Grupa Azoty files report with prosecutor's office over Polimery Police – million-zloty damages and life threat
The management board of Grupa Azoty has filed another report with the prosecutor's office concerning unjustified expenditure on the Polimery Police project. The company previously warned of the facility's launch without required permits.
Azoty refer matter to prosecutor's office: unprecedented recklessness and multi-million-zloty losses
The management board of Grupa Azoty has filed a report with the prosecutor's office concerning unjustified expenditure related to the realisation of the Polimery Police investment – the company announced on Friday. According to Google News PL, this is yet another report concerning irregularities in this project.
"Expenditure related to the realisation of the Polimery Police project was unprecedentedly reckless, without any sense of responsibility for decisions taken and contrary to the company's property interests," stated Grupa Azoty vice-president Małgorzata Królak, cited in an official statement. According to Królak, these actions led to multi-million-zloty property damage to the company, which obligated the management board to notify law enforcement authorities.
Expansion of structures without justification
The management board of Grupa Azoty indicates that in the years 2021–2023 the company implementing the project – Grupa Azoty Polyolefins – expanded rapidly in terms of employment at director level and in the marketing area. This expansion was not justified either by the state of progress of the work or by the company's operational capabilities.
The Polimery Police project aimed at diversifying Grupa Azoty's activities and entering the market for modern plastics. Grupa Azoty Polyolefins was responsible for its implementation, with South Korean conglomerate Hyundai Engineering as the general contractor. The investment encompassed the construction of a propane dehydrogenation unit, a polypropylene production facility, and logistics infrastructure, including a port terminal.
Budget rose from 4.5 to 7 billion zlotys
Production was launched in stages during 2023–2024, however the facility did not achieve the planned operational parameters. The company pointed to technical problems and the necessity for further modernisation.
The investment costs increased from the initially assumed 4.5 billion zlotys to 7 billion zlotys. Implementation of the project increased the entire capital group's debt to 18.2 billion zlotys. Following the restructuring carried out, debt fell to 13.2 billion zlotys, of which bank receivables amount to 7 billion zlotys.
Facility launched without required permits
The present report is not the first in this matter. On 28 August of this year, reports were filed with the prosecutor's office in Szczecin concerning the launch of the GA Polyolefins facility in 2023 without required permits – in conditions which, according to the company, could have endangered the life and health of employees and residents of surrounding localities.
"The documentation indicates the occurrence of numerous defects and faults as well as the absence of required permits for use. These permits were issued only in 2024, that is many months after the official opening of the installation. Moreover, the installation was not technically prepared to operate under the assumed conditions," the company stated, whilst also informing that a detailed list of identified irregularities was passed to law enforcement authorities.
Who is Grupa Azoty
Grupa Azoty is a joint-stock company in which the State Treasury holds 33 per cent of shares. It is the second producer of nitrogen and multi-component fertilisers in the European Union and the only manufacturer of melamine in Poland. Its product portfolio also includes polyamide, OXO alcohols, plasticisers and titanium white.
Source: Google News PL