In the first half of 2024, the enterprises of the Ostchem company decreased the production of mineral fertilizers by 4.3% year over year to 918,500 tons.
This follows from a statement by Group DF, which includes Ostchem, the Ukrainian News agency reports.
In particular, Cherkasy Azot produced 717,800 tons of products in the first half of the year, remaining the largest producer of mineral fertilizers in Ukraine.
At the same time, Rivneazot kept production volumes at last year's level, producing 200,700 tons of products.
"The high level of dumping imports caused a drop in domestic production of the most demanded fertilizers in Ukraine - ammonium nitrate and urea. In particular, the volume of ammonium nitrate production by Ostchem plants decreased by 9% compared to the same period last year - from 398,700 to 362,900 tons. Uncontrolled imports also caused a 10.8% decrease in urea production: the volume of production fell from 205,900 to 183,600 tons. At the same time, Ostchem managed to significantly strengthen its position in the urea-ammonia mixture market," the message says.
Thus, according to the results of the first half of the year, the production of KAS at the Ostchem plants increased by 11.4% to 309,200 tons.
The reason for the growth is the high popularity and growing consumption of KAS, as well as the logistical advantages of Ukrainian manufacturers.
In particular, in order to ensure high demand, new sites for the production of KAS are operating - at Cherkasy Azot (capacity of 1 million tons per year) and Rivneazot (capacity of 300,000 tons per year).
"To ensure sustainable production, we invest in energy projects. The goal is to reduce production risks as much as possible and ensure an uninterrupted supply of fertilizers to farmers. Like all Ukrainian businesses, our factories continue to adapt to work in war conditions; enterprises overcome unprecedented challenges. In addition to interruptions in the supply of electricity due to the destruction of the energy infrastructure, there was also a shortage of personnel: since the beginning of the full-scale war, almost 20% of employees have been mobilized, there is a personnel deficit of about 15%, we are retraining personnel who are learning new professions. But the biggest damage to the chemical industry is caused by the influx of cheap fertilizers from russia-friendly countries; production volumes fell by 4.3%," commented Serhii Pavliuchuk, Ostchem's Director of Nitrogen Business Production.
According to the report, the total volume of nitrogen fertilizers imported into Ukraine in the first half of 2024 was 1.298 million tons.
At the same time, the import of ammonium nitrate amounted to 176,600 tons, urea – 311,300 tons, NPK – 108,500 tons, sulfate – 159,800 tons, NP – 77,7100 tons, and KAS – 50,800 tons.
As the Ukrainian News agency earlier reported, in 2023, Ostchem enterprises increased the production of fertilizers by 19.5% to 2.1 million tons.
The Ostchem holding unites the nitrogen chemistry enterprises of Group DF.
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.
The founder and owner of Group DF is businessman Dmytro Firtash.
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