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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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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Perspectives for PUŁAWY Group

| Prospects & Investment |

Due to specificity of the business in which we are active, general macroeconomic factors have a considerable influence on the functioning of “PUŁAWY” Copmany. Looking from this perspective, let us take a moment to discuss the perspectives that our company faces in the approaching months of 2013.

What 2012 brought

The chief challenges for “PUŁAWY” are: general economic slowdown in 2012, resulting in lower demand home and abroad, lower GDP growth than expected and the forecast of further GDP growth stagnation. However, analysts suggest that slow GDP growth will lead to lower inflation rate, which will bring lower interest rates, and might stimulate demand in the long term. Growth of demand is also likely seeing that is will be necessary to replenish stock used up in 2012. Another factor is the forecast fall of value of the Polish Zloty against EUR (by c. 4%) and USD (by c. 8%). And yet, this trend might be reversed in the second half of the year.

PUŁAWY’s answer

Responding to such factors, “PUŁAWY” Company has decided to react in such a way as to conteract the impact of poor market conditions. In 2013 we are planning to:

• diversify the trade offer,

• introduce new product portfolio,

• compete in the area of pricing, but first and foremost by offering unrivaled quality.

Undoubtedly an important factor, which makes the plans more likely to be a success, is the decrease of the price of natural gas, which is one of the key resources in the Great Chemical Synthesis sector manufacturing.

Stronger in a group

The excellent financial result of “PUŁAWY” Company in the first half of 2012/13 financial year resulted from modernization of the installation (cheaper production, better quality) and constant improvements of customer service through needs analysis as well as diversification of suppliers. This confirms the fact that the Group is bound to reach its target for this year. A major step is also the merger of “PUŁAWY” and Azoty Tarnów CG into “Azoty” CG. Common strategy, joining the potentials and experience bring effects of scale and synergistic effects. Thanks to common work to modernize production and increase the portfolio, the consolidation will help retain the Group’s advantage over competition home and abroad.

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“PUŁAWY” vs current market trends

| Prospects & Investment |

Despite noticeable influence of global economic recession and a fall in industrial production in Poland, “PUŁAWY” Capital Group is still intent on following a policy which might be described by the slogan “Power of Growth”.

Money does not give satisfaction… but shopping does!

The old rule of market trading, which encourages to buy while others sell, is perfectly applicable in our case. “PUŁAWY” CG is trying to follow the model which proved correct on the international scale: building one’s own manufacturing infrastructure from scratch has been replaced by taking over enterprises in poorer financial situation. However, the companies worth purchasing need also possess such assets as suitable potential and a network of business contacts. In accordance with this approach, “PUŁAWY” CG took over “Azoty – Adipol” from Chorzów and Gdańskie Zakłady Nawozów Fosforowych “Fosfory”. The transactions increased the offer of the Capital Group and made us mode competitive on the market.

“PUŁAWY” keep developing

Apart from the policy of takeovers, “PUŁAWY” do not give up on expanding their own manufacturing potential. An installation for desulfuring exhaust fumes, ammonia stockage construction and new plant for the production of solid and liquid fertilizers are only some of the investments which will enable the Capital Group to gain even more market share. Investing in takeovers and alliances as well as expanding production capacity are not all, however. The newly founded Competences Center is a forum for sharing knowledge about agricultural production. The organization connects the experience of companies, research institutes and NGOs. It answers the current needs of fertilizers sector and the farmers.

Development as a recipe for crisis

Following the challenge in “Power of Growth” slogan “PUŁAWY” are not only taking care of the well-being of their clients, but also of the shareholders. Our objective is to continue increasing company value regardless of hard economic times. Owing to consolidation with other companies and continuous expansion of product portfolio, the Capital Group may move up from a regional leader in Central Eastern Europe to a leader on the whole continent, or even in the world. We are aiming at becoming an enterprise which not only offers a wide range of services and goods, but is first and foremost responsive to clients’ needs.

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