Responding to a change in market conditions, the Management Board of Grupa Azoty S.A. has resolved to start production at the nitrogen fertilizer, caprolactam and polyamide 6 units in Tarnów as of October 12th 2022.

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Commissioning of mechanical granulation line two - in line with the project plan, the Management Board of Grupa Azoty Puławy has given the green light to start the mechanical pre-commissioning and commissioning of Nitrate Mechanical Granulation line two. The decision marks another phase of one of the largest fertilizer projects implemented in Poland. Each of the two mechanical granulation units has an estimated daily production capacity of 1,200 tonnes of mechanically granulated nitrate or 1,400 tonnes of CAN. The first line started commercial operation on June 11th last year.

Grupa Azoty’s second-quarter 2022 results were strongly impacted by the turmoil caused by Russia’s invasion of Ukraine, which adversely affected the availability and prices of feedstocks, pushing up prices of final products across all business segments. As a result of lower exports, the volumes of fertilizer supplied by Grupa Azoty to the domestic market were significantly larger compared with the same period last year.

Despite temporary production cuts at three of the Grupa Azoty Group’s companies, the Group continues to provide supplies of CO2 to its existing customers. The reduction in fertilizer production was planned so as to ensure the availability of sensitive products, including liquid CO2, dry ice and ammonia water, which is necessary for the operation of the commercial power industry.

Due to record prices for gas, the main production feedstock of Grupa Azoty Puławy, the Puławy-based company of the Grupa Azoty Group has decided to temporarily scale down production at further units. As a consequence of Russia’s aggression against Ukraine, since February 24th 2022 natural gas prices on the European exchanges have been soaring to extraordinary, historically high levels. Gas prices over the past six months have nearly quadrupled, having surged from EUR 72/MWh on February 22nd 2022 to EUR 276/MWh on August 22nd 2022.