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MOL Group takes another step towards circular economy by signing new partnership with PRS

Hungarian multinational oil and gas company and petrochemical producer MOL Group has signed a strategic supply chain partnership with PRS, a leading supplier of sustainable wooden pallets to the polymer and petrochemical industry. In the framework of its updated long-term strategy, MOL recently announced that it will spend one billion US dollars in the next five years on new, low-carbon and sustainable projects to become a key player in CEE in the circular economy.

The new partnership will ensure the deliveries of packaged polyethylene (PE), and polypropylene (PP) from MOL Petrochemicals sites in Tiszaújváros, Hungary and SLOVNAFT in Bratislava, Slovakia on pooled re-usable pallets, creating a seamless and more environmental-friendly logistics process.

The process involves the retrieval, repair and recycling of pallets – a circular movement of hundreds of thousands of sustainable wooden pallets which, compared to the previous one-way pallet model, saves up to 54,000 mature trees from being cut every year, according to the press statement of PRS.

This partnership is in line with MOL Group’s long-term ‘Shape Tomorrow’ Strategy 2030+ for both optimising the efficiencies of the supply chain and reducing the company’s carbon footprint, while becoming a key player in the circular economy in Central and Eastern Europe.

“This is a major shift for MOL Group, moving from a position of a buyer to becoming a fully-active player in the circular economy,” said Tomáš Marek, from MOL Downstream Petchem Logistics adding that MOL also significantly improved its operational sustainability as well as the quality of its packaging material.

“Circularity in our complex supply chain is the only way forward for MOL Group as it helps reduce our environmental impact at a time when many multinational organisations are committing to more sustainable approaches,” highlighted Bence Körmendi, MOL Group’s Petrochemicals Business Unit director. “PRS has a strong legacy over many years of working collaboratively and cost-effectively in the pan-European circular economy – an experience that makes them a reliable business partner,” he concluded.

PRS, a subsidiary of the Faber Halbertsma Group, operates a pooling system which repatriates, repairs and reuses pallets as part of a perpetual cycle.

“Within the partnership, we are working collaboratively with the whole MOL organisation – from procurement to sales and logistics,” said Rinus de Kok, Commercial Director at PRS.

“The additional benefit of our partnership with MOL Group is an easier collaboration with our converter community,” he added.

MOL Group has recently approved its updated long-term strategy that seeks to accelerate the Group’s transformation process to enhance MOL’s resilience and our ability to shape a sustainable future. In March, the company announced to move up the value chain by becoming a biofuel producer, through the implementation of an investment in its Danube Refinery. MOL wants to play a key role in shaping the low-carbon circular economy with investments in new businesses such as waste integration and utilisation, recycling, carbon capture, utilisation and storage (CCUS), advanced biofuels and potentially hydrogen-related opportunities.

Photo: PRS

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