Nourishing business Nitrogénművek

NouRiShiNG BuSiNESS

Hungary’s leading fertiliser producer, Nitrogénművek Zrt began a new series of investments in 2004 and by 2017 had invested €450 million into developments. As a result of this, the firm has been completely transformed from a local producer to a large trading company with astrong manufacturing background. Edina Beale reports.

Established almost 90 years ago, Nitrogénművek Zrt is the only nitrogen fertiliser producer in Hungary that has the ability to manufacture ammonia and chemical fertilisers. Although many of the company’s products include nitrogen fertiliser, its Pétisó (CAN) has become a real favourite among Hungarian farmers in the past decade. Basic products of ammonia and nitric acid have been produced since the establishment of the factory and urea products have also been manufactured for 50 years; ammonium nitrate has been produced for over 70 years. When in 2000 Nitrogénművek became a member of the Hungarian Bige Holding group, owned by Mr Laszló Bige, the firm has taken a brand new development approach and has undertaken large scale investments.

exceptional capacities

As part of these investments some of the most efficient plants in Europe were built. The company expanded their ammonia plant, built a new granulating plant that operates together with a new automatic packaging plant whilst in the summer of 2017 a new nitric acid plant, a dolomite crushing plant and a neutralising plant was opened. As a result of these developments, Nitrogénművek Zrt is now able to produce 1,475,000 tonnes annually of fertilizer products.

The company’s second nitric acid plant in Pétfürdő was built by the German Thyssenkrupp Industrial Solutions. The aim of this investment was to increase the production of fertilisers by expanding the capacity of nitric acid production. The new plant not only has an exceptional 1,150 tonnes daily production capacity but it is also able to produce nitric acid with 60 per cent density by using dual pressure technology.

The main factory building is nearly 50 metre high and extends over more than 1,200m2 to provide space for the latest and largest storage facility and a 19 metre dolomite powder tank, which can store 300 tonnes of powder. The construction of the steel structure of this building required two tower cranes working constantly for two months. Outside of the factory a 40m3 capacity storage tank for raw materials has been erected and a 20 m high and 7.5 m diametre gas washing facility. There is only one other plant in Europe with similar capacities and that operates in Turkey.

In January 2017, the new plant was granted a permit for official use and was opened on 21 June following all necessary operating tests. The new operation created 10 operators’ jobs and provided work for many in the area of maintenance, logistics, quality control and procurement.

Wide product assortment

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

In 2014, the company extended its activities and began trading with seed products and pesticide chemicals. The firm also offers chemical products and industrial gas products that are produced during the fertiliser manufacturing process. However the production and sales of nitrogen based fertiliser remains the most significant aciitivity.

export focus

Whilst primarily serving the needs of Hungarian agriculture, Nitrogénművek Zrt has also developed a significant export business The company aims to concentrate on operating its existing foreign subsidiaries and distribution centres whilst also establishing new units in unexploited markets. The current focus is on neighbouring countries such as Slovenia, Austria and Italy but Nitrogénművek Zrt also has representative offices in Slovakia, Serbia, Romania, Germany, Italy, Croatia and Bulgaria, too.

With its long history, extensive professional experience, its own trading network and high quality products, Nitrogénművek has all it takes to continue as a flourishing business. Now due to the new developments the firm has enormous capacities to serve both its existing customers and to strengthen its presence abroad. “These investments were completed just in time for when the fertiliser market got stronger. We have been experiencing an increasing demand in both domestic and international level,” reveals Mr Zoltán Rácz deputy sales director. “The market share of the seed and pesticide sales divisions launched in 2014 is now significant, so our main goal is optimisation that will improve the results of our activities. We continue to concentrate on efficient operations.”

Nitrogénművek’s next investment program, which is planned to be on the same scale as the previous one, will probably start within three to four years. The company is likely to finance this development through international bond issuance. Mr Rácz concludes: “Our goal now is to further increase our reputation among international investors, thus preparing for the next investment cycle.” n