Poland’s PKN Orlen nitrogen, fertilizers Anwil expansion 32% complete

Will Conroy

26-Nov-2020

LONDON (ICIS)–PKN Orlen’s construction of a fertilizer plant that will expand its Anwil unit’s nitrogen capacity by around 50% is 32% complete and remains on schedule, the Polish energy and petrochemicals major said this week.

Capacity at the Anwil site will rise from 966,000 tonnes/year to 1.46m tonnes/year with a third production line to produce nitrate, ammonium sulphate nitrate, and magnesium ammonium nitrate fertilizers.

The expansion’s capital expenditure (capex) stands at Polish zloty (Zl) 1.3bn ($347m) and is expected to start up by mid-2022; state-controlled PKN Orlen said it is its largest investment to date.

In June 2019, Grupa Azoty, also a state-controlled company, warned that nitrogen fertilizer capacity additions such as that under way at Anwil “may lead to a supply glut and a price war” in Poland.

Anwil defended its decision to build the plant arguing it would reduce Poland’s imports of nitrogen fertilizers and contribute to the country’s food security.

“We are strongly focused on the development of our assets and this year alone we will allocate Zl 9.0bn to investments across the entire Orlen group,” said CEO Daniel Obajtek.

He added that the plant would increase Anwil’s annual earnings before interest, tax, depreciation and amortisation (EBITDA) by Zl 245m.

($1 = Zl 3.75)

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