Business news from Ukraine

Business news from Ukraine

Ostchem plants increased fertilizer production by 5.3%

9 May , 2025  

In January-March 2025, the nitrogen holding Ostchem produced 529.3 thousand tons of mineral fertilizers, which is 26.5 thousand tons, or 5.3% more than in the same period of 2023.

“The production structure changed in line with demand and imports: the share of ammonium nitrate and urea decreased, while the share of the most popular type of fertilizer, UAN (urea ammonium nitrate), increased,” the holding said in a statement on Thursday.

Ammonia nitrate production in the first quarter of 2025 decreased to 226,500 tons from 246,000 tons last year, urea to 116,700 tons from 123,500 tons, while UAN production increased from 123,800 to 162.2 thousand tons, and VAS (lime-ammonium nitrate, which is produced only at Rivneazot) – to 15.8 thousand tons from 10.8 thousand tons.

In total, Cherkasy Azot produced 394.8 thousand tons of products, and Rivneazot produced 134.4 thousand tons.

“Ostchem enterprises faced forced production stoppages due to drones entering the territory of our plants and the destruction of external gas and energy infrastructure in the Cherkasy and Rivne regions. Force majeure led to forced disruptions in fertilizer supplies, so we apologize to our customers,” the release said, citing Group DF’s head of corporate communications, Oleg Arestarkhov.

According to him, this was the most difficult season because the holding suffered huge losses due to emergency shutdowns and restarts of production facilities, but he confirmed that fertilizer orders would be fulfilled.
He also thanked the staff of the State Emergency Service of Ukraine for their help in extinguishing the fires, as well as others involved in restoring the destroyed energy and gas infrastructure.

The release also notes that the Ostchem nitrogen holding company revised its strategy in 2025: the new priority is to reduce production risks through investments in the energy independence of enterprises.
“With rising electricity prices and continuing risks, the nitrogen business is forced to take steps to ensure the stability of production chains and reduce external energy consumption,” the holding company explains.

Ostchem is Dmitry Firtash’s Group DF nitrogen holding company, which brings together the largest mineral fertilizer producers in Ukraine. Since 2011, it has included Rivneazot and Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are not operating and are located in the occupied territories.

Cherkasy Azot (Cherkasy, Ukraine) is one of Ukraine’s largest chemical companies. Its designed production capacity is 962,700 tons of ammonia per year, 970,000 tons of ammonium nitrate per year, 891,600 tons of urea per year, and 1 million tons of UAN per year.

PJSC Rivneazot is one of the largest chemical companies in Western Ukraine. On April 12, 2024, Group DF and South Korea’s Hyundai Engineering signed an agreement to build a chemical hub in Rivne. The project involves the construction of plants for the production of green ammonia and hydrogen based on renewable energy sources, as well as new enterprises and production sites for the production of nitrogen fertilizers and chemical derivatives.

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