“This is another step in building a new business segment related to the production of high-energy materials and expanding cooperation with the Polish Armaments Group. In addition to activities related to the launch of the production of nitrocelulose in Tarnów, we want to expand cooperation with Nito-Chem, a company that is part of PGZ”-said Andrzej Skolmowski, president of the board of Grupa Azoty.
“For years we have been trading partners, providing products necessary for the production of explosives, such as concentrated nitric acid and nitros. Now we want to expand this cooperation with an exchange of experiences and further building substantive competences regarding high -energy materials. In the Azoty group we have project offices specialized in the implementation of this type of chemical projects.
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It was stated that the main purpose of the agreement is to ensure continuity of the supply chain of raw materials necessary for the production of explosives and cooperation in the design of production installations. Companies also plan to obtain funds for the construction of a new TNT installation.
The company's shares reacted to this message with a slight increase. They gain 0.9 percent, and the exchange rate during the day broke the level of 19 PLN.
Grupa Azoty is in a very difficult financial situation. During the eleven quarter in a row, she recorded losses and in total amounted to PLN 5.6 billion. The reason is high gas prices and the competition of cheap fertilizers from Belarus and Russia. The problem is also a burden on the investment costing PLN 7.2 billion at Police polymers, consisting in the construction of an integrated petrochemical complex “, which was to produce propylene and polypropylene. Grupa Azoty in losses has already entered the loss of the value of this investment PLN 1 billion 138 million.
However, there have been swallows of hope recently. Grupa Azoty Polyolefins has recovered EUR 107.5 million due to the guarantee of improper performance factories from Hyundai Engineering. This investment has shaken the liquidity of the entire Azoty group, but is already generating revenues.
Last year, Grupa Azoty Polyefins at PLN 1.1 billion of revenues had PLN 171 million net loss after losing PLN 1.2 billion in the previous year. The installations were delayed and only from 2024 it became possible production and sale. Negative EBITDA (operational result increased by depreciation) amounted to PLN 218 million.
