OSTCHEM brings ammonia nitrate production to full capacity

OSTCHEM Holding, consolidating Group DF’s four mineral fertilizer producers, is bringing ammonia nitrate production to its full capacity. ОSTCHEM will produce 1.1-1.2 million tons of nitrogen fertilizers in time for the 2014 spring sowing campaign, which would allow to fully meet the demands of Ukrainian market.

As of today, the following capacities have been brought to their maximum output:
• all ammonia nitrate production shops at Rivne Azot, Cherkassy Azot, and Severodonetsk Azot Association;
• ammonia production shops at Rivne Azot and Cherkassy Azot;
• calcium ammonia nitrate production shop at Rivne Azot.

OSTCHEM had invested over UAH 356 million in modernization of the companies when the work of some shops was suspended starting from September 2013 due to poor mineral fertilizers market conditions. This allowed the holding to bring its chemical producers to their planned operating performance indicators. As of today, the daily production of the holding’s companies is 6.6 thousand tons of ammonia nitrate, 7.5 thousand tons of ammonia, 2.3 thousand tons of UAN (urea ammonium nitrate), and 1.6 thousand tons of CAN (calcium ammonium nitrate).

“OSTCHEM companies continue to work smoothly. Our plans have not changed – we gradually bring production to its full capacity and fulfil all our contractual obligations towards Ukrainian agrarians,” Oleksandr Khalin, General Director of OSTCHEM, says. “The local market’s need in nitrogen fertilizers is 1 million tons. We completely satisfy the domestic demand, while the rest goes for export.”

Oleg Kikta, OSTCHEM’s First Deputy General Director, states that the demand for Ukraine-produced fertilizers has been growing in 2014 due to several factors, including the price. “Today, our prices appeared to be competitive for three reasons. First, modernization of our main shops made it possible to reduce production costs. Second, devaluation of hryvnia brought down competitiveness of imported products, and third, we were just in time to supply our producers with raw materials (natural gas) for 2014, thus having secured their uninterrupted operation,” Kikta explained.

OSTCHEM will further expand production capacities of its companies adequately to the growth of demand for mineral fertilizers. “We will continue to produce as much fertilizers as the market can consume,” Khalin noted.