Press releases

Ciech completed the implementation of one of the essential items of the Group’s Reorganisation Plan, i.e. sale of Gdańskie Zakłady Nawozów Fosforowych Fosfory. For nearly 90% of shares Zakłady Azotowe Puławy has paid PLN 107.24 million. In addition, the purchaser has repaid the loans given by Ciech to the companies of Fosfory Group in the amount of PLN 121.36 million

The transaction was finalised following the satisfaction of all conditions precedent set out in the conditional sales contract entered into on December 16th, 2010. It involves the sale of 51 855 shares representing 89.46 percent of the share capital of Fosfory company. Ciech received a binding offer for the purchase of shares of Gdańsk Fosfory company from Zakłady Azotowe Puławy on October 19th, 2010. After the negotiations, on December 14th the Management Board decided to accept the offer, which was approved by the Supervisory Board of Ciech the next day.

– The transaction along with the recent successful public offering of our shares forms a tool of thorough reorganisation of the Ciech Group. The purpose thereof is to establish a leading position in the chemical industry in the Central Europe with respect to both, income and profitability – said Ryszard Kunicki, President of the Management Board of Ciech.

The sale of Gdańsk Fosfory company is the greatest among divestment processes implemented under the Reorganisation Plan of the Ciech Group. By the end of 2010, to focus on its core business Ciech finalised, among others, the sale of a part of real property at  Powązkowska street for nearly PLN 24 million, sale of 45.4 percent of shares of PTU for PLN 131.4 million and sale of a number of other assets for more than PLN 60 million. The list of assets intended for sale includes several dozen minor items. Total income and savings from initiatives taken last year are expected to exceed PLN 500 million at the end of 2011.

GZNF Fosfory is a company with more than 90 years of tradition. In 1995, the company was privatised and from that time on, Ciech was the majority shareholder of the Company. The Fosfory Group comprises Agrochem Człuchów and Agrochem Dobre Miasto. The core business of Fosfory company involves production of artificial PK (phosphorus-potassium) fertilisers Agrofoska and NPK (nitric, phosphorus and potassium) fertilisers Amofoska and Amofosmag, sulphuric acid and sodium acid sulphate, as well as provision of transhipment and storage services.