22 November 2013 16:42 [Source: ICIS news]
LONDON (ICIS)--Poland's Zaklady Azotowe Pulawy (ZAP) is responding to potentially less buoyant fertilizer markets in the future by continuing to diversify its product portfolio, the company said on Friday.
ZAP, Poland's largest nitrogen fertilizer producer and also, since its April 2011 acquisition of Fosfory in Gdansk, a maker of phosphorous fertilizers, would remain active in constructing new solid and liquid fertilizer units in coming years to enhance its product mix, it added.
In July this year, ZAP - itself owned by Polish fertilizer producer Grupa Azoty - commissioned a 24,000 tonne/year liquid fertilizer unit that blends ammonium sulphate (AS) into urea products, while a project for the production of granulated fertilizers based on ammonia nitrate (AN) is in the planning phase, ZAP spokesperson Jolanta Golba said.
“In line with the current global trends, the ZAP group has been placing an increasing focus on its market orientation, for example by raising its market and production potential,” she added.
Investment bank WOOD & Company said ZAP's fertilizer business had just emerged from a difficult company fiscal first quarter of July to September in which fertilizer margins reached only 7.5% versus the 12% anticipated by the bank's analysts.
“Nitrogen fertiliser production volumes remained relatively stable year on year in the [company fiscal] first quarter, resulting in stable year on year AN and AS sales, and a 54.2% increase in urea sales, with benchmark prices down 24% year on year,” said Piotr Drozd, a chemical industry analyst at the bank.
“[This was] offset partly by a 25% year-on-year decline in phosphate fertiliser sales and a 45% year-on-year drop in NPK/NP [nitrogen phosphorous potassium/nitrogen phosphorous] sales,” he added.
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