Cherkassy “Azot”, controlled by businessman Aleksandr Yaroslavskyy (85% of shares), after the overhaul will produce more carbamide, which will strengthen the position of the company in the world market in future. July 12 JSC "Azot", Cherkassy, began a planned overhaul of facilities for production of carbamide. In fact, it is important that from August 20, the second unit of carbamide in Cherkassy will be upgraded, which after repairs will be stronger by 60%. "Together, both units now produce 1 thousand tons of carbamide per day. After repairs in August, the second unit will be able to produce up to 1.6 tons per day "- says technical director Vitaliy Sklyarov. By the end of the work the company will produce about 800 tons of carbamide per year. For comparison: the most modern and modernized factory - Odessian Priportovyy (OPP), the second after concern "Stirol", capable of producing 980 tons of this product per year. Thus, Cherkassy “Azot” will become the third largest producer of carbamide in the country. It is already a leader in the production of ammonium nitrate. The company can produce more than 1 million tons of this product per year. Together with the Severodonetsk Azot they are leaders in the supply of ammonium nitrate on the domestic market. Since yesterday Severodonetsk company stopped production of carbamide completely. "We have to stop production of carbamide completely, we no longer produce ammonia. Nitrate will be made from existing stocks of accumulated ammonia", - told to "i" the president of CJSC Severodonetsk Azot Alexei Kunchenko. The manager explained the reason for stopping with the planned renovation and low demand in the market. In fact, the global price environment is not so hopeless to stop production. "Recent changes in the port "Yuzhnyy" on nitrogen fertilizers showed an increase. Carbamide and ammonia went up for a week. The cost of the first is $ 245 per ton, of the second - $ 295-300. Thus, carbamide according to current gas prices for chemists can obtain return of 4-5%, for ammonia - 17-20%", - says an analyst of the investment company Dragon Capital Tamara Levchenko. Obviously, the repair was planned indeed, and plants were not intended to encourage traders to a more dramatic increase in procurement price before entering the season. While this could happen in the case of simultaneous stop to repair of three or more players in the market. So, overhauls in Severodonetsk and Cherkassy will unlikely increase the prices for fertilizers. Moreover, they will still produce the ammonium nitrate to our farmers needs. This should calm those farmers who wanted to buy fertilizers before their big price increase, expected in August. A representative of Ltd. Marker Group Sergey Pesotsky is sure in it. "Apparently, repairs were actually planned and they will not affect the market. There won`t be shortages, because these companies will be selling previously produced fertilizers ", - he said to "i". According to the expert, the revival of the domestic market will start from mid-July, and by the time the repair work in the factories finishing a more rapid increase in nitrogen products prices is expected.
2009 "Azot" finished with a loss of UAH 213.231 mln., reducing net income by 14.12%, or UAH 486.833 mln. compared with the 2008 - UAH 2 960.476 million. Last year the company produced 662.5 thousand tons of carbamide, finishing in second place in the ranking of exporters of fertilizer after the Odessa Port Factory. According to "Gosvneshinforma", its share of shipments amounted to 22,5% of the total delivered volume of carbamide. Almost the entire 2009 "Azot" worked at full capacity, which can not be said about other nitrogen plants in Ukraine. The share of "Azot" in the internal supply of ammonium nitrate exceeds 50%, making it the de facto leader for the Ukrainian village of ammonium nitrate. In addition to ammonia nitrate and carbamide, it also produces ammonium sulfate, carbamide-ammonia mixture, caprolactam. Its products are exported to the CIS countries of Central and Eastern Europe, Turkey, Asia Pacific, Latin America and Australia.
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