Polish fertilizers and chemicals company Anwil SA has signed an Engineering, Procurement, and Construction (EPC) contract with Milan-based Maire Tecnimont SpA subsidiary Technimont SpA for the construction of a mechanical granulation plant for new nitrogen fertilizer production facilities under development at its existing chemical and fertilizer complex at Wloclawek, some 200 km northwest of Warsaw.
The contract is the second of the three most important contracts to be concluded within the framework of the project. Anwil, a subsidiary of Poland’s oil refiner and petrol retailer PKN Orlen SA, signed the first contract at the end of April this year with Essen, Germany-based Thyssenkrupp AG’s Industrial Solutions business for the construction of nitric acid units with a production capacity of 1,265 mt/d and neutralization with a capacity of 1,200 mt/d (GM May 17, p. 30). The third key contract will concern the construction of ancillary installations, Anwil said, adding that its total investment in the three contracts is approximately $350 million.
The foundation stone for the expansion project was laid on May 22.
The granulation plant will have an average capacity of about 1,500 mt/d, depending on the type of fertilizer. The new unit will allow the simultaneous production of a wide range of products, such as ammonium nitrate (AN), calcium ammonium nitrate (CAN), and ammonium sulfate/ammonium nitrate (ASN) mixtures.
Anwil said the new granulation unit will enable it to expand its product portfolio to include coarse nitrate, AN, nitro-chalk with sulfur, and nitro-chalk with magnesium with improved granule properties. Completion of the unit is planned by mid-2022. Anwil currently produces fertilizer grade AN and CAN under two trademarks, Canwill with magnesium and Canwill S with sulfur, both of which are understood to contain less than 28 percent nitrogen.
The commissioning of Anwil’s third nitrogen fertilizer plant at Wloclawek will boost the company’s production capacity from 966,000 mt/y to 1.461 million mt/y. Completion is targeted for mid-2022.
The company estimates its EBITDA may increase by about €57 million (approximately $65million at current exchange rates) annually after the realization of the project. Anwil secured parent company approval to proceed with the expansion project in December 2018 (GM Jan. 4, p. 23).
Anwil last month defended its plans to increase its nitrogen capacity after rival Polish state-owned fertilizer and chemicals producer Tarnów-based Grupa Azoty SA warned that such additional capacity could lead to oversupply in the Polish market (GM May 31, p. 28).
Anwil said its additional fertilizer production capacity would enable it to utilize the surplus ammonia it is producing and would help reduce the country’s fertilizer imports. It said Polish farmers would also benefit from the expanded range of high-quality fertilizers on offer on the Polish market.
The company’s other business activities include plastics and other chemicals, including polyvinyl (PVC) production.