History

In over 60 years of our history, Zakłady Azotowe “Kędzierzyn” were always one of leaders in the group of Polish producers of nitrogen fertilisers and other chemical products. We built numerous production plants which were based on our own processes. We were the first in Poland to develop and commercialise the processes for the production of such basic chemicals like urea, phthalic anhydride, maleic anhydride and oxo alcohols. Our experts who gained experience from starting up and running those production facilities formed the core groups of expert engineers needed to start up further chemical factories in Poland.

Our Works were organised on the ruins of a German factory which was destroyed by warfare. The Polish government made the decision in 1948 on establishing from January 01, 1949, Zakłady Przemysłu Azotowego “Kędzierzyn” [“Kędzierzyn” Works for Nitrogen Industry] with its seat at Bierawa. The production was started in 1954. The first plants of the fertiliser train were commissioned then. In the sixties, further production facilities were constructed and these were: sodium nitrate and sodium nitrite plant, formalin plant, urea-formaldehyde adhesives plant, phthalate esters plant, urea II plant, phthalic anhydride II plant, dicyanamide plant and melamine plant.

The seventies added the following units to our assets: fatty alcohols and fatty amines plant, argon plant, phthalic anhydride III plant, formalin II plant and formalin III plant. In 1978, we changed our feedstock for the production of ammonia – coke-oven gas was replaced by natural gas. The old and worn out phthalic anhydride I plant and urea I plant were finally stopped in early eighties; the production of surfactants was organised then.

In 1986 the syn-gas and pure hydrogen unit was put on line and a modern plant for the production of oxo alcohols (2-ethylhexanol, n-butanol and isobutanol) was built. Also, the process for urea adhesives, the so-called Silekols, was commercialised.

In 1987, we started up the unit for mechanical granulation of nitro-chalk. The product had unique strength and performance properties, and it was given the trade name of Salmag. That brand name became one of the symbols of our Works. Moreover, a few environmental projects were implemented in that decade, like for example safe store yard for toxic production wastes.

In early nineties, the first production of consumer goods was organised: dishwashing liquid and textile rinsing liquid. The new syn-gas purification station was built which was provided with the PC-based control system (DCS), and the construction of our central mechanical-biological waste-water treatment plant was completed.

The 1990s is the decade of numerous changes in our Works. First of all, that is the period of transformation processes taking place in the Polish economy. Hence, the need emerged to adjust the way of operating the company to the requirements of market conditions. That is also the time of intensified efforts and numerous projects within environmental protection.

In January 1, 1992, our Works were subjected to commercialisation and their legal status was changed: we are no longer a state-owned enterprise but a sole shareholder company of the State Treasury with the name of Zakłady Azotowe Kędzierzyn, Spółka Akcyjna [“Kędzierzyn” Nitrogen Works, Joint-stock Company].

In early 1990s, the concentrated nitric acid plant which utilised the mixed acid process was closed down, and so was the coke-oven gas fractionation unit. New and more efficient electrostatic precipitators were installed in our heat and power plant. The new syn-gas purification plant was commissioned which was provided with a computer-based DCS. Also, the construction was finished of our central mechanical-biological sewage-treatment plant and the pollutants discharged to the Odra river can now be subjected to much more efficient reduction. Our Basic Automated System for Control of Immission (BASKI) of air pollutants was made complete; it now covers the premises of our company and the neighbouring territories as well. A modern ammonia plant was started up which replaced 17 outdated production units. The plant was equipped with a new and modern (at that time) computer-based process control system. Also, new and modern arrangements were adopted within the process itself and the process equipment. An ammonia storage tank was added what made it possible to operate the ammonia plant in a more flexible way, following the current market situation and the demand profile.

An essential modification was made in the complex sewage treatment system: the rain-water stream was recycled and utilised for the production of industrial water. Our company joined the “Responsible Care” programme and our successful performance within environmental protection, health protection and occupational safety met with approval – we were given the right to use the logo of that programme. A nitric acid plant was purchased. It substituted the old plant which was responsible for the environmental and workplace pollution. A comprehensive promotion campaign was launched in the press, on the radio and TV, in the same year, which initiated the strategy for popularisation of the brand name of Salmag. The campaign was a success: its efficiency was confirmed by a steep growth in the interest shown in our product, and the brand name became recognisable in the market. The campaign was repeated next year for another product within that family, Salmag with boron, and it met with a success, too. Our oxo alcohols plant was subjected to modernisation in the second half of the 1990s. The engineers employed in our company were responsible for the deliveries of the production equipment, for its installation, and for the successful plant start-up. The process for the production of syn-gas for the oxo plant was developed by our company and by the Fertilisers Research Institute in Puławy. In parallel with the oxo project, some process improvements were introduced at the same time at the phthalic anhydride plant and at the dioctyl phthalate (DOP) plant. They resulted in improved quality of those products and in increased capacity of our DOP plant. A contract was concluded with BOC Gazy Polska for the deliveries of oxygen and nitrogen from their new air separation plant. A new carbon dioxide plant was commissioned. The product obtained from that plant offered the highest quality parameters and it was granted the quality certificate from Coca-Cola. The construction of light pipe network was finished what provided both up-to-date internal connections and convenient access of ZAK to global computer systems and resources. We also implemented a modern and integrated computer-assisted management system (SAP R/3) which incorporated the following functions: finances and bookkeeping, fixed assets management, cost accounts and controlling, materials management, production planning, sales and distribution, and staff and wages management.

We managed to implement the quality system which qualified for the certificate confirming its conformity with the requirements of the standard PN ISO 9002. We also adopted the Visual Identity System which was based on our modified logo.

The second line was built for mechanical granulation of nitrate fertilisers. So, our nitrate fertilisers offer the highest performance parameters and meet the standard which was until recently satisfied by the Salmag-family fertilisers only.

After many years’ efforts in minimising the environmental impacts of our production processes, the Works were struck off the list of the most environmentally noxious companies.

In late 1990s, a pilot plant was erected for the production of trimethylolpropane (TMP) which was utilised to develop the TMP production process on the basis of feedstocks available in ZAK. Our urea adhesives plant was subjected to modernisation: a modern production line was added to the existing infrastructure. That line yields adhesive resins with improved quality and at improved consumption figures for raw materials and utilities. The resin grades produced can be quickly changed, depending on the market demand. The system was built which traps benzene vapours released from gas space of benzene storage tanks; benzene is a feedstock for the production of maleic anhydride.

Early in 2000, the new organisational structure and management rules were adopted which were suggested by the consulting company – Gemini Consulting. Resulting from that restructurisation a system of business units was set up. Five business units were established and one business & service-providing unit – “Power Engineering” – was organised. Moreover, three management levels were defined: strategic, basic and supportive.

The modernisation project which covered basic objects within the oxo plant was finished. A plant was also prepared for the production of a new plasticizer – diisobutyl phthalate. Thus, the scope of plastics components offered by our Works was expanded. Construction of a new milling plant was started which would process mineral feedstocks required for the production of fertilisers. Separate daughter companies were established which were based on our previous repair workshop, control & instrument department, railway transport department, hotel and holiday centre.

Since 1992, i.e. since commercialisation of our Works, a few attempts were made to privatise our company. Since there was no investor interested in purchasing it as a whole, the approach to the privatisation process was changed.

Finally, the winning concept was based on product-oriented consolidation – departments which manufacture the same products would be isolated from the companies and these would be organised into centrally controlled companies. The sole shareholder company of the State Treasury, Nafta Polska SA, was assigned by the minister as a unit responsible for restructurisation of the chemical synthesis sector in the Polish economy, with due consideration given to the property, organisation and cost-related issues. The privatisation and restructurisation programme was implemented in 2003 and 2004.

9th November 2004 Council of Ministers assented on carrying in shares ZAK S.A. to the Nafta Polska S.A.

14th September 2005 shares became carried in to the Nafta Polska S.A.. From this moment 80 % the partnership share belongs to the Nafta Polska S.A ., and 20 % to the State of Treasure.

19th December 2005 the Management of the Nafta Polska S.A. decided to give to the PCC AG exclusive rights to on the leadership of the negotiation, in the process {trial} of 80% shares of ZAK S.A., from 9th January 2006 till 17th February 2006.

3rd April 2006,
in compliance with the accepted program of the privatization of the Great Chemical Synthesis, one signed the contract among the Nafta Polska and the PCC AG about the sale 80 % of the shares ZAK SA.

27 October 2006
MSP made a decision that would not direct the conclusion on Council of Ministers for the accedence on the privatization of nitric Works Kędzierzyn and nitric Works Tarnów.

The shareholders on 31 December 2006 present as follows:
  • 80,00% shares has Nafta Polska S.A.,
  • 7,50% shares has State Treasury,
  • 12,50% shares have entitled employees.