Achi news desk-
The new production line will produce 300,000 tonnes of urea-ammonia mixture per year. The project was implemented at the site “Rivneazot” and will allow to meet the growing demand for KASin.
OSTCHEM, which unites the nitrogen business enterprises of the DF Group of Dmytro Firtash, launched a new modern workshop for the production of urea-ammonia mixture (KAS). The project is implemented on the basis of PJSC “Rivneazot” and is mainly aimed at farmers in the western regions of Ukraine. The new production capacity is 300,000 tonnes per year.
In February-March 2024, industrial trials of new production and product quality testing were completed, the first 100 tons of KAS were released, and products were shipped to farmers for spring sowing.
KAS is a liquid fertiliser, a mixture of aqueous solutions of ammonium nitrate and urea. The advantage of KAS is the possibility of using it in different stages of plant development. A significant difference from KAS is the minimal non-productive losses of nitrogen after application to the soil. They do not exceed 10%, while with the introduction of granular nitrogen fertilizers (urea, saltpeter) they can reach 30-40%.
The launch of KAS production in Rivneazot is already the second stage of a large-scale investment program implemented by OSTCHEM. The program envisages a gradual increase in the production capacity of the most popular types of fertilizers in Ukraine – KAS and urea. At the first stage of program implementation, KAS production with a capacity of 1 million tons was launched in Cherkasy “Azot”.
“The shareholder is not waiting for the end of the war and continues to develop industrial sites. The launch of a new KAS production is our answer to the demand from farmers. We are increasing production capacity in the most demanded fertilizer segment with a growth rate of more than 15% per annum. The new production is fully compliant with EU environmental directives. Moreover, for the first time in Ukraine, we use the innovative technology of so-called “homonization”, which ensures the uniform structure of the finished product. This allows you to significantly increase the shelf life of KAS and avoid problems with “product stratification”. The quality of this product is in demand by experienced farmers not only in Ukraine, but also in the EU markets,” said Serhiy PAVLYUCHUK, head of OSTCHEM’s nitrogen business production.
According to him, OSTCHEM’s strategic priorities do not change: fertilizers will mainly be delivered to Ukrainian buyers.
The new industrial site will be integrated with other “Rivneazot” workshops and will become part of the general production cycle, which will affect the cost of finished products and increase their competitiveness.
Implementation of the investment phase of the project began at the beginning of 2023, the implementation period was 10 months. The investment amount and expected payback of the project are not disclosed and will depend on gas prices and market conditions.
“We follow the systematically approved Nitrogen Business Development Strategy, which provides for the development of production facilities taking into account the most modern solutions of the chemical industry. The aim is to strengthen OSTCHEM’s position in Ukraine and Eastern Europe. Due to the more efficient use of production capacities and the synergy of different industries, we will continue to make the domestic product more accessible to farmers. Against the background of the logistical problems of importers linked to roadblocks to the EU, projects to launch new fertilizer production facilities in Ukraine become even more significant and relevant from the point of view of the food security of the whole country.” – Pavlyuchuk added.
KAS is one of the most promising segments on the Ukrainian market of nitrogen fertilizers. The Ukrainian market annually consumes about 850,000 tons of KAS, of which 280,000 tons are imported from countries such as Poland, Lithuania, Bulgaria, as well as non-European imports, often of questionable origin. According to DF Group estimates, in 2024 the growth rate of the KAS market will return to pre-war levels and will be at least 15% annually.
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