The contracts are for sale of fertilisers for the period January 1st 2014-December 31st 2016, in accordance with their effective schedules and business terms. The largest contract for sale of compound fertilisers, with an estimated value over its term of approximately PLN 607.9m (VAT exclusive), was concluded by Grupa Azoty Zakłady Chemiczne Police S.A.
The Azoty Group has been cooperating with Nitron for two years and over the past 12 months the total value of commercial transactions has reached PLN 1.03bn. Trading with Nitron follows the Azoty Group's strategy of developing stable, long-term relationships in the international markets.
The contracts with Nitron will strengthen our foothold in the South American markets, and have been built on Polifoska (compound fertiliser), UAN – RSM (urea-ammonium nitrate solution) and ammonium sulphate. These will be manufactured at three locations – Police, Puławy, and Tarnów. On the importance of the Group's trade with Nitron, Hubert Kamola, Head of the Corporate Fertiliser Sales Department at the Azoty Group, commented that “Having enlarged the range of products sold, the Group is looking to benefit from logistic synergies in its supplies to the South American market.”
Working with Nitron, the Azoty Group has intensified its presence in the South American fertiliser market, where it has for years successfully been selling macro and standard ammonium sulphate (from Tarnów and Puławy). Recently, the high quality of Police's compound fertilisers have also started to win over the markets there. Furthermore, liquid fertilisers, of which ZA Puławy is the leading Polish manufacturer, are seeing increased popularity in South America.