Rivne Azot, a part of Group DF’s nitrogen business, has launched a second production unit at its ammonia shop and increased its mineral fertilizer production capacity, the company’s press service reports.
“Scheduled repairs at Rivne Azot have been completed, and production of basic mineral fertilizers has been increased. The company’s basic ammonia and nitrate shops are 100% operational.
The producer is fully prepared for the autumn increase in demand for mineral fertilizers,” said Mykhailo Zabluda, Chairman of the Board of Rivne Azot.
According to him, as part of the systemic modernization, the plant has installed a distribution control system that reduces production risks and ensures the stability of the company’s operations in the face of power surges and shortages. The company has already implemented a number of energy-efficient solutions aimed at optimizing consumption coefficients, reducing losses of various types of energy and, accordingly, improving fertilizer costs.
According to the production plan, Rivne Azot will produce 1,260 tons of ammonia per day (over 50,000 tons per month), 1,300 tons of nitric acid per day at the nonconcentrated nitric acid shop, and over 1,630 tons of ammonium nitrate per day (over 50,000 tons per month).
Rivne Azot explained that the company managed to load the plant at 100% due to the established import of electricity from abroad and the implementation of projects to launch generating units at the plant, which cover 40% of electricity costs by generating its own. In particular, the company has built and launched special generating equipment (turbine generators) – units that generate electricity from steam utilized from chemical processes.
The design capacity of the generating equipment is about 30 MW.The electricity generated by the turbine generators is used for the company’s own needs.The construction of turbine generators at the enterprise is one of the steps aimed at stabilizing the operation of the equipment in the company’s shops.Ammonia production is the most dependent on stable electricity sources and is considered to be a basic one: the company uses ammonia to make other types of fertilizers, such as ammonium nitrate, UAN, and ammonia water.The commissioning of the generating equipment makes it possible to stabilize the
Ostchem Holding is systematically bringing its ammonium nitrate production facilities to full capacity, but the percentage of load depends on effective demand and import volumes.Cherkasy Azot and Rivne Azot plan to produce 260 thousand tons of nitrogen fertilizers by September 1 this year, and 1 million tons by the end of the autumn season to meet the needs of the Ukrainian market.
Ostchem is a nitrogen holding of Dmitry Firtash’s Group DF that 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 with a design capacity of 962.7 thousand tons per year of ammonia, 970 thousand tons per year of ammonium nitrate, 891.6 thousand tons of urea, and 1 million tons per year of UAN.
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.
PJSC “Rivneazot” from the group of enterprises of the nitrogen business Group DF resumed the operation of the ammonia complex with a capacity of more than 650 tons of ammonia / day, and also began the launch of a limestone-ammonium nitrate (IAC) shop with a capacity of 1600 tons / day and a shop for non-concentrated nitric acid – a raw material for the production of fertilizers – with a capacity of 960 thousand tons of nitric acid per year.
“We have begun a planned seasonal campaign to launch key workshops. First of all, we will increase the production of IAC, the most demanded fertilizer today. Further resumption of production capacities will depend on market conditions – capacities will be loaded in proportion to effective demand,” the statement reads. Group DF message on Monday, the words of the head of the board of the enterprise Mikhail Zabluda.
He emphasized that an equally important factor in the resumption of the full cycle of production of mineral fertilizers is the availability and current cost of gas required for the production of fertilizers.
Zabluda pointed out that the decision to increase IAS production is due to the gradual resumption of seasonal demand for this fertilizer, as well as the opening of new export opportunities.
“Being a part of the Ostchem holding, Rivneazot prepared for the autumn season in a timely manner and in full in order to supply Ukrainian farmers with basic nitrogen fertilizers,” the head of the board noted.
According to the release, the restoration of work was preceded by the completion of the planned overhaul of the gas synthesis treatment unit in the Ammonia-2 shop, the overhaul of the turbogenerator unit, as well as the overhaul of unit No. 6 with a capacity of 120 thousand tons per year in the non-concentrated nitric acid shop and a number of necessary preparatory work equipment.
Group DF consolidates assets in the gas distribution, chemical, titanium and port industries, as well as in agriculture and media. The founder and owner of Group DF is Ukrainian businessman Dmitry Firtash.
Ostchem is a Group DF nitrogen holding uniting the largest producers of mineral fertilizers in Ukraine. It includes Rivneazot, Cherkasy Azot, as well as Severodonetsk Azot and Stirol located in the occupied territories.
PJSC “Rivneazot” has been part of the Ostchem group since 2011. According to Group DF, more than UAH 1.3 billion was invested in the enterprise during this time.
Rivneazot for 9 months 2021 received UAH 1 billion 811.79 million of net profit with a revenue of UAH 1 billion 676.24 million. The company ended 2020 with a net loss of UAH 4 billion 623.96 million after a net profit of UAH 4 billion 73.49 million a year earlier with a decrease in revenue by 7.3% to UAH 1 billion 831.63 million.
In the report for the 4th quarter of last year, the company indicated that it works on tolling raw materials, and its loss for the 4th quarter of UAH 624.7 million was caused by exchange rate differences, without which the company’s profit would have amounted to UAH 179.6 million.
