The Puławy chemical works, the largest producer of fertiliser in this country, has started to import fertiliser based on phosphorous and potassium.
This move has clearly been made to strengthen the position of the company on the Polish market but it effects the business of the Police chemical works with which it is now competing. Both works are completely state owned.
Puławy claims that there is currently a shortage of certain types of fertiliser on the Polish market and therefore this move is just meeting market demand.
Indeed Puławy is attempting to diversify its product range.
The high rate of PLN together with 22 percent duty on exports to the EU of its products mean that it must seek customers at home first.
Several domestic companies will find it difficult to meet this new competition but none more so that the Police chemical works which is the largest producer of multi component and phosphorous based fertilisers in this country.
Krzysztof Żyndul, MD of the Police works, says that this situation clearly indicates that consolidation of the sector is essential.
The hardest situation of all is that of the Kędzierzyn works which does not have the financial resources to fight for market position.
The company claims that it will try to offer more products but it will concentrate on those which are in most demand.
Włoclawek based Anwil, part of PKN Orlen, has said that it will increase the production of fertilisers in order to reduce unit costs.© ℗
Podpis: Alan Heath