Poland’s Azoty resumes fertilizers production at Tarnow on improved markets

MADRID (ICIS)–Grupa Azoty has resumed production of fertilizers at its Tarnow, southeast Poland, site on the back of a “change in market conditions”, the Polish producer said.

The company said it had resumed nitrogen fertilizers production, as well as production of caprolactam (capro) and nylon 6 (also called polyamide 6, PA6) at Tarnow on 12 October.

Its other facilities in Pulawy, east Poland, have been operating at reduced rates since the end of August, when the company announced the shutdown at Tarnow.

On Thursday, Azoty said production of melamine, capro and nylon 6 at Pulawy would remain shut.

“After the fertilizer installations have been fully restarted, the caprolactam installation and the melamine installation will still remain in standstill,” said Grupa Azoty.

Azoty’s production capacities stand at 524,000 tonnes/year for ammonia, 96,000 tonnes/year for melamine, 1m tonnes/year for nitrogen, phosphate, potassium (NPK), 375,000 tonnes/year for urea, 171,000 tonnes/year for capro, and 140,000 tonnes/year for nylon 6.

See the map below for more on shut capacities in Europe in recent months.

COST STRUGGLES

Poland is a key fertilizers producer, but companies have struggled with high costs for natural gas, a key feedstock for the production of ammonia as well as other fertilizers.

In August, Anwil, a subsidiary of Polish energy and petrochemicals major PKN Orlen, said it was stopping its 960,000 tonne/year nitrogen fertilizers production on the back of high energy costs.

However, a few days later it restarted operations “for the sake of food security”, it said at the time. PKN Orlen is partly owned by the Polish state.

Earlier this week, however, Anwil said it was delaying the completion of a third, 495,000 tonne/year nitrogen fertilizer line until mid-2023.