16 April 2015
Two Ostchem enterprises increased production of mineral fertilizers
For first three months of 2015 Rivne Azot PJSC and Azot PJSC (Cherkasy), parts of OSTCHEM (consolidating Group DF’s fertilizer business) increased production and sales volume of mineral fertilizers compared with the same period of the previous year.
Rivne Azot PJSC increased production and sales volume of mineral fertilizers by 3.25% compared to the previous year, and Azot PJSC (Cherkasy) increased mineral fertilizers’ production and sales by 20% compared with the same period of 2014.
Two of four operating OSTCHEM plants – Azot PJSC (Cherkasy) and Rivne Azot PJSC produced about 780,000 tons of fertilizers since the beginning of the year. Particularly, the plants produced 432,000 tons of ammonium nitrate, 133,000 tons of calcium ammonium nitrate, 180,000 tons of urea, 110,000 tons of urea ammonium mixture, 21,000 tons of commercial-grade ammonia liquor, 380,000 tons of commercial-grade liquid ammonia. In addition, the plants produced 424,000 tons of non-concentrated nitric acid during the reporting period.
“We raised the production volume at two operating plants. Despite economic difficulties in the country, we managed to completely meet the needs of the agricultural sector. Our priority hasn’t changed – it is provision of the domestic market with mineral fertilizer. Successful spring sowing season will determine the results of the whole agricultural sector. In a way, this is a matter of the country’s food supply. After spring sowing season we will load our production capacities in proportion to the market demand for our products,” said Oleksandr Khalin, General Director of OSTCHEM.
According to OSTCHEM’s General Director, the demand for urea ammonium nitrate (a liquid complex fertilizer) increased by 57% during this spring sowing season.
“Usually the demand for urea ammonium nitrate (UAN) raises in spring, but this year a new tendency appeared – companies started to actively ship fertilizer as early as January and February. Urea ammonium nitrate boom is caused by the progressiveness of this fertilizer – it doesn’t go out of order and doesn’t lose its properties, it is quickly absorbed by plants, is free of nitrates and allows applying other fertilizer. Besides, our agricultural producers have already begun constructing special storage facilities for urea ammonium nitrate and acquiring special machinery for its application to the soil,” emphasized Mr Khalin.
It bears reminding that two Group DF’s fertilizer producers located in Eastern Ukraine – Concern Stirol PJSC and Severodonetsk Azot Association PrJSC – ceased production for reasons of safety in May, 2014. Two operating plants – Azot PJSC (Cherkasy) and Rivne Azot PJSC – optimized production and sales programme in order to fulfil all their obligations and provide Ukrainian agrarians with mineral fertilizers.
Implementation of the overhaul and modernization programme for main process shops enabled the maximum capacity load of OSTCHEM plants. Over 2011-2014, OSTCHEM invested over UAH 3 billion in modernization of its chemical plants.