Fertilizer business

OSTCHEM Holding is an international chemical corporation that is one of the major players in the nitrogen fertilizer market. OSTCHEM is ranked 3^rd in the world for nitrate production, 4^th for ammonia production and 12^th for urea production.

OSTCHEM as a part of Group DF manages the Group’s assets in nitrogen fertilizer production, distribution and shipment.

OSTCHEM’s production assets include Azot PJSC (Cherkasy, Ukraine), Concern Stirol PJSC (Horlivka, Donetsk region, Ukraine), Severodonetsk Azot Association PrJSC (Severodonetsk, Luhansk region, Ukraine), Rivne Azot PJSC (Rivne, Ukraine), and Nitrofert JSC (Kohtla-Jarve, Estonia).

OSCHEM’s distribution business is handled by UkrAgro NPK PrJSC, which owns the top mineral fertilizer distribution network in Ukraine, consisting of 28 warehouses. OSTCHEM’s shipment business is represented by Nika Tera Specialized Sea Port LLC that specializes in handling fertilizers and other bulk cargo.

OSTCHEM enterprises’ core products are: nitrogen fertilizers such as ammonia, urea, ammonium nitrate, CAN (calcium ammonium nitrate), UAN (urea ammonium nitrate), and ammonium sulphate. In addition to fertilizers, the Group`s enterprises produce organic chemicals and organic acids (adipic acid, succinic acid, methanol, caprolactam, vinyl acetate, polystyrene).

In 2010-2013, Group DF’s total investment in OSTCHEM enterprises was nearly UAH 3.5 billion.

OSTCHEM enterprises employ 23,5K people.

Azot PJSC (Cherkasy, Ukraine), a part of OSTCHEM Holding (consolidating Group DF’s fertilizer business) is one of the largest chemical enterprises in Ukraine. The enterprise is the largest ammonium nitrate producer in Ukraine and specializes in producing other nitrogen-based mineral fertilizers such as ammonia, urea, and UAN. Azot PJSC is also the only producer of caprolactam and ion exchange resins in Ukraine.

Azot has an annual production capacity of 1 million tonnes of ammonium nitrate, 964K tonnes of ammonia, 760K tonnes of urea, and 1.2 million tonnes of nitric acid.

Azot PJSC is one of the largest fertilizer suppliers on the domestic market, and also exports products to more than 50 countries around the world.

Azot’s plant has a quality management system based on ISO 9001, ISO 14001 and OHSAS 18001 international standards. Azot also registers chemical agents in accordance with REACH, the international standards of the European Union.

In 2010, Azot PJSC became a part of OSTCHEM Holding.

Over 2011-2013, Group DF invested about UAH 454.6 million into technical developments and modernization programs at Azot PJSC and another UAH 56.8 million into CSR projects.

The enterprise employs 4,5K people.

Concern Stirol PJSC (Horlivka, Donetsk Region, Ukraine), a part of OSTCHEM Holding (consolidating Group DF’s fertilizer business) is one of the largest chemicals enterprises in Ukraine. The plant is the largest producer of nitrogen fertilizers (ammonia and urea) in Ukraine. The enterprise also produces ammonium nitrate, UAN, organic resins, mineral acids, and salts. Concern Stirol PJSC is the only manufacturer of polystyrenes in Ukraine.

Concern Stirol has an annual production capacity of 1.47 million tonnes of ammonia, 940K tonnes of urea, 693K tonnes of ammonium nitrate, and 58K tonnes of polymer materials.

Concern Stirol PJSC is one of the largest Ukrainian nitrogen fertilizer exporters, supplying about 85% of its products to over 60 countries worldwide.

Concern Stirol PJSC developed and implemented a quality management system based on the requirements of ISO 9001, ISO 14001 and OHSAS 18001 standards. In 2012, product certification is confirmed by Bureau Veritas Certification, an international technical association. The plant also registers chemical agents in accordance with REACH, the international standards of the European Union.

In September 2010, Concern Stirol PJSC became a part of OSTCHEM Holding, which invested about UAH 1.08 billion in the enterprise over 2010-2014. Due to these investments, the enterprise has implemented a range of projects. Among the largest were renovating the ammonia production line #1 (UAH 39 million, 2013), recovering integrated ammonium nitrate plant (UAH 74 million, 2013) and integrated urea plant (UAH 30 million, 2013), renewing ammonium nitrate production, and large-scale overhauls at the ammonia-making units.

In 2012-2015, the enterprise also runs a modernization programme that enables reducing energy consumption and decreasing harmful emissions to the atmosphere as well as providing operational safety. Due to this programme, Concern Stirol PJSC also extends ammonium processing to decrease the share of commercial ammonia.

Concern Stirol employs 4,5K people.

Severodonetsk Azot Association PrJSC (Severodonetsk, Luhansk region, Ukraine), a part of OSTCHEM Holding (consolidating Group DF’s fertilizer business) is the largest chemical producer in Ukraine and Europe. The plant specializes in nitrogen fertilizers: ammonia, urea, ammonium, potassium and sodium nitrates, ammonium carbonates, products of organic alcohols and acids.

Severodonetsk Azot Association PrJSC is also the only producer of acetic acid, methanol and vinyl acetate in Ukraine. Altogether, its product line includes over 40 chemical products.

The enterprise`s annual production capacity is 1 million tonnes of ammonia, 550K tonnes of ammonium nitrate, and 390K tonnes of urea.

Severodonetsk Azot PrJSC remains one of the largest nitrogen fertilizer suppliers on the domestic market and also exports products to more than 120 countries around the world.

Severodonetsk Azot follows a quality management system based on ISO 9001: 2008 international standards. Product certification is confirmed by SGS (Great Britain), the international technical association. Severodonetsk Azot also registers chemical agents in accordance with REACH, the international standards of the European Union.

In April 2011, the Severodonetsk Azot Association PrJSC became a part of OSTCHEM Holding.

Severodonetsk Azot employs 8K people.

Rivne Azot PJSC (Rivne, Ukraine) is the largest chemical enterprise in Western Ukraine. It specializes in producing nitrogen fertilizers: ammonia, ammonium nitrate, and is the only CAN (calcium ammonium nitrate) producer in Ukraine. Rivne Azot is also the country’s largest calcium ammonium nitrate producer.

Plant`s annual production capacity is 420K tonnes of ammonia, 540K tonnes of ammonium nitrate and 450K tonnes of calcium ammonium nitrate.

Rivne Azot PJSC is one of the largest domestic nitrogen fertilizer exporters, supplying products to more than 40 countries around the world.

The enterprise has developed and implemented its own a quality management system based on international standards. All the plant’s products are packaged with Safety Data Sheets (SDS).

In 2011, Rivne Azot PJSC became a part of OSTCHEM Holding (consolidating Group DF’s fertilizer business), which has invested UAH 549 million in the enterprise over 2011-2013. Due to these investments, Rivne Azot PJSC has implemented a range of projects. Among the largest were launching a new weak nitric acid production line, launching a power production, regeneration facility based on steam recovery, and reconstruction of two non-concentrated nitric acid production units. The plant also implemented innovative control system for ammonia production and constructed a new present-day warehouse for non-concentrated nitric acid.

Rivne Azot employs 4,5K people.

UkrAgro NPK PrJSC (Kyiv, Ukraine) is a country’s largest mineral fertilizer distributor consisting of 28 warehouses located in all regions of Ukraine. Every warehouse is fully equipped for fertilizer reception, storage and shipping, and also provides liquid fertilizer services. UkrAgro NPK PrJSC also produces and sells mixed fertilizers (complex compound nitrogen fertilizers). The company cooperates with over 30 domestic and foreign producers. Its warehouses also sell seeds and crop protection products.

Since 2006, UkrAgro NPK PrJSC has been among top 5 largest mineral fertilizer distributors. Its sales capacity exceeds 700K tonnes. Warehouses of UkrAgro NPK PrJSC allow storing over 265K tonnes of dry fertilizers.

UkrAgro NPK’s product line includes over 100 items: traditional nitrogen fertilizers (ammonium nitrate, urea, urea ammonium nitrate, ammonia water, and ammonia); phosphate and potassium fertilizers (potash chloride, potassium nitrate, and chloride-free fertilizers); complex fertilizers (calcium ammonium nitrate, ammonium sulphate, ammonium nitrate phosphate fertilizers, and diammophoska); mixed fertilizers based on different components and with different NPK proportions; water-soluble fertilizers for drip irrigation systems in open and protected ground; and sulphur-containing fertilizers (ammonium sulphate and potassium sulphate).

In 2013, UkrAgro NPK launched a new business specializing in selling sunflower and corn seed from leading world producers, such as Syngenta, Pioneer, Limagrain, Euralis, and Monsanto, and crop protection products from such makers as BASF, Bayer AG, Dow Agro Science, DuPont, Syngenta, Monsanto, NewFarm, Chemtura, Sammit Agro, and FMC.

All UkrAgro NPK products are registered and meet world quality standards.

In 2012, UkrAgro NPK became part of OSTCHEM Holding (consolidating Group DF’s fertilizer business).

UkrAgro NPK employs 450 people.

Nika Tera Specialized Seaport LLC (Mykolayiv, Ukraine), a part of OSTCHEM Holding (consolidating Group DF’s fertilizer business), is an advanced, highly automated sea terminal that specializes in handling fertilizers, grain and bulk cargoes.

The Nika Tera terminal includes three specialized cargo sections: a grain complex, a cargo-handling complex for ground storage of fertilizers, and a cargo-handling complex for ground storage bulk cargoes.

The Nika Tera terminal is located in Mykolayiv Region near the Black Sea, on the left bank of the Buh Estuary. It has 7 berths 1,3K metres in length, 5 of which are operated for commercial purposes. Its territory borders on the Zhovtneva railway station, providing a convenient logistic connection for the terminal’s customers.

In the autumn of 2011, Nika Tera became a part of Group DF, which invested over USD 86.2 million in seaport development over 2011-2014. These investments allowed Nika Tera to expand its capacities significantly: grain storage was increased from 40K to 210K tonnes; mineral fertilizer storage from 125K to 175K tonnes. The biggest projects included construction of a modern silo-type grain elevator and a urea handling section.

In 2013, Nika Tera handled 3.7 million tonnes of cargo; the majority of it was grain. The terminal transhipped 3.2 million tonnes of cargo during the first 9 months of 2014; most of it was grain and nitrogen fertilizers.

Nika Tera employs 1K people.

Nitrofert JSC (Kohtla-Jarve, Estonia), a part of OSTCHEM Holding (consolidating Group DF’s fertilizer business), is the only mineral fertilizer producer in Estonia. The plant specializes in ammonia and urea production.

Plant`s annual production capacity is 180K tonnes of ammonia, and 220K tonnes of urea.

In 2006, Nitrofert instituted a quality management system based on ISO 9001: 2000 international standards.

In 2014, Nitrofert JSC became a part of Group DF.

Nitrofert is located in Ida-Viru County, an industrial region of Estonia called Kohtla-Jarve, 150 km from Tallinn, the capital and the largest port city.

Currently, the enterprise employs about 480 people.