Grupa Azoty Polyolefins has launched a high-stakes arbitration case against Hyundai Engineering, seeking up to €2.98 billion over the stalled Polimery Police Project. The company filed its statement of claim on 30 December 2025 with the Vienna International Arbitral Centre (VIAC) at the Austrian Federal Economic Chamber.
The dispute centers on Hyundai’s alleged failure to fulfill its contractual obligations under a 2019 agreement for the comprehensive execution of the project, which Grupa Azoty Polyolefins says resulted in the project remaining incomplete.
The claim demands payment of contractual penalties for delays, compensation for financial losses, and orders for Hyundai to fix defects in materials, equipment, documentation, and works, or to deliver defect-free replacements.
“We consistently maintain that the Polimery Police Project was not completed within the agreed timeframe and for reasons attributable to the contractor, Hyundai Engineering. As a result, the Company has incurred significant financial losses. Filing the arbitration claim became necessary in view of the contractor’s failure to perform the contract,” said Andrzej Skolmowski, President of the Management Board of Grupa Azoty.
Skolmowski added, “In August, we informed the market about the rejection of the contractor’s claims, as well as about Grupa Azoty Polyolefins’ withdrawal from the contract for the comprehensive execution of the project for reasons attributable to the contractor, and about the imposition of contractual penalties.
"At the same time, we challenge the effectiveness of the contractor’s subsequent declaration of withdrawal from the same contract. In our assessment, there were no legal or factual grounds for such a declaration, particularly as at the time it was made the contract was no longer in force.”
The filing follows Hyundai Engineering’s own statement of claim submitted to VIAC on 29 December 2025. The contractor seeks compensation related to its withdrawal from the project contract. Grupa Azoty Polyolefins has rejected these claims, disputing both their merit and value. The company will respond within VIAC’s deadlines and continue to defend its interests in the arbitration process.
