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Agro Gas Trading LLC summed up the results of two-year cooperation with Odessa Port Plant JSC

On August 6th, 2021, we mark a second anniversary since the restart of production at Odessa Port Plant JSC, from the moment the plant was shut down in early 2018. The key to reviving of Odessa Port Plant JSC was the signing of a contract for the supply of raw materials, with Agro Gas Trading LLC, dated July 15, 2019. The downtime at Odessa Port Plant has negatively affected Ukrainian chemical industry, and the social situation in the city of Yuzhny.

During this period, Odessa Port Plant JSC was acting with confidence, and won back the leadership among the enterprises of the Ukrainian chemical industry and laid a solid foundation for further development. The cooperation between Agro Gas Trading LLC and Odessa Port Plant JSC was based on the principles of transparency, as well as being goal-driven, which enabled the steady growth of production rates, financial and social indicators of the plant.

During the period of cooperation with Agro Gas Trading LLC, 1.62 million tons of urea and 175.2 thousand tons of ammonia were produced at the facilities of Odessa Port Plant JSC. Over 90% of the products made by Odessa Port Plant, were sent to export. The top 5 largest consumers of urea are India, Italy, Turkey, Mexico and Tanzania. In their turn, Turkey, Greece and Bulgaria became the largest importers of ammonia.

The continual work of Odessa Port Plant JSC helped to reach the goals for the enterprise to modernize its key assets and expand the social benefits package for employees. With the ongoing global coronavirus pandemic, Odessa Port Plant JSC proceeded to increase production and expand its presence at international markets, and also provided the implementation of effective anti-epidemic measures at the enterprise.

The formula that Agro Gas Trading LLC suggested for repaying previously accumulated debts to Naftogaz Group, provided means to pay UAH 68.1 million during two years of cooperation. So, the tolling contract with Agro Gas Trading LLC foresees additional payments to Odessa Port Plant JSC per ton of products made, in particular, USD 1 per ton of ammonia and USD 1.5 per ton of carbamide.

“In two years of joint efforts, we did a tremendous job. The plant has undergone significant transformation: from a chronically stagnating enterprise, to become the ultimate gem of the Ukrainian chemical industry. However, I am sure that this is far from the limit, and the Odessa Port Plant will continue to increase production rates, and modernize the material and technical base in the years to come, which will raise it to a fundamentally new level,” said Oleksandr Horbunenko, managing partner of Agro Gas Trading LLC.

Since August 2019, Odessa Port Plant JSC has recommitted hundreds of jobs that had been reduced during the downtime of the enterprise. The trend of "brain drain" of highly qualified engineering personnel abroad has been countered successfully.

Successful cooperation between Agro Gas Trading LLC made it possible to increase the capitalization of Odessa Port Plant JSC within the course of its preparation for the privatization tender. The continual functioning of Odessa Port Plant over the past two years brought about a growing interest of potential investors to privatization of the enterprise.

“Odessa Port Plant, regardless of all the difficulties, managed to regain its flagship status. Ukrainian chemical industry and the city of Yuzhny felt this very vividly. The synergy of Agro Gas Trading and Odessa Port Plant has brought its results: one may say firmly, the OPP is able to turn into a leading enterprise of the chemical industry in the entire Eastern Europe in years ahead”, said Volodymyr Kolot, partner of Agro Gas Trading LLC.

6 August, 2021