The Elixir Zorka Group is this year proudly commemorating 85 years of the existence of the Zorka chemical industry in Šabac. New investments, coupled with the decades-long tradition of production in Šabac, have put Serbia back on the map of European exporters of mineral fertilisers
In order to remain competitive against the world’s largest producers in terms of quality, it is essential to invest in minimising the company’s environmental impact, in advancing laboratories for product development and quality control, in the development of the circular economy etc. We discuss all of this, but also plans to conquer new products and markets, with Elixir Zorka General Manager Stefan Komazec.
This great anniversary demonstrates the importance of this area of activity in Šabac. Elixir privatised the former Zorka back in 2012. How does the company look today and what has marked this period?
– The period since privatisation has definitely been marked by major investments and technological development. Apart from the initial investment of approximately 40 million euros, after which – in 2013 – the new, modern Elixir Zorka factory in Šabac for the production of mineral fertiliser was made operational, Elixir Group has continued investing in technology and this complex’s infrastructure, doubling the level of investment over the subsequent 10 years.
Investments, coupled with the decades-long tradition of production in Šabac, very quickly put Serbia back on the map of European exporters of mineral fertilisers, contributing to the development of domestic engineering capacities and enabling Elixir Zorka to master the production of over 40 different formulations, making it a unique factory anywhere in the world. The product range also includes microgranulated starter fertilisers, as well as special formulations from our Supreme line, where in terms of quality we compete with the world’s biggest producers.
Around 70% of your products are ultimately exported. What standards need to be met in order to successfully compete and win in a global competition?
– The simple answer to this question can be expressed in one word: quality. The production and use of mineral fertilisers is specific in that product quality must firstly meet agricultural production requirements, i.e., it must satisfy the nutritional needs of different crops in different types of soil. This is due, among other things, to the fact that almost every market has its own regulatory requirements in terms of contents and nutrient declarations, as well as complex procedures for registration and approving the import and use of new products.
It isn’t even the case that all European Union member states have the same requirements, so some countries have additional and more stringent requirements than the EU’s umbrella regulations. Our presence on over 85 markets itself serves as a recommendation for both existing markets and the new ones that we plan to conquer with new products. Our focus on product quality is something that ensures success in the global competition, and that’s why – alongside technological investments – Elixir Group invests constantly in its laboratories for product development and quality control, which are undoubtedly the most modern in the region today.
In such a complex industry, environmental protection represents vital aspect.
– All applied and proven technologies are known and available. That is licensed knowhow that we import today and that is paid for. The technology that we apply in the production of mineral NPK fertilisers is French and is based on phosphoric acid as the highest quality source of the phosphorus component, which we produce ourselves. On the issue of environmental impact, the European Union has precisely defined, through a series of BREF documents, all applied technologies and the technological solutions that it is essential to apply in order for emissions to remain within prescribed limits. With this document, the EU provided a binding recommendation to apply the best available techniques (BAT), which have been implemented in the legislation of member states.
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With more than 1,900 employees across 12 member companies organised within the framework of three divisions, Elixir Group is a leader of the chemical industry in Southeast Europe. Representing the heart of the group is its Prahovo factory for the production of phosphoric acid, which is one of just six such plants in Europe. With a chemical division producing a million tons of products, Elixir Group is present on over 85 markets around the world and its exports account for 70% of total production. In terms of quantities sold, its most significant market is that of the EU, which is the final destinations for around 50% of the total exports of Elixir Group’s chemical division.
It produces phosphoric acid at a level of 300,000 tons annually, with part of that total exported and part used for the production of complex mineral NPK fertilisers. Its factories in Šabac and Prahovo have a total annual production capacity of 600,000 tons. The chemical division’s development plans are to increase phosphoric acid production, master higher stages of processing and thus produce new products for the global market.
Through its existing regulatory framework, Serbia also applies these EU recommendations and requires the application of BAT solutions, prescribing the same limits on environmental emissions. Our technology implies a closed process, the complete recirculation of liquids and solid matter, without wastewater and any kind of solid waste other than packaging, which is itself 100% recyclable. Over the course of 2021, Elixir Zorka invested three million euros to further improve its system for purifying water vapour that is emitted into the air, thereby achieving parameters for such emissions that are between 30 and 85 per cent lower than the permissible limits. We are continuing to monitor new developments in this area and investing in further minimising our environmental impact.
What is meant by the circular economy concept and how does it contribute to achieving the Sustainable Development Goals?
– Applying circular economy principles is an integral part of the European Green Deal, as a solution for waste-free production, reducing the use of limited natural resources and the amount of waste discarded in the environment, with which the impact on the climate and greenhouse gas emissions are reduced. The Elixir Group began developing the circular economy in 2019 and has to date invested approximately 20 million euros in applying the concept of the circular economy to the business model of the chemical division.
In this way – observed through the lens of the 5R hierarchy of waste management (Refuse- Reduce-Reuse-Recycle-Recovery), where the most desirable option is not to generate waste at all, and the least desirable is to dispose of waste in the natural environment – we also contribute with the concept we apply through the reuse of recyclable chemicals as raw materials (Reuse), but we also remain open to other methods of treating or recycling materials that our industry can reuse as raw materials. Long-term competitiveness on the European and world markets is inextricably linked to the applying of the circular economy, which is also an integral part of our decarbonisation strategy. Although this is a relatively new area in modern industry, it is already being applied in a big way and most of our European competitors operate according to the same principles. Elixir Group’s ambition is for us to become Europe’s first carbon neutral player in the industry of phosphoric acid and mineral NPK fertilisers by 2030.