Grupa Azoty Polyolefins seeks €2.98 billion from Hyundai Engineering via arbitration over delays, losses, and alleged non-performance at Polimery Police.
Grupa Azoty Polyolefins has formally initiated a major international arbitration proceeding against Hyundai Engineering, submitting a claim valued at up to €2.98 billion in connection with extensive delays and alleged non-performance related to the Polimery Police Project. The statement of claim was officially lodged on 30 December 2025 with the Vienna International Arbitral Centre (VIAC), which operates under the Austrian Federal Economic Chamber.
According to Grupa Azoty Polyolefins, the dispute stems from a 2019 contract under which Hyundai Engineering was appointed as the general contractor responsible for the comprehensive execution of the Polimery Police Project. The scope of the agreement covered engineering, procurement, construction, and related project delivery obligations. However, the Polish company contends that Hyundai failed to meet its contractual commitments, leaving the strategically important project incomplete well beyond the agreed schedule.
In its arbitration filing, Grupa Azoty Polyolefins is seeking a wide range of remedies. These include the payment of contractual penalties associated with prolonged delays, compensation for substantial financial losses incurred due to the stalled development, and orders compelling Hyundai to rectify identified defects. The company is also requesting that Hyundai either correct deficiencies in supplied materials, equipment, technical documentation, and construction works, or provide fully compliant, defect-free replacements where remediation is not possible.
Commenting on the decision to pursue arbitration, Andrzej Skolmowski, President of the Management Board of Grupa Azoty, emphasized that the company had exhausted other options. He reiterated that the Polimery Police Project was not completed within the contractually agreed timeframe and asserted that the causes of delay were attributable to the contractor. As a consequence, Grupa Azoty Polyolefins claims it has suffered significant financial damage, making legal action unavoidable.
Skolmowski also recalled that the company had already informed the market in August about several key steps taken against Hyundai. These included the formal rejection of the contractor’s claims, Grupa Azoty Polyolefins’ withdrawal from the comprehensive project execution contract due to alleged contractor fault, and the imposition of contractual penalties. Furthermore, the company disputes the legal validity of Hyundai’s subsequent declaration of withdrawal from the same contract. In Grupa Azoty Polyolefins’ assessment, that declaration lacked both legal and factual justification, particularly as the contract was, in its view, no longer in force at the time Hyundai attempted to withdraw.
The arbitration initiated by Grupa Azoty Polyolefins follows closely on the heels of a separate claim filed by Hyundai Engineering itself. On 29 December 2025, Hyundai submitted its own statement of claim to VIAC, seeking compensation linked to its withdrawal from the project. Grupa Azoty Polyolefins has firmly rejected Hyundai’s demands, disputing not only their financial scale but also their underlying legal basis.
The company has stated that it will submit a formal response to Hyundai’s claims within the procedural deadlines set by VIAC and will continue to actively defend its interests throughout the arbitration process. The outcome of this high-value dispute is expected to have significant implications for both parties, as well as for the future of the Polimery Police Project, which remains a critical industrial investment for the region.
