Ostchem enterprises increase production of mineral fertilizers by 60.9% to 960,000 tons in H1, 2023

In January-June 2023, Ostchem enterprises increased their production of mineral fertilizers by 60.9% to 959,700 tons compared to January-June 2022.

This is stated in the message of the Group DF group, which includes Ostchem, Ukrainian News Agency reports.

In total, in the 1st half of 2023, Cherkasy Azot produced 758,600 tons, and Rivneazot produced 201,200 tons of mineral fertilizers.

At the same time, factories maintained high production volumes throughout the period, and in May Cherkasy Azot reached the maximum indicator since the beginning of the full-scale war, producing 138,600 tons of mineral fertilizers.

The structure of production in the first half of the year corresponded to the structure of demand for nitrogen fertilizers, taking into account the prices of competitors and the margin of individual goods.

The key products produced by Ostchem plants were: ammonium nitrate - 398,700 tons (313,300 tons for 6 months of 2022); UAM (urea-ammonia mixture) - 277,700 tons (116,800 tons); urea - 205,900 tons (76,400 tons).

At the same time, UAM demonstrated the best growth dynamics - 137.85%, at the same time, the volume of LAN (lime-ammonium nitrate) production decreased almost four times - to 17,200 tons.

"Ostchem's businesses have adapted to work in war. In the face of military risks, logistical problems, light outages and unscheduled shutdowns, factories managed to pass peak periods and ensure the timely shipment of fertilizers to farmers clearly in accordance with the agreements concluded," said Serhii Pavliuchuk, head of the Ostchem nitrogen business.

According to him, at the moment the main task is to prepare production facilities for the autumn season.

"Major repair campaigns are being completed in the basic workshops of enterprises, which increase environmental friendliness, efficiency and reliability of production. After the completion of repairs, key workshops will be launched, the load of plants will increase in August," Pavliuchuk added.

The main factors that contributed to the successful spring season and the implementation of the production plan:

- increase in demand from farmers and large agricultural holdings for mineral fertilizers;

- increase in fertilizer sales due to preferential loans;

- acceptable gas prices in the domestic market and lower selling prices for fertilizers;

- spring sowing, delayed due to weather conditions.

"The first half of the year showed that we are ready to honestly compete with other market players in terms of product quality, prices, and logistics support. Our enterprises are ready to produce as much fertilizer as the market can buy. The illegal import of repackaged Russian fertilizers restrains the development of the domestic chemical industry. Russian fertilizers are imported into the customs territory of Ukraine from 5 countries of the former Soviet Union. Take, for example, urea: since the beginning of this year, 382,800 tons of urea have been imported to Ukraine, of which 269,500 tons from Turkmenistan, Uzbekistan and Azerbaijan. Thus, imports of urea from post-Soviet countries exceeded the volume of Ukrainian production (205,900 tons). With such an import volume, it will be more difficult to launch such urea producers as Dniproazot and the currently standing OPP (Odesa Portside Plant - Ed.)," said Oleh Arestarkhov, head of the corporate communications department of Group DF.

Besides, with the message, Ostchem will continue to increase production in new sectors of chemistry.

In particular, an important position added to the list of products is AdBlue - a liquid reagent for diesel cars, which in May this year received international certification by the Verband der Automobilindustrie e.V.  (German Association of the Automotive Industry, VDA).

In the first half of the year, Ostchem manufactured and sold 4,200 tons of products.

The volume of carbon dioxide production in the first half of 2023 amounted to 10,100 tons.

It is noted that in 2023 Ostchem began to develop logistics infrastructure to ensure a stable supply of industrial gases in both Ukraine and Europe.

As Ukrainian News Agency earlier reported, in the 1st quarter of 2023, Ostchem enterprises increased the production of mineral fertilizers by 36.2% to 0.5 million tons.

Ostchem Holding unites Group DF nitrogen chemistry enterprises.

Group DF is a diversified international group of companies whose business is represented in 11 countries in Europe and Asia.

The main activities of the group are nitrogen, titanium and gas businesses.

Businessman Dmytro Firtash is the founder and owner of Group DF.