19 June 2013

Severodonetsk Azot enters the medical oxygen market

OxygenPJSC Severodonetsk Azot Association, part of OSTCHEM holding consolidating nitrogen chemicals producers of Group DF, has become the first enterprise in Lugansk region to start the production and sale of medical oxygen. Having obtained respective license from the State Administration of Ukraine on Medical Products the company launched new production and started shipments to medical institutions in Lugansk region.


New production facilities allow the production of 320 thousand cubic m of medical oxygen per year. Medical oxygen is sold in standard marked 40-liter cylinders.


Primary consumers of the new product are medical institutions in Lugansk and neighboring regions. “We have already signed an agreement with Severodonetsk Health Care Directorate on the supply of medical oxygen”, informed the Chairman of the Board of PJSC Severodonetsk Azot Association.

“Previously, the hospitals and outpatient departments in Lugansk region had to bring medical oxygen from other regions because of lack of local producers. We have obtained the license for production and sale of oxygen for medicinal purposes. Our facilities make it possible to fully satisfy the demand in the region”, said Leonid Bugayev, Chairman of the Board of PJSC Severodonetsk Azot Association. According to the company’s estimates, medical institutions of Severodonetsk need 300-400 cylinders per month.


To launch the new production, Severodonetsk Azot has built a separate facility (workshop) and installed a modern gasification unit.


“We have invested more than UAH 200 thousand in the launch of medical oxygen production. It is an absolutely new business for us, because, unlike technical oxygen, which we have been producing for many years already, medical oxygen must be highly concentrated and contain no admixtures. Such production is more complicated and technology intensive. The certification procedure is very rigorous, because we are dealing with health of people”, says Leonid Bugayev. The technology introduced at the plant excludes penetration of any admixtures in the medical oxygen.


“Ukrainian medical oxygen market is not very big, but growing. The strategy for the development of OSTCHEM holding’s chemicals producers is not only to become major players on large markets, such as fertilizers and petrochemicals. We also intend to launch production of any promising new types of products. In such a manner we diversify our sources of income, make the business more sustainable, multiply the number of clients as well as the number of markets we are present in”, said Oleksandr Khalin, OSTCHEM Director General.




Medical oxygen (O2) is used to prepare special enriched breathing gases to cure various illnesses related to perversion of breathing organs, and various gastrointestinal pathologies. Medical oxygen is also used for general anesthesia. Major consumers of medical oxygen are hospitals, outpatient departments, health resorts, preventative clinics, and other medical institutions. Usually, medical oxygen is stored in high-pressure metal gas cylinders (for compressed or liquid gas) of various capacities under the pressure of 15 MPa. For individual use there are so-called oxygen cushions (special rubber-coated containers) filled with medical oxygen from cylinders.


According to the Global Industry Analysts (GIA) report, the capacity of the global market for medical services related to oxygen therapy amounts to USD 1.18 billion.


PJSC Severodonetsk Azot Association is one of the largest Ukrainian chemicals producers and part of OSTCHEM holding consolidating nitrogen chemicals producers of Group DF. The company specializes in production of nitrogen mineral fertilizers (ammonia, urea, ammonium nitrate, potassium nitrate and sodium nitrate); organic spirits and acids (acetic acid, methanol, formaline, polyvinyl alcohol, adipic acid, and aminoformaldehyde resin); polymeric products and polymeric film (bags, film). The products of Severodonetsk Azot meet ISO 9001:2008 international standard requirements. The company employs around 9 thousand people.