Azoty Group on partnership rules

| Polish Market |

The formation of a new chemical Group has begun; our Company will constitute a part of this Group. We are glad to hear that the Ministry of Treasury has made the principles of equality and partnership of the parties the key elements of the merger. An agreement between “PUŁAWY” and Azoty Tarnów will guarantee both parties the possibility of creating a new strategy, structure and corporate governance of the newly formed Azoty Group on the basis of equality.


Common talks between us are yet to begin. Acting on the principle of equality, we would like to present our proposals to the partner. It is essential to work out the details concerning the overall vision and the rules of inner functioning of the new Group. The priority during the negotiations should be the welfare of our customers, shareholders and employees. Final talks about the most important issues regarding the merger are still ahead of us. We take into consideration the possibility that the negotiations might prove difficult for both sides. However, it would be difficult to point out specific matters which might turn out to be critical during the talks.


We believe that the main benefit of the merger will be synergy related to managing similar product groups, joint purchasing of supplies, integrated logistics, etc. We also look forward to mutual benefits connected with investments. It will be necessary to agree on the priorities in this respect and to consider which projects ought to be continued and which had better be temporarily put on hold.


Our characteristic feature in the newly formed Group is the diversity of directions of our activities. Supplying fertilizers is not sufficient in our times. An example of diversification is our production of urea solutions, used in diesel engines and for other purposes. A shift in our approach to business to more industrialized activities will surely make us more competitive on the fertilizers markets. Another crucial matter is the expansion of the distribution system.

We therefore look to the future optimistically, preparing for reaping the benefits of the connection of the Companies from Tarnów and Puławy.