OSTCHEM plants produced 1.33 million tons of mineral fertilizers in January-September

Output decreased by 15.3% y/y

In January-September 2024, OSTCHEM nitrogen holding (part of Group DF) reduced mineral fertilizer production by 15.3% year-on-year – to 1.33 million tons. This was reported to GMK Center by the company’s press service.

Cherkassy Azot produced 1.06 million tons of mineral fertilizers in 9 months (-13.1% y/y), while Rivne Azot produced 304.9 thousand tons (-12.2% y/y).

Production declined for all major types of nitrogen fertilizers. In particular, ammonium nitrate output fell by 16.1% y/y – to 547.6 kt, and UAN – by 11.7% y/y, to 417.9 kt. The biggest decline in Ukrainian production was in urea, down 20.2% yoy to 263 thsd tonnes, and UAN, down 48.9% y/y – to 18.9 thsd tonnes. Commercial ammonia production also decreased by 11.4% y/y – 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 started and production capacities are being utilized more. Despite rising gas prices, blackouts, and increased imports from Russia’s 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 Cherkassy Azot and Rivne Azot continue to improve their production process and implement modern technological solutions for energy saving. In particular, the installation of an in-house power generation system has reduced electricity consumption by 40%.

In 2023, OSTCHEM’s plants increased their fertilizer production by 19.5% y/y. Last year, Cherkassy Azot produced 1.56 million tons of mineral fertilizers, up 39.6% yoy, and Rivne Azot produced 528 thousand tons (-10.8% y/y).

In April 2024, Group DF International and South Korea’s 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 nitrogen fertilizers and chemical derivatives.

OSTCHEM is Group DF’s nitrogen holding, which unites the largest mineral fertilizer producers in Ukraine. It includes Rivne Azot, Cherkassy Azot, Severodonetsk Azot and Stirol (which are not operating and are located in the occupied territories).