Ostchem produces 9.1 mln liters of diesel exhaust fluid in 2023, taking 19% of Ukrainian market
MOSCOW. Feb 6 (Interfax) - Ostchem, the fertilizer division of Group DF, produced and sold 9.1 million liters of AdBlue diesel exhaust fluid (DEF) in 2023, giving it 19% of the Ukrainian market, Ukrainian media reported citing Group DF press release.
The Ukrainian market for AdBlue, an additive used to reduce diesel engine emissions, more than doubled to 48.9 million liters. The growth was covered by Ukrainian producers, who doubled output to 30.4 million liters.
"Ostchem is rapidly increasing market share. We have opened an additional AdBlue production shop with capacity of 800 tonnes at Azot (Cherkasy) and in the near term we are considering building a production facility of similar scale at Rivneazot. We have all the prerequisites to further increase market share and a very clear plan for how to do this. The trend toward import substitution is strengthening and the share of imports on the Ukrainian market will clearly decrease," the head of Ostchem's AdBlue project, Petr Dulsky said in the press release.
As of the beginning of 2024, Ostchem had capacity to produce enough DEF to meet 80% of the Ukrainian market's needs, and if necessary it could expand production to fully cover domestic demand and export to European Union markets, the group said.
"We will steadily increase our presence at retail chains and are already now reaching large contracts with major filling station chains such as WOG and Ukrnafta. The priorities of 2023 were construction of new production facilities, growth of our market share, development of the sales network and fine-tuning all logistical issues. Our plans include representative offices in all regions. Concurrently, we are developing a new avenue - working with international companies and entering EU markets," Dulsky said.
The main sellers of AdBlue in Ukraine are Ostchem, CrossChem, ChemElements and TIZ-Karbogaz. Group DF estimates the European market for the additive at 7.2 million liters, led by Germany with consumption of 2.4 million liters per year, France with 2.1 million liters, Italy with 1.3 million liters and Turkey with 726,000 liters.
Using AdBlue, which reduces nitrous oxide emissions from diesel engines by 90%, is required by European Euro 4-5-6 emission standards and is mandatory for diesel automobiles that meet EU standards.
Group DF, founded and owned by Ukrainian businessman Dmitry Firtash, has interests 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.
