Ecology in the big way!

| Enviromental Protection |

The Minister of the Environment Maciej Grabowski came to Gdańskie Zakłady Nawozów Fosforowych “Fosfory” on August 31st. The visit aimed at presenting an update about the closure and reclamation of phosphogypsum heap in Wiślinka. Minister Grabowski expressed his approval for the way GZNF “Fosfory” took care of the environment, both the area surrounding the Works and the vicinity of Wiślinka heap.

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“Fosfory” support agriculture

| Uncategorized |

Gdańskie Zakłady Nawozów Fosforowych ”Fosfory” Sp. z o.o. boasts a tradition of over 100 years. I am particularly proud of to be taking the helm of the company at the time of its rapid development, and share this experience with the Readers of this blog.

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KGHM and “PUŁAWY” will search for resources together

| Bez kategorii |

On Friday, January 10th, 2014 KGHM Polska Miedź, Grupa Azoty “PUŁAWY” and Gdańskie Zakłady Nawozów Fosforowych “Fosfory” signed an agreement concerning cooperation in the search for resources. The document outlines the rules of joint activity of the companies regarding the identification and excavation of potassium salts, raw phosphate materials, salt and non-ferrous metal deposits.

Creation of a special purpose company

The agreement stipulates the scope and schedule of further work on the joint project. One of the essential elements of the document is specifying the details of the investment contract, which will mark the real launch of the common project, and will lead to constituting a special purpose company, as well as the terms of purchasing raw materials and resources from this company. GZNF “Fosfory”, Grupa Azoty “PUŁAWY” and KGHM Polska Miedź are to apply for corporate consent and seek an antitrust approval from the Office of Competition and Consumer Protection, so as to establish a new entity without problems.

Market giants joining forces

The Friday agreement has made KGHM Polska Miedź the project leader. The capital share of our companies – Grupa Azoty Zakłady Azotowe “PUŁAWY” and GZNF “Fosfory” (owned by Grupa Azoty “PUŁAWY”) or other Grupa Azoty members in the special purpose company will constitute 50%.

The document from January 10th, 2014 is the next step in the cooperation between the parties, which had singed a Letter of Intent concerning cooperation in exploration projects in August 2013.

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Keeping up the pace!

| Production & Resources |

On Wednesday, November 20th we held a morning press conference, at which the current investment plans of the company were presented to media representatives. The Vice Chairman of the Board of “PUŁAWY” Zenon Pokojski and the Director of Fertilizer Research Institute Janusz Igras participated in the meeting.

Launching the production of ammonium thiosulfate

During the conference the Vice Chairman of the Board of “PUŁAWY” outlined the preliminary project to erect an ammonium thiosulfate production line. The substance is used in the manufacturing of nitrogen-based fertilizers. The Director of Fertilizer Research Institute Janusz Igras stressed the importance of this project for agricultural manufacturers. Estimated cost of the venture, including the construction of silos, exceeds 120 million PLN. The investment shall be located on the land belonging to Grupa Lotos, and adjacent to the premises of Gdańskie Zakłady Nawozów Fosforowych “Fosfory”, a member of Grupa Azoty “PUŁAWY”.

Cooperation with Grupa Lotos

The Vice Chairman of “PUŁAWY” Zenon Pokojski remarked that acid gases are one of the byproducts produced in Grupa Lotos installations. Upon the completion of the joint project, “PUŁAWY” will use those gases for ammonium thiosulfate production. The current plans suggest that production could be launched in 2016. The output capacity of “PUŁAWY” is estimated at 20,000 tonnes initially, and 100,000 tonnes eventually.

Destination Senegal

The Vice Chairman Zenon Pokojski also told the journalists about the plan of Grupa Azoty “PUŁAWY” to develop its activity in Senegal. He made an announcement that our Company is preparing to submit an offer to the Senegalese Ministry of Agriculture for a water management audit, soil analysis, as well as educational and scientific activities. We would like Grupa Azoty “PUŁAWY” to provide know-how, technology and fertilizers on the Senegalese market.

In the summer of 2013 another member of Grupa Azoty, Grupa Azoty “POLICE”, signed an agreement to buy 55% of African Investment Group shares, at the cost of 28.85 million USD. “POLICE” thus gained access to natural resources deposits in Senegal. Grupa Azoty “PUŁAWY” is following a slightly different path, paving the way for the sale of fertilizers in Africa and possible future launches of production installations on that continent.

We are intending to organize meetings of Grupa Azoty “PUŁAWY” representatives with the press regularly, so that we may share information about the ongoing scientific research, investment projects and present data concerning Company activity.

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Neighbors invest together

| Prospects & Investment |

Gdańskie Zakłady Nawozów Fosforowych “Fosfory”, a member of Grupa Azoty “PUŁAWY”, is located on Gdańsk shoreline. It so happens that the facility neighbors with a plant belonging to Grupa Lotos. Management of both companies is planning to take advantage of such favorable circumstance – having two leading chemical companies in one location – and is preparing for a joint investment project.

Three new lines

The plan is to erect a complex for the manufacturing of aromas, polyethylene and for steam cracking. It is worth to mention here that demand for polyethylene reached 800,000 tonnes annually in Poland. The main client is going to be the works belonging to consolidated Grupa Azoty.

A worthwhile investment

Such a project is likely to succeed not only thanks to the potential of both companies, but also due to the availability of natural energy resources: crude oil and natural gas. Also, the project involves search and excavation of hydrocarbons. Such resource would secure stability of functioning for the installation, making it independent of external suppliers. Looking at the current market situation and the conditions in which the new initiative is to launch experts forecast great success of the joint venture by Grupa Lotos and Grupa Azoty.

At present the two companies are preparing feasibility studies of new installations. Promising results of this research will make it possible to pick the most advantageous option and to launch investment works.

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New Chairman of “PUŁAWY”

| About Us |

On July 8th 2013 the Supervisory Board of Azoty Group “PUŁAWY” nominated Marian Rybak as the Chairman of the Board of the Company. Before the nomination, he had been a Member of the Board and Vice Chairman of Azoty Group “PUŁAWY”.

The new Chairman of the Board of Azoty Group “PUŁAWY” is a graduate of Lublin University of Technology (then called Higher Engineering School), where he studied at the Institute of Technology and Machine Operation Department, majoring in machine tools, tools and machine construction.

From August 2008 to July 2013 he was a Member of the Board of Azoty Group “PUŁAWY”. In November 2012 the Company Supervisory Board nominated him again as the Member of the Board and Vice Chairman of Azoty Group “PUŁAWY”.

He has been connected with Azoty Group “PUŁAWY” since 1982, working as the Director of Laboratory of Nondestructive Testing in Supervision and Technical Testing Department, Director of the Repair Team of Ammonia Plant II, Vice Director of Plant Traffic Maintenance, Traffic Maintenance Engineer.

From 1968 to 1971 he was employed in Mostostal Warszawa – Assembly Supervision Puławy, as a locksmith. From 1971 to 1982 he was a designer in Design Office of Azoty Group “PUŁAWY” (currently Prozap Ltd.).

From 1989 to 1991 he was the supervisor of a group of Polish mechanics working in Iraq on a contract by Chemadex Kraków. Since 1981 to 1982 he was the supervisor of a group working in Bangladesh, commissioned by Instalexport.

Since 2011 he has been the Chairman of the Supervisory Board of GZNF “Fosfory” Ltd.

At the same time, the Supervisory Board prolonged the nominations of Zenon Pokojski and Wojciech Kozak, the Vice Chairmen of the Board of Azoty Group “PUŁAWY”, until the current term of the Board expires.

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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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