Azoty bows to high gas prices and climate policy, competitors rejoice

Grupa Azoty Puławy has suspended the production of melamine due to high gas and CO2 emission allowances prices, but its non-EU competition doesn’t have to face such challenges.

“The Management Board of Grupa Azoty Puławy has decided to temporarily stop the production of melamine. The costs associated with the basic raw material – natural gas and energy in terms of emission prices are currently the biggest challenge. The reference point in this case is producers from outside the European Union, who do not have to bear such high costs,” Azoty explained. “Grupa Azoty Puławy has secured an operational stock of melamine. Production will resume when it is possible to obtain an acceptable price for melamine on the market, relative to the level of production costs,” the company said.

The first restrictions on melamine production began in early July 2022. Grupa Azoty Puławy is the only producer of melamine in Poland. Azoty reports that melamine is used to produce a wide range of synthetic resins used in the processes of manufacturing decorative laminates, wood – based panels, adhesives, paints and varnishes-including furnace varnishes also for the automotive industry, auxiliaries for the textile and paper industries, plastics for the electrical industry and the manufacture of household items. Melamine is also used for the production of flame retardants and for modifying concrete.

Grupa Azoty / Wojciech Jakóbik