Raport_2008_ENG_SG
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Chemicals

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Compare 2007 - 2009


It is was the second year of the operating integration of the Polish and Czech companies. Over the last 12 months, ANWIL SA became the key supplier of ammonia for Spolana a.s., thus increasing the efficiency of its own plants in Włocławek. Compared to 2007, ammonia production went up by over 10%, which was one of the factors why the Polish company increased its return on nitrogenous fertiliser sales by over 18% (increase compared to 2007).

Reduced demand in the construction material sectors (e.g. wire production, window and other profiles, furniture or advertisement sector), combined with the strong zloty compared to USD and EUR, negatively affecting the export competitiveness, forced ANWIL SA to reduce unprocessed PVC production by over 19% and processed PVC production by over 15%.

An overall 22% drop in sodium hydroxide production was due to lower demand for chlorine developed in the same process (used in PVC production).


Nitrogenous Fertilisers


Production
Due to the good condition of agriculture and increasing prosperity among farmers, Lithuanian and German fertiliser manufacturers were increasingly interested in the Polish market. As we had expected, the developing biofuel market in European states generated an increased interest in ammonium nitrate and ammonium sulphate, these two products belonged to the group of fertilisers with the highest growth potential.
ANWIL SA produced more fertilisers than in 2007 (approximately 990 thousand tonnes in mass).

Meanwhile, the total production of nitrogenous fertilisers among the remaining Polish producers in the reported period fell by 8%. The boom on the domestic and European fertiliser market over three quarters of 2008 influenced a high production level which in the chemical sector amounted to 1.163 mn tonnes of nitrogenous fertilisers (in mass).

Market share
In the 2007/2008 season, the chemical sector reported nearly a 19% share in the Polish market of nitrogenous fertilisers, as per nitrogen, given maximum utilisation of production capacities and an increase in fertiliser consumption in Poland. According to EFMA data, the share of the sector in the Czech nitrogenous fertiliser market in the 2007/2008 season amounted to approximately 7%, as per nitrogen.

Investments
A major investment project which was completed and put to operation in December 2008 was a palletisation unit. Palletisation improves logistic processes and significantly facilitates unloading of products by final recipients.

 


Polyvinyl Chloride (PVC)


Production

PVC production capacities in 2008 amounted to 435 thousand tonnes: 300 thousand tonnes in Włocławek.

Market share
The chemical sector companies reported an approximately 44% share in the Polish PVC market in 2008, which is a slight drop compared to the previous year. The share of ANWIL SA and Spolana in the Czech PVC market in the reported period amounted to approximately 15%, which is 3% more than in 2007.

Investments
The most important investment project in the PVC area was undertaken by ANWIL SA and its target was to increase the production capacities of the Włocławek plant to 340 thousand tonnes. The project will be put to operation in 2009.

Searching for new development options, we started construction of PTA plant in Włocławek. There is more information on the project in the chapter on the petrochemical segment.

Another important investment project of ANWIL SA was the construction of an oxygen generating unit which will replace the old, exploited unit and satisfy most of the Włocławek plant demands, as well as ensure nitrogen supplies to the PTA plant.

Due to the area’s limited synergy with PKN ORLEN’s core business, the Company Management Board decided to release capital engaged in PVC and nitrogenous fertilisers, at the same time maintaining its role as the strategic raw material supplier to the chemical industry.

Production volumes of key products in the chemical segment in ANWIL SA in 2007–2008 (tonnes)

  2007 2008 Dynamics
Polyvinyl chloride 300590 241475 -19,7%
PVC processing 81109 68442 -15,6%
Sodium hydroxide (as per 100% NaOH) 193200 149340 -22,7%
Amomonia 455720 501 750 10,1°%
Nitrogenous Fertilisers (as per nitrogen) 295 569 304 768 3,1°%


Plans for 2009
ANWIL SA assumes to maintain its share in the Polish nitrogenous fertiliser market, which in the 2007/2008 season amounted to nearly 19%, given maximum utilisation of production capacities and increased fertiliser consumption in Poland.

As with investment projects, ANWIL SA is planning to continue the execution of consecutive tasks connected with the extension of electric infrastructure (power, water and technical gas supply, and the construction of a biological sewage treatment plant) required for the purposes of the PTA unit. The 2009 budget for these tasks is estimated to be PLN 40 mn. Moreover, consecutive stages of the oxygen generating unit modernisation project will be performed in 2009.


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