Poland's ZAP see capro demand down on auto lull

31 October 2008 14:52 [Source: ICIS news]

PRAGUE (ICIS news)--Zaklady Azotowe Pulawy (ZAP) is suffering a fall-off in demand for caprolactam on reduced production in the automotive industry, the Polish chemical company said on Friday.

The first quarter of ZAP's financial year, covering July-September, saw sales revenue from caprolactam decline 20.4% compared with the year-earlier period, said Jolanta Golba, a spokeswoman for the company's corporate communication department.

“Additionally, Asian polyamide producers are having troubles in receiving short-term credits,” she added, looking at further difficulties being caused to ZAP's business by the international financial crisis.

On a positive note, Golba further detailed the high fertiliser prices that lay behind the strong first-quarter figures ZAP posted on Thursday.

Urea prices increased 42.5%, ammonium nitrate prices 16.6%, urea ammonium nitrate (UAN) prices 27.7% and ammonium sulphate by 31.4%. The company's melamine sales revenue, meanwhile, grew 16.3%, she added.

Investment bank Wood & Company said that overall quarterly revenue from its chemical products was flat while gross margins taking into account all its products decreased from 7-16% to -1-11%.

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By: Will Conroy
+44 20 8652 3214

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