Tag Archives: nitrogen fertilisers

Business

URALCHEM Increased its Investments to $174 Million in 2013

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In 2013 URALCHEM’s investments in development reached $174 million, an increase of 5.5% compared to the previous year.

Moscow, Russia (March 21, 2014) — In 2013 URALCHEM‘s investments in development reached $174 million, an increase of 5.5% compared to the previous year. $84 million was spent on the implementation of investment projects, $77 million was spent on capital investments in equipment upgrades and $13 million was allocated for capitalized repairs.

The company’s plant in Kirovo-Chepetsk made the biggest contribution to the development investments – $46 million. The main areas of investment in the plant included building facilities for the production of new products, as well as reconstruction of existing facilities to increase production of mineral fertilizers and chemical products. In particular, work was continued on the project to create a new product, calcium nitrate. Another completed project was the increase in the capacity of one of the two units of nitric acid, which had originally started in 2012. Work was begun to increase the capacity of the second nitric acid unit and work continued to increase the capacity of the ammonia unit.

The investments by the “Azot” plant in Berezniki totalled $41 million. The main areas of investment were projects aimed at increasing output and reducing raw material consumption. Major work was carried out on units of production of ammonia, urea and nitric acid. $26 million was spent on the development of the plant in Perm. Most of the funds were allocated to a large-scale programme of modernization of the ammonia unit. The implementation of this project will increase production and reduce raw material consumption. The total capital investments of the plant in Voskresenks amounted to more than $13 million, which was spent on the development of new products.

The company’s major infrastructure project for the year was the completion and launch of the fertilizer handling terminal at the port of Riga in the fourth quarter of 2013. The terminal has a capacity of 2 million tonnes per year. The total investment for this project was about $78 million, $34 million of which was spent in 2013. Also in 2013, the company continued increasing the number of units in its own rolling stock, extending its life and modernizing it.

Dmitry Konyaev, CEO of URALCHEM OJSC, commented, “In 2013, URALCHEM continued to implement a long-term investment programme aimed at the technical upgrade of existing facilities. The main goal of the programme is to increase production and to improve the efficiency of technological processes, reducing rates of raw materials consumption and improving the environmental safety of production.”

PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
Email: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM OJSC Reports Securing a Loan of US $4.5 Billion

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URALCHEM has secured a loan of up to US $4.5 billion. The loan has been granted for a period of 84 months. A major part of the loan will be used to pay for the 20% of shares to be acquired in Uralkali.

Moscow, Russia (December 17, 2013) — URALCHEM OJSC has secured a loan of up to US $4.5 billion. The loan has been granted for a period of 84 months.

URALHEM OJSC and the plant in Kirovo-Chepetsk are the borrowers in the transaction. VTB Capital Plc is acting as the lender, the loan agent and the documentation agent. The loan guarantees are Voskresensk Mineral Fertilisers, OJSC in Voskresensk, URALCHEM Trading House Ltd, OJSC Minudobrenia in Perm, URALCHEM HOLDING P.L.C. and SIA URALCHEM Trading.

Out of the $4.5 billion loan, a major part will be used to pay for the 20% of shares to be acquired in OJSC Uralkali. Part of the borrowed funds can be used to repay the current loan liabilities of the URALCHEM Group and will be called on if the existing creditors of the Group require early repayment of liabilities due to changes in the credit portfolio of the Group.

On 4 December 2013, URALCHEM Group’s shareholders announced an agreement to acquire a package of shares and GDRs in OJSC Uralkali (MICEX-RTS: URKA; LSE: URKA), constituting 20% of total share capital of the company. Closure of the transaction is expected in the near future. These shares will be used as collateral for the loan borrowed from VTB Capital Plc.

PR Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
Email: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM obtains a Syndicated Loan

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The URALCHEM Group has refinanced part of its loan portfolio by bringing in a five-year syndicated loan.

Moscow, Russia (January 3, 2013) — The URALCHEM Group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by bringing in a five-year syndicated loan. As a result of the early redemption of a number of previously obtained loans, all material collaterals have been released, loan payments have been diversified into an optimal currency basket and the average term of the loans in the portfolio has been significantly increased.

The syndicated loan was obtained on 21 December 2012 from a pool of leading international and Russian banks, including JSC Sberbank of Russia, Sberbank (Switzerland) AG, ING Bank NV, Raiffeisenbank, VTB Bank (France) SA, HSBC Bank PLC and Rosbank (Société Générale Group).

The syndicated loan has become the first loan of this kind in the company’s history and attracted considerable interest from the banking community. In the process of syndication, the pool of banks was willing to provide funding of over $500 million, of which URALCHEM took $220 million. The loan documentation made provision for an option of a drawdown in Euros, which the company used. The loan period is 5 years and the company is using assignment of rights on its export contracts as security interest for the loan.

The funds raised have been allocated, among other things, to the early repayment of the company’s current liabilities, which has allowed the removal of collateral obligations from the tangible assets and shares of the Group’s enterprises.

“The banks’ interest in the company confirms its strong financial and operating position, its competitive advantages and the attractiveness of the industry,” said CEO of URALCHEM OJSC Dmitry Konyaev. He added, “The development strategy that we have chosen has allowed the company to significantly improve the structure of its loan portfolio and reduce its volume in 2012. By the end of 2012 the ratio of net debt to EBITDA has become less than 1, which is one of the best results for companies in our industry both domestically and abroad. The fact that first-class banks were willing to provide us with more than twice the amount and that the transaction has allowed us to free up collaterals, is demonstrating URALCHEM’s strong financial position.”

-Ends-

Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@URALCHEM.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.