Strategic cooperation of Grupa Azoty PUŁAWY and KRONOPOL

| Polish Market |

Kronopol Sp. z o.o. and Grupa Azoty PUŁAWY signed an agreement concerning the supplies of PULREA® (urea) and melamine on February 9th 2015. The total value of the 5-year contract is 770 million PLN.

Western investment in Poland

Poland is the fourth largest exporter of furniture in the world and the first in Europe, as well as the tenth manufacturer of furniture in the world. On our continent Poland is the third largest supplier of furniture following Germany and Italy. The sector constitutes about 2% of the Polish GDP.

There have been many changes in the Polish timber sector in the last 20 years. Timber, the resource which is indispensable in this kind of production, has attracted investors from other European countries. Poland has been taking advantage of its favorable geographic location.

The growth of production in the furniture-making industry was partly fueled by the decision of Grupa Azoty PUŁAWY to increase the output capacity of melamine and urea. Our Company enjoys an immense resource base which complies with the highest standards of quality and safety. The availability of those resources and products has turned Poland into the center of development of the businesses connected with timber industry, namely the furniture-making and construction sectors.

Good investment choices

The agreement which has been signed stipulates that Grupa Azoty PUŁAWY supplies Kronopol with melamine and PULREA®, a brand of urea which is required for the production of wood-based panels (MDF, OSB, chipboards). The long-term contracts with Kronopol confirm that the investment decisions which we took a couple of years ago were correct. Increasing the output capacity of urea and melamine lays the foundation of the development of various industries, with particular reference to the production of wood-based panels. Kronopol is the leader on the Polish market of production of panels and wood-based products. Each year the company produces over 1.5 million m3 of various wood-based panels and exports its products to 50 countries on all continents.