Historical Investment In Propylene Plant

Warsaw Poland /PRNewswire/ - Grupa Azoty announces 'historical' $450m investment in new PDH "Police II" plant

Grupa Azoty ("Grupa Azoty", ATT:WSE), the Warsaw-listed leading chemical company in Central and Eastern Europe, has announced today its decision to invest PLN 1.7bn (USD 0.45bn, GBP 0.3bn) in a propane dehydrogenation plant near its already existing facilities in Police, north-western Poland. The investment is the largest in the Company's history.

The new plant, due to be launched in 2019, will be among the largest of its kind in the world, and the largest in the European Union.

In the first year after the completion the plant is expected to elevate the revenues of Grupa Azoty Police, a subsidiary of Grupa Azoty, by approximately PLN 2bn. The capacity of the plant is estimated at 400,000 tonnes. Approximately 40% of it will be used for internal group purposes, which the remaining 60% being destined for export, mostly to Germany.

Propylene is the second most important starting product in the chemical industry. It is used for production of plastic, serves as the base for all OXO alcohols (solvents, paints), acrylic acid (polymers, paint) and is being used in the automotive industry (eg. in bumpers) and production of containers and foils.

Pawel Jarczewski, CEO of Grupa Azoty, commented on the news:

"This investment confirms Grupa Azoty's position as Poland's leading chemical company and Europe's emerging player on the chemical market.

Following the recent inclusion to the prestigious FTSE Emerging Market Index and operationalization of the 2020 growth strategy, this is the first in a series of decisions we are willing to take in the years to come to ensure sustainable, organic and dynamic growth of the Company.

Our decision to invest further in Police is part of our global strategy of expanding internationally and strengthening our position in the EU markets using the Polish experiences."

Treasury Minister Wlodzimierz Karpinski said:

"The government is extremely proud that Poland's national champion Grupa Azoty works on such an innovative investment of strategic importance for the country and the continent."

The new venture fits very well indeed in the process of the re-industrialisation of Europe, and makes me assured that Grupa Azoty's strategy to 2020 is being successfully implemented."

NOTES TO EDITORS
Listed on the Warsaw Stock Exchange (ticker: WSE:ATT), Grupa Azoty SA is Poland's largest chemical company and the European Union's second-largest EU producer of nitrogen and multi-component fertilizers, while such products of Grupa Azoty as melamine, caprolactam, polyamide, OXO alcohols, and titanium dioxide also enjoy a strong position in the chemical sector and find application in different other industries.

Grupa Azoty SA was founded as a result of the 2014 consolidation of strategic Polish chemical companies.

By the end of the 2014 the Polish government declared Grupa Azoty a 'strategic asset', and the Company announced it was seeking to diversify its portfolio through regional and global acquisitions.