The past year was a very successful one for "Nitro-Chem" S.A. Both on the financial side, but also on the side of ongoing investments. The company strengthened its position as the leader of the Polish armaments industry in the export of explosives, thus confirming further cooperation with the American side.
A significant event in 2023 was the signing of further TNT supply contracts with Paramount Enterprises International (PEI). The ceremony, at which the documents were officially signed, took place on November 7 this year in Warsaw. Polish TNT will be allocated for orders under the US government's 2025 weapons programs. The signing of the orders with the Americans opens another stage of cooperation between Poland and the United States. The US Army plans to increase production of 155 mm caliber artillery ammunition in the coming years.
Zakłady Chemiczne "Nitro-Chem" S.A. was among the twenty winners of the prestigious competition "Leader of State Security." The award was won by the TBX-NW 12 thermobaric composition, which is the result of research into modern explosives conducted by our company in cooperation with the Military University of Technology. The TBX-NW thermobaric composition confirms the company's competence in cooperating with the scientific community for the purposes of defense and national security. The award ceremony took place in Kielce during the International Defense Industry Exhibition. The company participated in the event for the 31st time, presenting at the joint stand of the PGZ Group S.A. explosives used to fill the shells of missiles, mines and other combat munitions and to produce civilian blasting agents. There was also an exhibition presenting the company's capabilities in the elaboration of high-caliber ammunition. In order to build business relations and find new markets for its products, "Nitro-Chem" S.A. participated in foreign arms fairs in various parts of the world. We presented our products at DSEI in London, ADEX in Seoul or IDEX in the United Arab Emirates. As in previous years, great importance was attached during meetings and discussions to the realization of foreign contracts. For "Nitro-Chem" S.A. 2023 was a year of further investments. Two new projects are nearing completion. One of them is another installation for the elaboration of artillery ammunition by the screwing method. With the launch of the fully automated, modern installation, the company's production capacity will be doubled. Another investment is an installation for quality control of elaboration services for, among others, aerial bombs or high-caliber missiles using the radiographic method. This test is used to detect, among other things, corrosion, internal damage to the material structure, leaks, material defects or weld quality.
Due to the international situation, the company is realizing increased orders for the supply of explosives and ammunition elaboration services for both the Polish Armed Forces and the armies of allied countries. In the future, the company is planning investments to increase the plant's production capacity, which, however, require state support. This would contribute to further building Poland's independence in munitions production, but also the ability to support this key sector throughout NATO. Increased investment in the company will allow it to take greater advantage of the opportunity and grow in exports. The company also hopes to increase the supply of ammunition to the Polish army, including for the Krab 155 mm self-propelled tracked howitzers. "Nitro-Chem" S.A. also wants to maintain a high level of spending on modernization and upgrading of technological and infrastructural facilities.
A major opportunity for "Nitro-Chem" S.A. to increase its production capacity in the future is also the positive consideration of the application in the EU's Act of Support of Ammunition Production (ASAP) program. The scope of the application submitted by the company includes the construction of a plant with infrastructure for the elaboration of ammunition of 155 mm Krab and 120 mm Rak caliber. In addition to "Nitro-Chem" S.A., applications were prepared by ZM Dezamet and Mesko. The participation of PGZ Group companies in the ASAP program will allow them to increase their ammunition manufacturing capabilities, secure the supply chains of raw materials and components as well as reduce delivery times.
As in previous years, Zakłady Chemiczne "Nitro-Chem" S.A. is undertaking further initiatives aimed at minimizing the negative impact of its activities on the environment, and thus fitting in with the idea of sustainable development. The main activities in the field of sustainable development in the environmental dimension have been undertaken in the field of reducing energy and water consumption, thus activities that limit the consumption of natural resources and reduce greenhouse gas emissions and contribute to the fight against climate change. As part of these activities, two photovoltaic installations with a total capacity of 100 kWp were installed at the sites this year, and next year it is planned to continue the implementation of photovoltaic technology by installing more photovoltaic panels with a capacity of up to 100 kWp. On the other hand, as part of its efforts to reduce water consumption, which are in line with the idea of the Closed-loop Economy (GOZ), the plant has taken steps to reconstruct and expand the plant's wastewater pretreatment plant and to build a water recovery facility. The purpose of this investment is primarily to reduce water consumption for production purposes and to reduce the amount of industrial wastewater discharged from the plant. In this regard, Zakłady Chemiczne "Nitro-Chem" S.A. has applied to the Ministry of State Assets for financial support for the planned investment. This year saw the commissioning of a facility for filtering wastewater from the TNT production plant, which reduces the amount of suspended solids and organic pollutants in industrial wastewater sent to the plant's wastewater treatment plant.
Moreover, in addition to investment activities that are part of sustainable development, the Company is taking steps to effectively manage waste in a manner that does not endanger human life and health and the environment. Also caring for the interests of the public and the residents of the municipalities, where illegal landfills have been located, "Nitro-Chem" S.A. has voluntarily engaged in the actual solution of the problem, establishing close cooperation with the affected municipalities that have expressed their willingness to cooperate. All activities that the company undertakes in this regard are with a view to responsibility and concern for the protection of the environment and minimizing the impact on it.