The history of Zakłady Azotowe in Tarnów-Mościce

The history of Zakłady Azotowe in Tarnów-Mościce began in 1927. Grupa Azoty S.A. (formerly Zakłady Azotowe in Tarnów-Mościce) is the company from chemical industry located in Mościce, a district in Tarnów.^[1] In the period of II Polish Republic, one of the most modern factories in Europe and one of the largest investments in the interwar period in Poland.

Construction genesis of Azoty plants in Tarnów

The development of the Polish chemical industry is connected with the professor of University of Technology in Lwów - Ignacy Mościcki,^[2] who became director of the nitric compound factory in Royal Steel Plant (later Chorzów) acquired from the German side upon the Silesian uprisings. The main promotor of chemical industry development, including nitric compounds, in Poland was the Chemical Research Institute in Warsaw established by I. Mościcki. The plans of chemical industry development were conceived in this institute, including the construction of the second large nitric compounds factory. The final decision on building the new factory in Tarnów was taken on 12 March 1927. Farm goods were purchased from the family of Sanguszkowie, measuring 670 hectares, for the sum of 207 thousand American dollars.^[3] The first works on the construction site were commenced on 5 May 1927.

The State Nitric Compound Factory was established in Mościce in 1927 which was one of the largest investments of regenerating Polish Republic, indicating trends in the Polish chemical industry. The tradition of its predecessor is continued by Grupa Azoty S.A. seated in Tarnów today.

State Nitric Compounds Factory in Mościce

The regions near Tarnów were chosen for the construction of the factory, ca. 4 kilometres from the town centre, to the west. The management of particular departments under construction were mainly the students of professor Ignacy Mościcki, the director of the Institute of Physical Chemistry and Technical Electrochemistry at the University of Technology in Lviv and the counsellor of this university in 1925-1926. The majority of the fittings for production installations PFZA were purchased abroad, the rest from national producers. The starting material in the installation for ammonia synthesis preceded with gas cleaning plant was blast-furnace coke from which water gas was obtained in six generators. The heat and power plant was built for the needs of chemical production, which was equipped with a boiler room burnt with fine coal. The equipment of the steam department of the heat and power plant were six boiler assemblies. Turbine assemblies were mounted for electric power generation, which included 3 condensation turbines and 1 back pressure turbine. The installation of machines and heat and power plant devices was completed on 2 October 1929. This day is considered the final date of factory construction.In 1928, next to the nitric installations, the construction of the Department of Chlorine was started, which did not had any technological connection with the nitric part, with Billiter’s electrolysers that were launched in July 1930.

The official opening of the State Factory of Nitric Compounds was held in Mościce on 18 January 1930^[4] with the participation of Ignacy Mościckiego, the President of Poland, representatives of the PR government with Kazimierz Bartel, the Prime Minister of Poland, and Eugeniusz Kwiatkowski,^[5] the Minister of Industry and Commerce. In the initial period of its operation, PFZA produced ca. 60 tons of ammonia per day. Nitrogen necessary for synthesis was obtained as a result of air condensation with Linde method and hydrogen out of water gas. The part of produced ammonia was subject to processing into 50% nitric acid. Ammonia nitrate obtained by neutralising the nitric acid with gaseous ammonia was processed into fertiliser named nitrofos with ca. 15.5%nitrogen content. The global production of the State Factory of Nitric Compounds in Mościce in 1930 was 57 thousand tons of mass, out of which ca. 80% were nitric fertilisers. In addition to the aforementioned products, in 1930 ammonium nitrate was also produced for weapon industry and among chloric products were produced: chlorobenzene, chloronaphthalene, calcium hypochlorite as well as melted sodium hydroxide.

The first year of activity of PFZA was at the time of the first year of the great global economic crisis. In the critical situation for the factory, Eugeniusz Kwiatkowski, the contemporary Minister of Industry and Commerce, became its main director. The minister came to Mościce in the half of February 1931. He faced very important task - ensuring that the factory, which was opened with such big resources of effort and money and already close to shutdown, could continue the operation. The factory in Mościce, in order to remain competitive on the market, had to expand its range of fertilizers and modernise the existing one. In 1930 it was decided to modernise the installation for nitric acid and ammonium sulfate production. The most important investment step for the factory in the interwar period was the decision to produce the granulated lime saltpetre (so-called Norwegian) in demand on global markets, which was produced by only two factories in the world at that time. The technology was purchased in Norway, the other construction works, construction and installation of the equipment was performed independently. In 1934 the first in the world technical installation for concentrated nitric acid 98.5% with William method (Ho-Ko, „hochkonzentriert”) with capacity of 20 tons per day was built in the factory in Mościce.

On the 1 August 1933 PFZA Chorzów and PFZA Mościce were merged into one commercialised enterprise owned by the State Treasury named Unified Factories of Nitric Compounds in Chorzów and Mościce.^[6] In ZFZA plant also included the “Azot” factory in Jaworzno. The enterprise operated under the same name until the outbreak of World War II. In 1936^[7] the plan for further development of “Mościce”, which assumed the investment expenses in the sum of 14.8 million zlotych for modernisation for the modernisation of the installation for ammonia production, nitric acid, chlorine, lime saltpetre and commencement of methanol and formalin production.^[8]

In August 1933 the works on construction of gas supply piping from Zagłębie Lwowskie and Krośnieńskie to Mościce were started. The investment was a part of the gasification program for the Central Industrial District. The works connected with supplying gas to Mościce were completed in 1937. At first, gas was used to burn boilers of the power plant in the factory, which contributed to decrease in transport and coal storage costs. Next, the tests of methane decomposition in generators were conducted. Upon achievement of positive results, the hydrogen content in raw gas increased, which contributed to the increase in ammonia production by ca. 10% in Mościce. It also initiated the start of using natural as the primary material, at the same time, decreasing the production costs. At the end of 30’s of XX c. the ammonia production in factory in Mościce was based on gas obtained from the generators gasifying coke and, additionally, two generators adjusted to gasifying coke and methane.

At the same time, the construction of new installation (commonly called 1st methane decomposer room), which was intended to produce hydrogen on the basis of natural gas with the use of nickelic catalyser, was started. The investment was completed shortly before the outbreak of war, but it was opened in the period of occupation. In the described period, the pilot installation for the production of new nitric-phosphoric fertiliser - precipitate (bi-phosphate). In 1933-1938 the factory in Mościce produced such nitric fertilizers: ammonium sulphate, nitro-chalk, lime saltpetre, in the initial period also nitrofos and at the end of that period precipitate (bi-phosphate). The technological nitric products were: ammonium nitrate (also used as fertiliser), concentrated and technological nitric acid, nitrous vitriol, condensed ammonia.^[9]

II World War

The following fertiliser were produced in the period of occupation in Mościce: lime saltpetre, ammonium sulphate, nitro-chalk and little amount of phosphate fertilisers: bi-phosphate and ground phosphate rock and, as well as, for example: technological and condensed nitric acid, nitrous vitriol, ammonium saltpetre, condensed oxygen, caustic soda, hydrochloric acid, condensed chlorine, hebatox (calcium chlorate).^[10] In the year of occupation, the large part of production was limited or ceased.^[11] The occupant aimed to maintain mainly the production of goods that could be used in welfare. In that period, the production of 20.5% granulated nitro-chalk on the basis of the installation for nitrofos was started. Since the start of 1944, Germany facing the military failure commissioned the disassembly of the factory equipment and its transport far to the German Empire. The production was practically stopped.

Post-war reconstruction and further development for organic production

Upon the end of occupation in June 1945 the government passed a law on the reconstruction and development of PFZA in the scope of the national program of fertiliser production for agriculture. The machines and devices removed from Mościce, with involvement of the crew, were successfully found - e.g. in Brzeg Dolny in Silesia. In 1945 the production of methanol on the small scale was started. In November 1946 the half-technological formalin installation was commissioned for public use and the law on the reconstruction of the chlorination plant was passed. Years 1947-1949 are the period of Three-Year Plan. The recovery of the stolen equipment allowed for commissioning of the installation for iron-chromic catalyst for carbon oxide conversion as soon as in May 1947 and in July - the installation for synthetic ammonia, next, the installation for technological nitric acid production and nitro-chalk (20.5% N). The installation of lime saltpetre was reconstructed in 1948 and launched a year later. In summer 1948 upon 8 months of reconstruction, the chlorine plant was commissioned. Chlorine obtained from salt electrolysis was the base material for production of chlorinated lime, hydrochloric acid, chlorobenzenes and chloronaphthalene waxes.

In 1949 Azoty in Tarnów produced as many as 20 products. The share of nitric fertilisers in the global production of the factory was at first at the similar level as before war (ca. 80% in mass). The remaining 20% was the production of other chemicals. It was still a factory producing practically only non-organic products. The demand of the national industry was much higher and was constantly growing. The development and modernisation of Azoty was necessary and required the change in technological concept.

“Turning away from coke” and replacing it in the first phase with natural gas became one of the main directions of the modernisation of production. The localisation of the factory in the territory through which the south main gas conduit east - west ran made such decision obvious. Azoty, located nearest to the natural gas deposits among all largest recipients, had good conditions to exploit this material. The program of intensification of the production of ammonia and fertilisers, also named “Tarnów I”, was performed in steps. The initial aim was the reconstruction of the ammonia plant to reach the capacity of 480 tons per day by further development of two new gas generators for ammonia synthesis out of coke and two generators producing gas for ammonia synthesis on the basis of natural gas, construction of installations for natural gas conversion, modernisation of gas purification for ammonia synthesis out of carbon oxide by implementation of a so-called copper washing method. In the scope of expansion of productive capacities of nitric acid, five new units for technological nitric acid with pressure method designed in cooperation with T. Hobler (so-called Hydro-Nitro-Hobler)^[12] were commissioned, the second unit for nitric acid with non-pressure method was built, and, then, the installation for nitric acid condensed to 110 tons per day and nitrous vitriols to 180 tons per day was intensified.

The concentration of efforts in the 50’s of XX c. on the development of fertilising track did not mean one-sided modernisation of the factory. In that period, the preparations for further development were started, aiming to broaden the range of products and implement modern and highly refined products. In 1952-1953 the installation for methanol synthesis was build and launched on the basis of experiences from the half-technological installation existing in the Research Laboratory since 1934. The produced methanol was the material for formalin and methenamine in the newly constructed and launched installations in that period. In 1953 the first organic product was started to produce on the technological scale - formalin, with capability of 4500 tons per year. Both ammonia intensification as well as the formalin installation were the investments designed and performed independently. The next milestone to change in the productive profile of the company was the start of the construction of the installation of the caprolactam, a half-product to polyamide fibre and plastic production. Year 1957, the anniversary and thirtieth year in the history of “Mościce” was called “the year of great launches”. In addition to the launch of the caprolactam plant, a new mercury salt electrolysis with capacity of 18000 tons per year was commissioned. The intensification of production and construction of new installations caused the increase in demand of the plants for steam and electric power, which could not be obtained by the intensification of the existing heat and power plant (EC I). The decision on construction of a new heat and power plant with capacity of 50 MW with possibility of further development was made. The new heat and power plan (so-called EC II) was built in years 1954-1958. The first stage of the EC II construction was the installation of three steam boilers and two bleeding-condensing turbines.

“Tarnów II”, acetylene chemistry. Caprolactam development

In May 1961 the Economic Committee of the Council of Ministers approved “the basic principles of development of the Nitric Plants in Tarnów”, that is the transformation of the enterprise into large chemical complex. The further development of the plants and intensification of the contemporary production range in the existing installations was planned for the sum of 4.8 million contemporary Polish zloty. The program for plant development was named “Tarnów II”.^[13] It included the construction of three installation for acetylene production in the process of semi-combustion with the oxygen generating plant and new installation for ammonia synthesis (3 units, 200 tons per day each), new chlorine generating plant with mercury method with capacity of 30 thousand tons per year, development of chlorine and polyvinylidene dichloride generating plants, using acetylene, with capacity of 80 thousand tons per year, the hydrogen cyanide and acrylonitrile generating plants (half-product for wool-like fibre) as well as the construction of plant generating semiconducting silicon. In the scope of the program the further development of the production capabilities of caprolactam with the installations for producing half-products: sulphuric acid and oleum, ammonium nitrate, hydroxylamine sulphate and ammonium sulphate processed as side effect at caproplactam production.^[14]

The material base for installation “Tarnów II” was methane-rich natural gas (in the amount of ca. 450 million m3 per year) from which acetylene was produced with modern at that time method of pressure half-combustion with oxygen. Acetylene was then processed into suspension polyvinylidene dichloride and acrylonitrile. The construction of “Tarnów II” was started in 1962 and was the beginning of the over 20-year period of so-called “acetylene chemistry” in Azoty in Tarnów.^[15]

The performance of the investment “Tarnów II” required a significant development of the plant infrastructure and a range of auxiliary facilities. The further development of the EC II heat and power plant was also performed by building new steam boilers no. 4 and 5 and two steam turbines. In 1962-1964 the installation for half-pressure nitric acid was build where, for the first time in the country, the projected system of nitrogen oxide absorption was introduced. Since 1964 to 1968 the plant generating nitric acid with inter-pressure method, consisting of 4 units with joint capacity of 800 tons per day, was more and more frequently used. In the first half of the 60’s of the previous century, a new plant generating ammonium saltpetre and granulated nitro-chalk with tower method. In 1963 the first and two year later the second installation line for saltpetre production was launched. It allowed to achieve the production capability of 1500 tons of fertilisers per day. The novelty in nitro-chalk and ammonium saltpetre production were columns with the regain of the heat generated in the neutralisation of the nitric acid with gaseous ammonium. In the 60’s of last century, the Billiter electrolysis and I mercury electrolysis were also intensified. The decision to construct the second unit of mercury electrolysis was made in connection with the construction of the Plant Generating Vinyl. Its performance was completed in 1967. The construction was completed in 1971 and the second unit of the half-combustion installation was launched. In 1972 the modernisation of the first half-combustion unit was performed, introducing to it the solutions according to the pattern from the second installation. The launch of the first half-combustion unit upon its modernisation was known as the completion of construction of “Tarnów II”.

Upon the launch of the main installations in “Tarnów II”, in Azoty in Tarnów, 4 basic technological lines were visibly distinguished: nitric compounds, organic compounds of methane, chloric compound and caprolactam derivatives. In the first half of 70’s of the previous century, the further changes in the material base for ammonia production were introduced. This was due to economic reasons and lower production capability of the installations generating gas for ammonia synthesis than the capabilities of the modernised and constructed ammonia syntheses in the period of Tarnów II. It was decided to purchase the installation for methane conversion with water steam at the nickel catalyser with capacity of 500 tons of ammonia per day in order to change the material basis. This unit was given the subsequent number 5 and was commonly called the “change of base”. The new installation was launched in September 1973. As a result, it was stopped to produce ammonia on the basis of water gas out of expensive coke. The old generators that were one of the most important pre-war installations in Azoty were withdrawn from use.

The period of “Tarnów II” also includes the successes of the chemists working at improving caprolactam technologies there. Upon the start of the installation in 1957, its projected capability of 4000 tons was achieved and then exceeded. Four years later the capability of the installation was increased to 16.2 thousand tons a year. Further works on the modernisation and intensification of caprolactam, including e.g. the construction of caprolactam treatment unit by crystallisation, the construction based on the Swiss solutions for “Luwa” film distillation, the construction of the installation for obtaining cyclohexanone on the basis of cumene phenol - led to achieving the capability of 55 thousand tons per day in 1975. The biggest breakthrough in caprolactam production was the launch of the new, original method of producing cyclohexanone out of benzene on the industrial scale, on the basis of the elaborations of the Institute of the Chemical Industry in Warsaw and independent ones in 1973. The process which was named “Cyclopol” became a hit in the period of Polish technological thought export, not only in reference to the chemical industry, but also to the entire Polish industry.^[16]

At the start of the 70’s of the previous century, the decision on the further development of the installation for polyvinylidene processing so-far existing on the half-technological scale.^[17] The production of the drainage pipes and PVC tele-technological pipes needed in farming was started. Tarnów became the potentate both in terms of the number and quality of drainage pipes. In August 1975 the polytrioxane production was launched on the experimental-pilot installation with commercial name Tarnoform®. It was the installation with little capability (ca. 1000 tons of powder per year), but the scale of technological difficulties and values of the produced polymer qualified it to the group of serious technological achievements. The decision on the construction of the technological plant generating polytrioxane was made not sooner than in 1985. The next novelty in Azoty in Tarnów was the start of polytetrafluoroethylene (PTFE) production with commercial name Tarflen®. The production of this unique material on the half-technological scale was mastered in 1970. The start-up of the installation with capacity of 500 tons per year, the project of which was developed by the plant Design Office was in 1978. This success caused interest in foreign business partners and, in effect, this technology, next to the caprolactam technology, became the object of technological thought export. The role of the technological thought export was appreciated in the plants, not only as the source of additional company revenues, but also as motivation for development and raising qualifications by expert personnel.

In 80’s of the XX c. there were numerous limitations in access to investment resources, which, in consequence, only modernisation activities were performed in Zakłady Azotowe. At the end of the decade, the construction of the new installation for the technological nitric acid^[18] was started. Without replacing the old acid units with a new installation, meeting the ecological norms, the production of nitric fertilisers would have to be ended in Tarnów. The installation was launched in April 1992.

Plants in Tarnów upon the political transformation in 1989.

On 21 February 1991 the Act of transformation of Zakłady Azotowe in Tarnów from the State Enterprise into a wholly owned joint stock company S.A. with 100% of shareholding of the State Treasury.^[19] The end of the so-called acetylene chemistry and significant growth in prices of natural gas resulted in the gradual implementation of “exit strategy” in relation to the most of the installations launched in the period of “Tarnów II” at the start of the 90’s. The acrylonitrile installation was turned off as the first one in 1990 as it did not withstand the conditions of the introduced market economy at that time, next, the plant generating silicone was switched off due to production unprofitability. Problems with acetoncyanhydrin sale appeared at the start of the 90’s. New economic rules also caused difficulties in drainage and tele-technological pipe sales at the outbreak of 90’s. In Autumn 1990 the works on the construction of the modern installation for ammonium sulphate were started. The new installation launched in 1992 not only increased the quality, but also the product effectiveness as well as the amount of sulphate carried away to sewage. In the same year, the production plant of window profiles made of polyvinylidene was launched, and in the next years - PVC windows. In 1993 the production of liquid carbon dioxide on the basis of CO2 released to the atmosphere from the installation of Methane Decomposing plant V was launched with the use of existing, free production resources for that purpose.

In 80’s and 90’s of the last century, there was further increase in the caprolactam capacity by intensification of the production of cyclohexanone out of benzene, modernisation of the ammonium nitrite and hydroxylamine sulphate installation. The implementation of the two-stage Beckmann regrouping in September 1993 effectively improved product quality. In Autumn 1994 the first line of the new plant generating Tarnoform® with target production capability of 10 thousand tons per year in two lines was started. It was based on the new formalin production installation launched in 1993..^[20] The biggest event of 1996 was the commissioning of the modern installation for obtaining polyamide PA-6 (Tarnamid®) by caprolactam polymerisation with capacity of 22,700 tons per year. In 1997 the second line of the plant generating Tarnoform® was commissioned, which allowed to increase the production of this needed plastic from 5 thousand tons to 10 thousand tons per year.^[21]

In 1996 the construction of the installation for condensed nitric acid was started. The installation was launched at the end of 1997, upon the period of barely 15 months since the commencement of the construction. The launch of the new installation for condensed nitric acid with capacity of 100 tons per day allowed to stop the operation of the existing used installation as well as caused significant reduction in nitrogen oxide emission and significant limitation of energy consumption in the production of condensed nitric acid. In the 90’s of the previous century the production of ammonia in plants was becoming less and less effective and no one doubted in the necessity of modernisation of the installation for ammonia synthesis from the pre-war period. It was dictated not only by the economic reasons, but also ecological. The design works connected with the construction of the new installation on the basis of the equipment purchased from the ammonia installation in Hungary was started in 1997. The commissioning of the installation in 2000 allowed for switching off the ammonia synthesis units operating since 1929.

During the whole decade of 90’s of the last century, considering the decrease in costs and improvement of competitiveness as well as the reduction of harmful influence on the environment, the plans for modernisation of technological solutions were performed. The results in the scope of environment protection were obtained with the modernisation of the existing installations, equipping them with additional protective nodes, as well as introducing new installations based on modern technologies. The largest and most visible pro-ecological successes include the reduction of nitrogen oxides emission, dust emission to the atmosphere by 10 times, reduction of the nitrogen load and other contaminants carried away to sewage. The confirmation of the effective pro-ecological activities of Azoty in Tarnów was striking out the company from the list of the companies most harmful to the environment in the country, a so-called “list of 80” in April 2001.^[22] The further development of the group sewage treatment plant was performed in the 90’s of the previous century.

In 90’s of the previous century, the production of PVC of self-generated polyvinylidene, based on an expensive material, acetylene generated with methane half-combustion method was not, except for special periods, profitable. From the second half of 90’s, the price of natural gas was systematically growing, which resulted in further increase in the PVC production costs. The existing economic conditions caused the necessity for further reduction in acetylene production and, in consequence, own polyvinylidene. In 1998 the I half-combustion installation and in 2001 the II half-combustion installation was stopped. In the second half of 2001, due to high purchase costs of polyvinylidene and its processing, PVC production was stopped, and, then, in April 2002 it was decided to put the PVC plant into liquidation. The start of XXI c. was also the twilight of Tarnów acetoncyanhydrin. In April 2002 it was decided to completely switch off this installation.

In the period of forced production restructuration in the production plants built in the period of “Tarnów II”, the plant generating caprolactam with ammonium sulphate, the plant producing fertilisers on the basis of new ammonia synthesis and a range of auxiliary and infrastructural facilities were developed and modernised. Year 2005 was the start of performance of two key investments. The first was the intensification of the plant generating polyamide PA-6 with capacity of 45 thousand tons per year. The second investment was the construction of the mechanical installation for granulating fertilisers with production capacity of ca. 400 thousand tons per year. In the same year, there was the next breakthrough in technology of producing cyclohexanone out of benzene, connected with the implementation of a so-called two-stage oxygenation process, which gave birth to the technology named Cyclopol-bis®.^[23] The total production capability of caprolactam as a result of the next intensifications and modernisations conducted in 1995-2005 reached 95 thousand tons per year.

In June 2008 Azoty Tarnów debuted on the Warsaw Stock Exchange.^[24] At the end of 2009, a modern installation for fertiliser mechanical granulation with capacity of 1200 tons per day was launched.^[25] The performance of this task made it possible to introduce a new product onto market - ammonium saltpetre sulphate (Saletrosan®) and reinforcement of the plant’s market position in the sector of saltpetre fertilisers. The second achieved emissive aim was increasing the production capabilities of polyamides. The performance of this aim was possible due to the radical change in the company’s strategy, in the scope of which, in addition to internal growth, the possibilities created by mergers and acquisitions was appreciated.

At the start of 2010 Azoty Tarnów became the holder of 100% of shares in ATT Polymers, a German producer of polyamides in Guben.^[26] The acquisition turned out to be much more beneficial option than the construction of a new plant in Tarnów. The result of this acquisition was a significant promotion of Azoty Tarnów Capital Group among European producers of polyamides. In the same year, the performance of the next emissive aim was started - the construction of the Hydrogen Installation in Tarnów with production capacity pf 8000 Nm3/h, connected with the modernisation of Caprolactam Plant with capacity of 101.3 thousand tons per year. The investment made it possible to increase the use of the natural gas obtained from the local sources and, in consequence, lower the production costs.

Consolidation of great chemical synthesis enterprises

Since 2010, Azoty Tarnów have been implementing the process of consolidation of the largest chemical enterprises in Poland. The first significant event was acquisition by the company of 100% shares of Unylon Polymers GmbH in Guben/Germany - polyamide manufacturing enterprise. The entity entered the composition of Azoty Tarnów Capital Group and changed its name into ATT Polymers.^[27]

Another step involved commencement of consolidation of the Polish chemical industry, consisting in a merger of the largest companies in this sector on the domestic market. The first stage of the entire undertaking was amalgamation of Zakłady Azotowe in Tarnów with Zakłady Azotowe in Kędzierzyn-Koźle (ZAK S.A.).^[28] This process involved acquisition by Azoty Tarnów of the packet of 52.6% B series shares of ZAK S.A. within the scope of issue carried out by the State Treasury. The entire transaction covered the amount of PLN 150 million.^[29]

In 2011, decision was made to amalgamate Azoty Tarnów with Zakłady Chemiczne in Police (near Szczecin), 60% of shares of which were held by the State Treasury. The Management Boards of both companies were in favour of the consolidation.^[30][31] Having obtained the consent of the Office of Competition and Consumer Protection^[32] and due to lack of objections of the German Federal Cartel Office, the facility in Tarnów commenced collection of funds necessary to carry out the transaction.^[33] ZCh Police managed to collect funds for purchase of the controlling share packet due to, inter alia, issue of 25 million C series shares,^[34][35] approved by the Polish Financial Supervision Authority.^[36] Not only did the funds obtained this way allow to take over control over Police, but also to buy back another 40% of shares of the facility in Kędzierzyn from the State Treasury.^[37]

In 2012 Azoty Tarnów became the target of hostile take-over by the Russian Acron.^[38][39] On 16 May the Russians tries taking over control of the Polish chemical company through the subsidiary Norica Holding S.à r.l,^[40][41] they announced a tender offer for shares of Zakłady Azotowe in Tarnów-Mościce,^[42] for the price of PLN 36 per share.^[43][44] Acron managed to purchase only 12% of shares.^[45][46] The steps taken by the company’s management board and Ministry of Treasury (such as adoption by the parliament of the Act on control of certain investments)^{[47][48][49][50][51]} allowed to secure the enterprise against hostile take-over.^[52][53]

On 13 July 2012, there was a tender offer for shares announced, regarding 6 million 116 thousand 800 shares of Zakłady Azotowe in Puławy, PLN 110 per share.^[54] As a result of the call, the facility in Tarnów managed to obtain 10.3% shares of the facility in Puławy.^[55][56] This call was the first step in consolidation of two largest chemical companies in Poland.^[57] The concept of consolidation of Zakłady Azotowe in Puławy with Azoty Tarnów was supported by the Ministry of Treasury and trade unions.^[58][59][60] On 15 November 2012,^[61] the management boards of Zakłady Azotowe in Tarnów and Puławy concluded the contract establishing the principles of cooperation and conducting negotiations.^[62] Further on, Azoty Tarnów issued shares, available solely for the shareholders of the company in Puławy. They only exchanged shares held by them in Zakłady in Puławy for shares of the company in Tarnów, in a 1:2 ratio.^[63] Full performance of this stage still required consent of the European Commission for the merger of both companies^[64] which was issued on 13 January 2013.^[65][66] Finally, by ways of buy-back, Azoty Tarnów purcahsed 95% of shares in Zakłady Azotowe in Puławy. Consolidation of the enterprises in Tarnów, Puławy Police, Kędzierzyn-Koźle allowed for formation of one of the largest fertiliser companies in Europe, operating under the name of Grupa Azoty, consolidating ca. 75-80 per cent of the national fertiliser production.^[67][68]

On 21 November 2013, the Company purchased 85% of shares of the only manufacturer of sulphur using the smelting method, Kopalnia i Zakłady Chemiczne Siarki „Siarkopol” S.A. in Grzybowo, from the State Treasury. The value of the transaction was ca. PLN 400 million.^[69]

Another very important event in the history of the company was purchase of the phosphorite mine in Senegal^[70][71] by Grupa Azoty Zakłady Chemiczne „Police” S.A.^[72] The contract of purchase, amounting to 28.5 million dollars, allowed Zakłady in Police to purchase 55%^[73] of shares of AIG.^[74][75] Due to the said investment, the subsidiary of Grupa Azoty secured its own raw material source, necessary to manufacture phosphorus and multi-ingredient fertilisers, characteristic for its business.^[76][77]

References