The problems of this sector during the 16th European Economic Congress in the session "Chemistry and its future" were discussed by: Jacek Bartmiński (Ministry of State Assets), Wiesław Hałucha (Alventa SA), Adam Leszkiewicz (Grupa Azoty SA), Danuta Paduch (PERN), Marcin Puziak (Qemetica, formerly Ciech), Mirosław Skowron, Iwona Szwach (Łukasiewicz Research Network), Tomasz Zieliński (Orlen). You can read the entire discussion on the wnp.pl website.
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President of Grupa Azoty: We already have fertilizer price lists
The chemical industry is against the wall
During the meeting, it was recalled that until recently, European chemistry was leading in the world. But raw material problems, regulations and restrictions imposed in Europe meant that it "exported" a significant part of its production capacity. The EU may have started to notice these problems, but there is still no concrete action. For example, there is no will to introduce tariffs on the import of fertilizers from Russia, which are flooding the European market.
Jacek Bartmiński, Undersecretary of State at the Ministry of State Assets, quoted by wnp.pl, did not hide during the Congress that the chemical industry in Poland, but also in the European Union, faces numerous challenges.
– The biggest headache at the moment is the cost of raw materials and energy. This applies to both the private and public sectors, as well as the entire European chemical market, Bartmiński said.
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Is the European fertilizer industry already becoming dependent on Russia?
Lots of imported fertilizers
Adam Leszkiewicz, president of Grupa Azoty, spoke in a similar tone.
– I would add demand to the weaknesses already mentioned. Although there is still a visible gap for certain goods, and we still import some, the demand is not good – admitted Leszkiewicz for wnp.pl.
He also added very interesting observations about the company he has recently managed.
– What happened to Grupa Azoty did not last 2-3 years. The company's current situation is a matter of the second half of 2022. This year (2022 – editor's note) there were record revenues of PLN 25 billion and a quite solid profit of approximately PLN 600 million. However, in the second half, negative trends began to appear and they affected the company throughout 2023. This resulted in a financial loss for last year of over PLN 3 billion, emphasized the president during the 16th European Economic Congress.
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Why does BASF move part of its production to China?
Adam Leszkiewicz also pointed out that the import of fertilizers from the East, produced in different conditions, i.e. in low gas prices, but also the decline in grain prices, resulted in a decrease in the purchasing power of a large group of farmers. This resulted in lower demand.
– Many problems also lie internally. It is about management issues, internal policy, the cost of purchasing gas, as well as overinvestment – added Leszkiewicz.
