Cherkasy Azot, part of Dmitry Firtash's Group DF nitrogen business, will start producing a special additive for diesel engines that reduces nitrogen oxide emissions from cars.
According to Group DF estimates, the market volume of AdBlue additive and its analogues in Ukraine is about 35 - 45 thousand tons per year, while today more than 60% of the Ukrainian market is occupied by imports. Cherkasy Azot will be able to meet the needs of Ukraine in a high-quality certified reagent and gradually replace imported products.
“We are entering a growing, marginal, but very competitive market. Completion of all preparatory work for the launch of the project is expected in the first half of 2022. We are dedicated to producing quality reagent clearly in accordance with international standards. Negotiations are underway with the German Automotive Industry Association (VDA), which developed this technology, to audit and issue and license the use of the AdBlue brand. Depending on the growth in sales, we will increase the volume of production,” said Vitaly Sklyarov, Chairman of the Board of Cherkasy Azot.
Currently, preparatory work on the installation, installation and debugging of equipment has been carried out at Cherkasy Azot. The production of the reagent will be organized on the basis of the K-4 workshop (previously it produced crystalline caprolactam). The expected production volume of the reagent at the enterprise is 10 thousand tons per year. The volume of investments will be announced after the launch of the project and will include all the necessary certification procedures.
Cherkasy Azot is part of the Ostchem nitrogen holding, which is the No. 1 producer of mineral fertilizers in Ukraine. The main consumers of the reagent produced at the plant will be the owners of agricultural vehicles and special equipment, as well as trucks and cars.