OSTCHEM launched UAN production – the most demanded type of fertilizers in Ukraine

The new production line can produce 300 thousand tons of urea – ammonium nitrate solution per year. The project has been implemented at the “Rivneazot” site and will meet the growing demand for UAN.

OSTCHEM, uniting companies of nitrogen business of Group DF owned by Dmitry Firtash, has launched a new modern workshop for the production of urea –ammonium nitrate solution (UAN). The project has been implemented on the basis of PJSC “Rivneazot” and is aimed primarily at farmers in western regions of Ukraine. The capacity of new production is 300 thousand tons per year .

In February-March 2024, industrial testing of new production and testing of product quality were completed, the first 100 tons of UAN were produced, and shipments of products to farmers began for the spring sowing season.

 

The launch of UAN production at “Rivneazot” is the second stage of a large-scale investment program implemented by OSTCHEM. The program presupposes a gradual increase in production capacity of the most popular types of fertilizers in Ukraine – UAN and urea. At the first stage of program implementation UAN production with capacity of 1 million tons has been launched at Cherkasy “Azot”.

Sergey PAVLYUCHUK, Head of Production of OSTCHEM Nitrogen Business:

Shareholder does not wait for the the war to be over and continues to develop industrial sites. The launch of the new UAN production is our response to the growing demand from farmers. We  increase production capacity in the most popular segment of fertilizers with growth dynamics of more than 15% per year. The new production fully complies with EU environmental directives. Moreover , we are the first in Ukraine to use innovative “ homonization ” technology which ensures a homogeneous structure of the product. It allows to increase significantly the storage period of UAN and to avoid problems with “product flaking.” Such quality of the product is demanded by experienced farmers not only in Ukraine, but also in the EU markets

According to him, OSTCHEM strategic priorities do not change: fertilizers will be primarily supplied to Ukrainian buyers.

The new industrial site will be integrated with other “Rivneazot” workshops and will become a part of the overall production cycle that will affect the cost of  products and increase their competitiveness.

The implementation of the investment stage of the project started at the beginning of 2023, the implementation period took 10 months. The amount of investment and the expected payback of the project are not disclosed and will depend on gas prices and market conditions.

“We systematically follow the approved Nitrogen Business Development Strategy, which involves development of production capacities taking into account the most modern solutions of chemical industry. Our aim is strengthening of OSTCHEM position in Ukraine and Eastern Europe.Due to more efficient usage of production capacities and synergy of various productions we will continue to make domestic products more affordable to farmers. Against the background of logistics problems for importers associated with road blockades in the EU, projects to launch new fertilizer production in Ukraine become even more significant and relevant from the point of view of food security of the whole country,” – added Pavlyuchuk.

UAN is one of the most promising segments in Ukrainian nitrogen fertilizer market. Ukrainian market consumes about 850 thousand tons of UAN per year, 280 thousand tons of which are imported from such countries as Poland, Lithuania, Uzbekistan, Turkmenistan and others.