New beginnings Nitrogénművek Zrt

NEW BEGINNINGS

Hungary’s largest fertiliser producer, Nitrogénművek Zrt, celebrates its 85th birthday this year. The company is now in the finishing phase of a significant investment project that began in 2004 and will result in the complete transformation of its factory complex. Edina Beale reports.

Since its establishment in 1931, Nitrogénművek Zrt has been Hungary’s largest fertiliser producer and the only nitrogenous fertiliser business that also has the capacity for ammonia and other fertiliser production.

In the beginning of the year 2000, Nitrogénművek Zrt became a member of the Hungarian Bige Holding group, owned by Mr László Bige, which led to a brand new approach with regard to development and investment strategy.

Strong brand

In 2003 the company established its Genezis brand, which covers the entire spectrum of its fertiliser products. The assortment includes nitrogen fertilisers, complex NPK fertilisers and irrigation and leaf fertilisers. The most important trademark of Nitrogénművek Zrt is Pétisó, which was patented in 1932. The main advantage of this fertiliser is that it can be used for any plants and it reduces the acidity of the soil while also being easy to transport, store and use.

In 2014 Nitrogénművek Zrt extended its activities and began trading with seed products and plant protection chemicals. The firm also trades with chemical products and industrial gases produced during the fertiliser manufacturing process. Within the company’s core activities the production and sales of nitrogen based fertiliser remain the most significant segments.

New phase

Based on the company’s extensive experience acquired throughout the decades and the eastern European demand for fertilisers, domestic fertiliser production showed strong potential 15 years ago when the company began its new phase of development. This was the reason, in 2004, behind the start of its 140 million forint investment project that was set to totally transform its operations.

At present the company is in the second phase of this major investment; so far the ammonium plant has been extended and a new granulating plant has been built, together with a brand new automated packaging hall. “The plants built in the 1970s will be replaced by modern and efficient units that also have larger capacities, and this will therefore be one of Europe’s most modern factories. We have now arrived at a milestone in this process, as the most important units of the second phase of this investment are now operating, and the whole investment process will be soon

completed. As a result of this, Nitrogénművek Zrt will soon be able to produce 1,475,000 tonnes of Genezis fertiliser products,” said Mr Bige, president and chief executive of the company. The development is due to be completed by the summer of 2017, when a new nitric acid plant, dolomite crushing plant and a neutralising plant will be opened.

The main factory building will be huge: nearly 50 metres high and covering an area of more than 1200m2. This will provide space for the latest and largest storage facility, a 19-metre dolomite powder tank, which is suitable for storing 300 tonnes of powder. The construction of the steel structure of this building requires two tower cranes that are working constantly for the next two months. Outside the factory a 40m3 capacity storage tank for raw materials will be erected. There is only one more plant which has similar capacity to this and that is currently being constructed in Turkey.

Increasing demand for export

The new plant will meet market demand in Hungary and in the export markets. “According to the report issued by the Fertilisers Europe Forecast by 2024/25, the amount of fertilisers used will be increased by 7–8 per cent in Hungary, and in the region’s countries including Bulgaria, the Czech Republic, Slovakia, Poland and Romania. Behind this significant market increase is the aim of more efficient production and the use of modern fertilising technologies,” said Mr Zoltán Rácz, deputy sales executive.

At present the Bige Holding group operates ten production plants in Hungary. Storage facilities in these plants are suitable for storing packaged fertilisers, seeds and leaf fertilizers too. These plants enable the firm to provide the highest customer service to its partners.

While the main priority for Nitrogénművek is to satisfy Hungary’s demand for agricultural fertiliser on a long-term basis, the company puts great emphasis on increasing its presence in its export markets as well. Its strategy is to establish subsidiaries in targeted markets and set up sales centres to reach customers in surrounding countries. At present the company mainly exports to neighbouring markets including Slovenia, Austria and Italy, but also operates sales centres in Slovakia, Serbia, Romania, Germany, Italy, Croatia and Bulgaria. n