Awards for the inventors

| About Us |

Two inventions prepared by the scientists from Our Works and from Industrial Chemistry Research Institute were appreciated by the juries of international exhibitions and awarded silver medals.

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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.

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“PUŁAWY”, China and caprolactam

| Prospects & Investment |

Caprolactam is an intermediate chemical product useful in the production of a number of construction plastics and nylon fibers. This explains why it is one of important import goods for the Chinese market.

Caprolactam from “PUŁAWY”

Grupa Azoty “PUŁAWY” is capable of manufacturing 70,000 tonnes of caprolactam per year. As a result, we are a leading manufacturer of this compound. It is manufactured basing on a Polish license and 35 years of experience our Company has gained in the sector. This is why “PUŁAWY” is a well-known and respected provider of caprolactam on a global scale.

Chinese market

Demand for caprolactam is constantly growing in China. While 3 years ago this one country bought up 25% of the global caprolactam production volume, this value is forecast to reach 40% in 2015. Consequently, the Chinese market is crucial for European manufacturers, including “PUŁAWY”. In 2011 as much as 5% of caprolactam imports came from Poland. However, China is struggling towards self-sufficiency in manufacturing of the compound, so as to satisfy as much as 80% of demand using domestic production.

Activity of “PUŁAWY”

Seeing that caprolactam market is changing dynamically, Grupa Azoty “PUŁAWY” is striving to remain very active both with respect to production and trade, but also on the forum of international organizations of chemical companies. We belong to China International Polyamide & Intermediate Forum and Nylon Promotional Group 6, the global associations of caprolactam and polyamide manufacturers. Owing to membership in international bodies and activities aimed at boosting manufacturing efficiency, “PUŁAWY” remains an important player on caprolactam market and a serious trade partner for Chinese companies.

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Taking care of the environment

| Enviromental Protection |

Plenty of green areas and forests are located around Puławy. Hardly any local inhabitant would approve any change to this environment. Since the launch of the Works, we have been paying particular attention to care of the natural environment and at the same time, to the welfare of the local community. Today being environment-friendly is a priority for Azoty Group “PUŁAWY”.

Investment in the environment

In 1980′ a waste treatment plant was erected next to caprolactam installation, where one of the main materials for the production of artificial fibers is manufactured. The plant made it possible to offset the damage of the production line for the environment.

In 1985 – 2000 we implemented a comprehensive program of environmental protection, in which we voluntarily vowed to abide by the strictest formal requirements concerning emissions of polluting substances and the impact Works are having on the environment.

Awards for being environment-friendly

With regard to taking care of the environment, “PUŁAWY” constitutes a role model for other enterprises. As a proof, we may offer much more than our own declarations; also numerous awards and honorary mentions, such as:

  • A nomination in “Well-Seen Company” (“Firma Dobrze Widziana”) competition for our environmental protection and social activity, as confirmed by the members of the local community.
  • Acanthus Aureus Medal for a stand at International Environmental Protection Fairs in 2011.
  • Since 1995 “PUŁAWY” has been participating in an international program whose Polish name is Responsible Care.

Environment-oriented

However, the most visible proof of our care of the environment is the condition of green areas in the vicinity of the plant. Its current shape confirms “PUŁAWY”s respect for nature and due consideration for the environment.

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Always forward

| Prospects & Investment |

In comparison with the corresponding period in the previous financial year, the dynamics of growth of “PUŁAWY” Company has remained impressive. In many respects the growth (in terms of output volume) proved remarkable.

The above is true of both agricultural and chemical segments. Not only the Parent Company, i.e. “PUŁAWY”, is responsible for this success. Recognition is due to Gdańskie Zakłady Nawozów Fosforowych “Fosfory” and “Azoty – Adipol” from Chorzów as well. From the 1st July to 31st December 2012, as compared to the first half of 2011/12 financial year, the Group produced 112,4% as much ammonia, 116,% – nitric fertilizers, 111,5% – AdBlue®, 95,8% – CAPROLACTAM™, 108,1% – Melamina™ and 102,7% – hydrogen peroxide.

In the second half of 2012 “Fosfory” produced 102% as much phosphatic fertilizers and 114,8% multi-compound fertilizers. In “Azoty – Adipol” the output of potassium nitrate was 132% of previous period’s result, but the growth of calcium nitrate production to 585,8% of previous year result was the most noteworthy success. This achievement was connected with increased market capacity and good pricing.

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Chemistry on the rise

| Products |

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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Understanding the Chinese market

China is a partner of strict importance for our business. Our company has been actively present in the Far East for over 10 years, selling caprolactam that we manufacture. The compound is used for the production of polyamide, which is then used to produce e.g. surgical packaging or nylon. Another use of caprolactam is in the automotive factories.

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