A difficult, yet fruitful year behind us
2013 was a time of hard work for the whole Grupa Azoty. The year brought major challenges and the task of creating new value in the national economy.
Thanks to the consolidation of Polish chemical industry, Grupa Azoty became the national champion, which comprises almost 30 entities and is propped by four pillars – the Works in Puławy, Tarnów, Kędzierzyn and Police. One of he momentous developments in 2013 was finalizing the merger of Azoty Tarnów with Grupa Azoty “PUŁAWY”.
Synergy and cooperation
Such a strong group requires good organization, and the chief task for the Board was implementing a new model of management. In accordance with Grupa Azoty Strategy for 2013-2020, the main objective was increasing market value via synergistic effects. To this end, the Council of Grupa Azoty was appointed in December 2013. The Council serves an advisory role, provides opinions and initiates new projects. The cooperation brought synergistic effects worth 90 million PLN in total.
Good forecast for fertilizers market
All members of Grupa Azoty found 2013 challenging, due to the shape of the chemical-fertilizers segment. The conditions on this market were poor, despite low prices and other favorable factors, such as a number of significant long-term contracts regarding the sales of fertilizers on South American markets. The situation in fertilizers business has begun to look up, however, which bodes well for 2014. The chemical sector is dominated by the developments on the Chinese market, which has the largest impact on the global situation.
Investments have only just started
With a view to ensure good functioning of Grupa Azoty in the coming years, we have initiated massive investment projects, focusing both on the development of new kinds of products, as well as on modernization of the existing installations and the improvement of their parameters. In 2013 the total investment budget in Grupa Azoty reached 670 million PLN, and was only the first step in the long-term program providing conditions for keeping up the pace of intensive growth.
Cooperation with market leaders
2013 marked the beginning of long-term projects initiated in cooperation with external partners. According to the first analysis of the investment conducted with Lotos and Polskie Inwestycje Rozwojowe, the potential of the venture is really high. If the results of the feasibility study, which is being prepared at the moment, prove positive, there is likelihood of realizing the project which might fuel the development of other petrochemicals-based businesses in Poland. The cooperation with KGHM provides an opportunity to intensify the search and excavation of resources for the needs of the fertilizers industry.
Record stock value
Inclusion of Grupa Azoty stock in the new Warsaw Stock Exchange index called WIG30 was one of the most important events on the financial market in 2013. The development constitutes a fulfillment of one of the key strategical goals, the presence in the most prestigious WSE index. For another year running, Grupa Azoty was also included in Respect Index, or the list of WSE companies which follow the rules of Corporate Social Responsibility. All in all, Grupa Azoty stock prices in 2013 beat all records. The ending of the year was less optimistic, but the situation has begun to improve since then, however.