Non-financial statement
of the Grupa Azoty Group
for the 12 months ended December 31st 2020
2.1. Structure of the Grupa Azoty Group
2.2. Business strategy and key financials
2.3. Key performance indicators
2.5. List of certified management systems
3. Environmental area, climate impact
3.1. Direct and indirect impact: feedstock and materials
3.2. Direct and indirect energy consumption within the organisation
3.3. Total water abstraction and information on recycled or reused water
3.4. Reduction of energy consumption
3.6. Substances emitted to the atmosphere
3.8. Waste and waste management methods
3.9. Monetary value of fines and other sanctions
3.10. Mitigation of environmental impacts of products and services
4.5. Occupational health and safety
4.7. State Fund for Rehabilitation of the Disabled
4.8. Employee relations and freedom of association
5. Social and sponsorship policy
5.1. Rules governing community engagement at the Grupa Azoty Group
5.2. Supporting efforts to fight COVID-19
6. Ethics management (counteracting corruption and bribery, respect for human rights)
1. Introduction
This non-financial statement for 2020 presents data and indicators for Grupa Azoty S.A. and the Group in which Grupa Azoty S.A. is the parent (“Grupa Azoty”, the “Grupa Azoty Group”, and the “Group”).
In accordance with the Accounting Act, Grupa Azoty S.A. is subject to regulatory obligations at the level of:
1.The Grupa Azoty Group,
2.The Grupa Azoty Zakłady Azotowe Puławy S.A. Group (the “Grupa Azoty Puławy Group”, the “Puławy Group”) and the parent Grupa Azoty Zakłady Azotowe Puławy S.A. (“Grupa Azoty Puławy”),
3.The Grupa Azoty Zakłady Chemiczne Police S.A. Group (the “Grupa Azoty Police Group”, the “Police Group”) and the parent Grupa Azoty Zakłady Chemiczne Police S.A. (“Grupa Azoty Police”).
The qualitative and quantitative data is presented according to this breakdown. This non-financial statement has been prepared in accordance with the guidelines contained in Directives of the European Parliament and of the Council (2014/95/EU and 2013/34/EU) and in the Accounting Act, concerning disclosure of non-financial information.
2. Management area
The management process at the Grupa Azoty Group is carried out in a responsible manner with a view to achieving sustainable development, materialising in an integrated approach to social, economic and environmental aspects.
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Mission |
Create value for Grupa Azoty and the national economy by delivering safe, useful and innovation-driven chemical products
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Vision |
Deploy state-of-the-art, comprehensive chemical industry solutions that meet stakeholder expectations
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Key products and services
The Grupa Azoty Group’s business is divided into the following five segments:
1.Agro Fertilizers
This is the key area of the Grupa Azoty Group’s business. The segment manufactures mineral nitrogen, nitrogen-sulfur, nitrogen-phosphorus, compound, and speciality fertilizers. This group also includes ammonia and other nitrogen-based intermediate products.
The segment’s manufacturing activities are conducted by the companies based in Tarnów, Puławy, Kędzierzyn, Police, Gdańsk, Chorzów, as well as Germany and Spain. The Grupa Azoty Group is Poland’s largest and European Union’s second largest manufacturer of mineral fertilizers.
2.Plastics
The Plastics segment accounts for the second largest share in the Grupa Azoty Group’s total sales. Its product portfolio includes: Tarnamid®, Alphalon® (trade names of polyamide 6), Tarnoform® (trade name of polyacetal (POM)), as well as polyamide 6- and polyacetal-based modified plastics. The Group is the leading manufacturer of PA6 in Poland and the third largest producer of this polyamide in the European Union. The principal investment project among the Grupa Azoty Group’s ongoing projects – a new polypropylene production unit being built as part of the Polimery Police strategic investment project – will be presented in this segment.
3.Chemicals
This segment comprises the following business segments: OXO products (OXO alcohols, plasticisers), pigments (titanium white), melamine, as well as smaller product groups, perceived by the market as less homogenous: technical grade urea, sulfur, catalysts and others. They are manufactured in Kędzierzyn, Puławy, Police, and Grzybów. The Group is a major manufacturer of melamine globally and the third largest in the European Union. As regards OXO products, the Group is the only manufacturer of OXO alcohols in Poland and the fifth largest in the European Union. The Group is Poland’s only producer of titanium white.
4.Energy
Grupa Azoty Group’s main production plants operate their own electricity and heat generating units. Given that Grupa Azoty Group companies operate their own energy distribution networks and captive generation has a major role in the base chemicals business, the Grupa Azoty Group identifies Energy as a separate auxiliary internal segment.
5.Other Activities
The Other Activities segment comprises laboratory services, rentals, maintenance and other services (automation, design, repairs, etc.), logistics, infrastructure management, environmental protection, and research.
Relevant geographical markets:
Most of the Grupa Azoty Group’s products are sold in Poland, with exports going mainly to EU member states, in particular Germany, the United Kingdom, the Czech Republic, Italy, France, and Belgium. Fertilizers and chemicals (urea and OXO alcohols) are the key product groups sold in the domestic market. Products exported to EU countries include mainly fertilizers (such as Saletrosan® 26, Ammonium Sulfate AS21, Salmag®, Pulan®, RSM®, Polifoska®), plastics and OXO alcohols, whereas products exported to Asia – polyamide PA-6. Fertilizers manufactured by the Grupa Azoty Group are also sold in South American markets.
2.1. Structure of the Grupa Azoty Group
Over the last few years, Grupa Azoty S.A. successfully consolidated Poland’s largest chemical plants with an aim of harnessing their combined potential to deliver a common strategy, and acquired the COMPO EXPERT Group, a global manufacturer of speciality fertilizers selling its products to nearly a hundred countries, thus strengthening the Group’s position among Europe’s largest chemical companies. The Grupa Azoty Group includes Grupa Azoty Polyolefins S.A., owner of the Polimery Police project, one of the largest investment projects in the chemical industry expected to make Poland one of Europe’s leading polypropylene producers. The project will result in the construction of a petrochemical complex centred around:
a PDH propylene unit (with an annual production capacity of 400,000 tonnes),
a polypropylene unit (with an annual production capacity of 437,000 tonnes) with a logistics base.
The chemical complex will also feature a handling and storage terminal (gas port) and auxiliary systems.
The Grupa Azoty Group includes more than 50 businesses which distribute their products mainly to the European Union, South America, Asia, Africa and North America. A vast majority of our production capacities are located in Poland, with some production plants in Germany and Spain. Three group companies – Grupa Azoty S.A., Grupa Azoty Puławy and Grupa Azoty Police − are listed on the Warsaw Stock Exchange.
The parent – Grupa Azoty S.A.
www.tarnow.grupaazoty.com
Grupa Azoty S.A. is engaged in manufacturing and trading in engineering plastics, engineering plastics intermediates and nitrogen fertilizers, as well as related services. The Company operates its own research facilities. It concentrates both on research into new products and technologies, and on advancing existing products. Grupa Azoty S.A.’s registered office is located in Tarnów.
Grupa Azoty S.A. has been listed on the Warsaw Stock Exchange since June 30th 2008 and is included in the WIG, WIG30, mWIG 40, WIG-Poland, WIG-CHEMIA and WIG.MS-PET indices. It is also represented in some foreign indices.
The company is subject to non-financial reporting requirements under the Accounting Act of September 29th 1994, and its non-financial information is presented in this statement.
As at December 31st 2020, the Grupa Azoty Group comprised Grupa Azoty S.A. as the parent, and its subsidiaries and associates:
Diagram 1. Structure of the Grupa Azoty Group
Source: Company data.
Grupa Azoty S.A.’s direct subsidiaries:
Grupa Azoty Zakłady Azotowe Puławy Spółka Akcyjna
(“Grupa Azoty Puławy”)
www.pulawy.grupaazoty.com
The company is the largest supplier of nitrogen fertilizers for Polish farmers and the second largest player on the EU market of granular urea, ammonium nitrate, ammonium sulfate, and urea-ammonium nitrate solution (UAN). The Puławy plants are Poland’s only and Europe’s third largest manufacturer of melamine, Poland’s only producer of hydrogen peroxide and a major producer of caprolactam.
Grupa Azoty Puławy has been listed on the Warsaw Stock Exchange since November 2005.
The company is subject to non-financial reporting requirements under the Accounting Act of September 29th 1994, and its non-financial information is presented in this statement.
Grupa Azoty Zakłady Chemiczne Police Spółka Akcyjna
(“Grupa Azoty Police”)
www.zchpolice.grupaazoty.com
Grupa Azoty Police is a major manufacturer of compound and nitrogen fertilizers, as well as pigments (titanium white). Grupa Azoty Zakłady Chemiczne Police S.A. has been listed on the WSE since September 2005.
Grupa Azoty Police is subject to non-financial reporting requirements under the Accounting Act of September 29th 1994, and its non-financial information is presented in this statement.
Grupa Azoty Zakłady Azotowe Kędzierzyn Spółka Akcyjna
(“Grupa Azoty Kędzierzyn”, “Grupa Azoty ZAK”)
www.zak.grupaazoty.com
The company’s two business pillars are nitrogen fertilizers and OXO products (OXO alcohols and plasticizers used in the production of plastics).
COMPO EXPERT Holding Gesellschaft mit beschränkter Haftung,
(a holding company for subsidiaries which are referred to collectively as COMPO EXPERT)
www.compo-expert.com
The company’s registered office is located in Münster, Germany. It is a holding company for a group of subsidiaries, including the main operating company COMPO EXPERT GmbH, one of the world’s largest manufacturers of speciality fertilizers for professional customers.
Grupa Azoty ATT Polymers Gesellschaft mit beschränkter Haftung (“Grupa Azoty ATT Polymers”)
www.att.grupaazoty.com
The company’s registered office is located in Guben, Germany. The company manufactures modified plastics based on polyamide 6 (PA6).
Grupa Azoty Polskie Konsorcjum Chemiczne spółka z ograniczoną odpowiedzialnością
(“Grupa Azoty PKCh”)
www.pkch.grupaazoty.com
Grupa Azoty PKCh’s services encompass comprehensive design support for investment projects in the chemical industry − from study and concept work to engineering design, building permit design and working plans, to services provided during the construction, commissioning and operation of process units.
Grupa Azoty Koltar spółka z ograniczoną odpowiedzialnością (“Grupa Azoty Koltar”)
www.koltar.grupaazoty.com
Grupa Azoty Koltar provides countrywide railway transport services. It is one of the few organisations in Poland to hold licences required to perform comprehensive repairs of rail car chassis and tank cars used in the transport of dangerous materials (according to RID).
Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol Spółka Akcyjna (“Grupa Azoty Siarkopol”)
www.siarkopol.grupaazoty.com
Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A. is engaged in mining operations in a native sulfur deposit and is Poland’s largest producer of liquid sulfur.
Grupa Azoty Polyolefins Spółka Akcyjna (“Grupa Azoty Polyolefins”)
www.polyolefins.grupaazoty.com
The company’s purpose is to construct a propane dehydrogenation (PDH) unit and polypropylene production plant with related infrastructure, auxiliary systems and inter-unit connections, and extension of the Police sea port facilities to include a handling terminal for chemicals that would provide the required logistics infrastructure for receiving and storing the raw material.
Grupa Azoty S.A. and Grupa Azoty Police hold 30.52% and 34.41%, respectively, of shares in Grupa Azoty Polyolefins.
Grupa Azoty Compounding Spółka z ograniczoną odpowiedzialnością (“Grupa Azoty Compounding”)
www.compouding.grupaazoty.com
The business model of Grupa Azoty Compounding is based on a portfolio of specialised engineering plastics manufactured through the compounding of plastics, with the use of innovative technological solutions.
Grupa Azoty Folie spółka z ograniczoną odpowiedzialnością w likwidacji (in liquidation)
On December 31st 2019, the Extraordinary General Meeting passed resolutions to dissolve Grupa Azoty Folie Sp. z o.o. and to put the company into liquidation, remove the company’s Management Board members and appoint a Liquidator. The company did not carry out any operating activities in 2020, and the liquidation process ended in December 2020 by de-registration from the National Court Register.
As at December 31st 2020, the Grupa Azoty Puławy Group comprised:
Diagram 2. Structure of the Grupa Azoty Puławy Group
Source: Company data.
Grupa Azoty Zakłady Fosforowe Gdańsk spółka z ograniczoną odpowiedzialnością (“Grupa Azoty Fosfory”)
www.fosfory.grupaazoty.com
Gdańsk-based manufacturer of compound fertilizers and nitrogen compounds.
Grupa Azoty Zakłady Azotowe Chorzów Spółka Akcyjna (“Grupa Azoty Chorzów”)
www.chorzow.grupaazoty.com
Producer of inorganic and organic chemicals. The only Polish producer of fertilizer grade, technical grade and food grade potassium nitrate, also manufacturing calcium nitrate solution.
Agrochem Puławy spółka z ograniczoną odpowiedzialnością (“Agrochem”)
www.agrochem.com.pl
Agrochem is a trading partner of the agricultural sector, specialising in the supply of goods necessary for agricultural production, including in particular mineral fertilizers, crop protection products and certified seed, as well as in the purchase of grain.
SCF Natural spółka z ograniczoną odpowiedzialnością (“SCF”)
www.scfnatural.pl
The company offers high quality granulated hops and plant extracts for the food and pharmaceutical industries. Its core business includes execution of contracts for, purchasing, and processing of hops for domestic and foreign consumers.
PROZAP spółka z ograniczoną odpowiedzialnością (“PROZAP”)
www.prozap.com.pl
A comprehensive engineering design office with more than 45 years of experience in designing new and upgrading existing fertilizer and other chemical production units.
REMZAP spółka z ograniczoną odpowiedzialnością (“REMZAP”)
www.remzap.pl
The company carries out industrial construction, investment, and renovation projects, combining many years of knowledge and experience with a systematic approach to QHSE management.
STO-ZAP spółka z ograniczoną odpowiedzialnością (“STO-ZAP”)
www.stozap.pl
The company’s business activities include catering, trading, and provision of services. It provides cleaning services to Grupa Azoty Puławy and produces water and carbonated beverages, but its principal business is in catering services.
As at December 31st 2020, the Grupa Azoty Police Group comprised: