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Puławy, June 18th 2008
New Oxygen Generating Plant for ZA Puławy
The Company has started extension work on the “Oxygen Generation Plant – Ammonia – Urea” production line
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Yesterday (June 17th 2008), Zakłady Azotowe Puławy Spółka Akcyjna (“ZA Puławy”) concluded a significant agreement with Air Liquide Polska Sp. z o.o. Under the agreement, Air Liquide will construct an air separation unit on a plot of land leased from ZA Puławy and will subsequently operate it. From January 1st 2010, the unit will produce gases: oxygen and nitrogen. The agreement was concluded for 15 years and its estimated value is PLN 680,000,000. |
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from left: Paweł Jarczewski - President of the Board of Pulawy, Terry Humphrey - Chairman of the Board of Air Liquide Polska, Lech Schimmelpfennig - Member of the Board of Pulawy |
The new oxygen generation plant is an important part of the Company’s strategy and a key stage in expanding the “Oxygen Generation Plant – Ammonia – Urea” production line, says Paweł Jarczewski, President of the Management Board of ZA Puławy. The project will enable us to significantly increase the production of urea whose prices on the global markets are growing markedly. The additional 270,000 tonnes of the product per year will enhance our production capacity of urea, which will reach 1,215,000 tonnes per year in less than two years.
Additional direct or indirect effects resulting from the execution of this project will be: an increase in the production capacity of ammonia of approx. 170,000 tonnes per year (currently 955,000 tonnes per year) and in the production capacity of caprolactam by approx. 5,000 tonnes per year (currently 65,000 tonnes per year). The consumption rates will be lower, e.g. the use of natural gas at the Ammonia II units will be lower by approx. 5.4% and the use of ammonia at Urea units will be lower by over 3.5% (with the ecological benefit of lower ammonia emissions to the environment).
The extension of the “Oxygen Generation Plant – Ammonia – Urea” production line will be executed in two stages. The first stage will consist in the construction of the new oxygen generation plant which will replace the currently operating oxygen generation units. The second stage will consist in the upgrade and efficiency enhancement of the urea production unit.
The new plant will be constructed under an over-the-fence arrangement. This means that ZA Puławy will build the foundations and ensure connection of utilities, while Air Liquide will build the air separation unit and later operate and maintain it. Under separate agreements, ZA Puławy will lease the land and supply the unit with the utilities necessary for its operation, i.e. electricity, steam, and water, explains Lech Schimmelpfennig, Member of the Management Board of ZA Puławy.
The construction of the new oxygen generation plant is the first investment project executed in Puławska Podstrefa Specjalnej Strefy Ekonomicznej “Starachowice” (a subzone of the Starachowice Special Economic Zone) established in October 2007. The “Oxygen Generation Plant – Ammonia – Urea” production line is currently the largest project executed in the zone. The project is implemented in discharge of ZA Puławy’s undertakings assumed in the Company’s Strategy for 2007.
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Air Liquide Polska Sp. z o.o. is a member of the Air Liquide Group, established in 1902 – a global leader in the production and distribution of technical gases, and in air separation technology for the Large Industrie segment.
Air Liquide Polska Sp. z o.o. started its operations in Poland in 1995. Currently it is one of the four largest providers of technical gases in the Polish market. The company has two production facilities – in D±browa Górnicza and Kraków. They produce technical gases for the ArcelorMittal Group’s steel works in Kraków and D±browa Górnicza.
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Zakłady Azotowe “Puławy” Spółka Akcyjna is a listed company (since October 2005) whose principal shareholder is the State Treasury (with a 50.73% holding). The company currently operates on three key product markets:
- fertilisers for the agricultural industry (urea, ammonium nitrate, urea-ammonium nitrate solution - UAN and ammonium sulphate) – leading domestic and global producer;
- melamine (a raw material in the production of synthetic resins, which in turn are used in the production of furniture, paints and varnishes, as well as in the textile and paper industries) – the third largest producer in the world, the only producer in Poland;
- caprolactam (a raw material in the production of textile fibres, industrial fibres, carpets and engineering resins, which are in turn used in the automotive, electronic and food industries) – one of Poland’s two producers .
ZA “Puławy” S.A. is the largest player on the Polish fertiliser and chemical market and enjoys a strong position globally. Export sales account for approx. 50% of its total revenue
For more information please see: www.zapulawy.pl |
