New Strategy of Grupa Azoty Focused on Expansion Through Foreign Takeovers

WARSAW, Poland, August 18, 2014 /PRNewswire/ --

Poland's Grupa Azoty, Europe's second largest fertiliser maker announced a strategy focused on foreign takeovers, investment of PLN 7 bn (EUR 1.67 bn) in organic growth and major cost effectivnes programe. Until 2020 Grupa Azoty aims at an operating margin beyond 8 percent and a margin on EBITDA exceeding 14 percent. 

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"In the new growth strategywe set ourselves an ambitious target to strengthen our position until 2020," said Pawel Jarczewski, President of the Management Board of Grupa Azoty.

"Acquisitions are one of the most important pillars of the group's growth. This is the foundation, on which Grupa Azoty has built its position at home and now we will gradually develop outside Poland," said Pawel Jarczewski.

The Management Board analyzed selected companies and chose a few entities they will invest in. "These are the companies which fit in our growth plan," said Jarczewski. "When it comes to our targets related to production assets, we are focusing on Europe. As regards raw materials, we are looking at the African market, where we already have our base in Senegal," Jarczewski explained. Grupa Azoty will get financial means to put the new strategy in place from internal sources and through debt. "Given our low debt at the moment, possibilities in this area are for sure vast," - said Pawel Jarczewski.

Thanks to the plan of investment projects within Grupa Azoty, the company will be able to expand its new product portfolio and enhance production processes. To ensure organic growth around the company will invest PLN 800m (EUR 191,31 m) in 2014. The plan envisages capital expenditure for revamping and construction of new production lines. Under Operational Excellence Programme Azoty PRO aimed at streamlining the functioning of the Group in the area of production, energy efficiency, asset repairs, maintenance, procurement and shared services the company will be able to save PLN 300 m (EUR 71.77 m) each year.

Grupa Azoty wants to also cut costs by diversifying its supplies of natural gas away from Russia. The company is Poland's top gas consumer with an annual requirement of 2.3 billion cubic metres.

"I strongly believe that execution of our new strategy will allow Grupa Azoty to become the top producer in a chemical sector not only in Europe, but worldwide," said Pawel Jarczewski.