The origin of Zakłady Azotowe CHORZÓW S.A.

| About Us |

2016 will mark the 100th anniversary of the establishment of Zakłady Azotowe “CHORZÓW” S.A., now a part of Grupa Azoty “PUŁAWY”. The history of Works in Chorzów goes back to World War I, which means that we are considering one of the oldest chemical companies in Poland.

Beginning of Works in Chorzów

The first production lines of Zakłady Azotowe “CHORZÓW” S.A. were built nearly a century ago. The company activity was inaugurated in 1916 r., based on an agreement between the German government and “Bayerische Stickstoffwerke A.G.”, a Bavarian Stock Association. In July 1922 Nitrates Works were officially taken over by the Polish government.

In August 1933 the State Factory of Nitric Compounds in Chorzów merged with Nitric Compounds Factory in Mościce near Tarnów. The consolidated entity took the name of “Zjednoczone Fabryki Związków Azotowych w Mościcach i w Chorzowie”, or “United Nitric Compounds Factory in Mościce and Chorzów”.

The origin of Zakłady Azotowe CHORZÓW S.A.Reopening of production after World War II

After World War II Nitrogen Works continued their activity as a state company, using the name “Zakłady Przemysłu Azotowego Chorzów”, or “Nitric Industry Works Chorzów”. In 1991 Zakłady Azotowe in Chorzów were transformed into a company wholly-owned by the Treasury. Another historic event was the takeover of ADIPOL Sp. z o.o. by Zakłady Azotowe in Chorzów – Holding Spółka Akcyjna in December 2006 and change of its name to AZOTY-ADIPOL Spółka Akcyjna.

A part of Grupa Azoty

In 2012 the company was taken over by “PUŁAWY” Capital Group, which purchased 85% of AZOTY-ADIPOL S.A. stock from the Treasury. The consolidation of Grupa “PUŁAWY” and Grupa Azoty Tarnów in 2013 resulted in Azoty-Adipol S.A. joining one of the biggest chemical groups in Europe – Grupa Azoty.

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Fat Processing Installation – taking care of the environment

| Enviromental Protection |

Last week Fat Processing Installation was launched in Zakłady Azotowe “CHORZÓW”, a part of Grupa Azoty “PUŁAWY”. Completion of the project is also an opportunity to examine the impact of the investment on the environment.

Taking care of the environment

Analysis and research done during the first technological start-ups of the plant proved that the volume of pollution produced by the installation does not have an excessive impact on the quality of air. In the vicinity of the plant, no harmful substances in higher than the norm concentration were detected. This confirms that the whole investment was conducted in a professional manner.

Fat Processing Installation - taking care of the environment/fot. photopin.comAbiding by EU norms and sanitary requirements

Resources arrive at the factory in sealed tanks, and next the whole production process runs under constant surveillance, the eye of modern monitoring systems, procedures and engineering solutions. Fat Processing Plant utilizes animal acids subject to strict veterinary check-ups due to the specific kind of the resource. The whole production line fulfills EU and Polish norms.

Zakłady Azotowe “CHORZÓW” of Grupa Azoty “PUŁAWY” have cooperated closely with the local and regional veterinary authorities since the very beginning of the investment.

Processing byproducts

Every element of the installation was planned in such a way so that the byproducts may be reused in further production lines. The installation has been equipped with appliances which process byproducts in order that they maintain commercial value. Substances left from the main production process may be used as a resource for other industries. The installation includes special vapor scrubbers preventing pollution of the natural environment with fumes from the factory. Condensate and technical water are reused in further processing of the resource.

Fat Processing Installation - taking care of the environment/fot. photopin.comReducing pollution

Similar solutions have been applied to technological wastewater. The installation has been fitted with a separate hub for wastewater purification, resulting in a significant reduction of undesirable particles. After the preliminary filtration the water directed to the freshly-modernized general water treatment plant of the Nitrates Works.

It was the care of the natural environment which made the designers opt for natural gas as the fuel. Another achievement was reducing noise which could disturb the vicinity of the plant. The whole new installation is controlled and supervised via a modern process management system. Also, the threat of dangerous incidents endangering the stability of the production process was reduced to the minimum through the application of the most up-to-date solutions.

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Another step towards innovative economy

| Prospects & Investment |

The Fat Processing Plant which has just been inaugurated affirms the membership of Grupa Azoty “PUŁAWY” in the group of leading Polish companies investing in innovative and long-term technological solutions. The investment completed in Chorzów enables the extraction of a mix of distilled saturated and unsaturated fatty acids through processing of animal fats and vegetable oils. As a result, high-quality intermediary products with a variety of applications will hit the Polish and the European markets.

Economy of advanced technologies

Saturated and unsaturated fatty acids manufactured in Chorzów will be used in the production of toilet and metallic soap, or detergents. The installation will provide intermediary products for pharmaceutical and cosmetic industries. Fatty acids from Chorzów may also constitute an alternative resource for the manufacturing of bio-esters.

Glycerin – new product and new possibilities

The up-and-running investment enriches Grupa Azoty “PUŁAWY” portfolio with glycerin with no less than 80% glycerol, free from methanol and obtained through hydrolysis of animal fat. Glycerin is currently one of the key intermediary products in pharmaceutical, cosmetics and grocery industries. It also serves for the production of nitroglycerin for pharmaceutical purposes. Other applications of glycerin are found in tobacco, paper and textile industries. It has also been widely used in the manufacturing of hydraulic fluids, adhesives and sealants.

Open to new markets

There are two sources of the fatty acids, the key resource in the new installation. The materials are byproducts of processing of vegetables, or animals in slaughterhouses and rendering plants. C. 65,000 tonnes of fatty acids are available in Poland each year. Thanks to the new installation, Zakłady Azotowe “CHORZÓW” may process 16,000 tonnes of fatty acids into 13,000 tonnes of marketable stearin.

Changes on the domestic market

Until now Polish factories have imported stearin from neighboring European countries (Sweden, Belgium, the Czech Republic, Italy, Germany) or Malaysia and Indonesia, where 10% of vegetable-derived stearin on our market was produced. According to Eurostat c. 17,600 tonnes of stearin acid worth 18 million EUR was imported to Poland in 2012. Producing stearin in Poland will make our manufacturers independent of long supply chains and the necessity of importing the resource. Stearin will also become more readily available on the domestic market.

Market research suggests that currently the leading application of stearin is manufacturing of candles (c. 47%) and rubber and caoutchouc (c. 45%), next comes the chemical industry with 7% share and the pharmaceutical industry. Data suggesting the potential of candle-making sector is especially noteworthy. Stearin may well replace paraffin, which is now the most popular resource for candle and memorial candle manufacturers. An addition of stearin makes candles more user-friendly (paraffin gives off more smoke).

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A new installation in Chorzów

| Prospects & Investment |

Yesterday Zakłady Azotowe “CHORZÓW” launched manufacturing of stearin, glycerin and distilled fatty acids. Upon the completion of the 65-million PLN investment, Nitrates Works in Chorzów gained the first and only installation for processing of animal fats and vegetable oils in Poland.

Innovation-minded “CHORZÓW”

The new production line utilizes a kind of renewable resources which has not been popular in Polish chemical plants. Moreover, the start-up of the installation confirms the development strategy of the whole Grupa Azoty “PUŁAWY” S.A.. “PUŁAWY” has been stressing the importance of growth towards bioproducts manufacturing, goods which may find application in new business areas. Such enterprises as the one just finished in Chorzów constitute a reply to the evolving needs of the customers.

Beginning of oleochemical investments

In oleochemical installations, such as the one freshly launched in Chorzów, natural resources are processed into intermediary products. Those are next used in various industries, including grocery, pharmaceutical, fuel and chemical sectors. The most interesting product are methyl esters of fatty acids useful in the production of fuel.

The only stearin manufacturer in the country

Fat Processing Installation which has been started up in Zakłady Azotowe “CHORZÓW” is the only domestic enterprise producing stearin. The product will find application in rubber and candle manufacturing, as well as chemical, pharmaceutical and mining industries. Stearin in essential for the manufacturing of rubber, caoutchouc, candles and filling for memorial candles.

Responding to market needs

Fat Processing Department is capable of processing 16,000 tonnes of resource annually! Stearin will be manufactured in Chorzów using hydrogenation of fatty acids. Those will initially be obtained from animal fat, but in a longer perspective the installation is also to process vegetable oils.

In response to demand for products with various parameters, particular clients may order stearin with chosen iodine adsorption value (in the range from 1 to 20 g l2/100g), with low proportion of acids with < C16 chains.

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Investment completed in “CHORZÓW” Nitrates Works

| Prospects & Investment |

Today we have inaugurated a new investment in “CHORZÓW” Nitrates Works, a part of Grupa Azoty “PUŁAWY”. The new, modern installation will process animal fats as well as vegetable oils, and enable the production of stearin, glycerine and distilled fatty acids. We are also celebrating the completion of a 1.5-year investment project. The Fat Processing Installation, the first such enterprise in Poland, is worth 65 million PLN. The installation is capable of producing 13,000 tonnes of stearin annually.

Expanding our portfolio

The investment constitutes an expansion of not only the market offer of “CHORZÓW” Nitrates Works, or Grupa Azoty “PUŁAWY”, but first and foremost of the whole Polish chemical industry. The Fat Processing Installation is the first such investment enabling the production of stearin in Poland. The manufacturing process involves renewable resources, which have not been widely used in Polish chemical plants so far (fatty acids produced in fat processing plants). The installation processes them into stearin, which may next be used for the manufacturing of plastics, tyres (as plasticizers), rubber (in the chemical sector), detergents, candles and memorial candles, stearates, glues, emulsifiers and softeners. Stearin has up to now been imported to Poland from Germany, the Czech Republic, or even Malaysia. Following the start-up of the installation in Chorzów, Polish companies will gain much easier access to domestic resources and the foreign trade balance of the chemical sector will be improved.

Modern technologies

The total cost of the investment has reached 64 million PLN and has been covered using own resources and financing from the Industrial Development Agency. The construction of the Fat Processing Installation commenced in February 2012. Profarb from Gliwice was the general contractor responsible for the project.

The current processing capability of the installation is 16,000 tonnes of resources per year! The crucial products of the new installation are liquid stearin and stearin in the form of petals (output of 13,200 tonnes per year) and glycerine 88% free from methanol (annual output of 1,600 tonnes).

Tradition and development

The new investment is not only an opportunity to expand the output capacity of Grupa Azoty “PUŁAWY”, but also an opportunity to improve the situation on the local job market. 60 new employees have been taken on by “CHORZÓW” Nitrates Works thanks to the launch of the Fat Processing Installation.

The finalized investment project pays tribute to the nearly 100-years’ history of chemical works in Chorzów. Nitrates Works in Chorzów and those in Tarnów were the cradle of Polish chemical industry created in the inter-war period by the President of Poland Ignacy Mościcki and the Minister of Treasury, Eugeniusz Kwiatkowski.

For the Works in Chorzów, the Fat Processing Installation is a new opening after a period of stagnation. At the same time, the company has been re-branded, so as to return to the historical name of the enterprise. “Azoty-Adipol” has been replaced by Zakłady Azotowe “CHORZÓW” S.A. or “CHORZÓW” Nitrates Works, a brand evoking the era of the company’s prosperity.

We are hopeful that the new installation will open a new chapter in the history of the Works in Chorzów. The investment is a part of the overall strategy of Grupa Azoty “PUŁAWY”, that of increasing our presence on all markets.

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A new installation in Chorzów

| Prospects & Investment |

We are about to finalize a project of starting up the first installation for technical processing of animal fat and vegetable oils into distilled fatty acids and stearin in Poland. The investment worth over 65 million PLN is implemented in Azoty-Adipol PLC chemical works, which has belonged to “PUŁAWY” Group since 2012. The capacity of processing in the installation under construction is 16 000 tonnes of raw resources per year.

New installations – new products

The new investment will enable us to manufacture new products: liquid stearin and in the form of petals (output of 13,200 tonnes per year) and glycerin which is 88% free from methanol (output of 1,600 tonnes per year). Following the completion of the project, Azoty-Adipol will be the one and only producer of stearin in Poland. This substance is useful in production of rubber, detergents, candles and memorial candles, stearates, glues, emulsifiers, softeners, etc.

The investment about to be completed is conducted in turnkey system, immediately ready to use. The general contractor is Profarb Ltd. from Gliwice. We are at the stage of mechanic start-ups of the new installation.

Consistent in implementing our strategy

The project realized in Chorzów embodies the strategy of “PUŁAWY”. We would like to develop new bioproducts, using renewable resources. Our experience so far has shown that such investment projects as the installation in Chorzów make it possible to enter new areas of business activity. A second initiative of this kind is the currently implemented project of FCS Natural company w Puławy, involving organization of a business of supercritical extraction.

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