Destination China?

| Foreign Markets |

Before merging into Grupa Azoty, Zakłady Azotowe “PUŁAWY” S.A. and Zakłady Azotowe S.A. from Tarnów had already been planning a joint investment in the production of caprolactam in China. The decision regarding this matter is due by the end of 2013.

Caprolactam is essential…

…for the manufacturing of resins and textile fibers. Consequently, in China the consumption of the substance is huge. The country is the biggest importer of caprolactam, with c. 1.3 million tonnes imported annually and the demand rising by 8% every year (globally – only by 3%). Therefore, China is an important partner for such enterprises as Grupa Azoty and Grupa Azoty “Puławy”, the leading European manufacturers of the product.

China has it its way

Seeing how important caprolactam is for the national economy, Chinese authorities are becoming increasingly determined to bet on domestic production. At the moment c. 21% of the output capacity of the resource is located in China. By promoting domestic manufacturers and by using anti-dumping duties for EU countries and the USA, Beijing authorities aim at becoming self-sufficient at producing caprolactam.

Not such a newcomer to the Asian markets

Before joining Grupa Azoty, “PUŁAWY” had cooperated with East Asian markets and had been selling caprolactam to clients in China, Thailand, India and Taiwan. As a result, Grupa Azoty boasts staunch business contacts in this region of the world. Additionally, having completed a feasibility study for the new investment, the Company is getting nearer the completion of the new enterprise. However, the dynamics of caprolactam market necessitates yet more structural analysis, indispensable for taking the correct decision as to the construction of a factory in Asia.