Grupa Azoty to Raise $165 Million from Poland’s State Treasury to Boost Operations

Post by : Sameer Saifi

Poland’s leading chemical company, Grupa Azoty, has announced a major plan to raise around $165 million through a new share issue. The company said that it will issue about 33.7 million new shares, which will be offered to Poland’s state treasury.

This move is meant to strengthen the company’s financial base and make its funding more flexible and secure. The plan was shared by Grupa Azoty on Wednesday evening in a public statement.

The company has faced a difficult period of losses in recent years, and it hopes this new share issue will help restore profitability. Earlier this month, Grupa Azoty revealed a long-term strategy focused on financial recovery, improving efficiency, and modernizing its production systems.

Currently, the Polish state treasury owns about 33% of Grupa Azoty. After the new share issue, its ownership will increase but will still remain below 50%. This means the government will not take full control of the company.

Grupa Azoty also said it may later issue up to 40.5 million more shares to both the state treasury and market investors. These extra funds would be used to improve production reliability and reduce risks related to machinery breakdowns and other operational problems.

The company plans to upgrade key fertilizer production units and make them more energy-efficient. It will also modernize equipment to reduce downtime and improve safety for workers. In addition, Grupa Azoty said the new capital will be used to enhance its plastics, pigments, and sulfuric acid production lines.

In the logistics sector, the company intends to expand its transportation capacity, improve rail services, and upgrade its ammonia hub project. These steps will help Grupa Azoty strengthen its position as one of Europe’s leading chemical producers.

The plan will be discussed and voted on by shareholders during an extraordinary general meeting scheduled for February 13. For the plan to move forward, at least four-fifths of the votes must be in favor.

If approved, the funding will help the company return to stable growth, improve efficiency, and continue playing a key role in Poland’s industrial development.

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