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Elixir Group Continues Sustainable Growth Strategy | CHEManager

13.12.2023 - The Serbian Elixir Group continues to focus clearly on expansion and sustainability. At the Prahovo Industrial and Chemical Park (ICPP), strategically excellent located on the banks of the river Danube, the Group offers individual services and products for a wide range of business models.

"We are continuously expanding our portfolio, as the production of phosphoric acids and mineral fertilizers. At the same time, we are receiving inquiries from European companies who are delighted to have found a reliable partner and supplier for acids and services nearby. Companies that value short delivery routes in terms of sustainability and want to support European cooperation are in exactly the right place with us," says Matthias Predojevic, Elixir Vice President Corporate Development. The Group's annual turnover of €550 million in 2022 speaks for itself. The Elixir Group currently employs around 1.900 people. And there are likely to be a few more soon, as the ICPP's range of services will soon be expanded again. Industrial Grade Phosphoric Acid

Elixir Group Continues Sustainable Growth Strategy | CHEManager

Flexibility for New Needs and Possibilities

The chemical site, which has been established since the 1960s, has developed into a modern industrial and chemical park based on the German model in recent years. The ICPP offers companies long-term settlement opportunities based on state-of-the-art infrastructure for a wide variety of business models and responds individually to the needs and wishes of its diverse partners. In particular, the optimal geographical location, its own port, rail connection, connection to a hydroelectric power plant in the immediate vicinity and a wide range of on-site services make the park attractive for companies. It goes without saying that connections to the most important European road and transport hubs are also guaranteed. The ICPP is responsible for all cross-site functions such as energy and media supply, security, waste water and waste disposal and logistics. This bundling allows companies to save costs and concentrate on the essentials - their production.

"What is important for all of us is that sustainability is integrated into all processes," emphasizes Matthias Predojevic. "Whether it's energy-saving technology, the use of renewable energies, environmentally friendly disposal options or the conservation of resources: we have solutions for the current requirements to produce in the most environmentally and climate-friendly way possible while maintaining first-class product quality."

Acceptance of Used Acids a Popular Service

Sustainable recycling management within Europe is also the focus when it comes to used acids. The Elixir Group produces mineral NPK fertilizers in Sabac and Prahovo and is able to use used acids and their mixtures, such as pickling solutions, without additional pre-treatment. "Our service of accepting used sulphuric-phosphoric acid mixtures from metal surface treatment is being used more and more by European companies. We are very pleased about numerous new collaborations and are grateful to our customers for the trust they place with us," says Predojevic. This area is also developing very well - after all, it offers a real win-win situation. This is because these acids are used directly in the Elixir Group's plants and can therefore be put to further use in a circular economy model.

Thanks to the cooperation with Elixir, companies that use phosphoric acid can optimally fulfill their own efforts to return used acids to the circular economy according to the principle of recovery instead of disposal. Matthias Predojevic sees this as a further contribution by the Serbian group of companies to greater environmental protection and resource conservation.

Matthias Predojevic, Vice President Corporate Development, General Manager Elixir GD & Industrial ChemPark Prahovo

Production of Technical Phosphoric Acid

Since one year, Elixir also began producing 75% and 85% technical phosphoric acid (H3PO4) in Prahovo. "We can already report an initial success story. This product, which is new to all of us, has clearly exceeded all expectations - European demand was very high right from the start and continues to grow from month to month," Predojevic reports with complete satisfaction. Technical phosphoric acid is a sought-after commodity, especially in German industry - for example, metal surfaces of car bodies to avoid risk of corrosion or aluminum with an acid bath to get brightened. Technical phosphoric acid is also used to ensure the best possible adhesion of paints. The quality product is available at an attractive price-performance ratio and can also be supplied at short notice thanks to the fact that production is based in Europe.

From April 2024: Food grade Phosphoric Acid

To complete the phosphoric acid product family, the Elixir team is currently in the process of expanding the technical facilities for the production of food-grade acid. This high-end acid is expected to be available from Elixir from April 2024. Food grade acid from Prahovo will meet all the strict requirements of food production. "The technology and expertise are available, and due to the high demand from numerous customers, it was a logical decision for us to invest in this area. We will therefore soon be able to offer food-grade phosphoric acid. This marks another important milestone in the impressive history and development of the site, which is also unique in Europe with its vertically integrated production diversity," says Predojevic

Another new development at Elixir has now come about almost as a matter of course: the cooperation with the internationally active K+S Group for crystalline monoammonium phosphate (tMAP) as a highly concentrated, water-soluble fertilizer. "We got into conversation in an very uncomplicated way, exchanged ideas intensively and then carried out a joint market analysis," Predojevic looks back. "The collaboration was very cooperative, professional and efficient right from the start, so we were able to develop the project quickly and sign the contracts at the beginning of November."

What exactly is planned? Elixir produces and supplies K+S with technical monoammonium phosphate, which is produced from phosphoric acid and ammonia, and is a basic chemical that is used in many chemical processes. "However, tMAP is above all the most important water-soluble phosphorus fertilizer and has recently also been increasingly required in battery production," says Josef Wiebel, Head of the K+S Customer Segment Agriculture. Every year, around 1.5 million t of tMAP are produced worldwide — more than 80 % of it in China. Due to the continuously increasing global demand and China's rapidly growing domestic demand, the supply risks for tMAP will continue to increase in the future. "However, tMAP is an important component of our water-soluble fertilizers, better known at K+S as soluMAP — the demand for which will increase significantly in the K+S Group in the future as part of our specialty products strategy," adds Wiebel.

Josef Wiebel, Leiter Customer Segment Agriculture, K+S

Production of 50,000 t/a of tMAP in Prahovo

With Elixir, the company has now gained one of only very few producers in Europe as a partner, "who will reliably supply us with the globally sought-after fertilizer specialty from 2026 and thus ensure our sustainable supply of tMAP from a European production facility," emphasizes Wiebel, adding: "When we join forces with partners, we can put ideas into practice more quickly. This applies to new product developments as well as access to new markets."

Elixir produces and supplies K+S, which will distribute the product internationally, but primarily in Europe. "We are assuming a capacity of 50,000 t/a," Matthias Predojevic estimates the order of magnitude and points to investments of around €35 million. Engineering for the factory building, production, warehouse and infrastructure is in full operations. According to Predojevic, construction work is scheduled to start as early spring 2024.

With the new partnership between Elixir and K+S, a milestone can be set in this business area — for the best quality, efficient transport costs and at the same time significantly more sustainability within their own continent.

K+S is the largest European potash producer and one of the most important worldwide. The internationally oriented company from Germany with production sites in Europe and North America has more than 11,000 employees worldwide. The new strategically important cooperation, which is oriented towards the goals of modern agriculture, enables the Elixir Group and the K+S Group, as leading producers of potash and phosphorus, to expand their activities in this segment of the agribusiness.

"Looking ahead together — for particularly sustainable and therefore future-proof solutions," Predojevic generally advocates more European partnerships. "We can see it in our industrial and chemical park in Prahovo: it works wonderfully."

Bulevar Oslobođenja 79 21000 Novi Sad Serbia

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Elixir Group Continues Sustainable Growth Strategy | CHEManager

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