The Prosecutor’s Office in Bydgoszcz waived the proceedings over contracts between U.S. Air Products and Zachem to deliver TDA used to produce TDI. They were suspected to adversely affect the Polish company. According to the contract, Air Products will be the sole deliverer from Europe till 2008 and the sole deliverer from North America till 2013. Ciech, the new owner of Zachem, is not going to appeal from the decision.
“The Prosecutor’s Office started the investigation before Ciech seized control over Zachem. If it didn’t see crime here, the management is not going to review the case. To us, the future of Zachem and investment are the most important things. We have pledged to invest at least PLN 200m (EUR 52m) in the company”, Waldemar Grzegorczyk, Ciech spokesman said.
The suit was filed by Wojciech Wardacki, the former CEO of Zachem, today Ciech deputy CEO.
TDI sales generate 50 percent of Zachem sales. That’s why the costs of TDA are vital for the company. In the first three quarters of 2005, Zachem had PLN 41.3m of net loss. The situation is much better today. However, Ciech is renegotiating the contract with Americans.
“The talks aim to set the rules of the cooperation at TDA installation fro Zachem. Air Products will be Ciech’s partner in this project. Ciech is advised by Air Products now”, Ciech said.
In the future, Zachem will use only its own amines. In March, Zachem GSM decided to increase TDI capacity to 75,000 tons annually. The project will cost PLN 78.3m. Zachem is Poland’s sole TDI producer. This is not the only project. In the years 2007-11, investment projects in the company may amount to PLN 500m.