According to the decision, the proceedings have been suspended pending the conclusion of an earlier lawsuit filed by the Company against the Contractor in December 2024.

‘Grupa Azoty Puławy has incurred significant capital expenditures related to the construction of the coal-fired power unit and is currently taking decisive action to properly secure the Company's interests in light of the unsatisfactory results of the work performed. We hope that the potential mediation, which both parties intend to pursue, will lead to a solution that satisfies both sides,’ comments Marcin Celejewski, President of the Management Board of Grupa Azoty and Grupa Azoty Puławy.

The dispute concerns a contract for the construction of the BW100 coal-fired unit at Grupa Azoty Puławy, signed in 2019. The original completion date for the investment was scheduled for 2022.

During the implementation of the project, the contractor applied for an increase in remuneration and an extension of the completion deadline, citing the effects of the COVID-19 pandemic and Russia’s aggression against Ukraine. In 2023, the parties signed Amendment No. 5 to the contract, providing for an increase in the contractor’s remuneration and a revision of the project schedule.

At the time Grupa Azoty Puławy withdrew from the contract—on 17 January 2025—the delay in project execution amounted to 593 days. In addition, further failures occurred during commissioning works, and the unit failed to achieve the performance parameters guaranteed under the contract. At the end of 2024, the contractor ceased commissioning works.

Following termination of the contract, the parties carried out an inventory of the works completed to date.