28 January 2011 11:56 [Source: ICIS news]
PRAGUE (ICIS)--Zaklady Azotowe Pulawy (ZAP) is looking for investment opportunities beyond the EU because of the high costs of gas in Poland and carbon dioxide emissions, the Polish fertilizer producer said on Friday.
Costly gas had become a concern that could hinder any alternative company expansion plans drawn up for home, said Jolanta Golba, an investor relations specialist at ZAP.
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"In the last financial year, the share of natural gas in the company’s production cost stood at around 50%. The high price of gas makes it difficult to compete with nitrogen fertilizers manufactured with the use of cheap gas by competitors on the domestic and international markets," Golba said.
"ZAP is thus taking steps to optimise the production cost. The steps include searching for possible locations for production plants in areas where cheap gas is available,” she added.
The Polish chemical industry is lobbying for a greater interconnection of
The cost of securing carbon credits to cover emissions was also a difficulty when investing in the EU, said Golba.
However, ZAP was not at the stage of examining any specific investment proposal in Belarus, Ukraine, Africa or any other non-EU location mentioned in Polish press reports as likely future production places for the company, she added.
Jerzy Majchrzak, director of the Polish Chamber of the Chemical Industry (PIPC), has warned that if the EU went ahead with emission requirements that were too stringent, the Polish chemical industry could eventually more or less cease to exist.
As non-EU countries within eastern Europe,
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