Azoty Tarnów Over the nearly 85-year history of Azoty Tarnów, our philosophy has been to find an ideal balance between respect for tradition and the advancement of innovative technology. The company’s history has its roots in the interwar period – a time of great change and the reawakening of a country after years of absence from the maps. The dynamic development, euphoria and enthusiasm of this period became part of the company’s foundation. As Eugeniusz Kwiatkowski wrote, a great national feat was accomplished – a factory which would forever change the Tarnów area and the country as a whole, and whose products quickly revolutionised European and global chemicals markets. Today, Azoty Tarnów is one of the largest chemicals companies in Poland, selling a wide range of products including modern construction plastics: Tarnamid® (PA6), Tarnoform® (POM) and semi-finished products for their manufacture (caprolactam), together with mineral and chemical fertilisers. These products are sold in over 40 countries worldwide. This is a result which pays testimony to many years of experience, commitment and creativity in strengthening its position, also on the international arena. A result which constitutes success in striving to effectively achieve one’s goals.
History 1927 Państwowa Fabryka Związków Azotowych w Tarnowie (PFZA, State Works of Nitrogen Compounds in Tarnów) is established on the initiative of Ignacy Mościcki, the President of Poland. 1929 Completion of the Company’s construction; technological start-up of plants. 1930 Gala opening of the company with participation of state authorities - Ignacy Mościcki, the President and Kazimierz Bartel, the Prime Minister. 1931 Eugeniusz Kwiatkowski becomes the Managing Director of the Company. 1933 A merger of PFZA in Mościce and PFZA in Chorzów under the name of Zjednoczone Fabryki Związków Azotowych w Mościcach i Chorzowie (United Works of Nitrogen Compounds in Mościce and Chorzów). World War II The Company holds the name “Stickstoffwerke Moscice” and like before the war it manufactures nitrogenous fertilizers, chlorine products and other chemical products. 1948 Restart of production after regaining, reconstructing and assembling machines and compressors by Polish specialists. the 1950s Execution of a six-year economic plan. Inauguration of caprolactam
production used for the manufacture of artificial fibers and plastics, modernization and intensification of caprolactam production. the 1960s The Plants of “Tarnów II” are created - acetylene from natural gas and carbide, chlorine plant, acrylonitrile and polycrystalline silicon, VC and PVC, enlargement of power plant. the 1970s Modernization of the Company. Start-up of the gas synthesis plant for ammonia production, startup of cyclohexanone production from benzene and cyclohexanone from phenol by one-stage method, intensification and modernization of synthesis plant and caprolactam purification. The Company becomes one of the biggest Polish producers of fertilizers, caprolactam, Tarnamid®, polyvinyl chloride, acrylonitrile, Tarflen® and methane chloroderivatives.
2002 Receipt of SEM Certificate according to the standard of ISO 14001. The Company joins the Governmental Programme of Market and Product Restructuring and Consolidation and Privatization of Major Chemical Synthesis Sector.
(VIII) Execution, together with Mitsubishi Co., the project of nitrous oxide emission reduction from the nitric acid plant – the first Polish and Japanese Joint Implementations Project according to the recommendations of the Kyoto Protocol.
2003 Modernization and intensification of the core business. Reaching an agreement with creditors. Adoption of a uniform “Management Policy” integrating environmental, quality and safety management. Receipt of the Quality Management System certificate ISO 9001:2000.
2009 Sale of 100% shares in current subsidiaries: Oknotar Sp. z o.o. (III), ZBACh Sp. z o.o. (X) and Wiezat Sp. z o.o. (XI), as part of the implementation of the plan presented in the prospectus, according to which four strategic companies would remain in Azoty Tarnów Group (JRCh, Koltar, Automatyka and Biprozat).
2004 Adoption of the updated strategy for Major Chemical Synthesis Sector and the path of its execution by the Polish Government – the path for ZAT S.A.: privatization of the whole company with participation of a sector investor.
the 1980s Enlargement of many plants, including caprolactam plant.
2005 Beginning of the privatization process.
The beginning of the 1990s Restructuring of the company, starting the process of subsidiaries separation from the structure of the company.
2006 Adoption of the updated strategy for Major Chemical Synthesis Sector and the path of its execution by the Polish Government – the path for ZAT S.A.: privatization through the Warsaw Stock Exchange.
1991 Transformation of the company into a joint-stock company. 1994 Adhesion to the “Responsible Care” programme.
2007 Works on the ZAT SA’s Prospectus. Prace nad Prospektem Emisyjnym Zakładów Azotowych w TarnowieMościcach S.A.
1997 Receipt of SQM Certificate according to the standard of ISO 9002:1994.
2008 Debut on the Warsaw Stock Exchange.
2010 Acquisition of 100% shares of a polyamide manufacturer – Unylon Guben Polymers GmbH / Germany. The new entity within the Group AZOTY Tarnów changed its name to ATT Polymers. Acquisition of 52.62% shares of ZAK SA. 2011 Acquisition of 66% shares in Zakłady Chemiczne Police SA and 40,86% shares in ZAK SA (due to the acquisition, Azoty Tarnów’s share in the company increased to 93,48%)
Mission and strategic objectives of Zakłady Azotowe w Tarnowie-Mościcach SA
Azoty Tarnów is a company which constantly sets itself new ambitious goals to be achieved. Our updated Management Policy reflects the principles set out in the “Azoty Tarnów Development Strategy”. We establish clearly defined goals and detailed growth directions. In nurturing the development of Azoty Tarnów we have devised strategic goals which are imperative for the company’s operations, and over the space of several years cover various operational sectors; beginning with core business, where increasing economies of scale are expected, through the development and achievement of a situation in which the company will be less sensitive to changes in general economic cycles with consideration to natural gas and petrochemical commodities price volatility, to a lowering of the costs of manufacture, streamlining of organisational methods and unlocking intellectual capital. A particularly important goal and direction for the development of Azoty Tarnów is the systematic adaptation of product and service quality to customer expectations, as well as creation of long-lasting, reliable and effective relations with partners.
The integrated management system in force at the Company, which is compliant with international standards, provides workplace security. The key operational priorities of Azoty Tarnów, such as ensuring technical and environmental safety, are constantly supervised by the audit department together with independent certification institutions. This type of monitoring means that Azoty Tarnów enjoys the reputation of a solid and modern company where all safety guidelines and standards are observed. This is proved not only by numerous certificates, but also by the innovative management system in force within the company, including: Quality Management System, Environmental Management System, Food Safety Management System, Occupational Health & Safety Management System.
Our experience and competences prove that chemistry is safe and useful to people. We constantly strive to increase shareholder value through maximising synergies.
Research & Development
In implementing innovative technologies, improving service standards and increasing product quality we capture an ever greater market share. Azoty Tarnów constantly determines new directions for development under the adopted “Company Development Strategy 2007-2015” and objectives outlined in the issue prospectus. Our objective is the most dynamic operational development, creating specific value in the form of profits from each sector. Improving service quality is also a particularly important field. We aim to strengthen our leading position as a manufacturer of caprolactam and construction plastics in European markets as well as to intensify operations in the agricultural products sector. This objective is also achieved through organic growth and as a result of strategic alliances and acquisitions. The company intends to play an active role in the consolidation of the chemicals sector. The principal goal of external growth is to create a large, integrated structure solidifying the company’s competitive position. In its operations, Azoty Tarnów strives to capitalise on the opportunities present in the market environment. Furthermore, we will strengthen our competences and reliability, with significant impact on our competitive position.
Thanks to its own research facilities, Azoty Tarnów is able to develop its technology and increase the quality of its products. Observing the need to continually seek out the latest technological solutions, the company has become a valued and sought-after initiator of and active participant in innovative R&D programmes run by national scientific institutes, including in the field of polymer nanotechnology and mercury biodegradation. As part of improving existing products and the creation of new solutions, the Company cooperates with the Industrial Chemistry Research Institute, the Fertiliser Research Institute, Wroclaw University of Technology, Warsaw University of Technology, Krakow University of Technology, Lodz University of Technology, the Business College and the Polish Academy of Sciences – Branch in Lodz. Consistency and persistence in these activities means that Azoty Tarnów is perceived as a trusted and experienced partner in technological projects implemented worldwide, and a proven European supplier of patents and licences which – thanks to highly qualified technical personnel – sets new industry standards.
Commodity and energy security
The strategic commodities used by Azoty Tarnów for large-scale manufacture are natural gas, phenol, benzene and ammonia. We are the only company in the industry with diversified natural gas supply sources. Supplies are sourced from the national transmission network and from independent local sources of natural gas with high nitrate content located in the Tarnów region. The gas from local sources currently meets approx. 40% of the company’s requirements, which is significant in strengthening Azoty Tarnów’s security in the supply of raw materials. In the short-term, Azoty Tarnów is also seeking new local sources of gas, which will cover up to 60% of the company’s requirements for this raw material.
Thanks to implementation of the latest technological solutions, Azoty Tarnów takes active environmental protection measures which bring simultaneous balance sheet benefits. As one of the first Polish companies to do so, Azoty Tarnów is implementing the recommendations of the United Nations Framework Convention on Climate Change (the Kyoto Protocol) through a Polish-Japanese Joint Implementation Project to reduce greenhouse gas emissions (Emission Reduction Units, ERUs). Commissioned in 2009, the recycling catalyser at the nitric acid installation has led to a 93% reduction in nitrogen oxide emissions, the largest reduction of this gas in the world. Revenues to be achieved on this account over the period 2008-2012 are estimated at approx. PLN 135 million.
Development of IT infrastructure IT activities constitute significant support for implementation of the development strategy and an increase in the company’s value. The “IT Strategy 2010-2015” was adopted, in line with the “Company Development Strategy”, together with the IT mission: “effective use of information and knowledge as a strategic resource”. For its implementation, an innovative IT outsourcing project has been in progress since 2010 in cooperation with Hewlett-Packard Polska. Covering supervision of the Azoty Tarnów IT system, HP simultaneously employed personnel from the former IT department, creating a Competence Centre for the Group. The aim of the project is to use IT development to streamline business processes and improve the quality of IT support. The project was presented with the “Most Interesting of the Best” award by the editorial team of PTWP Group – publishers of the business monthly Nowy Przemysł and the website wnp.pl. This award is presented to companies for implementation of the most interesting IT solutions in business – implementation of innovative solutions which significantly improve business and increase effectiveness and competition. In 2011, in a prestigious competition organised by the opinion-forming Computerworld portal, the company received the award and title of IT Leader. The award is presented to enterprises and institutions which apply ICT solutions most effectively in business and operations.
Corporate Social Responsibility
In pursuit of sustainable growth
Since its founding, Azoty Tarnów has contributed to the region’s social and economic development and is a trusted partner for the local community.
Being aware of the impact on its surroundings, in 2010 the Company began preparations for the development of a comprehensive, long-term strategy for sustainable development and social responsibility.
It operates in a responsible manner and strives to integrate social, environmental and economic aspects. To date the company has taken a wide range of measures to raise internal standards to the highest international requirements. Such tasks include the implementation of integrated management systems. Azoty Tarnów completely fulfils the requirements of ISO standards regarding quality management, environmental management, food safety management and occupational health and safety. Furthermore, the company takes active part in programmes and initiatives such as “Responsibility and Care”, REACH and SPOT. The company is deeply involved in the development of local communities and cares for its employees, ensuring a safe working environment and countless opportunities for development. Employee benefits include the possibility to take advantage of various forms of subsidies in the event of continuing education or to take part in training courses, conferences and industry events. Numerous training courses are co-financed by the European Social Fund under the Human Capital Operational Programme. To date, training has been organised on topics including use of computer software, IT systems, the Internet and website design, together with English courses. Furthermore, employees have the opportunity to take advantage of the company’s support under a package of social benefits. The company is a recognised and valued organiser and partner of projects aimed at environmental protection, integration and the development of the local community. Azoty Tarnów supports both large investments and small ventures. The list of institutions supported by the company includes educational facilities for disabled children, cultural centres and sports clubs. Azoty Tarnów is strategically and transparently involved in this type of activity and acts in accordance with the “Azoty Tarnów Strategy for Development of the Local Community”, which in 2010 was expanded to include the entire Group.
The objective of the strategy is to integrate activities undertaken in the fields of economic efficiency, responsibility towards employees and the environment and relations with the company’s surroundings. The document will demonstrate the means by which Azoty Tarnów wishes to create value for stakeholders, including employees, shareholders, business partners and local communities. The strategy will comprehensively address the actual needs of the community and will enable sustainable development for the company. The strategy is created on strong foundations and over seventy years of history, during which Azoty Tarnów has been involved in countless scientific, economic, sporting and cultural events.
Industrial zone An industrial zone functions within the Azoty Tarnów site, aimed at enabling and facilitating business to be conducted in industrial and post-industrial areas by investors who find the location convenient for the performance of various types of business activity.
ATT a reliable capital markets partner Azoty Tarn贸w debuted on the Warsaw Stock Exchange on 30 June 2008. Shares in the company, with ticker symbol ATT, are listed on the WSE primary market under a continuous trading system and are included in the WIG, mWIG80, WIG-Chemia indices, as well as the RESPECT index since its creation.
The RESPECT index is organised by the Warsaw Stock Exchange and is the first index of socially responsible companies in Central and Eastern Europe. The objective of the RESPECT Index is to select companies managed in a responsible and sustainable manner and accent their investment attractiveness. To date Azoty Tarn贸w has successfully passed external audits conducted by Deloitte, which has confirmed three consecutive times that the Company, as one of 16 in Poland, fulfils the rigorous index criteria.
Azoty Tarnów Group The Azoty Tarnów Group is one of the key chemical sector holding companies, specialising in construction plastics, mineral fertilisers, together with OXO alcohols and plasticisers. Thanks to the effective implementation of its development strategy, Azoty Tarnów Group is the fifth largest producer of polyamides in Europe, is the only domestic manufacturer of polyoxymethylene, and is one of the leading producers of mineral fertilizers in the European Union. It owns patents and licenses in the area of major chemical synthesis and a research unit which guarantees dynamic development of products based on the most modern accessible technologies adapted to the changing expectations of our customers. Highly qualified staff, innovative management systems, open information policy, dialogue with local communities and preservation of the environment – these are the attributes which set us apart from the competition. Azoty Tarnów Group achieves the highest revenue in the domestic major chemical synthesis sector. Over 9000 people are employed by the Group.
Zakłady Azotowe w Tarnowie-Mościcach S.A. (Azoty Tarnów) Group Parent
ZAK S.A. (formerly Zakłady Azotowe w Kędzierzynie) together with its group, comprising eight subsidiaries, is the largest subsidiary of the Azoty Tarnów Group. The company is one of the largest and most developed entities amongst Poland’s key chemicals companies. Its operations are mainly based on the manufacture and sale of chemical products used in agriculture, together with industrial plastics, paints and varnishes. ZAK S.A. has modern technologies at its disposal which enable efficient use of production facilities and effective operations, thus ensuring high product quality. Its most recognisable brand is the Salmagi® fertiliser family, Kędzierzyńska Saletra Amonowa ® and urea. It is worth emphasising that the company is the only manufacturer of OXO alcohols in Poland and is a significant manufacturer of plasticisers in the European market. ZAK S.A. boasts one of the most up-to-date, ecological nitric acid facilities (opened in 2010) and a water treatment plant. Both of these key facilities are an result of modernisation and intensification of the company’s development. Azoty Tarnów holds 93.48% of the company’s share capital.
Zakłady Chemiczne Police SA Zakłady Chemiczne „Police” S.A. are one of the leading European fertilizer producers and at the same time one of the largest domestic exporters. The company plays a key role in the socioeconomic landscape of Western Pomerania. Since 2005, Z.Ch. „Police” S.A.’s shares are listed on the Warsaw Stock Exchange and on August 19, 2011, Zakłady Chemiczne „Police” S.A. was acquired by Azoty Tarnów Group. The company’s core trading activity includes: multicomponent fertilizers, nitrous fertilizer (urea), titanium white (a set of white pigments produced from titanium dioxide) and liquid ammonia. A characteristic which defines most fertilizers produced by Z.Ch. „Police” S.A. is the high concentration level of pure components in the fertilizer mass and their high assimilability. Zakłady Chemiczne „Police” S.A. is the only domestic producer of titanium white, one of the key raw materials in the production of paint and varnish. The company’s location provides a further advantage – the port complex comprising a barge and sea port. Its infrastructure includes two quays for the reloading of loose materials, as well as two berths for the reloading of ammonia and sulphuric acid. Azoty Tarnów holds 66% of the company’s share capital.
ATT Polymers GmbH This company concentrates on the manufacture and trade in construction plastics, including by-products and derivatives. It has 5 polymerisation lines with total production capacity of 47 000 tonnes of PA6 per year. The company can flexibly manu. Azoty Tarnów holds 100% of share capital.
BIPROZAT – Tarnów sp. z o.o. This company deals with the design, document preparation and supply logistics for equipment and apparatus and conducts commercial, consulting and IT activities (Polish Classification of Business Activity (PKD) 7112Z). Azoty Tarnów holds 100% of share capital
JEDNOSTKA RATOWNICTWA CHEMICZNEGO sp. z o.o. This company provides services covering decontamination, recycling, reclamation and storage of waste, sewage treatment, removal of the effects of accidents, water, air and waste analysis, training, transport of hazardous materials, food testing, manufacture and trade in chemical products (PKS 9001Z), together with the manufacture of plastics (PKD 3700Z). Azoty Tarnów holds 100% of share capital.
KOLTAR sp. z o.o. This company deals with loading, unloading and freight forwarding support for rail freight, the cleaning of tanks and wagons and their inspection, and maintenance of railway track connected with support for the on-site railway station (PKD 4920Z). Azoty Tarnów holds 100% of share capital.
PROREM sp. z o.o. This company provides services and manufactures products relating to construction, installation, sanitary fittings, industrial, electrical, surveying and ICT services, repair and modernisation of specialist buildings and structures (PKD 3312Z). Azoty Tarnów holds 100% of share capital.
ZWRI sp. z o.o. A company specialising in the manufacture and provision of services concerning construction, installation, sanitary fittings, industrial, electrical, surveying and ICT services (PKD 4120Z). Azoty Tarnów holds 100% of share capital.
AUTOMATYKA Sp. z o.o. This company conducts business activity connected with mechanical engineering and consultancy relating to computer hardware and also manufactures equipment for controlling industrial processes, together with designing and implementing installations (PKD 3312Z). Azoty Tarnów holds 72.17% of share capital.
POLSKIE KONSORCJUM CHEMICZNE sp. z o.o. This company provides financial holding services (PKD 6420Z) and activities of head offices and holding companies, with the exception of financial holdings (PKD 7010Z). Azoty Tarnów holds 75%* of share capital.
NAVITRANS sp. z o.o. A company specialising in marine and road transport, broker support for freight forwarding and transport and freight forwarding consultancy services (PKD 6340C). Azoty Tarnów holds 26.45% of share capital.
Zakłady Azotowe w Tarnowie-Mościcach SA ZAK SA Zakłady Chemiczne Police SA ATT Polymers GmbH Automatyka sp. z o.o. Biprozat Tarnów sp. z o.o. JRCh sp. z o.o. Koltar sp. z o.o. Prorem sp. z o.o. ZWRI sp. z o.o. Polskie Konsorcjum Chemiczne sp. z o.o. Navitrans sp. z o.o.
Zakłady Azotowe w Tarnowie-Mościcach S.A. (trading as Azoty Tarnów) was entered into the register of companies of the National Court Register, entry number KRS 0000075450, pursuant to the ruling of the District Court for Krakow-Śródmieście in Krakow, 12th Commercial Division of the National Court Register NIP 873-000-68-29, REGON 850002268 The company’s share capital amounts to PLN 320.577.220,00 and is divided into 64.115.444 shares of a nomial value of PLN 5 each, including: a) 24.000.000 (twenty-four million) AA series bearer shares numbered from AA 000000001 to AA 024000000, b) 15.116.421 (fifteen million, one hundred sixteen thousand, four hundred twenty-one) B series bearer shares, c) 24.999.023 (twenty-four million, nine hundred and ninety-nine thousand, twenty-three) C series ordinary bearer shares”.