Which companies does Grupa Azoty include?

Grupa Azoty (whose parent company is Grupa Azoty S.A. with headquarters in Tarnów) is one of the key capital groups of the fertilizer – chemical industry in Europe and the outcome of a series of mergers and takeovers of chemical companies. The Group includes such entities as: Grupa Azoty S.A. (parent company), Grupa Azoty Zakłady Azotowe “Puławy” S.A, Grupa Azoty Zakłady Chemiczne “Police” S.A., and Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. At present, Grupa Azoty is the second largest manufacturer of nitrogen-based and complex fertilizers in the European Union. Thanks to the manufacturing of such products as melamine, caprolactam, polyamides, OXO alcohols and titanium dioxide, Grupa Azoty has also become one of the major global chemical companies. Grupa Azoty products are used in various industries internationally.

What is the difference between Grupa Azoty and Grupa Azoty S.A.?

Grupa Azoty S.A. (formerly called Zakłady Azotowe in Tarnów-Mościce S.A.) is a public limited company which owns a controlling stake in companies which make up the Capital Group.

Since the consolidation of the largest Polish chemical companies, namely: Zakłady Azotowe in Tarnów-Mościce S.A., Zakłady Chemiczne “Police” S.A., Zakłady Azotowe ZAK S.A., Zakłady Azotowe “Puławy” S.A., all these entities have constituted a part of Grupa Azoty.

How numerous is the staff of Grupa Azoty?

As on December 31st, 2014, 13,980 people worked in Grupa Azoty.

Who are the main shareholders of the Companies?

The Polish Treasury, which is in possession of 33% of the shares, is the main shareholder of Grupa Azoty. The diagram below illustrates the shareholder structure of the company in more detail.

What is the Company strategy? How is it developing?

Owing to the consolidation process, Grupa Azoty has gained new possibilities of development. “The Strategy of Grupa Azoty in 2013-2020”, which is in force at the moment, includes the following sectors: products, innovation, operational activity, trading activity, finance, dividend policy and corporate management.

In 2013–2020 Grupa Azoty is going to focus on production and trade in the following sectors:

  • products for the agricultural sector, mineral fertilizers in particular,
  • technologically advanced materials sector, construction plastics in particular,
  • organic chemical products sector, with particular reference to caprolactam, melamine, OXO alcohols, plasticizers and specialist chemicals,
  • inorganic chemical products sector, with particular reference to ammonia and titanium dioxide.

You can download and read the whole text of the Strategy, which can be accessed online at: http://static.grupaazoty.com/files/1383910862/grupa_azoty_strategy_2013-2020.pdf

In August 2014, the Board of Grupa Azoty presented “the operational approach” to the Strategy for 2014-2020, and specified the manner of building the value of Grupa Azoty acting on the principles of the Strategy which had been published before.

Trzy obszary strategiczne, na których Grupa Azoty ma zamiar się skoncentrować, obejmują: rozwój organiczny, doskonałość operacyjną oraz fuzje i przejęcia.

Organic growth

Organic growth project comprises 68 select investment projects at various stages of preparation or implementation. The intention of Grupa Azoty is to allocate about PLN 7 billion to those projects. 32% of this amount is going to be devoted to corporate projects (including: New Plastics project, in preparation for opening up a new segment of our activity; a project of making use of coke gas; the development of phosphorites mine in Senegal). 30% of the total investment budget has been targeted at “Fertilizers” Segment of Company activity, 19% – at “Energy” Segment, and 11% – at “Plastics” Segment (mainly further caprolactam processing into polyamides and composites).

The current sales structure of Grupa Azoty in “Plastics” Segment is c. 80,000 tonnes of caprolactam and polyamides and c. 10,000 tonnes of composites. Our objective by 2020 is for Grupa Azoty to sell c. 140,000 tonnes of polyamides and 30,000 tonnes of composites. This would make the Group the third largest polyamides manufacturer in Europe, while now it holds the 5th position in this ranking.

Operational excellence

When it comes to operational excellence, Grupa Azoty has been implementing a program called Azoty PRO, which – upon completion – is expected to yield PLN 300 million benefits annually.

Mergers and acquisitions

With regard to M&A, the Company commenced the analysis by drawing up a list of 2,000 possible targets. Following a few stages of further analysis, we are going to select 10 entities whose takeover might be interesting for the Group.

Main points of strategy operationalization

What are the main areas of Grupa Azoty activity?

Grupa Azoty channels its activity into five markets:

  • Fertilizers and Agricultural Products
  • Plastics
  • Chemical products
  • Energy
  • Other

Fertilizer production in comparison with the competition

Plastics production in comparison with the competition

Main uses of plastics

The activity of the Group focuses on the production of mineral fertilizers, caprolactam, construction fibers and other processed chemical products, such as OXO, plasticizers, titanium dioxide and AdBlue®. Furthermore, the Group is the main supplier of ammonia and phosphorous acid in Poland. You will find detailed information about particular products if you go to our website: grupaazoty.com/en/oferta.

Is Grupa Azoty involved in sponsoring activity and support of sportspeople and teams?

Grupa Azoty supports the following players and sports teams:

  • ZAKSA Kędzierzyn-Koźle – men’s volleyball
  • Pogoń Szczecin – men’s football
  • Chemik Police – women’s volleyball
  • Klub Sportowy Azoty – Puławy – men’s handball
  • Unia Tarnów – a speedway racing team
  • ZKS Unia Tarnów – the football section
  • UKS Jedynka – women’s volleyball (Grupa Azoty PWSZ Tarnów)
  • Polski Związek Narciarski – ski jumping, cross-country skiing, Alpine skiing, Nordic skiing
  • Edyta Ropek – a climber
  • Wisła Puławy – a sports club with various sections, men’s football
  • Robert Kubica – a racing and rally driver
  • Piotr Żyła – a ski jumper
  • Jakub Wolny – a ski jumper
  • Aleksander Zniszczoł – a ski jumper
  • Sylwia Jaśkowiec – a skier
  • We also support young talented sportspeople: http://tarnow.grupaazoty.com/pl/rozwoj/wsparciesportu

How can I get the latest info about Grupa Azoty?

Where will I find the latest financial reports of Grupa Azoty S.A. and particular Companies in Grupa Azoty?

All the financial statements of Grupa Azoty and Companies in Grupa Azoty S. A. Capital Group may be accessed online at sprawozdaniefinansowe.grupaazoty.com/pl/ and on the websites of the Companies. Go to grupaazoty.com/pl/relacje and click on the Company of your choice.

Which of the Companies in Grupa Azoty are quoted on Warsaw Stock Exchange?

Three Companies are present on Warsaw Stock Exchange: Grupa Azoty S.A., Grupa Azoty Zakłady Chemiczne “Police” S.A. and Grupa Azoty Zakłady Azotowe “Puławy” S.A.

What is the management structure in Grupa Azoty?

Due to the ongoing development of Grupa Azoty, which is meant to function as a uniform company in the log run, a series of organizational changes have been introduced in Grupa Azoty S.A. which enable to manage a complex and constantly growing organization in an efficient manner.

In July 2013 the Board of Grupa Azoty S.A. approved the new management model in the Group, based on process-based division of responsibilities and competences in the Board. Also in July 2013 “Corporate Governance Rules – Governance Policy” was amended, in connection with the inclusion of new companies in Grupa Azoty. The main objective of corporate governance guidelines was the implementation of uniform procedures concerning the management of various processes and areas of commercial activity in the Group. Other goals of the policy include informing the corporate bodies and the participants of the stock market as well as ensuring the coherence and cohesion of reporting obligations and the criteria of their assessment.

The Board of Grupa Azoty S.A. also acts as the Board of Grupa Azoty. The Chairman of the Board of Grupa Azoty S.A. supervises the whole activity of Grupa Azoty, while the Members of the Board manage particular areas of activity: finance and trade, strategy and development, production and safety.

In December 2013 the Council of the Group was established. The Council is expected to provide advice, opinion and initiate activities. The general function of the Council is to support and initiate joint enterprises implemented by Grupa Azoty and report about their implementation to the Boards of Grupa Azoty Companies. The Council provides opinions about the initiatives and strategic activities as well as supports the current management processes. The Members of the Council are: the Members of the Board of Grupa Azoty S.A., Members of the Boards of daughter companies and the Executive Director of Grupa Azoty S.A.

On which markets are Grupa Azoty products present? On what scale?

Grupa Azoty is the largest chemical company in Poland and one of the leading chemical brands in Europe. Our products are sold all over the world. In 2009-2012 we shipped our goods to over 70 countries on various continents. European Union countries are our core market, but we also sell to Asian and South American states. On the domestic market, we specialize in fertilizers. In the EU, we sell mainly plastics, OXO alcohols and plasticizers. We sell caprolactam and OXO alcohols to Asia and fertilizers to South America.

The map below illustrates the areas of activity of Grupa Azoty in the world.

What was the value of the dividend paid out so far and when was it paid?

General Meeting Decision on Title Profit Total dividend Dividend per share
27th June 2009 Dividend for 2008 PLN 61,935,000 PLN 39,898,749.42 PLN 1.02
17th April 2013 Dividend for 2012 PLN 250,692,000 PLN 148,793,226.00 PLN 1.50
10th June 2014 Dividend for 2013 PLN 44,117,000 PLN 19,839,096.80 PLN 0.20

The stock of Grupa Azoty S.A. has been traded on Warsaw Stock Exchange since 2008. In 2013 the Company stock was included in a new index called WIG30. Since 2009 Grupa Azoty S.A. has been included in RESPECT Index, the first ranking of companies following the rules of Corporate Responsibility in Central and Eastern Europe. Since 2013 the Company has been included in MSCI Emerging Markets index. You can read more about the topic on our website: tarnow.grupaazoty.com/pl/relacje/gielda

Grupa Azoty Zakłady Azotowe “Puławy” S.A. went public on Warsaw Stock Exchange in 2005. It is included in the following stock indexes: mWIG-40, WIG-Chemia and WIG-div.

Grupa Azoty Zakłady Chemiczne “Police” S.A. made its debut on Warsaw Stock Exchange on September 6th, 2005.

How did Grupa Azoty originate?

Grupa Azoty is a brand incorporating tens of companies, including the four largest great chemical synthesis companies in Poland. The Group takes advantage of the immense potential of their complementary competences. Grupa Azoty is a future-oriented project.

In 1927 the President of Poland Ignacy Mościcki decided to erect State Nitrogen Compounds Factory (Państwowa Fabryka Związków Azotowych), and he also had the future in mind. A vision of the Polish chemical industry. This vision and the history of all companies in Grupa Azoty and the consolidation of Polish chemical companies which started in 2010 found their fulfillment in the launch of Grupa Azoty brand in 2012.

Since 2010 Grupa Azoty S.A. (the parent company) has pursued a policy of consolidating the most valuable assets of the Polish chemical industry. As a result, it was possible to gather complementary companies with various traditions and scopes of specialization under one brand. The Group includes four largest Polish companies of the Great Chemical Synthesis sector – the Works in Tarnów, Kędzierzyn-Koźle, Police (including the mine in Senegal) and Puławy (including the Works in Gdańsk and Chorzów), as well as the sulphur mine in Grzybów since 2013.