Press Release

New Caprolactam Sales Contracts

Zakłady Azotowe Puławy S.A. (ZA Puławy) has just concluded four new contracts for sales of caprolactam to Far East markets. The value of the contracts, relating to exports of caprolactam flakes in 2010, is estimated at nearly PLN 180m. The execution of the contracts entrenches the Company’s position in the Asian markets. Thanks to the consistently high quality of its products and direct business links with Asian partners, ZA Puławy is well positioned to successfully compete with its much larger rivals from Western Europe and Asia.

As one of few caprolactam producers, ZA Puławy weathered the violent market downswing at the end of 2008 maintaining its pre-crisis production levels, only to resume operating at 100% capacity as early as in March. “A great deal of credit for that success goes to our experienced technical staff, professional sales force and logistic functions,” comments Paweł Jarczewski, the Company’s President.

With its annual production capacity of 65 thousand tonnes and the capacity to convert 100% of caprolactam output into flakes (the solid form being much easier to handle during transport), ZA Puławy has globally unique flexibility when it comes to selecting its target markets. Currently, ZA Puławy is running a programme designed to increase its production capacity to 70 thousand tonnes, which will be possible thanks to the execution of another project – the construction of a new oxygen generation plant.

“We are fully prepared to place additional volumes on the market. As a result of the pre-marketing campaign which has just been completed, we have secured a number of declarations of interest in purchasing additional amounts of caprolactam. We hope that new contracts will have been prepared by the end of the year,” says Paweł Jarczewski.