01 December 2009 16:32 [Source: ICIS news]
PRAGUE (ICIS news)--Zaklady Chemiczne Police (ZChP) expects to run its nitrogen phosphorus potassium (NPK) and nitrogen phosphorus (NP) fertilizer units at no more than 60-70% of capacity until at least the middle of 2010 due to weak demand, the Polish company said on Tuesday.
Full capacity might be restored in the third quarter of next year depending on feedstock prices and the financial standing of farmers in ZChP export markets hit hard by the economic downturn, such as South America, it added.
Despite uncertain market prospects, the company could take heart from a sales volume recovery in October and November, it said.
Those two months saw ZChP sell 215,000 tonnes of fertilizers, 90% up from the 114,000 tonnes sold in the whole of the third quarter.
Wood & Company investment bank said its figures showed Polish production of phosphorous fertilizers fell from 140,000 tonnes in the third quarter of 2008 to around only 55,000 tonnes in the same period of this year.
ZChP expected to generate an operating profit but also record a net loss in the first quarter of 2010.
The Polish treasury ministry said earlier on Tuesday that a privatisation advisor for the sale of ZChP and fellow Polish fertilizer firm Zaklady Azotowe Pulawy (ZAP) would be selected in January.To discuss issues facing the chemical industry go to ICIS connect
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