CrossChem increases production – turnover almost quadrupled in Q1 2022

The net turnover of CrossChem, the leading producer of AdBlue® in the Baltics, reached EUR 17.8 million in Q1 2022, which is more than 3.7 times the turnover of EUR 4.8 million in the same period last year. The global price of diesel exhaust fluid AdBlue® continues to rise.

Several important factors have influenced the increase in production and are likely to continue to have an impact on the industry in the future. Firstly, growing natural gas prices, limited raw materials market, and several shutdowns of gas processing plants across Europe created a shortage of AdBlue® and increased its price. Also, the general increase in commodity prices has had a strong impact on production and logistics costs.

“Only companies with a high degree of flexibility are able to maintain and increase their market share when facing changing market conditions. A major challenge to sustaining growth is the adequacy of working capital. CrossChem’s EUR 3 million bond issue on NASDAQ at the end of last year raised significant funds, which are showing results already. Thanks to timely stockpiling of raw materials, the company has been able to steadily increase production volumes to record levels,” says Ričards Andersons, Chairman of the Management Board of CrossChem.

During this year CrossChem has increased the volume of products sold, both on the domestic Baltic market and for export to the rest of the EU. The company has also improved the efficiency of its delivery channels to customers, which allows attracting new customers also in the domestic market.