Our business – who we are and how we operate

Value creation model

 Deploy state-of-the-art, comprehensive chemical industry solutions that meet stakeholder expectations

Go to GRI STANDARD index

Our vision:

Deploy state-of-the-art, comprehensive chemical industry solutions that meet stakeholder expectations

Our mission:

Create value for Grupa Azoty and the national economy by delivering safe, useful and innovation-driven chemical products

We are building our brand based on:

  • innovation 
  • knowledge 
  • responsibility 
  • professionalism 
  • harmony
BEST PRACTICE

Our mission and strategic goals are described in the Enterprise Management Policy, which was updated in September 2018. It lists environmental protection, environmental impact mitigation and energy efficiency improvement as some of the effectively supervised and managed business priorities.

[IR-Business model]

See where our products are used

Agriculture, automotive, textile, electrical engineering and electronics industries, medical and construction, household appliances and food industry, angling – we influence, directly and indirectly – through our products, the lives of millions of people. For us, the size of this impact is a commitment to striving for excellence in managing ESG risks.


Agriculture

Application of fertilizers manufactured by the Group affects the way plants use mineral resources and water, leading to improved environmental and economic efficiency of fertilization. We are also developing a segment of services for businesses, including the SatAgro programme.

Food industry

The polyamide granules produced by the Grupa Azoty Group are applied in the manufacture of polyamide casings used to package cold meats. Other important components supplied by the Group are bio-based non-phthalate plasticizers, which are also used as products suitable for direct contact with food.


BEST PRACTICE

We are Poland’s only producer of carbon dioxide for use in the food industry. In 2018, our plant in Puławy produced 220 tonnes of food grade carbon dioxide a day. Made at the plant without interruption since 1970, in 2018 the product started to be marketed under a new brand name ONECON.

The excellent quality of our carbon dioxide is recognised by the largest food industry players in Poland and around the world, including the Żywiec Group, Coca-Cola and PepsiCo.

Automotive industry

Our polyamide 6 and POM have a variety of applications in the automotive industry. Thanks to their exceptional properties, including high durability and ability to absorb vibrations, as well as thermal resistance, chemical resistance and resistance to impact, they are suitable for the manufacturing of automotive parts located near motors, electrical systems and internal and external equipment for motor vehicles.

The OXO alcohols produced by our plants are used as additives to plastics. Sulfur is used in the tyre industry.

Electrical engineering

Electrical insulation and self-extinguishing properties make our polyamide 6 an ideal material for electrical engineering applications. It is used to manufacture switchgear cabinets, plugs, connectors, connector pins, circuit-breakers and sockets.

Furniture industry

Parts for the production of furniture, boards, screws, studs, chair parts, rolls, knobs and handles – all those elements used by furniture producers include technical-grade urea, melamine and/or polyamide 6 produced by the Grupa Azoty Group.

Household appliances

Plastics manufactured by the Grupa Azoty Group are used to produce components for fridges, freezers, centrifuges, washing machines and kitchen appliances.

Sports

Angling equipment, components for skis, snowboards, skateboards, roller skates, helmets and bicycles – all those things are produced using our polyamide 6.

Paints and varnishes

Manufacturers of paints and varnishes need solvents. Our OXO alcohols are an ideal product for this application.


BEST PRACTICE

Grupa Azoty has signed the declaration of partnership for the United Nations’ Sustainable Development Goals. The following goals are key for the Group’s business model:

  •  #9 Industry, innovation and infrastructure – we develop research and drive technological advancement of the industrial sector.
  • #2 Zero hunger – we increase agricultural productivity with our products by gradual improvement of soil and land quality.
  • #12 Responsible consumption and production – balanced consumption and production require a systematic approach and cooperation between various actors along the supply chain, from manufacturers to consumers. Therefore, we run a number of training events at Grupa Azoty, e.g. for farmers.
  • #4 Quality education – we aim to increase the number of young people and adults who have relevant skills (including technical and vocational skills) for employment and entrepreneurship.
  • #13 Climate action – we want to take joint action to combat the adverse changes, reducing our environmental footprint.
  • #6 Clean water and sanitation – in our operations we seek to significantly increase water-use efficiency to help solve the problem of insufficient water supply.

The sustainable development strategy for 2018–2022 implemented by the Group takes into account the Sustainable Development Goals of the highest relevance to the fertilizer and chemical industry. 

See our strategic priorities in business responsibility

Learn about our business/value creation model
[201-4] [203-1] [203-2]

People are our most valuable asset. We employ our resources to build competence and create a work environment conducive to process innovation and new product development. Our products contribute to the quality of human life, food security and sustainable agriculture. 

We focus on delivering stable and predictable financial performance and managing risks, including non-financial aspects (ESG). Our business scale allows us to make a positive contribution to the economic and social environment.

We manage our Group conscientiously – our investments and expenditure translate into tangible benefits:

  • growth of financial capital
  • growth of manufacturing capital  in the form of products, services and high-quality delivery processes
  • growth of human capital quality
  • growth of the organisation's intellectual capital
  • growth of natural capital
  • growth of social and relationship capital
Safe chemicals
Our efforts and expenditure:Our performance and benefits to the environment:
  •  We ensure safe and high-quality products – 100% of our material product categories are assessed in terms of their impact on health and safety of consumers and the natural environment
  •  We manage quality, environmental impacts and OHS based on commonly accepted standards and ISO systems, including ISO 900, ISO 14001, PN-N-18001
  •  Our processes are compliant with the Product Stewardship programme (Fertilizers Europe)
  •  We embark on projects reducing negative environmental impacts, including through flue gas desulfurisation and industrial wastewater treatment przemysłowych
  •  No cases of non-compliance with applicable regulations and voluntarily adopted codes relating to product labelling and information
  •  No fatalities
  •  Reduction of N2O emissions in the manufacture of nitric acid following upgrade of the catalytic and catchment gauzes: in 2018, the ratio was 0.75 kg N2O/t HNO3 at Grupa Azoty Puławy and Grupa Azoty Kędzierzyn, and 1.47 kg N2O/t at Grupa Azoty.
  •  Less energy consumption relative to 2017: by ca. 5% at Grupa Azoty Police, ca. 1% at Grupa Azoty Puławy, and ca. 4%1 at Grupa Azoty


*Data for Grupa Azoty Puławy.

Useful chemicals
Our efforts and expenditure:Our performance and benefits to the environment:
  •  Revenue in the Plastics segment grew by 10% and in the Chemicals segment improved by 11% on 2017
  •  We run a unique Grounded in Knowledge programme − as part of its fourth edition held in 2018 we gathered 11,000 soil samples from almost 1,000 farms, so that farmers can find out the nutrient requirements of their soil and plan appropriate fertilizer application strategies
  • The SatAgro technology enables farmers to use satellite tools to remotely monitor their crops


Innovation-based growth
Our efforts and expenditure:Our performance and benefits to the environment:
  •  Partnering with science institutes in research on the development of ‘smart fertilizers' designed for particular plants and soil conditions (high-margin, low-tonnage specialty products customised for specific crops and customers) – cooperation with the Agricultural Market Agency and New Chemical Syntheses Institute
  • Since its establishment, the Grupa Azoty Group has spent over PLN 80m on projects commissioned from the New Chemical Syntheses Institute
  •  By 2020, R&D&I spending will reach 1% of Grupa Azoty’s revenue
  •  Projects and research conducted by two own Research and Development Centres


Value of the Grupa Azoty Group and its influence on growth of Poland’s economy
Our efforts and expenditure:Our performance and benefits to the environment:
  •  We are among the largest consumers of raw materials in Central and Eastern Europe; in 2018, we spent over PLN 6bn to purchase raw materials needed to support Group-wide production
  •  We are one of the largest employers – we have created more than 15,000 jobs
  •  We build relationships with our neighbours, for instance by holding open-door days and dialogue sessions, running an employee volunteering programme, and providing grants for students
  • [201-4] Significant financial assistance received from the government: grants to finance property, plant and equipment2 – 2017: PLN 6,604,913, 2018: PLN 48,222,436; state aid related to operation within a special economic zone – 2017: PLN 9,292,000; 2018: PLN 16,130,972; other government grants – 2017: PLN 36,278,589; 2018: PLN 92,658,561; tax credits for research and development projects – 2017: PLN 327,488, 2018: PLN 1,483,168
  •  Improved operating performance of the Grupa Azoty Group:
    · Consolidated revenue was PLN 9,998,967m (up 4.0% year on year);
    · EBITDA totalled PLN 764,442m (down -35.6% year on year);
    · Consolidated net profit came in at  PLN 7,650m (down -98.4% year on year)
    · Good debt ratio level, with net debt/EBITDA at  0.3
  •   [203-2] Amounts paid to the state budget, injected into the economy thanks to the operations of the Grupa Azoty Group's key companies:

    2017 (PLN)2018 (PLN)
    Property tax110 080 281
    112 017 307
    Forestry tax3 2703 366
    Tax on means of transport29 291
    32 665
    Agricultural tax4 318
    3 636
  •  21 - number of the dialogue session participants


1 (Only at Grupa Azoty Kędzierzyn energy consumption increased, by approximately 3%).
2 Grants to finance property, plant and equipment in 2018 were received for the construction of Grupa Azoty’s R&D Centre in Tarnów, work on new fertilizer formulas, and development of an innovative high-nitrogen ammonium nitrate fertilizer by Grupa Azoty Kędzierzyn.

Our business – who we are and how we operate
Table of contents
Our business – who we are and how we operate