07 July 2014

Ostchem to provide Ukrainian agro-industry with mineral fertilizers by autumn sowing season

ostchemOSTCHEM holding consolidating Group DF’s mineral fertilizer producers will meet to the full extent the needs of Ukrainian market for mineral fertilizer during autumn sowing campaign.


So informed Olexandr Khalin, General Director of OSTCHEM, during the working meeting in the premises of the Chemists’ Union of Ukraine.


“Despite suspension of two of four our plants because of military actions, all commitments to the agricultural complex will be met. By autumn sowing season we are able to produce the amount of fertilizers needed by Ukrainian agricultural market. According to our assessments which coincide with forecast of the relevant ministry, to complete the sowing campaign this year the farmers will need 340-350K tons of mineral fertilizers in terms of active substance. Considering our stock resources, OSTCHEM plants in Ukraine will meet the need in full and at the stated time. We are ready to produce even more subject to consumer demand”, stressed Olexandr Khalin.

He added that this year OSTCHEM gradually shifts from cycle utilization of its capacities (which means that in summer production volumes fall significantly) to more even utilization when enterprises produce their product evenly through the year, and accumulate substantial warehouse stock during low seasons. OSTCHEM includes distribution network UkrAgro NPK, consisting of 28 agricultural warehouses.


According to Group DF estimates, in 2013 Ukrainian agricultural market consumed about 1,3-1,4 million tons of mineral fertilizers. About 70-80% of the consumed fertilizers are applied during spring sowing campaign.


As mentioned earlier by OSTCHEM director, the holding had fully met the Ukrainian market’s need for mineral fertilizers during 2014 spring sowing campaign:

“This spring we showed once again that provision of Ukrainian agricultural complex with mineral fertilizers is our priority. Remind that since February 2014 the importers have significantly cut the mineral fertilizer supplies owing to abrupt devaluation, because business became unprofitable. We lent our shoulder and produced the fertilizers for those large farms which additionally addressed us”, said Khalin.


Four OSTCHEM’s enterprises can produce about 6 million tons of mineral fertilizers annually, of which 2.7 million tons of ammonia nitrate.


According to OSTCHEM’s investment plan, in 2014 the holding will invest UAH 1.1 billion in the development of four Ukrainian enterprises, of which UAH 500 million will be allocated for capital repairs, UAH 172 million – for production upgrading; UAH 363 million for the investment programs realization.


During telebridge which took place in April 2014 with participation of four OSTCHEM plants, Group DF owner Dmitry Firtash stated that Group’s 2014 investment plans for fertilizer business will not be changed.