On April 29, 2015, Grupa Azoty Kędzierzyn held the official opening of an installation for the production of Poland's first non-phthalate plasticizer - dioctyl terephthalate (DOTP/ DEHT), currently on offer from Grupa Azoty under the brand name Oxoviflex™. Its production is based on in-house manufacturing technology, which the Polish Agency for Enterprise Development awarded the prestigious Polish Product of the Future prize. The switch to the production of a non-phthalate plasticizer was a breakthrough step in the European chemical industry, and Oxoviflex™ remains to this day a key plasticizer in the Kędzierzyn portfolio. Read more about the Oxoplast Segment's flagship product in an interview with Michal Kasiborski, Director of the Oxoplast Business Unit at Grupa Azoty Kędzierzyn.

It's been 10 years since the launch of the plant for the production of the non-phthalate plasticizer Oxoviflex™ . What has brought our Company to the market?

When we entered the market for non-phthalate plasticizers, we had years of experience behind us in producing recognizable and well-proven plasticizers of other types.

Accompanying us at the time was uncertainty about how the market would accept the change imposed by regulations regarding restrictions on phthalate plasticizers. We were also entering completely new fields, as we joined the ranks of already established manufacturers at the time.

Concerns were allayed in a short time. Our Oxoviflex™ was very well received by the market, as a product with the highest purity and very stable reproducible quality. Thus, we have strengthened our presence in the market and built the trust of our customers looking for reliable suppliers and solutions.

How has the production and sales of Oxoviflex™ developed over these 10 years?

Due to the good market reception of our product and satisfactory sales levels, in 2018 we decided to increase the production capacity of our plant by 15,000 tons/year, reaching a total capacity of 65,000 tons/year. The expansion was a response to market needs. Today, despite the fact that cheaper products - from Asian and American competitors - are available on the European market, our contract customers are largely loyal, which only reassures us that our product is needed and its quality valued, despite the difficult environment.

What does sales look like at the moment and what markets does our product go to?

Oxoviflex's sales™ are currently focused on the domestic market and European Union countries. Despite the turmoil and weaker economy-including the weakening of our key industries such as construction and automotive-we maintain a high load on the production facility. Sales are made in a sizable proportion to regular customers, but we regularly acquire new customers who either decide to change their source of supply, or those who are looking for new solutions - such as the medical industry, where qualification of new raw materials sometimes takes several years. Our product meets the stringent requirements of this industry, thanks in part to its high and guaranteed purity and so-called safe health profile.

Is Oxoviflex™ being explored for new applications at our Company?

Of course, such development activities are carried out in two ways. First, we are constantly working with our customers, offering them the necessary technical expertise to optimize their production process. We also listen to the voice of customers, who are also testing new possibilities, new applications and new materials. In addition, we conduct our own comparative research, application research and research directed at preparing plasticizer blends that allow us to achieve better performance than the standard product.

What does cooperation with such customers of the Oxoplast Segment look like?

As I mentioned earlier, we don't end the sales process with the delivery of the product. Our customers know that they can count on our technical support. Thanks to our well-equipped testing unit, we are able to test the raw materials used in PVC processing. We can also prepare product samples using different plasticizers and raw materials depending on the customer's expectations.

As I also mentioned, the customer base for our products is pretty much constant. They are manufacturers of floor coverings, granules used in injected and extruded products, as well as producers of artificial leathers. It is worth mentioning here that Oxoviflex™ is used in the production of "eco-friendly" leathers of top fashion brands in Europe.

What are the current challenges facing the Oxoplast Segment?

The challenges for our Unit are not much different from the problems facing the industry as a whole and other European manufacturers. The uncontrolled influx of cheaper raw materials, semi-finished and finished products from the Asian market makes it difficult to locate product and compete in the market. We try to maintain a competitive price level, however, having a different-higher cost base, due to higher energy costs, but also a significant burden of production with the effects of regulation, competing with Asian or American goods is done on an unequal basis. Nonetheless, we try to make customers aware of our competitive advantages - i.e. the highest quality of the product and full sales-related services provided, including supplies and specialized research and consulting.