The GMO issue

| Enviromental Protection |

The question whether to allow the cultivation of genetically modified organisms is a topic which is more and more frequently present in the public debate. Plenty of controversies and contradictory opinions have surrounded the issue over the years. Unfortunately, in many countries the topic is neglected and only discussed in the context of consumption, consumer choice and nutrition. At the same time, the aspects regarding agriculture and development of agriculture are being neglected. On top of that, we are unable to foresee the long-term consequences of the consuming GMO’s for human health and functioning. This puts the whole discussion about GMO use and consumption into question.

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New fertilizer from “PUŁAWY”

| About Us |

Thanks to the cooperation of Grupa Azoty “PUŁAWY” and New Chemical Syntheses Institute (formerly Fertilizer Research Institute), a new product is going to be launched. The fertilizer might increase yields by as much as 18%.

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2014, the year of investments

| About Us |

In 2013 Our Works launched a number of projects which constitute a part of the long-term investment schedule in Grupa Azoty, and will help enhance our position of the fertilizers-chemical market. Another element of the strategy of collective sustainable growth is the cooperation with external partners, aimed both at gaining resources and boosting the energy supply potential.

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Good climate for industry in Europe?

| Production & Resources |

The European Commission is intent on limiting carbon dioxide emissions, diligently fulfilling the commitments resulting from the Kyoto Protocol and other conventions on climate protection. At the same time, it is striving to boost the importance of the European manufacturing industry. Are these two EU policy goals compatible?

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The most modern in Europe!

| About Us |

On June 8th 2013 a very special ceremony took place in our Works. A number of projects were officially inaugurated on that day, including the first such modern flue-gas desulfurization installation in Europe and third flue-gas desulfurization installation using wet scrubbing with ammonia in the whole world. The other projects were two installations in New Fertilizer Complex, an installation for liquid fertilizers with sulfur (PULASKA®, RSM®S) and Logistics Center for fertilizers in granules.

Investing in development

The total investment expenditure of Azoty Group “PUŁAWY” was 360 million PLN for the projects finalized in June. Next year another two installations will be launched-an Installation for the Production of Granulated Fertilizers (PULGRAN®, PULGRAN®S), a part of New Fertilizer Complex and Ammonia Stockage with a budget of 108.5 million PLN.

The ceremony on July 8th was attended by Włodzimierz Karpiński, the Minister of Treasury, Paweł Jarczewski, the CEO of Azoty Group and representatives of Azoty Group and Azoty Group “PUŁAWY”. Azoty Group CEO Mr Jarczewski put emphasis on the fact that investment projects implemented by “PUŁAWY” serve as a proof that the Polish chemical sector may be and is innovative.


Modern “PUŁAWY”

The new flue-gas desulfurization installation is one of the first few in the world which use wet scrubbing with ammonia technology. Thanks to this investment, it will be possible to reduce the polluting emissions from the combined cycle power plant by over 80%! A side product of this technology is ammonium sulfate, which will be used in the manufacturing of fertilizers with added sulfur in the New Fertilizer Complex.

According to Marian Rybak, the new Chairman of the Board of Azoty Group “PUŁAWY”, new investments in Puławy constitute our response to perceived needs of agricultural market in Central Europe. The research which has recently been competed confirms the need to enrich soil with sulfur. Liquid fertilizers manufactured by “PUŁAWY”, and shortly also fertilizers in granules, will provide cultivated crops with this indispensable element.

The construction of New Logistics Center has also been completed. It is a part of a new plant of granulated fertilizers based on urea and sulfur. The new building includes a modern packing room with 240 tonnes per hour capacity and a warehouse which could stock as many as 13,000 tonnes of fertilizers.

Taking care of the environment

Improving efficiency of manufacturing processes is one of the key targets of investment projects in Azoty Group “PUŁAWY”. At the same time, we would like our installations to abide by the strictest norms of quality and environmental friendliness.

Over the last few years it was possible for “PUŁAWY” to reduce exhaust pollution significantly and limit the amount of sewage water pollution. Since 1985 the Company has reduced particulate matter emissions by as much as 94%, sewage water pollution by 70%, and gas pollution by 53%! The new flue-gas desulfurization installation, which is being started up at the moment, will reduce the concentration of SO2 from 3000 mg/m3 to below 200 mg/m3.

A leader in innovation

Another crucial task aimed at improving the efficiency of the manufacturing process is the investment in a new air compressor. The project finalized on June 28th 2013 will raise the efficiency of ammonia production in Ammonia Department II in Fertilizer Works. The value of this investment is 24.5 million PLN. As a result, the chain will be able to increase output by 15%!

All the completed and planned investment projects make the Company more efficient on Polish as well as global market. Thanks to implementation of innovative projects, we confirm our position in the lead of fertilizer-chemical companies in Europe and the world.

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Scientific Council of “PUŁAWY” Competences Center

| Prospects & Investment |

Another meeting of the Scientific Council of “PUŁAWY” Competences Center was held on May 22nd 2013. One of the topics was the content of the speech at “Fertilizers and Nutrients for Growth” European Fertilizers Forum organized by Fertilizers Europe in Brussels.

Future perspectives

In the opinion of the Members of the Scientific Council of the Center, the stance on the matter ought to follow the premises of “EUROPE 2020” Strategy. The European Commission points at the need to “increase the efficiency and competitiveness of EU agriculture, increase the effectiveness of using resources with lower consumption of water, energy, fertilizers (mainly P and N) as well as pesticides”. However, FAO forecasts that demand for food will have increased by 70% to 2050. It is therefore indispensable to research and implement technologies of rational use of fertilizers with a view to optimize the use of natural resources and energy. At the same time, we need to protect the competitive edge of EU economy using the following tools:

• creating legal and financial instruments for leveling the economic differences between EU regions as well as acquiring and use of resources for fertilizer production,

• maintaining the capacities of fertilizer production so as to secure resources necessary for food manufacturing,

• focusing the development of the production of fertilizers and fertilizing systems on innovative, knowledge-based solutions.

How to support Polish agriculture?

Members of the Council agreed that during conversations with EU partners we ought to emphasize the specific soil and climatic conditions in Poland. It is essential to strive for the launch of instruments supporting Polish agriculture, such as subsidies for de-acidification of soil and liming.

Efficient fertilizing

World population continues to grow. It is forecast to reach 9 billion in 2050, while the acreage of arable land will not have increased. Rational use of water and nitrogen is of prime importance. In Poland the consumption of those elements ought to be increased. Auxiliary elements, such as potassium, phosphorus and magnesium, also have an impact on efficiency. Rational use of those ingredients needs to be secured. The demand for nutrients in key stages of growth of the plant in the critical stage of growth ought to be specified precisely.

Climate change and the natural environment

More frequent extreme weather phenomena and poor use of nourishing elements in fertilizers, as well as related environmental concerns necessitate changes of fertilizing technology. A solution might be direct application of fertilizers into the soil during sowing, with progressive, gradual release of nutrients in the period of vegetation.

A number of other issues was discussed:

• The worst soils ought not to be cultivated anymore,

• Content of humus in the soil needs to be increased, e.g. by incorporation of biomass, which is the best method of carbon sequestration in the soil,

• Qualifications and skills of agricultural managers should be stressed more frequently,

• Resources form waste ought to be recycled and reused efficiently,

• In the opinion of Polish scientists, production of renewable energy, and mass shift towards energy crops is very dangerous. The role of biomass in energy production cannot be overestimated.

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