URALCHEM OJSC Announces Operating Results for the First Half of 2011

MOSCOW, RUSSIA, August 19, 2011 (Press-News.org) The production volume of URALCHEM holding enterprises during the first 6 months of 2011 increased by 4% compared to the same period in 2010, amounting to a total of 2.6 million tonnes. The production of nitrogen fertilisers increased by 3%, and complex fertilisers by 13%.

The growth in production of NPK fertilisers was in line with the company's strategy to increase the share of specialised products with high added value while gradually reducing the production of standard types of nitrogenous and phosphate fertilizers. The total production increase in the first half of 2011 related mainly to the high production rates of Kirovo-Chepetsk Chemical Works, as well as to the restructuring of the production line at Voskresensk Mineral Fertilisers, OJSC. The change was made in favor of NPK fertilizers to meet the market demand. The same restructuring lead to the decreased production of phosphate fertilisers.

Comparative production figures of the URALCHEM holding companies
(Thousands of tonnes):

Name of product H1 of 2010 H1 of 2011 Year-on year change, %
Ammonium nitrate and its derivatives 1 343 1 387 3%
Ammonia 288 281 -2%
Urea 233 241 3%
NPK fertilizers 257 290 13%
Phosphate fertilizers 271 255 -6%
Other chemicals, including ammonium nitrate for industrial use 102 135 32%
Total 2 494 2 589 4%

Dmitry Konyaev, CEO of URALCHEM, OJSC commented on the operating results for the first half of 2011: "In the first half of 2011, all production facilities of URALCHEM worked at full capacity. With favorable market conditions and strong demand from Russian and foreign consumers, this enabled us to increase the production by 4% compared to the same period last year. We continue to move toward the goal of 5.6 million tonnes per year by 2015."

URALCHEM 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, 2.2 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 0.5 million tonnes of urea. URALCHEM is the second largest ammonium nitrate producer in the world and number one in Russia. URALCHEM's key production assets include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; Kirovo-Chepetsk Chemical Works, OJSC in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Website: http://www.uralchem.com