Polska Grupa Zbrojeniowa, a leading producer of advanced solutions for the armed forces, and Grupa Azoty, a prominent player in the European fertilizer and chemical industry, have signed an agreement set to open new horizons in technological advancement and manufacturing.

Grupa Azoty Fosfory is on a mission to enhance the energy efficiency of its production processes. Central to this effort is the forthcoming upgrade of the sulfuric acid plant incorporating a power generation turbine, an initiative set to result in a remarkable reduction of approximately 20,000 MgCO₂ of greenhouse gas emissions annually. The project entails an estimated investment of nearly PLN 100 million. In parallel with the upgrade project, Grupa Azoty Fosfory is commissioning a rotary dryer equipped with a new natural gas combustion chamber. This innovative addition is set to significantly curtail carbon dioxide (CO₂) and sulfur dioxide (SO₂) emissions, while promising to reduce process downtime. Grupa Azoty S.A. isn’t solely focused on current projects, but is also committed to advancing its understanding of phosphogypsum management through dedicated research and development endeavours.

The Grupa Azoty Group has released estimates of production volumes for September 2023, showing that production at the Grupa Azoty Group companies is steadily growing in line with rising demand for fertilizers. According to estimates, in September the Group companies produced 64,000 tonnes of compound fertilizers, compared to 54,000 tonnes in August. In the case of specialty fertilizers, the output for September is estimated at 15,000 tonnes, compared with 9,000 tonnes in August. The drop in estimated production of nitrogen fertilizers, from 251,000 tonnes in August to 227,000 tonnes in September, was mainly a consequence of an emergency shutdown at Grupa Azoty ZAK, which the company announced on September 5th.

Grupa Azoty S.A. has entered into a new sponsorship deal with the VOLLEY JEDYNKA Tarnów club to provide financial support to its women’s volleyball team, which competes at the highest level of the Tauron League, for the upcoming 2023/2024 season. In the new season, the team will bear the name of Grupa Azoty Akademia Tarnowska. The deal marks a continuation of Grupa Azoty’s commitment to supporting significant sports endeavours in Tarnów, both those of local interest and nationwide events, while promoting the Grupa Azoty brand throughout Poland.

Grupa Azoty Group’s financial results for the second quarter of 2023 are in line with the estimates presented on September 18th 2023. In the three months ended June 30th 2023, the Grupa Azoty Group generated consolidated revenue of PLN 3,491m, EBITDA of PLN -608m, and an EBITDA margin of -17.4%. As highlighted in the press release regarding estimated results, the reporting period witnessed the convergence of adverse market factors impacting all producers in the European fertilizer and chemical industry. Those adverse developments arose as a consequence of Russia’s aggression against Ukraine and the European Union’s decision to suspend tariffs on imports of urea and ammonia from countries outside the EU.

In the three months ended June 30th 2023, the Grupa Azoty Group generated consolidated revenue of PLN 3,491m, EBITDA of PLN -608m, and an EBITDA margin of -17.4%. During the period, the Grupa Azoty Group and other European producers faced macroeconomic headwinds due to Russia’s aggression against Ukraine, leading to reduced demand in the markets for the Group companies’ products and their downstream markets. Based on the production volume estimates published by the Grupa Azoty Group since the beginning of this year, we have observed an upward trend in fertilizer demand since the third quarter. If the trend continues, it is expected to have a positive impact on the Group’s financial results in 2023.