The leadership at Grupa Azoty, Poland’s largest chemical company, is undergoing rapid change as the firm grapples with significant financial challenges. The latest reshuffle, announced this week, saw the removal of several top executives, signaling a push for accelerated restructuring amid mounting debt and stalled investments.
Andrzej Skolmowski, who recently replaced Adam Leszkiewicz as CEO – a position Leszkiewicz held only until May 9th – remains at the helm, but is now supported by a revised management team. Paweł Bielski and Andrzej Dawidowski have been removed as Vice Presidents. Artur Chołody, Mirosław Ptasiński, and Artur Babicz remain in their respective roles as Vice Presidents and Board Member.
The changes precede an extraordinary general meeting of shareholders and come as the company navigates a complex restructuring process, including a Restructuring Approval Procedure (PZU) initiated in November 2025. The PZU aims to allow Grupa Azoty Polyolefins, a subsidiary, to continue operations by reaching an arrangement with creditors and stabilizing its financial position. A formal restructuring of debt is also a condition of a non-binding acquisition offer from Orlen, submitted in October 2025.
According to an anonymous analyst at a Polish state bank, the changes mirror a recent situation at KGHM, another state-owned company where the CEO was recently removed. The analyst suggested that the current management wasn’t necessarily at fault for the company’s difficulties, but that the pace of financial recovery may have been deemed too slow. “In the swamp that Grupa Azoty is in, you have to move slowly. There’s no way to take shortcuts,” the analyst said.
Another unnamed analyst believes the changes reflect a desire by Minister of State Assets Artur Balczun to expedite the turnaround efforts. The appointment of a new team is seen as an attempt to inject fresh momentum into the process. Crucially, Artur Chołody, a Vice President considered close to Minister Balczun, remains in place, ensuring continuity in negotiations with banks.
The Ministry of State Assets (MAP) released a statement emphasizing the need for long-term financial stability and decisive action in organizing the management board. The statement indicated that the new board will be tasked with reaching an agreement with creditors, paving the way for a potential recapitalization of Grupa Azoty by MAP. The ministry underscored the strategic importance of Grupa Azoty to Poland’s national security and its commitment to consolidating the country’s chemical sector.
Grupa Azoty’s financial woes stem largely from ill-fated investments, most notably the Polimery Police project, which has cost over 7 billion PLN and remains incomplete. The project’s failure to launch and the company’s inability to secure funding for its completion and operation have created a critical situation. As of January 16, 2026, creditors were aggressively pursuing debt recovery, with Pekao bank initiating enforcement proceedings against Grupa Azoty Polyolefins for obligations exceeding 3.9 billion PLN.
The company failed to make the payment to Pekao, triggering a cascade of financial pressures. The new management team faces the daunting task of resolving these issues within the next six months. Grupa Azoty has also filed an arbitration claim against Hyundai Engineering Co., Ltd., alleging breach of contract related to the Polimery Police project.
The restructuring proceedings, initiated under the PZU, are intended to facilitate coordinated responses from creditors, including those related to the Orlen acquisition offer. Orlen’s non-binding offer, valued at 1.022 billion PLN in a cash-free, debt-free structure, is contingent on the successful restructuring of the company’s debt and is expected to close by June 30, 2026. Grupa Azoty and Grupa Azoty Police have already recognized impairment charges related to loans granted to Grupa Azoty Polyolefins, reflecting the deteriorating financial outlook.
The situation highlights the broader challenges facing Grupa Azoty, which, despite being the largest chemical company in Poland, is burdened by significant financial problems. The company’s strategic focus is now shifting towards its core fertilizer business, while it seeks a resolution for the Polyolefins division.
