In 2020, PJSC “Rivneazot” produced over 1.8 million tons of fertilizers

For 12 months of 2020, PJSC “Rivneazot”, a member of Group DF nitrogen line of business, produced 1.81 million tons of fertilizers. In particular, the company last year produced: 47,165 t of aqueous ammonia technical, 567, 615 t of ammonium nitrate, 7,418 t of ammonium nitrate (melt), 214,732 t of CAN (calcium ammonium nitrate). The company also produced 379,438 t of commercial grade (technical) ammonia, 588,900 t of non-concentrated nitric acid, 145,200 t of liquid nitrogen.

“We continue to implement the business strategy approved by the shareholder. It is based on the development of industrial sites, growth in production, rise in productivity and cost reduction,” commented Mr. Mykhaylo Zabluda, Chairman of the Board, PJSC “Rivneazot”.

According to the top manager of PJSC “Rivneazot” in 2020, the fair price for basic raw materials (the natural gas) allowed the company to maximize the capacity and surpass the production plan targets.

“The key trend of the year was the gradual squeeze out of importers. It may be attributed to a number of factors. The first factor was that the price for basic nitrogen fertilizers offered by domestic producers in 2020 turned out to be more lucrative than those offered by importers. The second factor was the quality. We are upgrading the company; the capital investments in 2020 exceeded UAH 120.6 million. Investments allow to produce fertilizers of the quality that fully complies with international standards. We are convinced that last year demonstrated a growing distrust of importers. In 2020, there was a large number of cases of counterfeit, supply of low-quality imported fertilizers or cases when suppliers refused to consider complaints from the farmers. Another trend of the year was an increase in the share of direct sales from producers and a decrease in the number of intermediaries. In 2020, more farmers learned how to buy directly from the producer and many farmers learned how to buy fertilizers on credit,” – said Mr. Mykhaylo Zabluda, Chairman of the Board, PJSC “Rivneazot”.

Earlier it was reported that OSTCHEM RETAiL (part of Group DF) concluded agreements with 6 Ukrainian banks on directed lending for the purchases of nitrogen fertilizers by farmers. Banks that provide concessional (soft) loans to agricultural producers include: ProCredit Bank, FUIB, Alliance Bank, Agroprosperis Bank, MTB Bank and PrivatBank. Aside from this, OSTCHEM RETAiL, the international company SYNGENTA and Ukrainian partner banks opened opportunities for farmers to purchase fertilizers and plant protection products on credit.

 

In 2019, PJSC “Rivneazot” produced 1.74 million tons commodity output of which 34,600 t of aqueous ammonia technical, 583,200 t of ammonium nitrate, 4,200 t of ammonium nitrate (melt), 221,000 t of CAN (calcium ammonium nitrate). The company also produced 292,400 t of commercial grade (technical) ammonia, 604,000 t of non-concentrated nitric acid and 148,300 t of liquid nitrogen.