Polish transport will benefit from the consolidation

| Polish Market |

The consolidation of the Companies Puławy and Tarnów and the formation of Azoty Group is approaching soon. This will not only have an impact on the chemical sector, which is our natural domain, but also on other sectors of the economy. One of the businesses which is expected to be influenced is transportation.

THE STRENGTH OF THE GROUP

Both companies are important and recognizable brands not only in Poland but also all over Europe and the world. Our Company serve as an example, having established and maintained long-term business contacts with companies in a number of countries. Nearly a half of our output is exported. We are also one of the biggest exporters in Poland. Jointly, the companies in the Group will be a major player on the chemical market. We shall be competitive thanks to both the wide range of products on offer and the price.

IMPROVEMENT THANKS TO SYNERGY

This is where the transportation companies see their opportunity – and rightly so. We expect that thanks to synergy our output will increase not only because of domestic demand, but also owing to higher sales to foreign clients. This means larger volume of exported goods.

The situation in the chemical sector has always had an impact on the condition of the railway transportation companies. We are their long-standing partner, ensuring stability of their business activity. Talking to the media, the representatives of the logistical companies declare that they are happy about the consolidation. In their opinion, after the merger of the Companies in Puławy and Tarnów, it will be easier for them to negotiate with one bigger Group rather than with several entities, which is what they have to do at the moment. We are glad to hear that the spokespeople in the transportation sector have already recognized the positive influence of the consolidation on the situation of railway transportation and other companies in the sector.

HOPES OF THE LOGISTICAL COMPANIES

Synergy will improve the competitiveness of our Group on the chemical market. It is also likely to reduce the costs of production, which means that we will be able to increase our sales abroad. Increase in exports means higher demand for the services of the transportation companies.

THE ISSUE OF RAILWAYS

Logistical companies are already preparing for the increasing output of Azoty Group. Increased demand for transportation capacity constitutes a new challenge for them and in the case of railway companies requires the purchasing of new railway stock. At the same time the transportation businesses are hoping that our consolidation will become an invitation to a broader discussion about the condition of the Polish railways and the demand for investments in this sector.