09.06.2020
ORLEN Group’s ANWIL to increase production capacity
ANWIL, a company of the ORLEN Group, is making progress on the project to build a third nitrogen fertilizer production line as scheduled. The facility will increase the company’s production capacity by approximately 50% and thus improve its position against foreign competition. Estimated to be worth approximately PLN 1.3bn, the construction of the new line is the largest capital project being carried out in the Province of Bydgoszcz and Toruń and will make a significant contribution to the Polish economy. When completed, it will offer 100 new jobs and is forecast to add almost PLN 245m to ANWIL’s annual EBITDA.The project site was visited by Andrzej Duda, President of Poland.
"I hope to see the Polish economy get back on the growth track soon, driven by investment projects carried out by Polish companies. ANWIL, part of the ORLEN Group, is building another nitrogen fertilizer production line, which will increase its production capacities and thus protect the Polish market against the inflow of imported fertilizers, mainly from countries east of Poland. The project will truly support Polish farmers and will be the ORLEN Group’s contribution to improving Poland’s food security,” said President Duda.
The third fertilizer line, whose construction began a year ago, will comprise modern production units, including a nitric acid and neutralisation unit, a granulation unit and auxiliary infrastructure.
"ANWIL is a very important asset within the ORLEN Group, and strengthening its position on the European market is one of our priorities. Therefore, we are pursuing this project, which is of strategic significance and one of the largest in terms of value in the company’s history, including since the acquisition of 100% of its shares by the ORLEN Group in 2012. The construction of the third nitrogen fertilizer production line is progressing according to schedule, which is particularly noteworthy given the broad scope of the work and the involvement of a number of Polish and foreign contractors. The new project is expected to benefit the ORLEN Group and ANWIL, but in the first place the Polish economy and Polish farmers. Once it is brought on stream in mid-2022, we will be able to offer farmers greater volumes of products which meet the highest global standards,” says Daniel Obajtek, CEO and President of the PKN ORLEN Management Board.
The project will strengthen the position that ANWIL holds not only as a fertilizer manufacturer, but also as the largest employer in the region – following its completion, the company will employ another 100 people. The entire local community will benefit. ANWIL is one of the largest tax payers in the Province of Bydgoszcz and Toruń. It paid more than PLN 100m in taxes in 2019, of which over PLN 43m to the local government. Following addition of the new production assets, the company’s total annual tax liability may go up by as much as PLN 50m.
The project will increase ANWIL’s annual production capacity from 966 thousand tonnes to 1,461 thousand tonnes and will add four new fertilizers (namely coarse-grained ammonium nitrate, ammonium sulfate nitrate, calcium ammonium nitrate with sulfur and calcium ammonium nitrate with magnesium with enhanced granule properties) to the company’s product mix. This will improve ANWIL’s business resilience in case a ban on trade in ammonium nitrate is introduced in the European Union in the future.
So far, major earthwork has been completed at the nitric acid and neutralisation unit construction site. Facilities for the prefabrication of pipelines have been prepared and piling has been performed where the turbine generator set and stack are to be located. The foundations for the nitric acid tank and the absorption column have been laid. The column components are being delivered to the company and are being welded. The project also provides for construction of a feedstock warehouse. Work is in progress on auxiliary infrastructure necessary for the proper operation of the line.
ANWIL commenced production of fertilizers 48 years ago, and the first tonne of ammonium nitrate came off the line on December 17th 1971. Since the 1990s, the nitrate production unit has been steadily upgraded, and in 2000 a calcium ammonium nitrate unit commenced operation. In early 2019, the company produced its 30 millionth tonne of nitrogen fertilizers. Its current production capacity makes ANWIL the second largest nitrogen fertilizer manufacturer in Poland.
