produced annually...
production in Europe. It also has significant investment abroad including the buy out of Mažeikių Nafta
Mažeikiu Nafta
ORLEN Lietuva is a company centered around the Mažeikiai oil refinery and oil-processing plant in Lithuania. It includes the only refinery in the Baltic States.- Refinery :...
and a majority stake in Unipetrol
Unipetrol
Unipetrol is a large oil distributing company in the Czech Republic majority-owned by the Polish company PKN Orlen.-External links:*...
, a Czech
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
refiner. In 2003 PKN Orlen had the chance to acquire 500 filling stations in Northern Germany
Northern Germany
- Geography :The key terrain features of North Germany are the marshes along the coastline of the North Sea and Baltic Sea, and the geest and heaths inland. Also prominent are the low hills of the Baltic Uplands, the ground moraines, end moraines, sandur, glacial valleys, bogs, and Luch...
from BP under premise of an anti-competition rule when BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
took over Aral
Aral AG
Aral is a brand of automobile fuels and gas stations, present in Germany and Luxembourg, but formerly used in most countries of Western and Central Europe. The company behind the brand name, Aral AG , is owned by BP, but was established in 1898 as Westdeutsche Benzol-Verkaufs-Vereinigung GmbH...
. As of 2007 PKN Orlen has 581 filling stations in Germany (484 under the Star brand, 58 under the Orlen brand and 29 under a supermarket brand).
PKN Orlen was involved in merger talks with MOL Group, a Hungarian oil company in 2005. If merged, the two firms would have created a regional giant, and controlled much of Central Europe's oil industry. However, the planned merger failed due to high politicization. Following the dropped merger plans, PKN Orlen bought a majority stake in Czech Unipetrol. During May 2006, the company announced its largest investment ever when it took over a majority share of Lithuania
Lithuania
Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...
's Mažeikių Nafta
Mažeikiu Nafta
ORLEN Lietuva is a company centered around the Mažeikiai oil refinery and oil-processing plant in Lithuania. It includes the only refinery in the Baltic States.- Refinery :...
, the largest company in the Baltic States, from Yukos
YUKOS
OJSC "Yukos Oil Company" was a petroleum company in Russia which, until 2003, was controlled by Russian oligarch Mikhail Khodorkovsky and a number of other prominent Russian businessmen. After Yukos was bankrupted, Khodorkovsky was convicted and sent to prison.Yukos headquarters was located in...
. With the completion of the takeover, PKN Orlen became Central Europe's largest company.
PKN Orlen, under a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
with the Netherlands firm Basell, also owns Poland's largest plastics company.
In 2007, it was ranked 432 in the Fortune Global 500
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
and 679 in the Forbes Global 2000
Forbes Global 2000
The Forbes Global 2000 is an annual ranking of the top 2000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics: sales, profit, assets and market value...
list of companies. Orlen employs over 24,000 people in 4 countries.
Brands and subsidiaries of Grupa Orlen (PKN Orlen Group)
- Basell Orlen Polyolefins (Plastics and synthetic materials)
- Orlen (Polish and German market petrol station brand)
- Star (German market petrol station brand)
- Petrochemia Płock (Polish market brand)
- PetroProfit (Polish market brand)
- PetroZachod (Polish market brand)
- Arge (Polish market brand)
- UniPetrol (Czech national petrol firm)
- Benzina (Unipetrol retail chain)
- Solino (Industrial brine manufacturer)
- Anwil (Polish chemical firm)