A look at AdBlue market

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AdBlue® market is constantly growing due to the rising number of vehicles which fulfill Euro 5 exhaust emission norms. Such vehicles are replacing models which followed previous norms, Euro 3 and Euro 4. Sales data confirm that there is a growing trend in consumption, not only because truck fleet is expanding, but also because other segments (agricultural and construction equipment, ships, passenger cars) are entering the market.

Technological changes influencing the market

Truck manufacturers have remained faithful to SCR technology, which is appropriate also in the context of the even more strict Euro 6 norm, due to come into force in 2014. Following this trend, such producers as Setra, Volkswagen, Mercedes, Renault, Volvo and John Deere continue to launch new models of vehicles that are quipped with engines which conform to Euro 6 norm.

The area of AdBlue® distribution and availability in Europe is also constantly increasing. In July 2013 it was possible to purchase the product at 5.1 thousand stations, including 120 in Poland!

Legislative incentives to take care of the environment

Numerous countries motivate fleet owners to make use of this form of emissions reduction. In October 2013 a new system called Ecotaxe was launched in France. It concerns all vehicles with gross vehicle weight rating over 3.5 tonnes. Buses and coaches will be exempt from the new tax. The value of the toll will depend on the number of car axles, GVWR and exhaust emission rating. Vehicles compliant with Euro 6 norm will pay 15% less, while those which pollute the most will pay 20% more than the standard rate. The tax will cost 0.08 – 0.14 EUR/km.

Articles prepares by Strategy and Development Team of Grupa Azoty “PUŁAWY”, headed by Andrzej Górecki.

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Chemistry on the rise

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The situation of the global economy is worrying and the prices on global chemicals market are low. However, market analysts are forecasting a reversal of trends and improvement of the situation in the business. “PUŁAWY” are also expected to benefit.

China protects its manufacturers

Decreased activity in the sector of caprolactam and melamine production and sales results from anti-dumping duties imposed by the Chinese government. The duties have been introduced to protect and give a boost to domestic manufacturers, who are able to step up production volume. However, this poses a challenge for “PUŁAWY” Company on whose goods a 4,4% duty is applicable.

AdBlue® still in the game

Our hope for the near future is high quality urea with a registered trademark, used in catalytic converters of vehicles to reduce the quantity of nitric oxide in exhaust fumes. Both in Poland and other European countries there are more and more stations where users may tank AdBlue®. The expansion follows the growth of consumption of the substance, a growth by 20% year-to-year. Further growth is forecast in the foreseeable future.

Expected demand for caprolactam

American automotive market is slowly returning to the condition from before the recession, while in Japan the economic activity has slowed down owing to the tsunami wave and high exchange rate of the yen. And still, caprolactam, which is used for the production of plastic elements fitted in cars will continue to be in demand. The eyes of the world are directed at China and India, who are expected to produce growth in the business. Seeing that the government in Beijing is planning to launch domestic production of caprolactam, India is now an important destination for “PUŁAWY”.

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