The plants of nitrogen holding Ostchem produced 1.33 million tons of mineral fertilizers in January-September 2024, down 15.3% from the same period in 2023, the holding said in a statement on Thursday.
According to the report, Cherkasy-based Azot produced 1.06 million tons of mineral fertilizers, down 13.11% year-on-year, and Rivne Azot produced 304.9 thousand tons, down 12.2%.
Production declined for all major types of nitrogen fertilizers.
Ammonium nitrate production decreased by 16.09% to 547.6 thousand tons. UAN production, which had previously shown the highest growth rate, fell by 11.68% to 417.9 thousand tons. The biggest drop in Ukrainian production was for such fertilizers as urea, down 20.17% to 263 thousand tons, and UAN, down 48.9% to 18.9 thousand tons. Production of commercial ammonia also decreased by 11.4% to 43 thousand tons.
“Today we produce as much as the market is ready to consume. Our plants were unevenly loaded in 2024 and are still not operating at full capacity. However, the hot season has now begun, and production capacity is being utilized more. Despite rising gas prices, blackouts, and increased imports from Russia-friendly countries, we are on track to meet our production targets. Ukrainian fertilizers for the agricultural sector are produced in accordance with commercial contracts, and not a single delivery has been disrupted this year,” said Sergiy Pavlyuchuk, Chief Operating Officer of Ostchem.
He added that Cherkasy Azot and Rivne Azot continue to improve the production process and implement modern energy saving solutions. In particular, the installation of an in-house power generation system helped reduce electricity consumption by 40%.
As reported, on April 12, 2024, Group DF International and South Korean Hyundai Engineering signed a large-scale agreement to build a chemical hub in Rivne. The project envisages the construction of green ammonia and hydrogen plants based on renewable energy sources; new enterprises and production sites for the production of nitrogen fertilizers and chemical derivatives.
Ostchem is a nitrogen holding of Dmitry Firtash’s Group DF, which unites the largest mineral fertilizer producers in Ukraine. Since 2011, it has included Rivne Azot and Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are out of operation and located in the occupied territories.
Cherkasy Azot PJSC (Cherkasy, Ukraine) is one of the largest Ukrainian chemical enterprises. The design production capacity is 962.7 thousand tons of ammonia per year, 970 thousand tons of ammonium nitrate per year, 891.6 thousand tons of urea, and one million tons of UAN per year.
Rivne Azot is one of the largest Ukrainian chemical companies in Western Ukraine. On April 12, 2024, Group DF and South Korean Hyundai Engineering signed an agreement to build a chemical hub in Rivne. The project envisages the construction of green ammonia and hydrogen plants based on renewable energy sources; new enterprises and production sites for nitrogen fertilizers and chemical derivatives.
