Tightening the local cooperation

| Polish Market |

On 28th December 2012 “PUŁAWY” and Lubelski Węgiel “Bogdanka” company signed and annex to the contract from 2009. This moment was important not only for both companies, but also for the development of the Lublin region.

What’s new?

The document specifies a change in the quantity of the supplies of coal to “PUŁAWY” in 2012 – 2017 and sets the price of the fuel for 2013. Upon signing of the annex, the total value of the contract reached 1,06 billion PLN, which means an increase of 94,74 million. Other conditions of the contract remain unchanged and are not different from free market standards applicable during drawing up of similar contracts.

PUŁAWY Competence Center - "Science - Business - AgricultureWhy is the annex important?

An increase of deliveries of coal from LW “Bogdanka” is a necessity not only because of the plans of expansion of “PUŁAWY” manufacturing capabilities. The change also marks tightening the cooperation between the two enterprises. Coal is a vital substrate in chemical fertilizers production trough integrated gasification combined cycle process (IGCC). It is also a fuel for the production of electricity and heat. Owing to prolonging the contract, both companies may plan their activities in a long-term perspective.

The whole region benefits

New opportunities for “PUŁAWY” and LW “Bogdanka” mean that the benefits of the deal will concern not only the enterprises. The deal ensures jobs in the region and exchange of technological know-how, which forms the foundation of business development and a value of the surrounding environment.