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ORLEN Group 2016 Integrated Report

II nagroda specjalna w kategorii Raport Zintegrowany | Najlepszy raport on-line

Suppliers and Customers

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SUPPLIERS

In 2015−2016, the rules of cooperation with suppliers changed, with the administrative and support function gaining a proactive and business-minded role.
 

To achieve our strategic objectives we are chiefly focused on implementing a method of comprehensive management of procurement categories, a supplier management model (its elements include segmentation, classification, management rules) and global procurement standards.

The procurement categories in the Central Category Tree form an orderly and extensive procurement directory at PKN ORLEN and the key companies of the ORLEN Group. The Central Category Tree has three levels of detail. The first level comprises 12 main categories. The second and third level are detailed category levels, corresponding to various product and service groups for a wide range of business needs.

In a significant step towards ensuring sustainable development and responsible supply chain, PKN ORLEN incorporated the responsible business and sustainable growth criteria in its procurement management standard. The Company promotes social responsibility among its suppliers and seeks to cooperate with trade partners that respect human rights and operate in compliance with the law, ensure safe and fair working conditions, follow the best standards of ethical conduct and care for the environment. CSR criteria have been defined and compiled into a single document entitled 'Supplier Code of Conduct'. As of April 2016, compliance with the Code is mandatory in the process of trade partner qualification.

More than 16,000 procurement processes were carried out at the ORLEN Group in 2016. We worked with over 3,500 suppliers. In most cases, our trading relationships with suppliers are long-term to ensure that the requirements of the ORLEN Group are satisfied in a reliable manner. Suppliers provide raw materials and services necessary for the ORLEN Group to run its operations. Our purchases are related to investments, production and maintenance projects; we purchase electricity, biocomponents, supplies for service stations, production chemicals, and general-purpose supplies (administration, IT, professional services, logistics). In 2016, we purchased goods and services in more than 500 procurement categories.

CUSTOMERS

The ORLEN Group sells its products and services to customers in over 80 countries across 5 continents. The ORLEN client base includes both private customers (such as motorists) and institutional clients representing virtually all industries – including the chemical, automotive, aviation, power, construction, packaging, agricultural, and food production sectors.

We reach private customers mainly through service station networks spanning across Poland, the Czech Republic, Germany and Lithuania. Customers can rest assured that all our products meet exacting quality standards. As a result of substantial investments in our production faculties, unleaded petrol and diesel fuels produced by ORLEN Group refineries fully satisfy all European standards, and even exceed them with respect to some parameters. We were also Poland’s first producer to protect its products against microbiological contamination.

In terms of company size, our institutional client base is highly diversified – from small local companies up to Poland’s and the world’s largest corporations.

Our petrochemical products (including benzene, ethylene, and PTA) serve as the basis for the manufacture of other products and delivery of services we use in our everyday lives. We produce fuels for road vehicles, aircraft, ships and power plants, as well as lubricants, bitumens, and a whole range of other basic organic substances used to make plastics, pharmaceuticals, and virtually all other chemicals. Heavy fuel oil is burned in central heating boilers, steam generators and industrial furnaces, but it is also used in industrial processes. With our portfolio of aviation fuels, we provide fuel services for all aircraft types. In Poland, we are one of the largest producers and marketers of bitumens, which are sold to companies and building groups engaged in road construction projects, and to producers of bitumen-based products used in the construction industry (such as roof coverings, roofing papers, or thermal insulation products).

ORLEN Paliwa, one of Poland's largest sales organisations, offers a broad range of fuel products, including petrol (Pb95, Pb98), diesel oil, heating oil (Ekoterm Plus), propane, butane and propane-butane mixtures (LPG). The fuels offered are of the highest quality, fully satisfy EU standards, and even exceed them with respect to some of the parameters. They are also environmentally friendly. The chemical composition of petrol, diesel oil and heating oil is based on leading-edge global research. Gas products are compliant with Polish standard PN C-96008 and European standard EN-589, as attested by quality certificates. ORLEN Paliwa holds a licence to trade in environmentally friendly electricity, which it offers to small and medium-sized enterprises. The company also builds industrial liquid gas installations used not only for heating purposes but also in various technological processes, e.g. in the bakery and confectionery industries, in meat production and processing, in other food production, in the manufacture of ceramics and glass, metalworking, at dryers, laundries, in the construction industry and road engineering. 

ANWIL is a leading manufacturer of nitrogen fertilizers (ammonium nitrate and calcium ammonium nitrate, marketed under the CANWIL brand), ranking second in Poland and tenth in Europe. The company is also Poland's only and Europe's eighth manufacturer of suspension polyvinyl chloride (Polanvil), a material used for the production of building profiles, water and sewage piping, wire and electrical cable insulation and coating, as well as small scale medical equipment. Almost half of Polanvil volumes are sold to demanding EU markets.
ANWIL also offers PVC plates and cable compounds, PVC-based blends, and rigid technical PVC compounds e.g. for the production of wall panels, building profiles and electro-installation profiles.

ANWIL is the largest producer of sodium hydroxide (marketed mainly as caustic soda solution) and prilled caustic soda in Poland. Sodium hydroxide is one of the primary chemicals used in virtually all industries, both as a feedstock in various types of organic and inorganic synthesis, and as an auxiliary material, e.g. in the aluminium, cellulose and paper, textile and viscose industries, but also in the processing of crude oil and treatment of water for industrial applications.

The company also offers other chloralkali (chlorine, sodium hypochlorite, sodium chloride and hydrochloric acid) and chemicals (ammonia, ammonia water, liquid nitrogen and liquid oxygen). ANWIL sells its impressive range of products to almost 40 countries across the globe, including to Germany, UK, France, Scandinavia, Algeria, and Turkey.

Inowrocławskie Kopalnie Soli Solino S.A. is Poland's largest producer of brine and the only supplier of the product to the chemical industry in the region. Brine is manufactured made in two salt mines − in Góra near Inowrocław and Przyjma near Mogilno. From both locations, the product is delivered to customers via pipelines − from the mine in Przyjma to the production plant in Janikowo (Ciech Group), and from the mine in Góra to Anwil and to a production plant of the Ciech Group in Inowrocław. The company has long-term contracts with these customers. Small volumes are also delivered by road tankers.

Solino's portfolio includes salt products as well. Its granulated salt is used in dishwashers. The company produces table salt, curing salt for the meat industry, feed salt used in the manufacture of fodder and compound animal feed, and industrial salt used as an ingredient in washing powders, dishwashing liquids, soap and detergents, as well as road salt for winter road maintenance.

ORLEN Południe is a key player in Poland’s biofuels and biocomponents market. It offers biocomponents which can be blended with traditional diesel oils or used as a standalone fuel. The company’s portfolio features a broad range of products for households, public buildings, small and medium-sized enterprises, as well as specialist installations and industrial facilities.

The portfolio of the ORLEN Group also includes a broad range of services, such as transport services, maintenance of service stations and fuel depots, repairs of various types of machinery, environmental protection, health and safety and fire prevention services.


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