In 2023, the enterprises of the Ostchem company increased the production of mineral fertilizers by 19.5% to 2.1 million tons compared to 2022.
This is stated in the message of Group DF, which includes Ostchem, Ukrainian News Agency reports.
At the same time, Cherkasy Azot increased the production of fertilizers by 39.63% to 1.56 million tons, and Rivneazot decreased it by 10.81% to 528,000 tons.
The key fertilizers produced by Ostchem enterprises were: urea, KAS and ammonium nitrate.
During the year, 835,900 tons of ammonium nitrate were produced (+60.5% compared to the previous year), KAS - 572,700 tons (+130%), urea - 447,100 tons (+145% ).
Production volumes of traditionally exported fertilizer VAS (produced by Rivneazot) halved to 102,000 tons.
"The fertilizer market is recovering, but the import of nitrogen fertilizers has increased many times and does not give us the opportunity to fully load the factories. Despite the difficult situation in the agricultural sector, forced shutdowns of factories due to hostilities, still high gas prices and abnormally high volumes of imports into Ukraine at dumping prices, Ostchem began to restore the volume of production in 2023. We completely closed the demand from farmers even during periods of peak loads," emphasized Serhii Pavliuchuk, head of Ostchem's nitrogen business.
In 2023, the Ostchem holding doubled the volume of production of KAS - the most promising type of fertilizer in Ukraine.
It is noted that KAS took second place in terms of production volumes, and its share in Ostchem's product portfolio was 27.3%.
"It's no secret that we are negotiating with global players regarding the development of several industrial sites. Our strategic plans include the construction of new workshops, new factories. We are talking about investments in new, energy-efficient fertilizer production, as well as launching the production of new products such as AdBlue, industrial gases, petrochemical products," Pavliuchuk adds.
According to the report, an important feature of the past year is the critical volume of imports brought to Ukraine at dumping prices.
Compared to 2022, the import of mineral fertilizers to Ukraine increased 1.9 times, reaching 1.99 million tons.
For example, the import of urea during the year increased 3.7 times, amounting to 501,000 tons.
"A colossal flow of cheap Belarusian and russian fertilizers enters Ukraine through two channels: the first is from countries of the former USSR friendly to the aggressor. The second new channel is the re-export of Belarusian and russian fertilizers from EU countries. According to Eurostat, the total volume of imports of nitrogen fertilizers to the EU in 2022 - increased by 34% in 2023, while russia accounts for about a third of this import. Despite the sanctions, a significant part of these fertilizers ends up in Ukraine, slowly "killing" the Ukrainian producer and the jobs of Ukrainians," comments Head of Corporate Communications of Group DF, Oleh Arestarkhov.
In his opinion, behind the new trend is not only russia's desire to expand sales markets, but also a strategic plan: to make EU countries and Ukraine dependent on their fertilizers.
Not being able to withstand the competition with cheap imports, many EU enterprises stop, and the enterprises of the Ukrainian chemical industry - such as Odesa Port Plant, Sumykhimprom - are idle.
"The USA and the EU have already developed measures to "reduce dependence" on fertilizers, grain and other food products from the russian federation. In Ukraine, there is a formal embargo on the import of russian and Belarusian fertilizers. Nevertheless, fertilizers from these countries and countries that buy cheap gas in the russian federation continues to be supplied. As a result, our market is flooded with cheap imports, Ukraine is dealing with critical dumping. Unfortunately, in 2023, we have not seen clear tough economic authorities to protect the Ukrainian market and the national producer. Fertilizer imports into the country is growing much faster than domestic production. Domestic production has grown by approximately 20%, and imports by almost 100%. Ukraine needs to learn to better protect its interests. This is the main conclusion of the year for Ukrainian chemistry and the Ukrainian government," Arestarkhov noted.
As Ukrainian News Agency earlier reported, in 2022, the enterprises of the Ostchem company reduced the production of mineral fertilizers by 66.9% to 1.754 million tons compared to 2021.
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.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.