Corporate Headquarters Address: Haifa Refinery, Ind. Zone, P.O.B. 4, Haifa 31000
Line of Business:
il Refineries Ltd. (ORL) located in Haifa Bay is one of Israel’s largest energy groups operating Israel’s largest oil refining and petrochemical complex. State of the art facilities enable ORL to manufacture a broad range of refined products for industry, transportation, agriculture, infrastructure and household consumption. The refinery has a maximum production capacity of approximately 26,600 tons (197,000 barrels) per day. ORL known in Hebrew as Bazan, has about 85% of its operations related to refining, produces high added value products at its refining facilities measuring 7.4 on the Nelson Complexity Index, among the highest rankings in the Eastern Mediterranean region. ORL and its subsidiaries, mainly produce oil products, polymers as raw materials for plastics, aromatics for chemicals and petrochemicals and basic oils and waxes. ORL’s subsidiaries are an extension of its plant and include 100% ownership of Carmel Olefins Ltd., 100% ownership of Gadiv Petrochemical Ind. Ltd., 100% ownership of Haifa Basic Oils Ltd, 23.63% of Gadot Biochemical Ind. Ltd., 25% of United Petroleum Exports Ltd., 25% PMA – Energy Resources Development Ltd., 25% of Tanker Services Ltd., and 31.25% of Mercury Aviation.
This integration allows ORL to optimize its refining output across product and petrochemical business lines, while increasing aggregate margins and creating cost efficiencies through joint management and facilities. Privatized by the Israeli Government in Feb. 2007, and currently controlled by Israel’s largest holding company, Israel Corp. (37.1%), and by Israel Petrochemical Enterprises (30.7%). ORL’s shares are traded on the Tel Aviv Stock Exchange under the ticker ‘ORL’. The Company also supplies power (electricity) and steam services to industrial customers in Haifa Bay, as well as infrastructure services (storage and conveyance of fuel products).
Meeting the Highest Quality Standards
All of ORL’s products undergo strict quality control and assurance procedures and a series of international (ASTM) tests supervised by the Israel Standards Institution. ORL’s products comply with the ISO 9002 standard and most carry the “Green Shield” of the Standards Institution, indicating their compliance with environmental quality standards. The Company’s environmental management complies with the ISO 14001 Standard and the ORL safety system is ISO 18001 certified.
Producing for the Domestic and World Markets
While most products are directed to the Israeli market, ORL’s strict adherence to the most demanding world standards, as well as production capacity capabilities, enable it to sell considerable quantities of refined products overseas, mainly to countries of the East Mediterranean. ORL’s trade sector is responsible for improving service and strengthening relations with its direct and indirect customers. This is an additional step of ORL’s effort to constantly adapt its products to the unique needs of its customers by improving the existing products and developing new products.
Over the years ORL has succeeded in building a modern and efficient organization based on its professional and skilled personnel, operating at the cutting edge of refining technology. More than 50% of ORL’s employees are engineers and practical engineers, or graduates in other disciplines. All employees thrive in the dynamic work environment, which presents technological and operational challenges in meeting advanced industrial standards.
Aggressive Strategic Investment Plan
ORL’s board approved an unprecedented five-year strategic plan to invest in upgrading handling of the environment, ecology and safety. The plan involves massive investment in increasing some of the high added-value products in the environmental, safety and security sectors and raising operation reliability. The plan also includes investing in new installations and upgrading existing installations to meet current and future requirements of the Ministry of Environmental Protection and rigorous global emission standards. Estimated cost is $1.1 billion. The plan will bring a dramatic change in environmental and safety parameters.
In Feb. 2012, ORL presented its new organizational structure with its fully-owned subsidiaries’ activities, which aims to create a direct, clear and seamless link along the value chain between each of the Group’s main products. The Group now has three business units; Fuels; Polyolefines, and Aromatics, Oils and Waxes. Each business unit includes a relevant production unit, marketing, sales and other functions. The business unit serves joint factory services.
Significant Environmental Commitment
As part of the five-year investment plan, ORL has allocated $270 million of its investment plan to improve its environmental profile in line with its commitment to be active in the industry’s evolution towards greater environmental responsibility. By 2011, ORL had completed projects in the environmental sector, plant reliability, security and safety, totaling about $141 million. ORL’s flagship project is the construction of a production installation for clean fuel which should be completed in the third quarter of 2012. When operating the plant will significantly increase the refinery’s complexity and enable production of more, higher added-value refined products from each barrel of oil. It will also increase ORL’s flexibility in selecting raw materials and a package of products to suit changing market conditions.
Gadiv Petrochemical Industries Ltd., a wholly owned subsidiary, engaged in manufacturing and marketing of aromatics and solvents.
Carmel Olefins Ltd., a wholly owned subsidiary, manufactures and markets ethylene, polyethylene and polypropylene.
Haifa Basic Oils Ltd., a wholly owned subsidiary, manufactures and markets basic oils and wax.