Tag Archives: URALCHEM

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URALCHEM and Stamicarbon will develop a New Technology for Urea Production

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URALCHEM signed a joint technology development agreement for the synthesis of urea with Stamicarbon, the world’s top developer and licensor of urea processes.

Moscow, Russia (December 2, 2013) — URALCHEM, a leading Russian producer of nitrogen fertilizers, signed a joint technology development agreement for the synthesis of urea with Stamicarbon, the world’s top developer and licensor of urea processes.

The agreement should result in the creation of a new technology that will be available for commercial use globally. It is being built on both Stamicarbon’s intellectual property and URALCHEM’s research cooperation with the Moscow State University Department of Chemistry. URALCHEM has been working with the MSU Dept. of Chemistry on the concept of 100% CO2 conversion since 2008. The new technology will allow producing higher quality urea with less capital expenditure.

Within this joint project, URALCHEM will build, at its Perm Mineral Fertilizers site, a pilot unit designed by Stamicarbon, using the new technology. Subject to the positive evaluation of the pilot plant operations, Stamicarbon will proceed to the basic design of a commercial scale plant.

“This is one of those unique examples in modern Russian history in which a prominent western engineering company utilizes scientific findings of Russian fabricators and academic institutions”, noted Valeriy Lunin, Dean of the Moscow State University Department of Chemistry, member of the Russian Academy of Sciences.

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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 fertilizers in Russia. URALCHEM, OJSC is the world’s #2 and Russia’s leading ammonium nitrate producer.

Stamicarbon B.V., the licensing and IP Center of Maire Tecnimont, is the global market leader in licensing of urea technology and services with more than 50% market share in synthesis and 32% market share in urea granulation technology. Stamicarbon has more than 65 years’ experience in licensing its urea technology and services, delivering optimum environmental performance, safety, reliability and productivity at the lowest investment level. Over 260 urea plants are using its technology. In addition, it has completed over 90 revamp projects in Stamicarbon and non-Stamicarbon plants. Since 1947, Stamicarbon has been the world’s leading authority and innovator in the field of urea in close co-operation with research institutes, suppliers and customers. Stamicarbon has offices in Sittard (The Netherlands), Beijing (China) and Moscow (Russia).

The Chemistry Department of the Moscow State University is a world-known center for Chemistry education. Chemistry education at the University started from 1755, the year it was founded. The Department of Chemistry includes 17 university chairs, 83 laboratories. 1048 students and 283 postgraduates, that study at the Department. 11 Full members of the Russian Academy of Sciences, 4 corresponding members and 202 professors holding PhD and Doctoral Degrees in Chemistry are now preparing students to become high class specialists in modern Chemistry.

Business

URALCHEM has obtained a Syndicated Loan

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The URALCHEM group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by procuring a 5-year unsecured syndicated loan.

Moscow, Russia (November 21, 2013) — The URALCHEM group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by procuring a 5-year unsecured syndicated loan. The proceeds of the loan have been used to refinance the current syndicated loan deal, concluded in December 2012, under which the Group used assignment of rights on its export contracts as security interest for the loan.

The syndicated loan was obtained on 18 November 2013 from a pool of leading international and Russian banks. Nordea Bank AB (publ), HSBC Bank PLC, Raiffeisenbank and and Rosbank (Société Générale Group) were Mandated Lead Arrangers. Within the framework of the deal, OJSC Nordea Bank acted as Documentation Agent and Nordea Bank AB (publ) acted as Facility Agent. The deal was closed within a very short time, only four weeks from the date of the official invitation to the banks.

The plant in Kirovo-Chepetsk acted as the borrowing party from the URALCHEM Group. URALCHEM OJSC, the plant in Voskresensk, the plant in Perm, SIA URALCHEM Trading in Riga and URALCHEM Trading House were the guarantors of the loan.

The amount of the loan in Euros is the equivalent of US $200 million. The interest rate is Euribor 3m + 2.5%. The loan documentation made provision for an option of a drawdown in Euros, which the company used. The loan period is 5 years with a grace period of 2 years. This was the debut unsecured syndicated loan for the Group, and it made it possible to release secured assets on the assignment of rights on export contracts. The new deal has allowed for reduction of the interest rate on the loan by more than 1.5%, as well as the increase of the average time frame for repayment of the loan.

Dmitry Konyaev, CEO of URALCHEM OJSC commented, “Our mutually beneficial cooperation with the leading banks that form the syndicate has been going on for years. The terms of the new deal and the efficiency of its closing show the high confidence that the banks have in the Group and the sustainability of its financial position. We are grateful to our creditors and appreciate our partnership with them.”

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 Manufactured 4.49 Million Tons of Products in January-September 2013

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Production from all enterprises of the URALCHEM Group during the first nine months of 2013 amounted to 4.49 tons. This is a 2% increase compared with the same period last year.

Moscow, Russia (October 31, 2013) — Production from all enterprises of the URALCHEM Group during the first nine months of 2013 amounted to 4.49 tons. This is a 2% increase compared with the same period last year.

The production of ammonium nitrate and its derivatives amounted to 2.03 million tons, up 7% over the same period last year. The output of complex fertilizers increased by 1%, to 468.4 thousand tons. The production of commodity ammonia decreased by 3%, to 562.6 thousand tons. Urea production decreased to 851.4 thousand tons, which is 1% less than in January-September 2012. Production of phosphate fertilizers (MAP / DAP) decreased by 5%, to 333.3 thousand tons.

“On the whole, URALCHEM’s enterprises showed stable performance, increasing production through the upgrade of its units and increasing their efficiency. URALCHEM took the market situation fully into account and continued to ramp up production in its key nitrogen segment, placing emphasis on the most popular products,” said Dmitry Konyaev, CEO of URALCHEM, OJSC.

In the third quarter of 2013, the situation in the global fertilizer market was unfavourable for producers. The market for phosphate fertilizers suffered an especially significant drop in demand and prices. At the same time, the situation in nitrogen market is more stable.

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PR 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.

Business

Russian Railways and two of URALCHEM’s Companies sign an agreement on cooperation to improve Transportation Efficiency

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Russian Railways, URALCHEM’s Kirovo-Chepetsk Chemical Works Plant and URALCHEM-TRANS signed a cooperation agreement for the period 2013 to 2015 at the Volga Coordinating Council meeting held in Nizhny Novgorod.

Moscow, Russia (October 10, 2013) — Russian Railways, URALCHEM‘s Kirovo-Chepetsk Chemical Works Plant and URALCHEM-TRANS signed a cooperation agreement for the period 2013 to 2015 at the Volga Coordinating Council meeting held in Nizhny Novgorod. The meeting was chaired by the head of Gorky Railway, Anatoly Lesun.

The agreement will increase interaction efficiency between the parties to guarantee the transportation of raw materials and finished products from the plant in Kirovo-Chepetsk. The parties agreed to combine their efforts in priority areas such as: accelerated transportation of the consignor’s cars, provision of track to be used for parking cars, automation of the process for organizing shipments.

Sergei Momtsemlidze, Director of the Kirovo-Chepetsk Chemical Works Plant, said: “Gorky Railway has always been one of the plant’s most important and reliable strategic partners. Increased cooperation between URALCHEM and Gorky Railway will give a new impetus to our strong relationship and will help to improve transportation of raw materials and finished products from the plant, including products for the domestic agricultural sector.”

Vsevolod Kovshov, director of URALCHEM-TRANS said, “The development of cooperation between Russian Railways and URALCHEM has been one of our priority tasks. We appreciate the constructive partnership with Gorky Railway, and especially the customer-oriented approach of the departments that we are dealing with, as well as the way they strive to always meet the needs of shippers. By signing the agreement, we will be able to work together on specific tasks that will ensure more effective and mutually beneficial cooperation between Russian Railways and URALCHEM. The most important area of work is the creation of a system allowing acceleration of transportation of the consignor’s cars within the Russian Railways network. Our cooperation will also improve planning efficiency and traffic coordination.”

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PR 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.

Business

URALCHEM and Ziedot.lv Fund Sum up the Aid Programmes for Riga Schools and Announce the Start of the Second Phase of the Program for Ill Children

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Since September 2012 URALCHEM has sent 260,000 Euros for ill children in Latvia.

Riga, Latvia (October 8, 2013) — URALCHEM and the charity fund Ziedot.lv today summed up the results of joint charitable programmes and announced the continuation of their cooperation.

The Riga schools assistance program launched in February 2013, when URALCHEM and Ziedot.lv entered into an agreement with two schools in the Vecmilgravis district of Riga. Under the agreement, URALCHEM agreed to provide funding of more than 70 000 lats (about 100,000 euros), to be equally distributed between the schools. With this money both schools equipped modern chemistry classrooms, purchased interactive whiteboards and other necessary equipment and furniture, and carried out general renewal and improvement works. In addition, one of the schools equipped its assembly hall and technology classroom, and the other school purchased new equipment for the kitchen. Fund Ziedot.lv provided organizational and administrative assistance with the implementation of the project. All the work was completed as planned. On 4 October, both schools held tours for specially invited guests and members of the media to show off the work that had been done.

At the event, URALCHEM and Ziedot.lv announced the start of the second phase of the joint programme of assistance for seriously ill children. Its first phase began in September 2012. URALCHEM paid 80 million euros to help seriously ill children who needed specific treatment or rehabilitation using leading Russian clinics. In the first phase, assistance was provided for 22 families with children who needed help in the treatment of conditions such as autism, visual recovery, cerebral palsy and developmental delay. URALCHEM’s financing covered the costs for accommodation and treatment in 13 different clinics in Russia, including leading hospitals such as the Children’s Clinical Hospital in Moscow, the Bekhtereva Institute of the Human Brain in St. Petersburg and the Kirov Clinic of Ophthalmology in St. Petersburg.

The second phase of the program will ensure that help to seriously ill children continues. URALCHEM is to fund this phase to the amount of 80 thousand Euros. Ziedot.lv has already started selecting participants for the programme and the appropriate courses of treatment for them, based on the recommendations of doctors and parents requests for financial assistance. It is planned that 23 families will receive help during the second phase of the programme.

Dmitry Konyaev, CEO of URALCHEM, OJSC:
“URALCHEM continues to follow its principles and support social and charitable programmes in the regions where the company has a presence. We started cooperation with the Ziedot.lv fund a year ago, initially helping seriously ill children and soon afterwards expanded our programme into assistance for schools. We can see that both of these programmes are being successfully implemented, bringing real benefits. We want to thank the Ziedot.lv fund and the schools authorities for their work and we are pleased to continue our collaboration.”

Ruta Dimanta, Head of the Fund Ziedot.lv:
“Fund Ziedot.lv is a long-established charitable organization in Latvia with a lot of expertise in solving real-world problems and providing its partners with confidence that their efforts will lead to positive changes. We are happy to work with URALCHEM and we are glad that our experience allows us to jointly achieve real results. We will continue to cooperate, making every effort to ensure that our projects stay successful.”

Iveta Stivrinya – Headmaster:
“We have completed all the planned work before the start of the school year and we are already seeing great interest in the new installations. For example, students like to take tests using the remote voting system with its immediately visible results. The newly equipped chemistry laboratory now allows students to perform a variety of practical work that was previously impossible. It helps to diversify the learning process, and children learn with great interest and pleasure. New desktops with special machines in the technology classroom are also very popular. Interest in renewed classrooms is shown not only by students, but also alumni of the school who participate in various clubs. We hold school events, drama and dancing clubs in the assembly hall with its new lighting and stage design systems. The concerts and other cultural events in the hall are attended not only by the students, but also by residents of the Vecmilgravis area. Therefore, the work that has been done is important not only for our school, but for the entire district.”

Boris Antonov – Headmaster:
“The new chemistry laboratory will give a good impetus for laboratory work and chemistry research in school. The students’ interest in chemistry will increase, especially in high school. We expect that this will lead to good results at scientific competitions. In addition, the interactive whiteboards, projectors and colour printers have made it possible to conduct lessons on a modern, technical level. New equipment in the kitchen has come in handy already in July, during the National Song and Dance Celebration, and is now being actively used. The help from URALCHEM and the Ziedot.lv fund is a good example how support can be provided for educational institutions.”

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Reference Information
School No31 opened in 1952. It is located at 11 Skuyu St, Riga. The school has 50 teachers and more than 500 students. The teaching is conducted in Latvian.
School No46 was founded in 1954. It is located at 28 Skuyu St, Riga. The school has 56 teachers and more than 500 students. The teaching is conducted in Russia.

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.

Contacts:
PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com

Ilze Oshane
Ziedot.lv Fund
Head of communications
Mobile: 29400422
E-Mail: ilze@ziedot.lv

Business

URALCHEM Joins as New Member of International Plant Nutrition Institute

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URALCHEM joined as a member company of the Inter-national Plant Nutrition Institute (IPNI) at the Board of IPNI Director’s Meeting held on September 24 in Montreal, Quebec, Canada.

Moscow, Russia (September 27, 2013) — URALCHEM joined as a member company of the Inter-national Plant Nutrition Institute (IPNI) at the Board of IPNI Director’s Meeting held on September 24 in Montreal, Quebec, Canada. Mr. Dmitry Konyaev, CEO and Tatiana Rozarenova, Head of the Client and Regu-latory Relations Division were elected to represent URALCHEM as members of the Board.

“Our membership welcomes the decision of URALCHEM to join IPNI and we are honored and encouraged by this extension of our primary support base,” said IPNI President Dr. Terry L. Roberts. “The addition of new members directly impacts IPNI’s scientific and educational programs that are designed to contribute to the advancement of agronomic science, world food security and environmental protection.”

“URALCHEM is an innovative-minded company, investing actively in the R&D field. We are therefore pleased to become a member of a leading scientific organization that brings forward agro-chemical science. Combining our research efforts will improve efficient solutions for the responsible manufacturing, as well as for use of fertilizers in order to meet the growing global demand for agricultural products”, said Dmitry Konyaev.

IPNI membership is another good indication of the URALCHEM’s commitment to being a responsible producer, along with participation in International Responsible Care Programme, supervised by UNO, registering chemical substances with the European Chemicals Agency and getting certification with Fertiliser Industry Assurance Scheme (FIAS) in the UK.

The International Plant Nutrition Institute (IPNI) is a global organization dedicated to research and promotion of information about the importance of scientific use of fertilizers for plant nutrition. Members of IPNI are composed of companies that are large producers of one or more of the major plant nutrients. International and national associations of fertilizer manufacturers and leading global agrochemical research centres are affiliate members of IPNI.

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

-Ends-

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 Adds 300 Units to its Fleet of Rail Cars

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URALCHEM OJSC is increasing by 300 its own fleet rail cars for the transportation of mineral fertilizers and liquid ammonia.

Moscow, Russia (September 19, 2013) — URALCHEM OJSC is increasing by 300 its own fleet rail cars for the transportation of mineral fertilizers and liquid ammonia. URALCHEM-TRANS (part of the URALCHEM group) will operate the new cars, along with the rest of URALCHEM’s rolling stock. The cars will be acquired through capital lease agreements, with the participation RB Leasing, LLC. The transaction value exceeds 700 million roubles.

Of the 300 cars purchased, 200 mineral wagons and 100 tank cars are manufactured in Russia. All the cars will be transferred to URALCHEM-TRANS in September and October 2013 and will be used to replace an existing fleet that is being retired. Since the end of 2012, URALCHEM-TRANS’ rolling stock has increased by 500 new cars. Today, the total number of cars under the management of URALCHEM-TRANS is around 8.5 thousand units.

The Director of URALCHEM-TRANS, Vsevolod Kovshov commented: “The planned renovation and expansion of the fleet is one of our key areas of work to ensure the safety of the logistics of the company. The new deal allows us to increase the share of our own rolling stock in the fleet in accordance with the strategic objectives of the Group. The new rolling stock will be used to replace leased, obsolete and worn out cars.”

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PR 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.

Business

Ernst & Young have given a positive report on URALCHEM’s Joint Service Centre

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The Russian division of British auditing company Ernst & Young has conducted an audit of URALCHEM’s new branch, the Joint Service Centre (JSC).

Moscow, Russia (August 27, 2013) — The Russian division of British auditing company Ernst & Young has conducted an audit of URALCHEM‘s new branch, the Joint Service Centre (JSC).

The JSC was established in Perm in early 2013 to unify and optimize the accounting business processes of URALCHEM’s different units within a single multifunction centre. The centre is responsible for data processing and preparation of financial statements according to Russian and international standards, tax accounting, treasury operations. It also has been given the task of setting up and maintaining a unified information and telephone systems for the company.

On 1 February, 2013, the Centre started providing services for the company’s branch in Perm. On 1 May 2013 services were started for URALCHEM’s Berezniki branch. These were audited by Ernst & Young specialists. The auditors examined the mechanisms of remote operations, the quality of the whole suite of services identification of duplication of functions as well as the efficiency of the centre staff and the cost of its operations. After audit, the results of the second quarter of 2013 showed that the JSC met all performance targets and all the tasks are performed at a good level.

The plans for the next two years include a trebling of the centre’s staff, from one hundred to three hundred people. From 1 October this year the centre will start providing services for “Power supply utility of Kirovo-Chepetsk Chemical Plant” and for “Repair and Engineering Works of Kirovo-Chepetsk Chemical Plant”. Form the beginning of 2014 the centre will roll out services for the plant in Kirovo-Chepetsk.

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PR 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.

Business

URALCHEM HOLDING P.L.C. Reports IFRS Financial Results for the First Six Months of 2013

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URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its unaudited IFRS financial results for the first six months of 2013.

Moscow, Russia (August 19, 2013)

– Revenue increased to US $1,292 million, compared to US $1,261 million in H1 2012.
– Operating profit amounted to US $394 million, compared with US $410 million in H1 2012.
– Adjusted EBITDA comprised US $452 million, compared to US $462 million in H1 2012.
– Net profit amounted to US $253 million, compared with US $444 million in H1 2012*.

URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its unaudited IFRS financial results for the first six months of 2013.

Dmitry Konyaev, CEO of URALCHEM, OJSC (the Russian holding company of the Group), commented on the Company’s results in the first half of 2013, “The overall global market situation has been less favourable for fertilizer producers in 2013 compared to last year. This trend is very likely to continue in the second half of this year. Along with the continuing rise in the cost of raw materials, this situation creates conditions for the further decline in the financial performance of the leading manufacturers of mineral fertilizers. Thanks to its strategy, URALCHEM is continuing to hold a leading position in a number of financial and operational indicators. In the first half of 2013, URALCHEM maintained its sales volume at the level of the first half of 2012 and increased revenues by 2%. In addition, as a result of early repayment of loans to the amount of US $300 million we were able to reduce the Company’s debt to a record low of US $787 million, as well as to withdraw from collateral all of the Group’s property. Net debt currently amounts to US $676 million”.

Financial Results

Revenue for the first six months of 2013 grew to US $1,292 million, compared to US $1,261 million last year. Operating profit amounted to US $394 million, or 31% of the revenue, compared with the operating profit of US $410 million, or 32% of the revenue, in the first half of 2012. Net profit amounted to US $253 million, compared to US $444 million in the first six months of 2012.

During the first half of 2013, adjusted EBITDA reached US $452 million, compared to US $462 million in the first half of the year before, a decrease by 2%. The adjusted EBITDA margin for the first six months of 2013 comprised 35% of revenue compared with 37% of revenue for the same period in 2012.

The main difference in the dynamics of the net profit compared to the other results is due to the fact that the results in 2012 included the revaluation of the Company’s share in Minudobrenia, Perm.

Markets

During the first half of the year, the price of ammonia was declining. The main factor determining the price dynamics was the lack of demand in the agricultural and the industrial segments. Lower demand in the agricultural segment was due to the late start of the sowing season in the Northern Hemisphere. Lack of demand in the industrial segment was caused by reduced production of phosphate fertilizers in North Africa and India.

Urea prices showed significant growth in the beginning of the year due to active procurement in Europe and North America, which coincided with a limited supply of product from Egypt, forcing buyers to look for alternative sources. However, from mid-February to the end of June prices have been decreasing, mainly due to lack of demand. In Europe and the US slowdown in demand was attributed to the late start of the sowing season. Latin American importers were putting off purchases, monitoring the changes in the situation. Additional pressure on prices was created by the accumulation of large stocks of products at Chinese ports, in anticipation of the period of low export duties, which began on 1 July.

During January and February there was a steady growth of quotations for ammonium nitrate. In mid-March, due to the pressure from urea prices, the trend changed. By mid-May, prices for ammonium nitrate decreased by $100/t, compared with the maximum prices registered in the middle of the first quarter. At the end of May, prices stabilized with repair works carried out at that time at CIS plants being one of the factors that contributed to this stabilization. By the end of the second quarter, prices in the CIS were supported by the industrial segment.

Until the middle of the first quarter, global decline in prices for phosphate fertilizers continued due to the lack of current demand. The decrease of production by major suppliers together with increased demand in Latin America stabilized prices. At the same time, Latin America remained the single largest source of demand. Indian buyers refrained from transactions. Since the beginning of the second quarter the decline was caused by the reduction of subsidies in India, the delays of purchases in the US domestic market due to the weather conditions, devaluation of currencies of major importing countries, such as Brazil and India, and policy of procurements to the current needs adopted by importers in other regions lead to oversupply in market and decrease in prices.

Production and sales

Volume of production by the Group’s plants increased by 1%, sales of commercial products of the Group remained virtually unchanged.

Financial Situation

Cash generated from operating activities in the first half of 2013 amounted to US $320 million, compared to US $342 million in the same period of 2012.

As at 30 June 2013, the Company’s net debt amounted to US $676 million. The weighted average interest rate of the loan portfolio in the first six months of 2013 equalled 4.7% annually compared to 5.2% annually during the same period in 2012.

For more information, please visit the Company web site http://www.uralchem.com or use the following contact information:

PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com

URALCHEM HOLDING P.L.C. is a holding company of the URALCHEM Group, which includes four fertilizer manufacturing facilities in Russia. URALCHEM Group is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.5 million tons of ammonium nitrate, 2.8 million tons of ammonia, 0.8 million tons of MAP and DAP, 0.8 million tons of complex fertilizers and 1.2 million tons of urea per year. URALCHEM Group is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilizers in Russia. URALCHEM Group’s key production assets 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 Fertilizers, OJSC in Voskresensk, Moscow region.

Business

URALCHEM has registered its calcium nitrate in accordance with REACH requirements

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URALCHEM has registered its anhydrous calcium nitrate with the European Chemicals Agency in accordance with the European Community Regulation on chemicals and their safe use (EC 1907/2006), which deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances (REACH).

Moscow, Russia (July 18, 2013) — URALCHEM has registered its anhydrous calcium nitrate with the European Chemicals Agency in accordance with the European Community Regulation on chemicals and their safe use (EC 1907/2006), which deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances (REACH). This registration allows the company to seamlessly deliver the product onto the EU market.

Anhydrous calcium nitrate Ca(NO3)2 is a new product for the company and was launched at the company’s plant in Kirovo-Chepetsk. Currently, calcium nitrate is widely used as an additive in concrete and construction mixes, as a constituent of process fluids in the petroleum industry and as raw material for the chemical industry.

The product can also be used as fertilizer. It contains nitrate nitrogen and calcium in the best form for absorption by plants. Among the useful properties of calcium is its ability to increase the strength of cell walls. Use of calcium nitrate increases the yield by 10-15% and significantly improves consumer quality of vegetables and fruit. It also stimulates root development, especially the development of root hairs. Calcium nitrate aids the formation of membranes and strengthens cell walls of plants; it stimulates enzyme activity and metabolism; it also promotes photosynthesis and speeds up the transportation of hydrocarbons and nitrogen assimilation in plants. Usage of the product increases plants’ resistance to environmental stress factors as well as fungal and bacterial diseases.

“Compliance with the requirements of the REACH regulation is a necessary condition for the supply and turn over of chemical substances on the EU market. URALCHEM is closely following developments in this area, and strictly complies with all requirements concerning circulation of chemicals in the EU”, commented Tatiana Rozarenova, Head of Customers and Regulators Department at URALCHEM.

Today, the REACH regulation is one of the most complex technical regulations in the European Union. In 2010, URALCHEM registered 27 substances according to the requirements of the regulation and became one of the first Russian manufacturers in the chemical industry to submit data on its products to the European Chemicals Agency.

-Ends-

PR 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.