Group DF's Ostchem boosts mineral fertilizer output 60% to 960,000 t in H1
MOSCOW. July 27 (Interfax) - The plants Ostchem, the nitrogen division of Group DF, produced 959,700 tonnes of mineral fertilizer in the first half of 2023, up 60% from 596,300 tonnes in the same period of 2022, Ukrainian media reported, citing a press release from Group DF.
Rivneazot produced 201,200 tonnes and Cherkasy Azot produced 758,600 tonnes.
The group said that the breakdown of production in the first half corresponded to the structure of demand for nitrogen fertilizers taking into account the prices of competitors and margins on certain products.
The company produced 398,700 tonnes of ammonium nitrate, 277,700 tonnes of UAN and 205,900 tonnes of urea in the first half, up from respectively 313,300 tonnes, 116,800 tonnes and 76,400 tonnes a year earlier. However, production of LAN fell almost 80% to 17,200 tonnes.
"Amid conditions of risks, logistics problems, power outages and unplanned shutdowns, the plants managed to get through the period of peak workload and ensure timely delivery of fertilizer to farmers strictly in line with signed agreements," Ostchem head Sergei Pavlyuchuk was quoted as saying in the release.
The main objective now is to prepare production facilities for the fall season, he said. The key divisions will be launched after maintenance is completed and capacity utilization at the plants will increase in August.
The main factors that enabled Ostchem to meet its production target were the growth of demand from farmers and major agribusiness groups, growth of sales thanks to subsidized loans, reasonable gas prices, a drop in wholesale fertilizer prices and drawn out spring planting due to weather conditions, the group said.
"Our plants are prepared to produce as much fertilizer as the market can buy," Group DF's head of corporate communications, Oleg Arestarkhov said in the press release.
The group also said that Ostchem is continuing to increase production of products in new areas of chemistry. For example, the company has high hopes for AdBlue, a liquid reagent for diesel automobiles, production of which totaled 4,200 tonnes in the first half.
The company produced 10,100 tonnes of carbon dioxide in the first half, with Azot increasing production every month, while Oschem began to develop logistics infrastructure to ensure stable supplies of industrial gases to Ukraine and to Europe.
Group DF consolidates the assets of Dmitry Firtash in the gas distribution, chemical, titanium and port sectors, as well as agriculture and media. Ostchem, the group's nitrogen division, consolidates the largest mineral fertilizer producers in Ukraine.