Chemical works Zakłady Azotowe Kędzierzyn (ZAK) is hoping to be sold off into private hands. Former treasury minister Aldona Kamela-Sowińska expected the plant to be privatised last July. That did not happen although Warsaw based chemical concern Ciech, which has negotiating exclusivity, has signed the investment and social packages.
The signing ceremony of the privatisation agreement must wait until the new government decides what it wants for the chemical sector and Ciech can get financial backing for its plans. On 19 October shareholders of Ciech decided not to increase capital in the company which now lacks the necessary resources for the purchase of ZAK. Now the treasury can either wait until Ciech gets its act together and its hands on the money or alternatively start the privatisation procedure off again. There is also the option of linking Kędzierzyn in a plan to consolidate the chemical sector around petrochemicals concern Orlen. Either way the privatisation will be delayed and with it, financial aid from an investor.
In the third quarter of this year Kędzierzyn reported a loss. It is believed to be around PLN30m although rumour also has it that Kędzierzyn could make a profit for the entire year.
Adam Konopka, MD of Kędzierzyn claims that the loss was caused by a 22 percent increase in the cost of gas and that the summer is a dead season as far as the sale of fertiliser is concerned.
Ciech claims that Kędzierzyn above all a new sales strategy and distribution network.
That might not be enough to improve the condition of the company. Gas is an essential raw material not only for Kędzierzyn but also for other companies in the sector. Therefore the monopoly position of supplier PGNiG is a major problem for chemical companies. ZAK recently applied to energy watchdog URE for a concession to trade in gas but it was refused for the best of bureaucratic reasons — the form was incorrectly filled out.