Poland's ZAP seals €92m liquid ferts supply deal with Trammo

10 January 2014 17:27 Source:ICIS News

LONDON (ICIS)--Largest Polish nitrogen fertilizer producer Zaklady Azotowe Pulawy (ZAP) has contracted to supply Switzerland-based trader Trammo with a urea and ammonium nitrate (AN) solution worth an estimated zloty (Zl) 385m ($125.4m, €92.1m), ZAP said on Friday.

The solution, sold under the registered trademark of RSM (Rotzwor Saletrzano-Mocznikowy), would be provided to Trammo over a three-year period, it added.

ZAP, which has an RSM production capacity of 1.2m tonnes/year, is a unit of Europe's second largest fertilizer producer, Poland-based Grupa Azoty.

“The company is intensively developing the liquid fertilizer market in Poland by building a network for the distribution and sale of the RSM product,” ZAP said.

By the end of this year, its RSM sales network would boast 900 storage tanks nationwide, each with a capacity of 25 or 50 cubic metres, it added.

Trammo, headquartered in Zurich, is a worldwide group that trades in ammonia, ferilizers, liquefied petroleum gas, petrochemicals and other commodities.

($1 = €0.74, $1 = Zl3.07, €1 = Zl 4.18)

By Will Conroy