15 April 2020
In Q1, prjsc “Severodonetsk Azot Association” increased the output of fertilizers by a factor of 7
In Q1 2020, PrJSC “SEVERODONETSK AZOT ASSOCIATION”, a member of the nitrogen line of businesses developed by Group DF, produced 180 210 t of nitrogen fertilizers, an increase of 729% y-o-y (compared to 24 710 t). According to the results of Q1, the company produced 141 610 t of ammonium nitrate, 32 030 t of urea, 2 810 t of aqueous ammonia technical, 3 760 t of UAN (urea ammonia nitrate).
“This year, the company is gradually gaining momentum due to the fact that in March the full ammonia production cycle was resumed and launched. The increase in own production of ammonia allowed to increase the production of mineral fertilizers – ammonium nitrate, urea and UAN. Ammonium nitrate and UAN are the most popular products. However, this year there has been little rainfall, little moisture, and we observe an increase in demand for aqueous ammonia technical and urea. Company restores its working capacity, despite the special situation in the country and special working conditions during the quarantine period. All the contracts with the farmers are performed in full, and the sowing period will pass without failure on the part of our company, – commented Leonid Bugayov, Chairman of the Board, PrJSC “SEVERODONETSK AZOT ASSOCIATION”.
Leonid Bugayov also noted that the chemical industry today “works like a clock” and is one of the few industries in the country that is showing growth. In the first quarter of this year, Ukrainian chemists produced mineral fertilizers by 170,000 t more than during the same period in 2019.
“According to our information, in April Ukrainian companies, as well as ours, plan to increase production further. Production growth rate will be proportionate to the solvent demand. The Ukrainian chemical industry will continue, by deed, not by word, to demonstrate the agricultural sector, that it is an exceptionally reliable partner. The state of play in chemical industry is only the initial effect of the embargo on the import of Russian fertilizers. Chemical industry, with its growth rates, is now the driver not only for the agro-industrial complex, but for the entire economy of the country. The country is learning to defend itself in trade wars. Under the right industrial and protectionist policies, chemical industry will grow even more and give not only jobs but also a more tangible contribution to the country’s gross national product”, summed up Leonid Bugayov.
PrJSC “SEVERODONETSK AZOT ASSOCIATION” is a member of nitrogen line of businesses developed by Group DF Dmytro Firtash and is one of the major taxpayers in Luhansk region. Introduction of embargo on the import of fertilizers from Russia in April 2019 allowed Ukrainian chemical companies to start increasing the output. At the beginning of March 2020, the company started its own production of ammonia and urea. Previously, the company worked on imported ammonia and in Q1 2019 the company produced 24 000 t of mineral fertilizers (22 420 t of ammonium nitrate, 480 t of aqueous ammonia technical, 1 800 t of UAN (urea ammonia nitrate).