Grupa Azoty S.A. (until 2013 Zakłady Azotowe in Tarnów-Mościce) is a major Polish chemical industry company headquartered in the Mościce district of Tarnów, in the Lesser Poland Voivodeship of southeastern Poland.
The company was established in 1927, during the Second Polish Republic, as one of the most modern factories in Europe at the time. Currently, Grupa Azoty is the largest chemical company in Poland and is a major producer of fertilizers, plastics, chemicals, oxo alcohols and pigments.
At the end of 2019, the group employed 15,609 employees in 50 companies located both in Poland and abroad. In 2022, Grupa Azoty posted a revenue of over 24 billion PLN ($ 5.5 billion). As of 2023, the company is the second largest producer of fertilizers in the European Union. The company markets its products to over 100 countries worldwide. Grupa Azoty is listed on the Warsaw Stock Exchange (WSE) and is a component of the WIG30 stock market index.
History Since 2010, Azoty Tarnów have been undergoing a consolidation as one of the largest chemical enterprises in the country. The first significant event was its acquisition of 100% shares of the Unylon Polymers GmbH in Guben/Germany – polyamide manufacturing enterprise. The German business entered the Azoty Tarnów Capital Group and changed its name to ATT Polymers.
Another step involved consolidating the Polish chemical industry, by merging the largest companies in this sector on the domestic market. This began by amalgamating Zakłady Azotowe in Tarnów with Zakłady Azotowe in Kędzierzyn-Koźle (ZAK S.A.). Azoty Tarnów purchased 52.6% B series shares of ZAK S.A. for PLN 150 million.
In 2011, a decision was made to amalgamate Azoty Tarnów with Zakłady Chemiczne in Police (near Szczecin), with the State Treasury holding 60% of the shares. The Management Boards of both companies were in favour of the consolidation. Having obtained the consent of the Office of Competition and Consumer Protection and due to lack of objections from the German Federal Cartel Office, the facility in Tarnów began raising the funds necessary to complete the purchase. ZCh Police was successful in raising the funds for a controlling stake by issuing 25 million C series shares, approved by the Polish Financial Supervision Authority. Not only did these funds allow them to take over control over Police, but also to buy back another 40% of shares of the facility in Kędzierzyn from the state Treasury.
Hostile take over bid In 2012, Azoty Tarnów became the target of a hostile take-over bid by the Russian Acron Group. On 16 May, the Russian company attempted to take control of the Polish chemical company through its subsidiary Norica Holding S.à r.l. They announced a tender of PLN 36 per share for Zakłady Azotowe in Tarnów-Mościce. Acron Group managed to purchase only 12% of available shares. Steps taken by the company's management board and by the Polish Treasury, such as adoption by Parliament of legislation to control certain state investments, secured the enterprise against future hostile take-overs.
In 2023, Akron owned 19.82% of Grupa Azoty. These shares were frozen as Akron owner Viatcheslav Kantor came under European sanctions imposed in the wake of the 2022 Russian invasion of Ukraine. In July 2023, the Polish authorities transferred Acron's stake in Grupa Azoty to external management and began looking for a buyer.
Expansion On 13 July 2012, an offer for 6,116,800 shares of the Zakłady Azotowe in Puławy at PLN 110 per share, was announced. As a result of the call, the facility in Tarnów managed to obtain 10.3% shares of the facility in Puławy. This offer was the first step in the consolidation of the two largest chemical companies in Poland. The idea of merging Zakłady Azotowe in Puławy with Azoty Tarnów was supported by the Polish Treasury and the trade unions. On 15 November 2012 the management boards of Zakłady Azotowe in Tarnów and Puławy concluded an agreement for establishing the principles of cooperation and conducting negotiations. Later, Azoty Tarnów issued shares, available solely to the shareholders of the company in Puławy. They exchanged shares held in Zakłady in Puławy for shares of the Tarnów company, at a ratio of 1:2. Full performance of this stage still required consent of the European Commission for the merger of both companies which was issued on 13 January 2013. Finally, a buy-back allowed Azoty Tarnów to purchase 95% of shares in Zakłady Azotowe in Puławy. Consolidation of the enterprises in Tarnów, Puławy, Police and Kędzierzyn-Koźle allowed for formation of one of the largest fertiliser companies in Europe, operating under the name of Grupa Azoty, consolidating ca. 75-80 per cent of the national fertiliser production.
On 21 November 2013, the Company purchased 85% of shares of the only Polish sulphur producer by smelting, Kopalnia i Zakłady Chemiczne Siarki, "Siarkopol" S.A. in Grzybów, from the Treasury. The value of the transaction was ca. PLN 400 million.
Another important event in the history of the company was the purchase of a Phosphorite mine in Senegal by Grupa Azoty Zakłady Chemiczne „Police" S.A. Zakłady in Police was able to purchase a controlling stake of 55% of AIG company shares for $28.5 million. This investment, now a subsidiary of Grupa Azoty, secured its own source of raw material for the production of phosphorus and other multi-ingredient fertilisers integral to its business.
In 2018, Grupa Azoty acquired German company Goat TopCo GmbH based in Münster for a reported EUR 226.6 million. The company operates within the specialty fertilizers segment and owns COMPO EXPERT company. The transaction was aimed at strengthening the company's position as a leading provider of agricultural solutions.
A leading European player It is currently the largest chemical holding company in Poland. It is also a leading chemicals company in Europe, where it is the second largest producer of mineral fertilizers and melamine, the third largest producer of compound fertilizers, and the fifth largest producer of plasticisers and polyamide 6.
Organisational structure Grupa Azoty (formerly: Zakłady Azotowe in Tarnów-Mościce S.A.) forms a Holding Group with the following subsidiaries: Grupa Azoty Zakłady Azotowe "Puławy" S.A.(abridged name: Grupa Azoty PUŁAWY). Grupa Azoty Zakłady Chemiczne "Police" S.A. (abridged name: Grupa Azoty POLICE). Grupa Azoty Zakłady Azotowe Kędzierzyn S. A. (abridged name: Grupa Azoty ZAK). Grupa Azoty ATT Polymers GmbH – producer of PA-6 in Western Europe, the company, as a result of affiliation with the Grupa Azoty, it is integrated with the supplier of caprolactam – material used in PA-6 production. Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki "Siarkopol" S.A. (abridged name: Grupa Azoty SIARKOPOL, former KiZCHS Siarkopol S.A. in Grzybów). Grupa Azoty Polskie Konsorcjum Chemiczne Sp. z o.o. (abridged name: Grupa Azoty PKCh). Grupa Azoty Jednostka Ratownictwa Chemicznego Sp. z o.o. (abridged name: Grupa Azoty JRCh) – provides services within the scope of chemical rescue. Grupa Azoty Automatyka Sp. z o.o. (abridged name: Grupa Azoty AUTOMATYKA) – main field of operation: industrial automatics. Grupa Azoty PROReM Sp. z o.o. – technological installations for chemical power engineering, nutritional industry and others. EKO Technologies Consortium EKOTAR Sp. z o.o. Consortium Grupa Azoty Koltar Sp. z o.o. (abbridged name: Grupa Azoty KOLTAR ) - performing certified transport of goods, railway rolling stock rental, overhaul and maintenance of railway tracks. Grupa Azoty "Folie" Sp. z o.o. Grupa Azoty Azoty "Compounding" Sp. z o.o. Navitrans Sp. z o.o.
Products Grupa Azoty is currently the second largest producer of mineral fertilizers and third of compound fertilisers in the European Union. It is also present in the sector of construction plastics, OXO alcohols and plasticizers. It offers a rich range of products made in particular plants in Tarnów, Puławy, Kędzierzyn-Koźle and Police, Gdańsk, Grzybów, Chorzów and in Guben (Germany).
Main fields of operation Agricultural fertilisers Mineral fertilisers are one of the main products of Grupa Azoty. It specialises in the production of nitric and compound fertilizers. Additionally, in the sector the company produces ammonia and other nitrogen-based half-products. Grupa Azoty mines phosphorite, the main material in compound fertilizer production from its part-owned mine in Senegal. Grupa Azoty leads the Polish market and is the second largest producer of mineral fertilizers in the European Union. Plastics Engineering plastics (polyamide 6 (PA6) and modified plastics) are produced as well as auxiliary products such as caprolactam and other chemicals. Currently, the largest factory of Polyamide 6 in Tarnów is under construction, which will allow Grupa Azoty to increase its production possibilities and become the leading producer of this material in Europe. Chemicals Another activity of the Group is chemical production, focusing on: OXO products, urea, melamine and sulphur. Grupa Azoty is the third largest producer of melamine in the world and second in the European Union. Whereas, in OXO products, Grupa Azoty is the only one in Poland and seventh in Europe in terms of OXO alcohol production as well as the largest national and fifth largest European company producing plasticisers. Power engineering Electric power and heat produced in the plant are sold locally, in the vicinity of the company. The Group has its own distribution networks for power utilities and energy. Currently, construction plans of new heat-power blocks are made in the premises of plants in Kędzierzyn and Puławy.
Research and development
Coal gasification Grupa Azoty has an agreement with AGH University of Science and Technology in the field of developing pure coal technologies and their implementation on an industrial scale in Poland. The joint projects concern research into coal preparation for gasification, its application in chemical processes, development of technologies for using slag and dust produced during coal gasification processing, energy and emissive conditions that are in line with requirements of the European Union. In addition to AGH, Grupa Azoty cooperates with Tauron and KGHM in the project, with which letters of intent were signed. Stearin production In 2013, Zakłady Azotowe Chorzów (part of Grupa Azoty PULAWY), the first installation for stearin production in Poland yields 13.2 tons per year. Investment in Senegal In 2013, Grupa Azoty POLICE purchased 55% of shares in the African Investment Group, which gave the Polish concern access to the raw material deposits in Senegal: ilmenite sand deposits Sud Saint Louis and calcium phosphate deposits in the Lam Lam and Kebemer region. In addition to the purchase of the mines, Grupa Azoty plans to start production of phosphoric acid in Senegal. Cooperation with Lotos Grupa Azoty in cooperation with Lotos prepared a feasibility study for a new petrochemical complex in Gdańsk (project performance was delayed in time due to other priorities of both companies). Cooperation with Synthos Grupa Azoty began a collaboration with Synthos, through its Zakłady Azotowe in Chorzów. Grupa Azoty then collaborated with the Pfleiderer Grajewo company, a producer of materials based on wood. Cooperation with KGHM KGHM started research in the region of Puck Bay, with the aim of prospecting for potassium-magnesium salt and rock-salt deposits. KGHM plans to exploit potassium-magnesium deposits jointly with Grupa Azoty. It is estimated that the by means of deposit exploitation in the Puck region, it is possible to obtain 600 million tons of material with potassium oxide content from 7 to 13.7 percent. Cooperation with PZU S.A. PZU S.A. and Grupa Azoty will provide support to small companies for scientific research and commercialization. Cooperation with PKP Cargo S.A.