Market of chemicals

Ammonia is the basic product in the group of chemicals manufactured by the Issuer.

Approximately 88% of the total domestic production of ammonia, counted in tonnes of product, are used for own needs of Polish production plants. The total share of export of these companies is only a little bit above 10%, however the domestic sales are of marginal significance making as little as 2% of the domestic production. Ammonia is manufactured in Poland by five large chemical plants, i.e. Z.A. Puławy Z.Ch. "POLICE", Z.A. Kędzierzyn, "Anwil" Włocławek and Z.A. Tarnów.

 

The leader in the production of ammonia in Poland is the Puławy Nitrogen Plant. Its share in the domestic production is approximately 38%. The second position with the share of 23% is taken by Zakłady Chemiczne "POLICE" SA.

However, Zakłady Chemiczne "POLICE" SA takes the leading position in the scope of the ammonia delivery to the foreign markets. Sales of the Issuer in 2004 constituted 83% of the total export of this product by the domestic entities (quantitatively). The share of the Issuer in the European Union market is estimated at the level of 1.5%.

 

The global ammonia market is estimated at the level of approximately 15.5 million tonnes. Apart from Russia and Ukraine, the main ammonia suppliers are the countries from outside Europe - Canada, Trinidad and Venezuela. Also all new chemical plants that are to manufacture ammonia, starting of which is planned by 2010, will be located outside Europe, most often in places situated close to the sources of getting of natural gas.

 

Phosphoric acid has got the greatest share in the domestic sales in the group of chemicals. The main consumers of these products are the manufacturers of feeding phosphates, fertilizers and household chemistry; approximately 20% of buyers are trade companies that deal with distribution of acid to the final consumers.