Azoty Pulawy chemicals terminates contract in incomplete part for power unit construction

"Due to the discontinuation of work covered by the contract by the contractor from December 12, 2024, and due to the inability to accept the unit for operation for reasons attributable to the contractor, Grupa Azoty Pulawy has withdrawn from the contract on January 17, 2025," Pulawy Azoty said in the press release.

"Polimex Mostostal, despite repeated calls from Grupa Azoty Pulawy, did not resume contractual work. On January 13, 2025, however, it announced the start of preparations for the preservation of the coal block. On January 15, Azoty Pulawy again called on the contractor to resume contractual work and proposed to discuss the parties' positions and the contractual situation at a meeting of the management boards on January 16, 2025, to which it invited the contractor," it added.

It was pointed out that Polimex Mostostal had, however, started preparatory activities for the preservation of the unit on that day and had also failed to appear at the meeting proposed by Azoty Pulawy.

"Following Grupa Azoty Pulawy's decision to terminate the contract, the company called on the contractor to take stock of the completed works, and to remove its personnel and equipment from the site to the extent that they are not needed, and to secure the works and the site at its expense," Azoty Pulawy reported.

The group continued that, in addition, it has also requested the documentation that is missing at this point, a detailed description of the use of the software, the training of the personnel necessary to secure and operate the unit to the extent completed, the presentation of the current status of contractual settlements with subcontractors.

"The steps taken by the company are not tantamount to an intention to withdraw from the investment, and decisions on further actions will be taken after an inventory has been carried out to establish the factual status of the project," Azoty Pulawy stressed.

alk/ ao/ han/