Our business – who we are, how we operate

Mission and business model

At the Grupa Azoty Group, we believe that our companies may contribute to the flourishing of the domestic chemical industry and related sectors.

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Business model

At the Grupa Azoty Group, we believe that our companies may contribute to the flourishing of the domestic chemical industry and related sectors. We want to be a springboard for the development of the Polish chemical sector’s product chain and the industry’s leader of progress in research and development. Our initiatives pave the way to reducing Poland’s trade deficit in chemicals. We are a platform for cooperation with state-controlled companies

Generally, there is no loyalty on the customer market but with the Grupa Azoty Group’s capital one can make people take pride in using a Polish bran Dialogue session

Our vision:

Deploy state-of-the-art, comprehensive chemical industry solutions that meet stakeholder expectations

Our mission:

Create value for Grupa Azoty and the national economy by delivering safe, useful and innovation-driven chemical products

We are building our brand based on:

  • Innovation
  • Expertise
  • Responsibility
  • Professionalism
  • Harmony

Learn how our products are made

From raw materials to product Grupa Azoty S.A.

See where our products are used

Agriculture, automotive, textile, electrical engineering and electronics industries. Medicine and construction. Household appliances and food industry. Even angling. Either directly or indirectly, our products are present in the life of every Pole, as well as many people from Europe and around the world. We consider this impact to be our commitment to maintain top quality standards, we understand our responsibility and work hard to meet customer expectations.


Agriculture

 According to the most common law of agricultural science (Liebig’s law of the minimum), the amount of crops depends on the nutrient that is the scarcest in soil. The wide and diverse range of fertilizer products offered by the Grupa Azoty Group helps farmers meet the requirements following from this principle. Application of fertilizers manufactured by the Group affects the way plants use mineral resources and water, leading to improved environmental and economic efficiency of fertilisation. We are also developing a segment of services for businesses, including the SatAgro programme

Food industry 

The polyamide granules produced by Grupa Azoty S.A. are applied in the manufacture of polyamide casings used to package cold meats. Other important components supplied by the Group are bio-based non-phthalate plasticizers, which are also used as products suitable for direct contact with food.

Automotive industry

Our polyamide 6 and POM have a variety of applications in the automotive industry. Thanks to their exceptional properties, including high durability and ability to absorb vibrations, as well as thermal resistance, chemical resistance and resistance to impact, they are suitable for the manufacturing of automotive parts located near motors, electrical systems and internal and external equipment for motor vehicles.

The OXO alcohols produced by our plants are used as additives to plastics. Sulfur is used in the tyre industry.

Electrical engineering

Electrical insulation and self-extinguishing properties make our polyamide 6 an ideal material for electrical engineering applications. It is used to manufacture switchgear cabinets, plugs, connectors, connector pins, circuit-breakers and sockets.

Furniture industry

Części do mebli, płyty, wkręty, kołki, części krzeseł, rolki, klamki i uchwyty. We wszystkich tych elementach producenci mebli korzystają z produkowanego przez Grupę Azoty mocznika technicznego, melaminy oraz poliamidu 6.

Household appliances

Plastics manufactured by the Grupa Azoty Group are used to produce components for fridges, freezers, centrifuges, washing machines and kitchen appliances.

Sports

Angling equipment, components for skis, snowboards, skateboards, roller skates, helmets and bicycles. All those things are produced using our polyamide 6.

Paints and varnishes

Manufacturers of paints and varnishes need solvents. Our OXO alcohols are an ideal product for this application.

Learn about our business/value creation model
[201-4] [203-1] [203-2]

People are our most valuable asset. We employ our resources to build competence and create a work environment conducive to process innovation and new product development. Our business model is founded on the power to create. Our products contribute to the quality of human life, food security and sustainable agriculture.

We appreciate our shareholders. We focus on delivering stable and predictable financial performance and managing risks, including non-financial aspects (ESG). Our business scale allows us to make a positive contribution to the economic and social environment.

We manage our Group conscienciously – our investments and expenditure translate into tangible benefits:

  • growth of financial capital,
  •  growth of manufacturing capital in the form of products, services and high-quality delivery processes,
  •  growth of human capital quality,
  • growth of the organisation’s intellectual capital,
  • growth of natural capital,
  • growth of social and relationship capital.
Safe chemicals
Our efforts and expenditure:
Our performance and benefits to the environment:
  •  We ensure safe and high-quality products - 100% of material product categories are assessed in terms of their impact on health and safety of consumers and the natural environment
  •  We manage quality, environmental impacts and OHS based on commonly accepted standards and ISO systems, including ISO 900, ISO 14001, PN-N-18001
  •  Our processes are compliant with the Product Stewardship programme (Fertilizers Europe)
  •  We spend money on projects improving safety of our plants to the environment – PLN 11.68m in 2016, and PLN 28.5m in 2017
  •  We also invest in improving safety at work − in 2016–2017, the total number of training hours devoted to OHS issues was approximately 115,000
  •  We embark on projects reducing negative environmental impacts, including through flue gas desulfurisation and industrial wastewater treatment - PLN 47.3m in 2016 and PLN 17.64m in 2017
  •  No cases of non-compliance with applicable regulations and voluntarily adopted codes relating to product labelling and information
  •  Our management systems operate effectively – in 2017 there was only one case of recalling a batch of seed material, which was quickly identified and disposed of
  •  No fatalities
  •  Reduction of N2O emissions in the manufacture of nitric acid following upgrade of the catalytic and catchment gauzes: from 0.97 kg N2O/t HNO3 in 2016 to 0.68 kg N2O/t HNO3*in 2017 after the upgrade
  •  Drop in energy consumption relative to 2015: by ca. 25% at Grupa Azoty Kędzierzyn, ca. 6% at Grupa Azoty Police, and ca. 17% at Grupa Azoty S.A.1
  •  Reduction of electricity consumption intensity at Grupa Azoty S.A. (Tarnów) by approximately 20%, and by 0.29% at Grupa Azoty Puławy


*The information provided relates to Grupa Azoty Puławy.

Useful chemicals
Our efforts and expenditure:
Our performance and benefits to the environment:
  •  Revenue from sale of fertilizers in the Agro Fertilizers segment rose 1.2% year on year
  •  We run a unique ‘Grounded in Knowledge’ programme − we have gathered 28,000 soil samples at as many as 17 Regional Chemical and Agricultural Stations so that farmers can find out the nutrient requirements of their soil and plan appropriate fertilizer application strategies
  • The SatAgro technology  enables farmers to use satellite tools to remotely monitor their crops


Innovation-based growth
Our efforts and expenditure:
Our performance and benefits to the environment:
  •  Partnering with science institutes in research on the development of ‘smart fertilizers’ designed for particular plants and soil conditions (high-margin, low-tonnage specialty products customised for specific crops and customers) – cooperation with the Agricultural Market Agency and New Chemical Syntheses Institute
  • Since its establishment, the Grupa Azoty Group has spent over PLN 80m on projects commissioned from the New Chemical Syntheses Institute
  • Projects and research conducted by two own Research and Development Centres
  •  R&D&I spending will reach 1% of Grupa Azoty Group’s revenue by 2020.


Value of the Grupa Azoty Group and its influence on growth of Poland’s economy
Our efforts and expenditure:
Our performance and benefits to the environment:
  •  We are among the largest consumers of raw materials in Central and Eastern Europe; in 2016–2017, we spent over
    PLN 7bn per year to purchase raw materials needed to support Group-wide production
  •  We are one of the largest employers – we have created more than 14.5k jobs
  • [203-1] We invest in the development of our environment – the funding we provided to various causes in the form of donations and sponsorship2 totalled over PLN 9m in 2016 and PLN 6.7m in 2017
  •  We build relationships with our neighbours, for instance by holding open-door days and dialogue sessions, running an employee volunteering programme, and providing grants for students
  • [201-4] Significant financial assistance received from the government: grants to finance property, plant and equipment3: 2016 – PLN 10,499,594; 2017 – PLN 6,604,913; grants to finance materials: 2017 – PLN 68,057; public aid related to operation in the special economic zone: 2016 – PLN 14,292,000; 2017 – PLN 9,292,000; other government grants: 2016 – PLN 27,666,871; 2017 – PLN 36,278,589; tax credits for research and development projects: 2016 – PLN 187,291; 2017 – PLN 327,488
  •  Improved operating performance of the Grupa Azoty Group
    · Consolidated revenue: PLN 9,617,495m (up 7.3% year on year)
    · EBITDA: PLN 1,186,886m (up 25.2% year on year)
    · Consolidated net profit of the Group: PLN 488.826m (up 55.1% year on year)
    · Good debt ratio level, with net debt/EBITDA at 0.3
    · Economic value retained: PLN 427.97 thousand
  • [203-2] Amounts paid to the state budget, injected into the economy thanks to the operations of the Grupa Azoty Group’s key companies*
  •  21 - number of the dialogue session participants


1 Only at Grupa Azoty Puławy and Grupa Azoty Police energy consumption increased respectively, by approximately 2% and 3%.
2 Excluding sports sponsorship
3 Grants to finance property, plant and equipment received from the European Regional Development Fund and Energy Regulatory Office (energy efficiency certificates).

* Amounts paid to the state budget, injected into the economy thanks to the operations of the Grupa Azoty Group’s key companies
2016 [PLN]
2017 [PLN]
Property tax108,816,787
109,383,430
Forestry tax3,291
3,271
Tax on means of transport28,988
29,291
Agricultural tax4,426
4,318
Our business – who we are, how we operate
Table of contents
Our business – who we are, how we operate