New Development Prospects for ZA Puławy

 ZA Puławy plans to construct a unit for the production of Polyamide 6 in cooperation with an Italian partner, Aquafil (the Bonazzi Group), a company specialising mainly in the production of polyamide fibres. Recently, there have been visits to the units owned by Aquafil in Slovenia and Italy as well as to the reference unit in China. A framework for the cooperation has already been agreed. On July 18th 2006, the parties signed a Letter of Intent concerning the planned investment project.

The Letter provides for creating a Special Purpose Vehicle (SPV) with the registered office in Puławy to carry out the investment project involving:  the construction of a facility for the production of Polyamide 6 and its further processing into more technologically advanced products such as structural materials used in electronics, electrotechnics, and in particular in the automotive industry.

The initial value of the project is estimated at up to EUR 50m.

The rationale for the planned investment is based on the advantageous market trend seen in the structural materials market segment (the average annualized growth in demand for the next 10 years is projected at 5,1%). The selection of Puławy as the project location is justified by the availability of basic raw materials and the area next to the ZA Puławy’s plant. The existing infrastructure will be used in the project, with the intent of expanding the Special Economic Zones into the area, and obtaining state aid and EU grants for the financing of the project and creating new jobs.

ZA Puławy will gain a stable partner, which has its own modern technologies and enjoys an established position on the market. Furthermore, the partnership with Aquafil S.p.A. will additionally strengthen ZA Puławy’s position in the face of the mergers and acquisitions planned on the European market.
The companies have been cooperating for a number of years. Aquafil is a long-term customer of Puławy, purchasing caprolactam.

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POLYAMIDE
Polyamides are polycondensation materials used mainly in the production of textile, industrial and BCF yarn as well as structural materials. The most rapid development has been seen in the application of Polyamide 6 as a structural material in electronics, electrotechnics and in the automotive industry. Such materials have a great development potential, chiefly owing to the fact that polyamides may be produced in a variety of types and can be easily modified.

Established in 1956, the Bonazzi Group is a significant player on the global textile and chemical market. It has 24 production units in seven countries, a workforce of 3,800 people and an annual revenue of about EUR 520m.

ZA Puławy operates on three key product markets:

• Fertilisers for the agricultural sector (urea, ammonium nitrate, urea-ammonium nitrate solution, ammonium sulphate) – leading Polish and global producer
• Melamine (used in the production of synthetic resin which is applied in the furniture, paint and varnish market, as well as textile and paper sectors) – third largest producer in the world, the only producer in Poland
• Caprolactam (used for the production of textile and industrial fibres, carpeting and engineering resins used in automotive, electronic and food industries) – one of the two producers in Poland.
  ZA Puławy is the largest company in the fertilisers and chemical sector in Poland and an important producer in the world. Approximately half of its revenue is derived from the exports.

For more information please contact:

Marek Sieprawski
ZA Puławy SA
tel. (+ 48 81) 887 62 01
msieprawski@azoty.pulawy.pl