Crystallised success Nitrogénművek

CRYSTALLISED SUCCESS

Hungary’s only nitrogen fertiliser producer, Nitrogénművek Zrt, has been in business for 80 years. Since 2008 the company has achieved steady growth thanks to its focus on capacity utilisation and changes in the company structure. This year its output rose to 1 million tonnes, resulting in a €300 million turnover. Edina Beale reports.

Established in 1931, Nitrogénművek Zrt is the only nitrogen fertiliser producer in Hungary that has the ability to manufacture ammonia and chemical fertilisers. The company has acquired a 60 per cent share of the domestic market and as a member of the Bige Holding Group provides the full range of chemical fertiliser products under the Genezis brand.

The parent company, Nitrogénművek Zrt is headquartered in Pétfürdő whilst four

subsidiaries in Hungary are operating in two locations, in Pétfürdő and in Nádudvar. The company’s structure has gone through a recent change as the management decided to in-source some of its actitivities including storage, packaging, logistics and maintenance. “We used to outsource these activities to other companies,” explains Mr István Blazsek, CEO of Nitrogénművek Zrt. “But we realised that we can be more efficient and cost effective if we do these activities ourselves, especially with things like maintenance as it is vital to keep our operations smooth at all times. For this reason our staff numbers grew to 670 at the parent company, whilst our subsidiaries employ nearly 80 people.” Strong competence

Competition in the chemical fertiliser market in Hungary is fierce due to the high level of imports. Nitrogénművek Zrt puts great emphasis on marketing and provides a nationwide consultancy service for its agricultural partners. The Genezis Partner Network consists of a large number of industry professionals who inform the partners about the results of the experiments carried out by research companies and universities as well as advising them on the most suitable products that meet their individual needs.

The company’s long lifecycle products have contributed to its long-term success. Pétisó (CAN) and the basic products of ammonia and nitric acid have been produced since the establishment of the factory. Urea products have also been manufactured for 40 years and ammonium nitrate for over 60 years. The company’s excellent-quality products and the ability to offer fast and flexible distribution as well as its high-quality packaging has enabled Nitrogénművek to maintain its leading position in the domestic market throughout the years.

The company has also established strong links with most universities in Hungary to carry out various experiments in the fields of greenhouse and agricultural production. “In recent years we have carried out several experiments on Pétisó in many

different universities, because this was the first granulated product in Hungary’s history of chemical fertilisers and we needed to convince our partners about the advantages of this product,” adds Mr Blazsek.

As a result of an increased demand for the company’s products in foreign markets, the capacity utilisation ratio has continuously increased since 2008 and by 2011 it reached 100 per cent. Currently 55–60 per cent of production is exported to countries including Serbia, Romania, Slovakia, Germany and Italy, where Nitrogénművek set up subsidiaries in order to boosts sales.

Large capacity increase

Nitrogénművek completed a €100 million investment in 2008, when a brand new nitric acid factory was built and a new chemical fertilizer manufacturing plant was developed to produce granulated Pétisó. At the same time, all operations were ended in the company’s old units. “The new plants are much more efficient compared to the old ones: the specific energy consumptions of these facilities are much smaller, so the environmental strain fell drastically, as less material and energy is needed to produce the same product,” explains Mr Blazsek. “Granulated Pétisó is one of the most popular products in the export markets and it is now being produced much more efficiently.”

Whilst enjoying the benefits of the previous investments, the company has also spent € 4 million to modernise its storage facilities. “This investment was needed to increase our ability to maintaining product quality. In addition to this, we currently run several projects to increase capacity and to reduce energy consumption. We aim to increase our capacities to produce ammonia, nitric acid and Pétisó by 15–20 per cent within the next 2–4 years,” reveals Mr Blazsek.

Preparing for new industry laws

From 2013 a new emission trading system (ETS) will be introduced that will force ammonia and nitric acid producers to reduce their specific energy consumption. Nitrogénművek Zrt is already preparing to meet the new requirements set by the largest multi-sector cap-and-trade programme currently in effect. “In our nitric acid plant N2O emissions are under the European benchmark level; however, in our ammonia plant we need to make further investments to reduce our energy consumption to the required level,” says Mr Blazsek. In addition, the company has also set a goal to reduce its costs for buying energy and therefore planning to develop a power production capacity in Pétfürdő.

The new investments will enable Nitrogénművek Zrt to increase product output significantly and to drastically improve operational efficiency, thereby increasing competitiveness for at least another 80 years. n

Palota-Vidék 2000 Zrt is one of the oldest companies in Várpalota; its predecessor was established 51 years ago. The company operates 11 plants in the town and its nearby settlements and is in 100 per cent Hungarian ownership.

Our main activity is dolomite mining.

Our production is operated in several mines and therefore we are able to provide stones and rocks in a varied quality for a wide range of industries including chemical industry, road construction, construction industry and the agriculture sector. We offer transportation service for our mined products using our own vehicle.

Our joint-stock company also owns an agricultural fi rm engaged in plant cultivation, milk production and sheep farming as well as providing related services with its varied machinery.