OREANDA-NEWS. On 10 April 2008 was announced, that enterprises incorporated into the Mineral Chemical Company “EuroChem” produced 6.1 million tons of mineral fertilizers (105% to the previous year level). Agricultural producers of the Russian Federation supplied in 2007 1 million tons of fertilizers (50% to the previous year level).

NITROGEN FERTILIZERS

Production of ammonia, raw material for production of nitrogen fertilizers amounted following the results of 2007 to 2.5 million tons (100.4% in relation to the results of 2006).

Production of nitrogen fertilizers (commodity products) in 2007 amounted in aggregate to 4 million tons (107% to the level of 2006). Production of ammonium nitrate (commodity products) increased by 19% (1.6 million tons) in comparison with indicators of 2006. Production of carbamide (commodity products) remained at the level of 2006 and amounted to 1.3 million tons. Production of carbamide and ammonia mixture (CAM) amounted to 1.1 million tons (99% of the previous year level).

PHOSPHORIC FERTILIZERS

The consolidated production of phosphoric fertilizers over 2007 increased by 17% and amounted to 1.7 million tons.

Thanks to introduction into operation of the complex for enrichment of baddeleyite-apatite sands, production of apatite concentrate (raw material for production of phosphor containing fertilizers) amounted to 2.5 million tons which is 2.5% higher than the result of 2006. Production amount of sulphuric acid amounted to 2.3 million tons (in monohydrate) or 102% to the level of 2006. Production of phosphoric acid (100% P2O5) increased by 8.4% up to 955 thousand tons. Production of one of the main phosphorus fertilizers, ammophos, amounted to 129% in comparison with the previous year and reached 863 thousand tons. Such increase in production is conditioned by considerable investments into the production base and modernization of existing production facilities. Production of dibasic ammonium phosphate increased up to 842 thousand tons (102% to the level of 2006).

OTHER PRODUCTS

Production of feed phosphates (additives for cattle breeding) remained at the level of 2006 and amounted to 258 thousand tons.

Production of organic synthesis demonstrated reduction, in comparison with 2006, of production indicators which resulted from situation in the market and termination of operation of a number of loss-making production facilities. The consolidated production of methanol amounted to 496 thousand tons (90% to the previous year level). Issue of acetic acid at Nevinnomyssky Azot which is the sole producer of these products in Russia amounted to 161 thousand tons (100% to the level of 2006). Methyl acetate was produced at the amount of 8.5 thousand tons (84%) while production volume of butyl acetate increased by 11% and amounted to 23 thousand tons.

Production of iron-ore concentrate amounted to 5.2 million tons (93% to the level of 2006). Insignificant reduction in production was caused by launch of a new enrichment factory, the regime of joint reprocessing of ore and wastes after ore reprocessing (“apatite tails”) was increased. Sales of iron-ore concentrate were not affected, the company used remainders in stock for sale purposes. Production of the baddeleyite, a unique zirconium containing raw materials increased by 2.7% and amounted to 7.6 thousand tons.

STRUCTURE OF SALE MARKETS

The main particularity of change in the structure of sale markets was a significant increase in supplies of fertilizers in the domestic market of the Russian Federation (from 498 thousand tons to 1 million tons). This is explained by the adopted strategy for development of MCC “EuroChem” determining the markets of Russia and CIS as key and priority ones. The company strengthened its positions in the Russian market which is of priority for it concluding agreements with regions on supply of products at fixed prices significantly lower than the stock exchange prices.

The structure of foreign sale markets did not experience any radical changes. Following the results of 2007 the company effected supplies of mineral fertilizers to over 60 countries of the world. The amount of supplies of ammonium nitrate to the Brazilian market increased in 3.5 times, with the premium prices (from 155 thousand tons in 2006 to 556 thousand tons in 2007) due to the duty-free preferential position of EuroChem. Increase in production of ammophos by 29% ensured a significant growth in sales volume in the markets of Argentine, Brazil, Ukraine and Russia.

In addition to sales of its own products EuroChem actively developed trading of products of external producers by means of strengthening of connections with enterprises from Russia, Ukraine, Byelorussia, other countries and creation of distribution subdivisions in the territory thereof.