Overview of the Group
We are Poland’s leading chemical business. Grupa Azoty is a brand standing for superior standards.
We are Poland’s leading chemical business.
Grupa Azoty is a brand standing for superior standards. The wider the range of our products and services, the greater care we take of the surrounding world and quality of human life. Striving for excellence in every area of our activity, we focus equally on enhancing our corporate value and on guaranteeing satisfaction of all users of our products. We have built a modern, strong corporate group. We pursue a set of ambitious goals.
- Agro Fertilizers
- Other Activities
- Münster (Germany)
- Phosphate rock
- Potassium chloride
- Natural gas
- European Union
- South America
- North America
Leader at home
Grupa Azoty is Poland’s largest chemical producer.
TOP 1 among:
- manufacturers of nitrogen, nitrogen-sulfur, nitrogen-phosphorus and compound fertilizers*
- manufacturers of OXO alcohols, plasticizers,
- titanium white and melamine
* Total compound fertilizers (AP, NPK, PK).
Top EU producer
We stand among the top European chemical producers.
TOP 2 among:
- manufacturers of nitrogen fertilizers
TOP 3 among:
- manufacturers of melamine
- manufacturers of compound fertilizers
See our product portfolio
Contribution to the Grupa Azoty Group’s revenue in 2018
Our principal business includes:
Mineral fertilizers are the main source of our revenue – the Group is Poland’s largest and European Union’s second largest manufacturer of mineral fertilizers. We offer nitrogen and compound fertilizers, as well as ammonia and other nitrogen-based intermediate products. Fertilizers are manufactured by the Group companies based in Tarnów, Puławy, Kędzierzyn, Police, Gdańsk, Chorzów and Münster (Germany).
(For more information on our fertilizers, visit the customer zone at: https://nawozy.eu/ and http://nawozy.grupaazoty.com/pl/main.html)
Plastics represent the second largest segment of the Group’s sales. Our offering includes Tarnamid®, Alphalon® (the trade names of polyamide 6), Tarnoform® (the trade name of polyacetal (POM)), and other modified plastics. Plastics are manufactured by the Group companies based in Tarnów, Puławy, and Guben (Germany). We are the leading manufacturer of polyamide 6 (PA6) in Poland and its third largest producer in the European Union.
The Chemicals segment comprises OXO products (OXO alcohols, plasticizers), technical grade urea, melamine, sulfur, titanium white and other products.
Our main production plants operate their own in-house units generating electricity and heat, which is then transmitted over our own distribution networks, mostly to the Group companies. We also supply electricity and hot domestic water to meet local demand.
In addition, the Group operates as a service provider. Its key service lines include maintenance (automation, design, repair, etc.), logistics (road transport, rail transport, port facilities), and catalyst manufacturing.
Core business of the Group
The Group's sales by geographies (by revenue)
Geographic breakdown of the parent's sales (by revenue)
As at December 31st 2018, in addition to the parent (Grupa Azoty), the Group comprised sixty-two subsidiaries. Three companies – Grupa Azoty, Grupa Azoty Puławy and Grupa Azoty Police − are listed on the Warsaw Stock Exchange.
Despite our global reach, we remain a Polish organisation, with the bulk of our manufacturing operations located in Poland and the parent headquartered in Tarnów. Over the past five years, we have brought together Poland’s largest chemical plants under the single brand of Grupa Azoty, comprising a host of companies with different traditions and diverse, albeit complementary, business profiles. This has led to the creation of Poland’s largest chemical group and a major industry player in Europe. We actively contribute to the progress of the industries in which we operate, sharing our expert knowledge as members of several dozen associations and organisations.
In 2018, the Grupa Azoty Group was a member of the following organisations and associations:
Membership of organisations in 2018
| Polska Izba Przemysłu Chemicznego (Polish Chamber of Chemical Industry − PIPC)|
|Fertilizers Europe (Europejskie Stowarzyszenie Producentów Nawozów)|
|International Fertilizer Industry Association (IFA)|
|European Phosphate Fertilizer Alliance|| Izba Energetyki Przemysłowej i Odbiorców Energii (Polish Chamber of Industrial Power and Energy Consumers)|
| Stowarzyszenie Emitentów Giełdowych (Polish Association of Listed Companies)|
|EPCA (European Petrochemical Association)|
|Stowarzyszenie Eksporterów Polskich (Association of Polish Exporters)|
| Institute of Internal Auditors IIA Poland|
|Internationaler Controller Verein|| Transparency Register|
| System pomocy w transporcie materiałów niebezpiecznych SPOT (SPOT System of Assistance in Hazardous Material Transport)|
| Forum Liderów Bezpiecznej Pracy (Forum of Safe Work Leaders)|
|Konsorcjum Bezpieczeństwo Gospodarcze Polski (Polish Economic Security Consortium) Website|
|Związek Przedsiębiorców i Pracodawców (Association of Entrepreneurs and Employers)||Towarowa Giełda Energii S.A. (Polish Power Exchange)|
|Towarzystwo Obrotu Energią (Energy Trading Association)||Polish-Brazilian Chamber of Commerce|
|R&D Club (TechBrainers Sp. z o.o.)|| Stowarzyszenie Elektryków Polskich Oddział Tarnowski (Association of Polish Electrical Engineers, Tarnów Branch)|
|Izba Przemysłowo – Handlowa w Tarnowie (Tarnów Chamber of Commerce and Industry)|
|Polskie Forum ISO 9000 (Polish ISO 9000 Forum)|
| Stowarzyszenie Inżynierów i Techników Przemysłu Chemicznego (Polish Association of Chemical Engineers)|
|Klub Polskich Laboratoriów Badawczych POLLAB (POLLAB Club of Polish Research Laboratories)|
| Polskie Stowarzyszenie Jakości (Polish Quality Management Association) || Stowarzyszenie Księgowych w Polsce Oddział Kraków (Accountants Association in Poland, Kraków Branch)|
| Stowarzyszenie Polskich Skarbników Korporacyjnych (Association of Polish Corporate Treasurers)|
|Zespół Trójstronny ds. Branży Chemicznej (Tripartite Team for the Chemical Industry)|| Polska Izba Rzeczników Patentowych (Polish Chamber of Patent Attorneys)|
|Komitet Chemii Polskiej Akademii Nauk (Chemistry Committee of the Polish Academy of Sciences)|
|Centrum Zaawansowanych Technologii przy Instytucie Chemii Przemysłowej (Advanced Technology Centre at the Industrial Chemistry Institute)|
|Polska Platforma Technologiczna Wodoru i Ogniw Paliwowych (Polish Hydrogen And Fuel Cell Technology Platform)|
Polska Platforma Technologiczna Zrównoważonej Chemii (Polish Technological Platform for Sustainable Chemistry)
Polska Platforma Technologiczna − Bezpieczeństwo Pracy w Przemyśle (Polish Technological Platform for Safety at Industrial Work Places)
Narodowy Fundusz Ochrony Środowiska (National Fund for Environmental Protection)
|Naczelna Organizacja Techniczna NOT (Polish Federation of Engineering Associations NOT)|
|Izba Rzemieślnicza oraz Małej i Średniej Przedsiębiorczości w Tarnowie (Tarnów Chamber of Craft and SMEs)|
|Konsorcjum Info-Tech-Med (Info-Tech-Med Consortium)|
Grupa Azoty Zakłady Azotowe „Puławy” S.A.
|Polskie Forum ISO 9000 (Polish ISO 9000 Forum)|
|Klub Polskich Laboratoriów Badawczych POLLAB (POLLAB Club of Polish Research Laboratories)|
|Stowarzyszenie Księgowych w Polsce Oddział Lublin (Accountants Association in Poland, Lubin Branch)|
ISSA – Information Systems Security Organisation
|Stowarzyszenie Polskich Skarbników Korporacyjnych (Association of Polish Corporate Treasurers)|
| Towarowa Giełda Energii S.A. (Polish Power Exchange)|
|Puławskie Centrum Przedsiębiorczości (Puławy Entrepreneurship Centre)|
|Związek Przedsiębiorców i Pracodawców (Association of Entrepreneurs and Employers)|
Grupa Azoty Zakłady Chemiczne „Police” S.A.
Stowarzyszenie Zachodniopomorski Klaster Chemiczny (West Pomerania Chemical Cluster)
Polskie Forum ISO 9000 (Polish ISO 9000 Forum)
Klub Polskich Laboratoriów Badawczych POLLAB (POLLAB Club of Polish Research Laboratories)
Polska Izba Odzysku i Recyklingu Opakowań (Polish Chamber of Packaging Recovery and Recycling)
Grupa Azoty Zakłady Azotowe Kędzierzyn S.A.
|Opolska Izba Gospodarcza (Opole Chamber of Commerce)|
Klaster Chemii Specjalistycznej Chem-Ster (Chem-Ster Specialty Chemicals Cluster)
Krajowa Sieć Informatyczna Europejskiej Agencji Bezpieczeństwa i Zdrowia w Pracy (National IT Network of the European Agency for Safety and Health at Work)
|Polska Izba Gospodarcza Elektrotechniki (Polish Economic Chamber of Electrotechnics)|
A HANDFUL OF NOTEWORTHY FACTS:
Grupa Azoty is one of the leading chemical companies globally according to the ‘Value Creation in Chemicals 2016’ ranking, compiled based on a review of 190 largest industry players rated in terms of their total shareholder return. The review covered the value of shares and the amount of dividends. These in turn are driven by various factors, including fluctuations in revenue, profit margins, number of outstanding shares and debt level.
Structure of the Grupa Azoty Group
Our Group builds its value operating as a single entity. This strategic objective is supported by our management model Our Group builds its value operating as a single entity. This strategic objective is supported by our management model,based on centralisation of the functions which generate the greatest synergies and management of key business processes at the Group level, while maintaining the separate legal identity of the Group companies.
The parent and its subsidiaries as at December 31st 2018
Key information about the Group companies:
|Grupa Azoty – the parent of the Grupa Azoty Group||Grupa Azoty Puławy|
Grupa Azoty Zakłady Azotowe Puławy is a leading organisation within the Grupa Azoty Group. The Puławy-based company is the largest supplier of nitrogen fertilizers for Polish farmers and the second largest player on the EU market of prilled urea (PULREA), ammonium nitrate (PULAN), ammonium sulfate (PULSAR), and urea-ammonium nitrate solution (UAN).
The Puławy plant is Poland’s only and Europe’s third largest manufacturer of melamine, which is widely used in the furniture making and construction industries. The company is also the only producer of hydrogen peroxide in Poland and a significant producer of caprolactam.
Registered office: Puławy
|Grupa Azoty Kędzierzyn|
|Grupa Azoty Police ||Grupa Azoty ATT Polymers||Grupa Azoty Polskie Konsorcjum Chemiczne|
|Grupa Azoty Koltar||Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol||Grupa Azoty Compounding |
|Goat TopCo GmbH |
A holding company for 22 other entities, including the main operating company COMPO EXPERT GmbH, one of the largest global manufacturers of specialty fertilizers.
Registered office: Münster (Germany)
|PDH Polska S.A.|
The company’s purpose is to construct a PDH propylene and polypropylene production plant with related infrastructure, auxiliary systems and inter-unit connections, and extension of the Police sea port facilities to include a handling terminal for chemicals that would provide the required logistics infrastructure for receiving and storing the raw material.
Registered office: Police
|Grupa Azoty „Folie” Sp. z o.o.|
The company’ principal business is research and development in technical science. In 2018, the company did not carry out any operating activities or employ any personnel.
Registered office: Tarnów
Structure of the Grupa Azoty Group as at December 31st 2018
Key changes in the size, structure and ownership
Merger of Grupa Azoty KOLTAR Sp. z o.o., CTL CHEMKOL Sp. z o.o., and CTL KOLZAP Sp. z o.o.
Grupa Azoty signed an agreement with CTL Logistics to take over certain special purpose vehicles, and thus consolidate railway siding services in Kędzierzyn and Puławy. As a result, since January 1st 2018, all Grupa Azoty companies managing railway sidings have operated within the Group’s structure. The railway siding services were consolidated in Grupa Azoty KOLTAR, while CTL Logistics will remain Grupa Azoty’s strategic partner in transport activities.
Following the changes, Grupa Azoty KOLTAR Sp. z o.o.’s share capital was increased, and its operations were expanded to include a new location in Police, where the company provides forwarding, shunting, and repair services.
Merger of Grupa Azoty Puławy and Elektrownia Puławy Sp. z o.o.
In August 2018, a decision was made to start preparations to merge Grupa Azoty PUŁAWY with its subsidiary Elektrownia Puławy Sp. z o.o. On November 6th 2018, the Extraordinary General Meetings of Grupa Azoty PUŁAWY and Elektrownia Puławy Sp. z o.o. passed resolutions to merge the two companies and to approve their Merger Plan. Grupa Azoty Puławy was the sole owner of Elektrownia Puławy Sp. z o.o.
Merger of AGROCHEM companies
On February 28th 2018, the Extraordinary General Meetings of AGROCHEM Sp. z o.o. of Dolne Miasto and AGROCHEM PUŁAWY Sp. z o.o. of Puławy resolved to approve a merger of the two companies.
Agreement for acquisition of shares in Goat TopCo GmbH
On September 6th, Grupa Azoty entered into a conditional agreement with Goat Netherlands B.V. of Amsterdam, a member of the XIO Group, to purchase 25,000 shares representing 100% of the share capital of Goat TopCo GmbH (“Goat TopCo”) of Münster, Germany, for consideration of no more than EUR 235m.
On October 12th, the parent’s Extraordinary General Meeting passed a resolution to grant consent to Grupa Azoty’s acquisition of shares representing 100% of the share capital of Goat TopCo GmbH under the conditional share purchase agreement, subject to clearance by the relevant antitrust authorities, on the financial terms stipulated in the conditional agreement, for a price not higher than EUR 235m. The resolution took effect as of its date.
The transaction is consistent with the parent’s strategy to reinforce the Grupa Azoty Group’s position among the leading providers of agricultural solutions as well as to expand and enhance its fertilizer product portfolio. It opened new opportunities for the Grupa Azoty Group to diversify its business while acquiring highly innovative technologies, know-how, and a well-developed distribution network. Products offered by the COMPO EXPERT Group complemented the portfolio of Grupa Azoty with specialty fertilizers – NPK (based on SOP and stabilized), SRF and CFR, fertigation and foliar feed fertilizers, liquid fertilizers and bio-stimulators. The final price for COMPO EXPERT was EUR 226,637 thousand.
Expansion of the fertilizer portfolio following the acquisition of shares in Goat TopCo GmbH
Fertilizer value pyramid
Other changes included registration of the share capital increase at the following companies: ZA Chorzów S.A., Grupa Azoty Compounding Sp. z o.o., Grupa Azoty Siarkopol S.A., and PDH Polska S.A., and discontinuation of the operations of the subsidiary Infrapark Police S.A. w likwidacji (in liquidation).
Shareholding structure of Grupa Azoty
* Direct subsidiary of Norica Holding S.à r.l.
* Indirectly: 19.82%.
Shareholding structure of Grupa Azoty Police
Shareholding structure of Grupa Azoty Puławy
Shareholding structure of Grupa Azoty Kędzierzyn
The Management Board of Grupa Azoty operates as the Management Board of the Grupa Azoty Group. President of the Management Board exercises overall supervision of the Group. Key areas of activity:
- plastics and organic synthesis
- supply chain management
- social dialogue
- technical safety and environmental protection
In 2018, the Management Board and the Supervisory Board of Grupa Azoty consisted of persons holding university degrees in law, economics, chemical engineering and technology, as well as environmental engineering. Most of their members also completed post-graduate programmes in corporate management, polymer chemistry and technology, management control, MBA programmes, as well as specialist courses or trainings, including in:
- power engineering
- transport of hazardous materials
- project management
- disclosure requirements applicable to WSE-listed companies
- asset management
- strategy risk management
- corporate governance
Management Board of Grupa Azoty as at December 31st 2018:
President of the Management Board
- management and HR policy
- audit and risk
Vice President of the Management Board, Director General
- Director General of Grupa Azoty
- Agro segment
- Plastics segment
- Organic Synthesis segment
- production integration
dr Grzegorz Kądzielawski,
Vice President of the Management Board
- research and development
Vice President of the Management Board
- planning and management
- control development strategy
- investor relations
- mergers and acquisitions
Vice President of the Management Board
- procurement strategy
- raw materials and products integration
member of the Management Board
- production assets
- technical safety and infrastructure
- environmental protection
- social dialogue
On May 17th 2018, the Supervisory Board adopted resolutions to appoint the Management Board of the parent for a new, 11th term of office. On June 28th 2018, i.e. the date of the Annual General Meeting, the mandate of Józef Rojek as Vice President of the Management Board of the 10th term of office expired.
Grupa Azoty Council
The Management Board is advised by the Grupa Azoty Council, a permanent body whose main tasks include advising, issuing opinions and initiating management improvement measures and changes in the functional and business areas (in particular in the strategic development and marketing plans). The Council issues opinions on proposed planning assumptions for the Group companies’ budgets and assumptions for long-term plans. It also serves as a platform enhancing communication, cooperation and information sharing at the Group.
The Grupa Azoty Council consists of the Presidents and members of the Management Boards of all of the Group consolidated companies and the Managing Director of the parent.
The Supervisory Board is responsible for ongoing supervision of the Grupa Azoty’s operations.
As at December 31st 2018, the Supervisory Board consisted of:
- Tomasz Karusewicz – Chairman of the Supervisory Board
- Michał Gabryel – Deputy Chairman of the Supervisory Board
- Zbigniew Paprocki – Secretary of the Supervisory Board
- Piotr Czajkowski – member of the Supervisory Board
- Monika Fill – member of the Supervisory Board
- Robert Kapka – member of the Supervisory Board
- Bartłomiej Litwińczuk – member of the Supervisory Board
- Ireneusz Purgacz – member of the Supervisory Board
- Roman Romaniszyn – member of the Supervisory Board.
The Supervisory Board is advised by the Strategy and Development Committee, the Nomination and Remuneration Committee, and the Audit Committee. The responsibilities of the Audit Committee include:
- monitoring of the financial reporting process,
- monitoring of the effectiveness of internal controls,
- monitoring of financial audit,
- monitoring of the independence of the auditors and the audit firm responsible for auditing the company's financial statements.
Take a look at our logistics chain
At our Group, procurement of raw materials and distribution of products in Poland and abroad is the responsibility of the Corporate Procurement Department working closely with the Corporate Logistics Department, which also together oversee the processes related to warehouse management, packaging and coordination of transport. They also set strategic objectives for logistics and manage the related risks.
Managing a chain of supply of raw materials and products to and from companies located throughout Poland is for us a tremendous logistic challenge. Every year, we transport millions of tonnes of fertilizers, chemical products and raw materials. With advanced logistics solutions, we are able to optimise shipments, which translates into financial and environmental savings. Rail is the most cost-effective transport, partly provided by our own company Grupa Azoty Koltar. Sea transport is particularly profitable at Grupa Azoty Police, given its location in the vicinity of Szczecin.
Grupa Azoty is the first Polish chemical company to have deployed the modern TMS SOOT system improving its transport processes. The standard SOOT solutions have been extended to include other functionalities: communication with carriers, reporting of transport-related incidents, notification of shipments with the use of a ‘notification link’, and notification of the recipients of a shipment dispatch. Further solutions and upgrades are also in the pipeline.
At the Grupa Azoty Group, we believe that a premium quality product deserves high quality delivery. Accordingly, in 2018 we held a training session for 18 drivers of Grupa Azoty Police who deliver our RedNOx products. RedNOx is used in diesel engine-powered trucks, cars, heavy construction and agricultural equipment, and marine vessels. The training involved thorough instruction on procedures to keep the products clean and sterile, and protect them against contamination with gasoline, crude oil, oil, water, dust, dirt, metals and detergents. Clear guidelines were given on the rules for unloading, sampling and transferring samples to customers. The drivers were even provided with customer conversation scenarios.
As the Group exports and imports massive amounts of goods, sea ports are a vital element of its logistics structure. We own port assets in Gdynia, Gdańsk and Police, which are tailored to the Group’s storage and handling needs. Every year, the Group’s sea terminals handle over three million tonnes of cargo, with an additional 500,000 tonnes of cargo handled for customers from outside the Group.
Sea transport of the Group’s products involves mainly full-cargo shipments carried by bulk carriers and chemical tankers, but also large volumes of goods transported in intermodal containers. Our cargo is handled by the container terminals in Gdynia and Gdańsk and by most shipowners operating on the market. The transported product groups are fertilizers and chemicals that are subject to further conversion by the recipient.
Grupa Azoty Police is the only chemical company in Poland to own port facilities located in close proximity to its premises. The Police Sea Port comprises four terminals: a sea terminal, a barge terminal, Jasienica, and Mijanka. The port handles outbound and inbound flows of bulk goods for the Grupa Azoty Group. We talked about the development of the Police Sea Port to Infrastructure Minister Andrzej Adamczyk during a meeting held in 2018. The port in Police is Poland’s fourth largest sea port, serving approximately 300 vessels and handling approximately 2 million tonnes of cargo every year. It plays a vital role in the Grupa Azoty Group’s logistics, therefore we seek to ensure it is optimally linked with road and rail infrastructure.
The port is to undergo modernisation in connection with a project to build a polypropylene plant in Police. Work is also under way to deepen the fairway between Szczecin and Świnoujście.
Having our own storage facilities throughout Poland, we have also signed agreements with more than 80 distributors who operate warehouses all over the country. We comply with all storage safety standards for our products in accordance with the relevant product data sheets.
Since the procurement area was consolidated at the Group level, all key suppliers have been vetted against CSR criteria.
In 2017, we resolved to consolidate our rail assets. The task of consolidating the rail transport services of the four main plants was undertaken by Grupa Azoty Koltar, the operator of the railway siding in Tarnów. The process was completed in 2018.
In addition to its extensive experience in rail transport, Koltar also owns a modern locomotive repair and inspection shop. The shop is equipped with an inspection pit, lifts and a 20-tonne gantry crane used to inspect and repair the locomotives owned by the Group.
Guben Logistics Centre
We opened a Logistics Centre in Guben, Germany, in 2018 as a distribution centre for the polyamide produced by our subsidiary ATT Polymers. The new Logistics Centre comprises a warehouse, silos and the necessary infrastructure. Its storage capacity is 3,500 tonnes and it has an area of 5,500 m2 in total.