Elixir Group Continues Sustainable Growth Strategy
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, for example in the production of phosphoric acids and mineral fertilizers. At the same time, we receive inquiries from European companies who are delighted to have found a reliable partner and supplier for acids and services in the vicinity. 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 EUR 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 range is being expanded.
Flexibility for new needs
Established back in the 1960s and strategically located on the Danube, the chemical site has developed into a modern industrial and chemical park in recent years, following the German model. 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 of its partners. In particular, the geographical location, its own port and rail connection, the connection to a hydroelectric power plant in the immediate vicinity and various on-site services make the park attractive for companies. A connection to the most important European road and transport hubs is also guaranteed. The ICPP is responsible for all cross-site functions such as energy and media supply, security, wastewater and waste disposal as well as logistics. This bundling allows companies to save costs and concentrate on the essentials - their production.
"Important for all of us: the topic of 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."
Environmental protection and resource conservation
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 sulphur-phosphoric acid mixtures from metalworking companies is being used more and more by European companies. We are very pleased about numerous collaborations and are grateful to our customers for the trust they place in us," says Predojevic. This area is also developing very well - after all, it offers a real win-win situation. This is because the acids are used directly in the Elixir Group's plants and can therefore be put to further use.
Thanks to the cooperation with Elixir, companies that use phosphoric acid (H3PO4) can do justice to their own efforts to bring used acids back into the cycle according to the principle of recovery instead of disposal.
Production of technical phosphoric acid
A year ago, Elixir also began producing 75% and 85% technical phosphoric acid in Prahovo. "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," reports Predojevic. Technical phosphoric acid is a sought-after commodity, especially in German industry - for example, to give metal surfaces of car bodies or aluminum a shine with an acid bath and at the same time avoid the risk of corrosion. 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 delivered at short notice due to the fact that production is based in Europe.
From April 2024: food-grade acid
To complete the phosphate product family, the Elixir teamis 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. Foodgrade 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. Being able to offer food-grade acid soon marks another important milestone in the history and development of the site, which is also unique in Europe with its vertically integrated production diversity," says Predojevic.
The Elixir Group's striving for the highest quality is reflected in various certifications: with certification in general management in accordance with DIN EN ISO 9001:2015, DIN EN ISO 14001:2015, the globally accepted and applied standard for environmental management systems, and DIN EN ISO 45001:2018 in the area of occupational health and safety, the Serbian company is a recognized partner for industry and trade. Continuous internal and external audits ensure that all processes are carried out in accordance with international standards.
"The topic of sustainability is integrated into all processes."
"If we join forces with partners, we can turn ideas into reality more quickly."
New cooperation with K+S
A current example of the development is the cooperation with the K+S Group around crystalline monoammonium phosphate (tMAP), a highly concentrated, water-soluble fertilizer. "We got talking in a 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. Around 1.5 million tons of tMAP are produced worldwide every year - more than 80% of this in China. Due to the continuously increasing global demand and China's rapidly growing domestic demand, the supply risks for tMAP will increase in the future. "However, tMAP is an important component of our water-soluble fertilizers - better known at K+S as soluMAP - whose demand will increase significantly in the future as part of our specialty strategy," adds Wiebel.
Production of 50,000 t/a tMAP in Prahovo
With Elixir, K+S 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 speciality 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 faster. This applies to new product developments as well as access to new markets."
Elixir produces and supplies the K+S Group, which will primarily distribute the product in Europe. "We are assuming an annual capacity of 50,000 tons," Predojevic estimates the order of magnitude and points to investments of around €35 million. Planning for the factory building, production, warehouse and infrastructure is in full swing. Construction work is scheduled to start in spring 2024.
With the 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 its own continent.
K+S is the largest European potash producer and one of the most important worldwide. The strategic cooperation, which is geared towards the goals of modern agriculture, enables Elixir and K+S, 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," says Predojevic, advocating more European partnerships in general. "We can see it in our industrial and chemical park in Prahovo: it works wonderfully."
