Mobil, TVK Reach OPP Agreement

19 November 1998

Mobil, TVK Reach OPP Agreement

    FAIRFAX, Va.--Nov. 19, 1998--Mobil Plastics Europe, Inc. (MPE), an affiliate of Mobil Chemical Company, and Tiszai Vegyi Kombinat Rt. (TVK) of Hungary announced Thursday they have reached an agreement to manufacture and market oriented polypropylene (OPP) flexible packaging films.
    With technical assistance from MPE, TVK is constructing a new high-performance manufacturing line at its industrial site in Tiszaujvaros, Hungary, 175 kilometers east of Budapest. The new 15,000-metric-tons-a-year OPP line will begin production in the second half of 1999 and will allow TVK to triple its current total OPP production.
    In addition to providing the technical support for the construction design and operation of the new orientation line, MPE will market the OPP under Mobil's brand name.
    "MPE, the leading OPP producer in Europe, is an outstanding company whose successes are based on its excellent processes, quality products and innovative customer service," said TVK Chairman and Chief Executive Office Miklos Varhegyi. "We expect our agreement to help us quickly bring this new line to full-scale production that will result in a better return on investment. We are convinced our association will be a success and will lead to even more opportunities to work cooperatively with MPE in the future."
    "This agreement confirms MPE's commitment to growth in Central and Eastern Europe," said Robert Dobies, president of Mobil Chemical Company's Films Division. "This additional supply from the TVK plant will allow us to strengthen our market presence in the region, where we expect demand for quality OPP products to increase by more than 10 percent annually."
    TVK is Hungary's largest chemical company. Headquartered in Tiszaujvaros, TVK produces ethylene and propylene monomers, polyethylene and polypropylene polymers, and finished plastic products.
    MPE, headquartered in Luxembourg, is a leading manufacturer and marketer of specialty and commodity OPP with plants in Virton, Belgium; Kerkrade, the Netherlands; and Brindisi, Italy.

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