Address: 8 Shaul Hamelech Blvd., Tel Aviv 64733
Line of Business:
srael Petrochemical Enterprises Ltd. (IPE or the Company) is a public holding company whose shares are listed on the Tel Aviv Stock Exchange. Engaging primarily in the energy sector and tangential sectors, IPE works to enhance its existing assets to sustain steady internal growth, and implementing new long term investments in its business environment and in new fields.
IPE was founded in 1961 as an industrial company engaging mainly in the manufacture of polyethylene. In 1978, IPE became a public company and its shares were listed on the Tel Aviv Stock Exchange.
In 1991, a new subsidiary, Carmel Olefins Ltd. (CAOL), was founded, into which the ethylene plant of Oil Refineries Ltd. (ORL) and IPE’s polyethylene plants were merged. As a result of this merger, IPE became a holding company, holding CAOL, jointly with ORL, in equal shares. At the end of 2009, a stock-swap merger of CAOL and ORL was completed, under which the Company sold its holdings of CAOL to ORL in exchange for an allotment of ORL shares.
As a holding company, IPE seeks to expand and enhance the value of its portfolio of holdings, and has executed a number of investments in recent years.
IPE’s Principal Holdings
Oil Refineries Ltd. (ORL)
IPE controls ORL, together with the Israel Corporation Ltd., and directly and indirectly holds about 30.7% of ORL’s shares.
ORL is one of the largest and most complex energy groups in Israel, operating the country’s largest refining and petrochemical complex in Haifa Bay. ORL’s maximum oil refining capacity is approximately 26,600 tons (197,000 barrels) per day in a range of high value-added distillates ranked 9.0 on the Nelson Complexity Index – the highest ranking for this type of refinery in the Eastern Mediterranean region.
ORL and its subsidiaries are infrastructure companies operating in Israel engaged mainly in the production of oil products, polymers used in raw materials for the plastics industry, aromatics products for the chemicals industry and petrochemicals, basic oils and waxes used as raw materials in manufacturing various products.
The company’s subsidiary plants are downstream plants from ORL’s plants and include Carmel Olefins Ltd., Gadiv Petrochemical Industries Ltd., and Haifa Basic Oils Ltd., all fully owned by ORL.
ORL’s holdings are in Gadiv Petrochemical Industries (23.63%), the United Co. for Oil Exports Ltd. (25%), Energy Resources Development Ltd. (25%), Tanker Services Ltd. (25%), and Mercury Aviation Ltd. (31.25%). This combination allows ORL output optimization at its refining plant, while producing oil alongside production of various products and petrochemical products. Due to the integrated management of plants ORL has managed successfully to simultaneously increase its share of profits and manufacture with cost efficiency. ORL’s shares are traded on the Tel Aviv Stock Exchange.
ORL is currently completing implementation of its five-year a strategic plan. As part of the plan massive investments have been made in increasing the share of high added value products in the mix of the company’s products in the environmental, safety and security sectors, and increasing operational reliability.
The company’s flagship project is the Hydrocracker for the production of clean fuels, which was completed at the end of 2012. Operation of the plant has significantly increased the complexity of the refinery and allowed it to produce more high added value refined products from every barrel of oil. The plant has also increased the refinery’s flexibility in choosing raw materials and product mix and suiting them to changing market conditions.
The plan also includes investment in new plants and upgrading existing installations to allow the refinery to meet the Ministry of Environmental Protection’s existing and future requirements and the world’s most rigorous emission standards. The plan will cost hundreds of millions of dollars and will bring about a dramatic change in environmental and safety parameters.
ORL Group strives to operate according to the world’s strictest standards. This fact alongside its high production capacity allows ORL to make major overseas product sales, mainly in the Eastern Mediterranean.
IPE’s strategy focuses on identifying, acquiring, managing and enhancing investments in the energy and refining sector, and other segments in the value-added chain, such as petrochemicals, aromatics, and plastics applications. The Company’s activities along the entire value-added chain enable it to exploit and leverage its knowledge, expertise, experience and insight in its business environment, inter alia, for the purpose of identifying new business opportunities in relevant sectors.