Nothing more important than food security

| Foreign Markets |

According to experts, the population of our planet will have grown to 9 billion by 2050. Previous estimates used to predict that the speed of demographic growth would be smaller. However, the latest research and analysis suggests that at the end of the 21st century there will probably be 12 billion people in the world…

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Polska Chemia Congress in Puławy

| Polish Market |

The chemical sector should build demand for its products, foster the growth of domestic manufacturing companies, at the same time develop the national economy. These were the main conclusions presented by experts at Polska Chemia 2014 Congress. Grupa Azoty was the strategic partner of the event.

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China is betting on fertilizers

| Foreign Markets |

Fertilizers production is a leading sector of the chemical industry in China. The country is also a primary consumer of those products. The reason could not be more obvious, with the population of People’s Republic of China approaching 1,5 billion people.

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Polish chemical industry is entering a period of growth

| Polish Market |

An experts’ debate “Investments of chemical companies – the needs and the possibilities” was held in Warsaw last week. The discussion, which was organized by Polish Press Agency, concerned the current situation in the chemical sector, the potential directions of growth of this sector of the Polish economy, and the financing of current and planned investments. Grupa Azoty was one of the supporting partners of the debate.

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Promising evaluation of the chemical sector

| Foreign Markets |

In the third quarter of 2013, the economic activity indicator in the chemical sector remained on a similar level as in the previous quarter. The situation in the business was evaluated as generally positive (from +15 in July 2013 to +12 in September 2013), although sentiments had been slightly more optimistic in the previous months.

Polish chemical sector after 2012

Domestic industry is still trying to cope with difficulties linked to both global economic stagnation and the end of investment activity which preceded Euro 2012 football championships organized in Poland and Ukraine. The petrochemical and plastics businesses are now in the best situation among all chemical companies, with packaging manufacturers emerging as leaders of growth.

Experts’ forecast for the coming months

Representatives of the largest global chemical companies agree that at the end of 2013 markets will remain stagnant. Upward tendencies shall be curbed by continuing economic depression and uneven pace of growth in various parts of the world.

European – meaning also Polish – chemical industry is now facing the following challenges:

a) growing competition from Asian and US companies,

b) high prices of energy resources,

c) strict EU environmental protection policy,

d) poor internal demand.

Such situation provokes market players to intensify the frequency of mergers and acquisitions, improve financial discipline and rationalize product portfolio. European manufacturers are trying to compensate for lower demand by increasing prices (by c. 2.7% annually).

EU policy on energy

One of the primary challenges for the European chemical industry is EU energy policy. Demanding regulations may influence both the production cost and employment rate in the industry. For Poland there is another problem: the skeptical approach of the European Commission to plans of excavating shale gas, and ensuing changes of Polish legislation.

Articles prepares by Strategy and Development Team of Grupa Azoty “PUŁAWY”, headed by Andrzej Górecki.

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Polish chemical goods stand out in Europe

| Polish Market |

Polish chemical industry in 2012 may be summarized using the following data: 11 thousand enterprises active in the business and 131 billion PLN worth of goods sold. The statistics are of paramount importance if one wishes to sum up the condition of the whole domestic economy. However, the possibilities of the industry are yet to be fully tapped.

More chemical products sold

The chemical industry includes three main types of companies:

a) manufacturers of plastic and rubber,

b) manufacturers of pharmaceutical products,

c) enterprises providing chemical substrates and products.

The third group includes “PUŁAWY” and its daughter companies, including GZNF “Fosfory”, Zakłady Azotowe “CHORZÓW”, Agrochem and others.

In 2012 this particular sector sold goods worth 7% more than in 2011, while the average growth across the economy was only 1%. When 29 sectors were compared, manufacturing of chemical substrates and products took the 6th rank. The value of chemical products and substrates sold is almost 58 billion PLN, or 5% of sales in Polish industry.

 

Export on the increase

Chemical manufacturers come second when it comes to value of national export. In 2012 the chemical sector enjoyed a growth (by almost 5%) of volume of sales abroad, reaching nearly 20 billion EUR. At the same time, there was a sharp drop of imports of chemical products, down to 26 billion EUR.

We can do even better

Polish Chemical sector managed to decrease its foreign trade deficit by over 2.5 billion EUR. The fall resulted from changes on the market resulting from the economic crisis of 2008, when main clients, including the construction and automotive sectors, cut orders. The industry ought to channel its efforts into the development of ready to sell processed goods manufactured in the developed countries. Although Poland is now the 8th largest manufacturer of chemical products in Europe, the potential of domestic producers is much more considerable. This leads to believe in bright future for the sector, with Polish chemical companies becoming more and more visible on European and global markets.

 

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