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About URALCHEM
United Chemical Company URALCHEM Open Joint Stock Company (URALCHEM, OJSC) is the top Russian producer of ammonium nitrate and the second largest producer by volume of nitrogen fertilizers.
The company ranks first in production of ammonium nitrate and ranks second in the volume of nitrogen fertilizers production.
The company has facilities available for production of 2.7 million tonnes of ammonium nitrate, 2,2 million tonnes of ammonia, 0.8 million tonnes of complex fertilizers (NPK), 0.8 million tonnes of MAP and DAP and 0.45 million tonnes of urea per year.
In 2007 the URALCHEM produced , 26.9% of Russian ammonium nitrate, 14.1% of ammonia, 7.0% of urea and other fertilizers.
In 2007 74% of sales were for export.
URALCHEM, OJSC includes:
* Kirovo-Chepetsk Chemical Works, OJSC, Kirovo-Chepetsk, Kirov region (KCCW, OJSC);
* Azot, OJSC, Berezniki, Perm region (Azot, OJSC);
* Voskresensk Mineral Fertilizers, OJSC (VMF, OJSC), Voskresensk, Moscow region;
* URALCHEM, Management Company LLC (URALCHEM, MC LLC);
* Transport and service companies.
The rapid growth of demand for mineral fertilizers in BRIC countries and South-East Asia as well as the rising production of bio fuel assures the long-term development potential for the Company.
URALCHEM'S main competitive advantage is the development and production of new innovate fertilizers tailored to particular countries, markets and segments along with ammonium nitrate and urea – in accordance with the chosen strategy of “market tailored products”. Future implementation of this strategy means gradual reduction in production of standard types of nitrogen and compound fertilizers and a rise in production of specialized products.
Natural gas is the main raw material for production of nitrogen fertilizers. In order to hedge the risk of rising prices for raw materials, in December 2007 URALCHEM signed long-term exclusive gas supply agreements with Gasprom and NOVATEK for 99% of its gas supply needs until 2011.