We focus on energy supply

| Production & Resources |

…because it guarantees continuity of the manufacturing process, and consequently, regular supplies for our clients. To remain competitive, “PUŁAWY” are constantly working to reduce the cost of production, at the same time making it more efficient. It should therefore be clear why gaining access to energy resources sold at a good price is of such importance.

At full throttle

In “PUŁAWY”, energy is always in demand. The company is the largest consumer of natural gas among Polish companies from the Great Chemical Synthesis sector, using about one billion cubic meters of this fuel annually. Natural gas is a vital resource in the manufacturing process, which explains why its supply is so essential. Following a decision of the Chairman of Energy Regulatory Office taken in December 2012, “PUŁAWY” will obtain a discount on the price of gas supplied by PGNiG. The price reduction is expected to reach 3,1%.

Moreover, our enterprise is intent on diversification of natural gas supply. Thus we source part of our gas from EGESA Grupa Energetyczna PLC. We also have high hopes about Liquefied Natural Gas terminal in Świnoujscie and about shale gas boreholes.

Local “black ore”

Another crucial resource for “PUŁAWY” is bituminous coal used for generating heat. Fortunately, there is no need to buy imported resource, as the local coal mine LW Bogdanka supplies enough. According to an annnex to the standing agreement signed at the end of 2012, the volume of coal shipments in 2012-2017 and the price of coal in 2013 were set. Consequently, the value of the contract rose by 94,74 million PLN and amounts to 1,06 billion PLN. Owing to close cooperation with LW Bogdanka, “PUŁAWY” may not only source its coal locally, which helps economize on transportation cost, but also fuel the regional economy.

Unplugged

Electricity is a fundamental component of our company’s operations. Due to this, we are constantly taking care to ensure energy supply and reduce its cost. At the moment electricity is sold based on annual, short-term and spot agreements made with domestic distributors. However, we are still hoping for new developments favorable for our business.

Fitch Ratings forecasts steady decreasing of the price of electricity in Poland. Among reasons are reduced demand, increased imports and greater use of renewable energy sources. Another factor likely to result in cheaper energy is the heat and power plant planned to be erected in consortium with PGE. The investment will be another leap in the development in Pulawy Company, making the company more competitive on the market.