European Union maintains anti-dumping duty on Russian ammonium nitrate

| Foreign Markets |

The European Commission has taken an important decision for the EU manufacturers of fertilizers. The step is to extend the period of validity of the anti-dumping duties on ammonium nitrate imported from the Russian Federation. Over the next five years, there will be a duty of 47 EUR per ton of ammonium nitrate. The reason of this decision is the need to protect the European chemical industry from the negative results of the importation of fertilizers from the East.

Read more →

Lubelskie more connected

| Polish Market |

More and more links on the transportation map of Poland lead to Lubelskie voivodeship. Lublin Airport beat another record in August, with over 23,500 passengers served. Car drivers have reasons to smile as well. Shortly, they are going to be able to take advantage of S-17, a long-awaited motorway connecting Lublin and Warsaw.

Read more →

European Commission delegates in Grupa Azoty ”PUŁAWY”

| About Us |

On March 31st, 2014 Grupa Azoty Zakłady Azotowe ”PUŁAWY” was visited by a delegation of European Commission and EU member countries representatives. The meeting was organized to provide an opportunity to discuss changes in EU legislation on mineral fertilizers. During the visit, our guests were invited to take a look at the complete manufacturing process in Our Works.

Read more →

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?

Read more →

Promising evaluation of the chemical sector

| Foreign Markets |

In the third quarter of 2013, the economic activity indicator in the chemical sector remained on a similar level as in the previous quarter. The situation in the business was evaluated as generally positive (from +15 in July 2013 to +12 in September 2013), although sentiments had been slightly more optimistic in the previous months.

Polish chemical sector after 2012

Domestic industry is still trying to cope with difficulties linked to both global economic stagnation and the end of investment activity which preceded Euro 2012 football championships organized in Poland and Ukraine. The petrochemical and plastics businesses are now in the best situation among all chemical companies, with packaging manufacturers emerging as leaders of growth.

Experts’ forecast for the coming months

Representatives of the largest global chemical companies agree that at the end of 2013 markets will remain stagnant. Upward tendencies shall be curbed by continuing economic depression and uneven pace of growth in various parts of the world.

European – meaning also Polish – chemical industry is now facing the following challenges:

a) growing competition from Asian and US companies,

b) high prices of energy resources,

c) strict EU environmental protection policy,

d) poor internal demand.

Such situation provokes market players to intensify the frequency of mergers and acquisitions, improve financial discipline and rationalize product portfolio. European manufacturers are trying to compensate for lower demand by increasing prices (by c. 2.7% annually).

EU policy on energy

One of the primary challenges for the European chemical industry is EU energy policy. Demanding regulations may influence both the production cost and employment rate in the industry. For Poland there is another problem: the skeptical approach of the European Commission to plans of excavating shale gas, and ensuing changes of Polish legislation.

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

Read more →

A go-ahead for the consolidation

| About Us |

On the 18th of January 1930, the National Nitrate Fertilizers Factory opened in Tarnów. 83 years later, the European Commission issued an approval for the merger of Pulawy Company and Azoty Tarnów. A new chapter in the history of Polish chemical industry began.

Patience pays off

The preparations for the merger had continued for a long period of time, and yet the milestone in the process was the signing of the consolidation agreement on the 20th of September 2012. Since January 18th, the merger has been sure to succeed. The European Commission had received no remarks concerning serious doubts in connection with the planned merger of the two enterprises. From this moment on, Azoty Group, which has formally existed since the 5th of December 2012 r., has also included one of the main companies from the Great Chemical Synthesis sector – “PUŁAWY” Capital Group.

 

Mutual benefits

The key added value coming from the consolidation is synergistic effect. The increase of the value of the merged companies brings tangible benefits not only for the shareholders. First and foremost, Azoty Group is going to be the leader on the Polish fertilizers market and the second biggest such entity in Europe. Moreover, the merger of the enterprises will help increase the efficiency of operations, including lower cost of resources (coal, electricity, natural gas), their transport (Azoty Tarnów has sourced ammonia from Police, now it will be possible to send it from Puławy, which is nearer than Police), development of a distribution network and increasing the joint portfolio of products. Those assets will enable the Group to improve its position and competitive edge on the market of tenders organized in Poland, Europe and the whole world.

 

Efficiency first

Both companies are not only important players on the global chemicals market, but also well-managed enterprises. In the last two years they have worked up impressive financial results. In financial year 2011/2012, the profit of “PUŁAWY” reached 600 million PLN, the highest in the company’s history, while the profit of Azoty Tarnów was 500 million PLN in 2011. The Minister of Treasury Mikołaj Budzanowski, commenting on the European Commission’s decision, expressed an opinion that it is a confirmation of the judicious direction of development of the Polish economy, aiming at consolidation in the chemical sector. The Minister has highlighted the fact that since the consolidation began, the joint value of both companies’ stock reached 1.7 billion PLN, rising by 38%. This marks good forecast in the context of operating results of Azoty Group and return on investment for shareholders. Are we able to face the challenges of contemporary chemicals market? There can only be one answer: “Yes, we can!”

Read more →

European Commission guarding the competitiveness

| Foreign Markets |

We have recently wrote about the entry of Russia into the WTO and how the native industry including Pulawy Company was preparing for this movement. Another important issue worth discussing is the European Commission monitoring the markets for natural gas prices and possible breaches of competition law by Russia.

Read more →