OSTCHEM Increases Mineral Fertilizer Production in the First Quarter of 2025
In the first quarter of 2025, the nitrogen holding OSTCHEM’s plants produced 529.3 thousand tons of mineral fertilizers, which is 5.3% more than in the corresponding period last year, when this figure was 502.8 thousand tons.
This is reported by AgroReview
Production Dynamics and Changes in Fertilizer Structure
The Cherkasy “Azot” plant produced 394.8 thousand tons of fertilizers, while “Rivneazot” produced 134.4 thousand tons. Significant changes occurred in the production structure in accordance with market demand and import dynamics: the share of ammonium nitrate and urea decreased, while the proportion of the most in-demand type of fertilizer – UAN (urea-ammonium nitrate solution) – increased.
Production of ammonium nitrate decreased from 246 thousand tons in the first quarter of 2024 to 226.5 thousand tons this year. Urea production also declined – from 123.5 thousand tons to 116.7 thousand tons. In contrast, UAN production significantly increased from 123.8 thousand tons to 162.2 thousand tons. Production of AAS (aqueous ammonia solution), which is produced exclusively at “Rivneazot”, reached 15.8 thousand tons compared to 10.8 thousand tons a year earlier.
Challenges and Strategic Changes at OSTCHEM
In the first quarter of 2025, the holding’s enterprises faced a number of force majeure circumstances. Forced production stoppages were caused by drones entering the plants’ territory, as well as the destruction of gas and energy infrastructure in Cherkasy and Rivne regions. This led to temporary disruptions in fertilizer supply.
“OSTCHEM’s enterprises faced forced production stoppages related to drones entering our plants’ territory and the destruction of external gas and energy infrastructure in Cherkasy and Rivne regions. These force majeure events led to necessary disruptions in fertilizer supply, and we apologize to our customers. We also want to thank the personnel of the State Emergency Service of Ukraine – everyone who bravely helped extinguish fires and who is currently involved in restoring the destroyed energy and gas infrastructure. Business was very difficult in the first quarter; we faced colossal challenges for the first time. Throughout our history, this was the most challenging season, and we incurred huge losses due to emergency plant shutdowns and their restarts. We will overcome this test of strength. All fertilizer deliveries will be fulfilled, no matter the cost. Chemists, more than ever, understand their responsibility to the agricultural sector and their role in ensuring food security,” said Oleg ARESTARHOV, head of corporate communications at Group DF.
In 2025, OSTCHEM updated its development strategy, focusing primarily on reducing production risks through investments in the energy independence of its enterprises. In the context of rising electricity prices and ongoing risks, the holding is taking measures to enhance the stability of production processes and reduce energy dependence on external sources.
Additionally, OSTCHEM previously launched new UAN production in response to the increased demand for this type of fertilizer. Despite the challenges of the period, the company confirms its readiness to fulfill all obligations to Ukraine’s agricultural sector.