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Review of the Global Polyimide Market Interplastica 2014: Good Prospects for Russias Plastics Industry CIS Market in Salicylic Acid and its Derivatives Chemical Industry of Uzbekistan

2 (85) l March l 2014

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03/2013 Chloromethanes in CIS: Production and Market Russian and Ukrainian Market for Benzoic Acid and Benzoates Revolution at the Global Helium Market on the Agenda CIS Production and Market of Talc Slip Additives for Production of WoodPlastic Composites

04/2013 International Conference ''Oil and Gas Chemistry 2013'' Styrene Production and Market in Russia/CIS Russian Phenol Production in 2012 Russian Market of Selenium in 2012 Production and Market of Complexones in CIS

05/2013 Russian Epoxy Resins Production and Market The Russian Polypropylene Market: Waiting for Revolution Chinese Phenol and Acetone Market: Review and Outlooks Russia's Market for Fuel Additives

06/2013 Plastics Recycling: Profitable and Versatile Production and Market of Propylene in Russia/CIS Ukrainian Manufacture of Nitrogen Fertilisers in April, 2013 CIS Silicon Dioxide Market Heading into H2: Key Russian Chemical Players Announced Q1, 2013 Results

07/2013 Overview of Russian Market for Unconventional Cable Compounds Russian Tyres Market: Current State and Outlooks Sodium Sulphate Production in Russia Ukrainian Output of Mineral Fertilisers in May, 2013 Tracking Corrosion with Ultrasound

08/2013 Bioplastics: an Alternative with a Future? Russian Production of Ureafuran Resins Ukrainian Production of Basic Inorganics and Mineral Fertilisers in H1, 2013 Review of the Russian Vulcanisation Accelerators Market Tall Oil Production and Market in Russia

09/2013 Plastics in Electronics Production of Formalin in Russian Federation Russian Production of Benzene in 2011H1, 2013 Production and Market for Soda Ash in CIS Russian Market for Demulsifiers for Oil Extraction

10/2013 Trends in the Global and Russian PPS Market Production and Market for Urea in CIS Russian Market for PVC Thermostabilisers Kazakhstan Petrochemical Industry Waiting for Sweeping Changes

11/2013 Market for Aramid Fibres in CIS Ethylene Oxide Market in Russia Phosphorus Market in the CIS Ukrainian Output of Basic Inorganics in September, 2013 Kazakhstan Defines Top Priority Chemical Commodities for Future Production

1/2014 Review of Global Polyimide Market CIS Market in Salicylic Acid and its Derivatives nterplastica 2014 : Good Perspectives for Russia's Plastic IndustryChemical Industry of Uzbekistan

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2 A Review of the Global Polyimide Market 8


Interplastica 2014 : Solid Business and Good Prospects for Russias Plastics and Rubber Industry

11 Prices 19 Rubbers & tyres


Organics Market in Salicylic Acid and its 22 CIS Derivatives 30 Prices 34 Inorganics Agrochemistry in 2013: No Light at the End 38 Production of the Tunnel Summing up Ukrainian Fertilisers

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In Ukraine Transformatornaja St, 7, Simferopol, 95040 Tel.: + 380 (652) 251293, 274942. Fax: + 380 (652) 248074, Shepeleva St, 2, Kyiv. In Russia Molodogvardejskaja St, 59, Moscow, 121351. Tel.: +7 (495) 4165897, tel./fax: +7 (495) 9505147 In Belarus Pinskaja St, 18, ofce 8, Minsk, 220073. Tel.: +375 (17) 2522501, 2822595, 2042688 Registration Certicate 945 in effect since 11.09.2009 Placed online 6.04.14

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Chemistry and business A systemic analysis of an economic policy of regulating hydrocarbons ows worldwide under the conditions of the 'shale gas revolution'

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70 Chemical Industry of Uzbekistan

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A Review of the Global Polyimide Market

Polyimides (PIs) is a group of high performance polymers with excellent thermal, mechanical, and physical properties. Owing to their outstanding characteristics, they are useful over a wide range of applications including the production of printed circuit boards, fasteners, and chemically resistant products. Polyimides take an especial position in the development of innovative technologies, where light-weight materials with high strength, flexibility, inertness, and a broad range of working temperatures are required.

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DuPonts baby
The first information about the synthesis of aromatic polyimides dates back to 1908. A big contribution to the development and introduction of polyimides was made by DuPont, which brought to market Kapton H films, Vespel moulded parts, and Pyre-ML insulating varnish. To obtain its first Kapton polyimides, the company employed pyromellitic anhydride (PMDA) and 4,4-oxydianiline (ODA). Figure 1 shows a diagram of the condensation of these chemical products. The process developed by DuPont includes two stages: firstly, polyamic acid is synthesised and secondly, the acid undergoes imidization. Dianhydride and diamine are used as mother substances (Table 1). The condensation is

Figure 1. Obtaining polyimide from PMDA and ODA Table 1. Basic dianhydrides and diamines used for polyimide production
Dianhydride Formula Abbreviation PMDA Name Pyromellitic anhydride Formula Diamine Abbreviation pDA Name p-phenylenediamine

BPDA

Diphenyl dianhydride

mDA

m-phenylenediamine

BTDA

Benzophenone dianhydride

DAB

Benzidine

DSDA

Diphenyl sulfone dianhydride

DABP

Diamine-benzophenone

ODPA

Oxydiphthalic anhydride

DDS

Diaminodiphenyl sulphone

HQDA

Oxydiphthalic anhydride

ODA

Oxydianiline

BPADA

Bisphenol-A-diphthalic anhydride

BisDA

Bisphenol-A-diamine

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Table 2. Comparison of chemical and thermal polyimide films


Property Physical properties (strength and relative elongation) Shrinkage (at 200 C during two hours) Dielectric breakdown, W/mm Moisture absorption (during 24 hours) Width, (max.) Length, (max.)
Source: Saint-Gobain HPM

resins are obtained by adding low molecular maleimide, acetylene, benzene dicarbinol (benzocyclobutene) groups. These resins find application in the impregnation of textile fibres and in composites production.

Polyimide film Chemical Isotropic Less than 0,05% Around 7 Less than 2,8% 1570 4000 Thermal Anisotropic (difference up to 40%) Up to 1% Around 5,5 Around 4% 1000 1500

A polymer basis of electronics


To synthesise polyimides, a broad set of monomers are employed as well as various methods. Therefore, properties of polymers may vary within a wide range. Polyimidies possess exclusively high thermal resistance. They begin decomposing only at temperatures higher than 450 C. At the same time, polyimides are resistant to oxida-

carried out at low and medium temperatures in a polar, aprotic solvent, for instance, in N,N-dimethylformamide, N,N-dimethylacetmide or in N-methylpyrrolidone. The process involving the obtaining of the soluble prepolymer has been for more than fifty years the main technology of polyimide production. The point is that most polyimides are insoluble and high melting due to their flat aromatic and heteroatomic structure. Therefore, their processing into some articles can only be possible provided that they are solved in polyamic acid. The use of the solving route allowed for commercial production of polyimides. The intermediate polyamic acid is converted to polyimide by thermal or chemical imidization. Thermal imidization is conducted at 100350 C basically for manufacturing PI films, while chemical imidization is used for producing moulded goods as well as films and fibres. At that point, aliphatic carboxylic acid anhydride and tertiary amine are added to polyamic acid. The typical auxilliary chemical reagents for this process are acetic anhydride, pyridine and triethylamine. At the final stage of the chemical imidization, the polymer is shortly heated up to around 300 C so as to reach a higher conversion degree and to remove the remains of the solvent. The chemical imidization excludes a counter

reaction, thus allowing for obtaining polyimides with higher and more stable mechanical properties (Table 2). However, due to the usage of additional reagents, the final product is more expensive. Leading global producers of polyimide films use namely this chemical process of imidization, whereas the Chinese producers - the thermal route. As a result, the products of the first have an integral procedural decomposition temperature of 200240 C and polyimides of the second only about 130 C. Apart from the two-stage method there is also a one-stage route for producing polyimide used for polyimides soluble in organic solvents at a polymerisation temperature of (180220 C). Nitrobenzene, m-cresol, and high-boiling polar aprotonic amide solvents are used as solvents. The high temperature solving polymerisation occurred in the presence of such catalysts as quinoline, tertiary amines and carboxylates of alkali metals or zinc. This method is especially efficient for polymerising dianhydrides and diamines with low reactivity and enables one to produce high crystallinity polyimides. Using bis-ester anhydride as a dianhydride component, polyesterimides - amorphous thermoplastic polymers are produced, which can further be processed by injection moulding methods. Shrinking polyimide

tion, moisture, acids, alkalies, solutions of salts, organic solvents and specialised liquids even at increased temperatures. However, polyimides that contain fragments of PMDA and monoaromatic amines, e.g. pDA, have lower resistance to hydrolysis. Good dielectric properties of polyimides determine their wide application in the electronic industry as dielectrics, flexible substrates and wire insulation. Fluoridecontaining polyimides possess the best dielectric properties. Outstanding properties are conditioned by a structure of a polymer chain and intermolecular interactions. Molecules of polyimide have rigid aromatic chains. There are two types of interactions between polyimide chains: firstly, between aromatic rings of fragments of dianhydride and diamine forming a complex with charge transfer and secondly, between dipoles of carbonyl groups of the dianhydride fragment (in this case the polymer is nonpolar as a whole). Most polyimides are produced in the form of films. Polyimide films have high mechanical properties. Their relative elongation at break amounts to 30120%, tensile strength 170270 MP, and modulus of elasticity no more than 3 GPa. Breakdown voltage of polyimide film with a thickness of 1mcm is no more than 200 V. Besides, these films possess high radiation resistance. Polyimide

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films are coated with acrylic and organosilicon compounds for manufacturing self-adhesive tapes. Also, an adhesive layer is applied to them in order to glue copper foil (on one or two sides). Such films are further supplied to manufacturers of printed circuit boards for producing flexible circuits and cable connections. When an extremely thin layer of copper (less than 12 mcm) is required or the presence of adhesives is undesirable, the copper is applied to polyimide film either by evaporation deposition or by coating copper foil with polyimide varnish followed by its hardening. The films with reflective coatings are obtained by adding organic silver salts, e.g., complex acetates, to a polyamic acid solution. While imidizing, it occurs silver reduction. Silver further migrates to the surface of the film forming a reflective coating. For many years, poyimides have been used in electrical engineering and the aerospace industry for insulating special purpose wires. In the aerospace industry, they are used as protective coating for solar cells and other important equipment. Also, microporous membranes, thin wall tubes, fibres, foam materials are made from them. Polyimide tubes are manufactured by layer-by-layer application to the surface of a metal mandrel, which is subsequently retracted. Such tubes find aplication gas chromotography as chromatographic columns as well as in medicine in the capacity of catheters. Polyimide fibres production is notable for a number of technical complexities. Therefore, not many companies make these products. Having excellent properties including a high stretch degree, PI fibres, nevertheless, cannot compete with aramid and other hi-tech fibres due to high manufacturing costs. These fibres are mainly used for producing industrial filter bags and protective clothing. PI membranes are widely used for separating gases. Pure polyimide membranes have, as a rule, low gas permeability. For this reason, they are modified with various alkyl and fluoroalkyl substitutes. Currently, the production of flexible printed circuits accounts for 70% of PI consumption worldwide. Due to specific requirements of the final market and their properties, polyimides are mostly produced in the form of films. At present, global polyimide film capacity totals 13,000 tonnes. Top three producers have at their disposal about two thirds of worlds capacity including Kaneka 24%, DuPont-Toray 22% and SKC Kolon PI 21% (Figure 2). Kaneka produces polyimide films under the brand Apical at three production plants in Japan, the USA, and Malaysia. The company has been present in the market since 1984, when it put into operation its first manufacturing line for Apical films in Shiga prefecture (Japan). Today it operates seven lines with a total capacity of 2,400 tpy. In North America, Kaneka began manufacturing polyimide films at a 200 tpy production line in the industrial park of Bayport (TX, USA) within the frames of a JV with Allied in 1990. Kaneka Texas Corporation, a daughter company of Kaneka, operates the line. Last year the company completed the construction of its third plant in Gebeng (Pakhang, Malaysia) operated by the companys fully-owned subsidiary Kaneka Apical Malaysia. The launch of the Malaysian facility increased Kanekas total capacity for polyimide films by 600 tonnes, to 3,200 tpy. By 2016, Kaneka will invest USD 100m in further capacity expansion. US-based DuPont became a pioneer in the polyimide market setting industry standards for a long period of time. It started commercial production of Kapton films in 1966. Since 1985, DuPont-Toray, a JV between DuPont and Toray, has been responsible for polyimide business. The JV is completely owned by the American chemical giant. DuPont-Toray expanded the plant in Tokai City (Aichi prefecture) by 720 tpy in 2007 and that in Circleville (OH, USA) by 400 tpy in late 2012. As a result, the company boosted its total capacity up to 2,920 tonnes. Space flight of polyimides Owing to their properties, polyimides are ideal materials for creating different elements of spacecraft. Foam polyimides found application in the Space Shuttle programme as heat insulation and sound

Figure 2. Breakdown of global polyimide film capacity by company as of early 2014 Films

insulation. They were used for protecting propelling and steering control engines of Mars rovers. Moreover, flexible printed circuits and plate heaters in the Mars rovers were made of polyimide films. In May 2010, the JAXA (Japan Aerospace Exploration Agency) launched IKAROS the worlds first spacecraft propelled by solar power sails made on the basis of square polyimide film with a 7.5 mcm thickness and a 200 m2 total area.

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Table 3. Basic polyimide producers in China


Company CEN Electronic Material Co. Ltd Changshu Zhongxun Space Flight Insulating Material Co. Ltd Hipolyking Polyimide Materials Co. Ltd Jiangsu Yabao Insulation Material Inc. Jiangyin Tianhua Technology Co. Ltd Liyang Huajing Electronic Material Co. Ltd New Century (Tianjin) Polyimide Films Insulating Materials Co. Ltd Shanghai Research Institute of Synthetic Resins Shenzhen Ruihuatai Film Technology Tecnidd Enterprises Co. Ltd Tianjin Jiayi Insulation Material Co. Ltd Wuxi DiAo Insulating Material Co. Ltd Wuxi Goto Polymer Materials Co. Ltd Location Ningpo, Zhejiang province Changshu, Jiangsu province Jilin City, Jilin province Yangzhou, Jiangsu province Jiangyin, Jiangsu province Liang, Jiangsu province Tianjin Shanghai Shenzhen, Guandong province Hangzhou, Zhejiang province Tianjin Wuxi, Jiangsu province Wuxi, Jiangsu province Capacity, tpy 240 160 300 300 100 230 200 N/A 350 1000 100 60 N/A

SKC Kolon PI is a JV established in 2008 on the basis of polyimide assets of Koreabased companies SK Chemical Kolon Industries. SK Chemical was the first in Korea to manufacture polyimides. In 2004, it launched a 40 tpy pilot production line at its manufacturing site in Suvon. The commercial production of polyimide films began at a 300 tpy unit in Chinchkhon. In 2008, the second 600 tpy line became operational in Chinchkhon. Kolon Industries started polyimide production in 2005. By the moment of the merger, it operates two production lines in Kumi with a total capacity of 600 tpy. In 2012, SKC Kolon PI almost doubled its pro-

duction capacity, from 1,500 tonnes to 2,700 tonnes. China is home to one fourth of worlds polyimide film capacity. There are ten producers with 3,000 tpy overall capacity in the country (Table 3). Moreover, the moment when China will become the main player on the polyimide market is not too far away. In late 2012, Amer International Group and Genhwa proceeded to building a large-scale polyimide complex in Yingkou (Liaoning province). The first stage of the project envisages the construction of a 11,000 polyimide monomer unit, a 30,000 tpy polyimide and multilayer coextrusion film plant, and a 30,000 tpy composites

unit. At the second stage, there will come on stream a 40,000 tpy polyimide monomer and fine organic chemicals plant, a 35,000 tpy polyimide and multilayer coextrusion film unit, and 5,000 tpy polyimide fibres production. The second stage will be completed in 2017. Other polyimide manufacturers account for 9% or 1,000 tpy of total global capacity. This group includes Saint-Gobain Performance Plastics producing Norton films in Xinzhu (Taiwan); IST Corporation, which puchased polyimide DuPont businesses Pyre-ML from (Parlin, NJ) and Skybond from

Monsanto (Indian Ochard, Springfield, MA); Japanese companies Ube Industries (Ube, Yamaguchi prefecture and Sakai, Osaka prefecture) and Mitsubishi Gas Chemical (Hiratsuka, Kanagawa) producing Upilex and Neopulim films respectively.

Fibres
In the early 80s of the 20th century, Lenzing, a leading producer of viscose fibre, began developing a new kind of fibre for protective clothing. Polyimide was selected as a polymer base. The company obtained a licence for a polycondensation process from Upjohn (Dow Flexible circuits the main application of polyimide films 6 Eurasian chemical market 1(85) February 2013

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Chemical), whereas a thread drawing technology was developed by Lenzing on its own. As a result, new polyimide product P84 was launched onto the market. In 1996, Lenzing AG sold its business to Inspec Fibres GmbH (Evonik Fibres GmbH, part of Evonik). Today, Inspec Fibres is virtually the only large producer of polyimide fibres. In small quantities, however, polyimide fibres are manufactured by Hipolyking Polyimide Materials (Yilun fibre, China), and Russia-based Lirsot Ltd (Arimid, Pion, and Tvim brands). Because of increased demand for its products, Inspec Fibres expanded its capacity by 35% in 2006 and by 40%, to 1,400 tpy in 2009. Except for the fibres, the company produces powdered polyimides for manufacturing moulded goods and actively develop a polyimide film production technology. Polyimide fibres are predominantly used in the production of high temperature filter systems for metallurgical works, cement plants, and other industrial facilities. These fibres have irregular cross-sectional shapes consequently possessing twice as much surface area as compared to traditional fibres with round or elliptical crosssections. Therefore, polyimide fibres display the best filtering capacity. This advantage is complemented with high thermal and chemical resistance over a wide range. These fibres are used as an additive enhancing filtering capacity and increasing service life of filter fabric in industrial filters both on their own or in combination with various polyester fibres and glass fibres. The second most significant application of polyimide fibres is the manufacture of protective clothing for racing drivers, fire brigades and military units. It is to be noted that usually polyimide fibres are not used in a pure form but are mixed with aramid and fire-resistant viscose fibres.

space programmes. The latter required noncombustible, light-weight foam material for heat and sound insulation of Space Shuttles. Later polyimide foam was utilised in spacecrafts of other countries, in the International Space Station, Mars rovers, and cryogenic vessels. Polyimide foam remains its elasticity even at extremely low temperatures, which is of paramount importance for operations on the surface of Mars. In addition to spacecraft, polyimide foam is used in military and civil shipbuilding and the aircraft industry. Owing to this foam, the weight of some U.S. Navy cruisers was decreased by 50 tonnes, and that of Boeing 747 by 160 kg. Reducing weight even by several dozen kilograms of such massive and heavy objects as airplanes seem to be insignificant at first glance. However, this allows for transporting more cargo and substantially improves fuel economy, which is especially important taking into account a long service period. Due to high prices, polyimides find application only in demanding environments. The main producer is Evonic Foams manufacturing polyimide foam under the trade mark Solimide at its plant in Magnolia (AK, USA). Its product range includes four polyimide grades: TA-301 (for industrial applications including insulation of rail cars, ships, and mining equipment; AC-550 and AC-530 (for aircraft and spacecraft industries and cryogenic materials production); HT-340 (for using in heat resistant materials including insulation of pipes, air ducts, furnaces, and water heaters; Apart from Evonik Foams, polyimide foam is manufactured by DuPont (Vespel), Ube Industries (Upilex Foam) IST Corporation (Skybond).

Inspec Fibres, Qinyang Tianyi Chemical, Hipolyking Polyimide Materials, and Shuangma New Materials Tech Polyimide are producers of polyimide powder. In addition, polyimides are processed into round bars, slabs, sheets, tubes, and other ready-to-use, customizsed products. We should mention the following companies in this market niche: DuPont-Toray, IST Corporation, Saint-Gobain Performance Plastics, Hipolyking Polyimide Materials, and Shanghai Research Institute of Synthetic Resins. Polyimides varnishes solvents of polyamic acid - are also available on the market. They are used for producing composites and adhesives. The most popular and widespread brands among them are Pyralin (HD MicroSystems), U-Varnish (Ube Industries), Pyre-ML and Skybond (IST Corporation).

Prospects
Polyimides are quite widely used products owing to their outstanding properties. They can meet strictest requirements of customers. Flexible circuits are the biggest and most fastgrowing application field of polyimide films. According to Kaneka, annual growth rates in this market make up 20-30%. Demand for special purpose products made of polyimide films including bar code labels, voice coils, helically coiled tubes, gaskets, and diaphragms, thermal blankets, insulation of particle accelerators, conveyor belts, sensors, etc., increases 10% yearly. Polyimide consumption in the production of self-adhesive tapes grow 5% and in mechanical engineering, and the cable and automotive industries by 2% per year. SMP Corporation (a producer of polyimide films, in particular, SKC Kolon PI films) forecasts that the capacity of the global polyimide film market will go up from 7,000 tpy in 2010 to 10,000 tpy in 2015, with the biggest growth rates in electronics engineering and display production. In geographical terms, China and Korea will be the most rapid-growing polyimide markets expanding by more than 15% annually.

Resins and other products


Polyimide resins are made in small volumes because of processing complexities. Powdered polyimide is one of the main forms of polyimide products. Ube Industries,

Foam polyimides
Polyimide foam was first synthesised in the 1970s by Evonik Foams for NASAs

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Interplastica 2014: Solid Business and Good Prospects for Russias Plastics and Rubber Industry
Victor Nemera, Atlant CJSC, Baranovichi/Belarus: We participate regularly in Interplastica, know what we want and usually get it. It satisfies our expectations. Its important to note that this year there are more professional visitors than in previous years. Its obviously very good. Maxim Grishin, Country Representative A/O Bayer Polycarbonates, Moscow/Russia: At Interplastica 2014 we basically met with our old, established partners. This exhibition is well known in the plastic and rubber industry and every year we meet with lots of customers and get in contact with new customers. The CIS market for plastic and rubber products stands for solid business and positive prospects. Despite the dampening effect of political vagaries and the current weakness of the rouble on the demand for plastic and rubber products, the country still has a significant need for investment. Production capacities are being modernised and expanded, particularly in the packaging and medical technology segment. The consumer goods and automotive segments are growing steadily, and the infrastructure of the largest European country with a population of 143m is facing major challenges. In this situation, innovative solutions for all areas of the plastics and rubber processing industry are very much in demand, particularly because issues such as energy efficiency and recycling are becoming increasingly important. Accordingly, exhibitors at Interplastica 2014 gave a predominantly positive feedback on the four-day international trade fair for plastics and rubber. They reported a keen interest among specialist visitors, promising customer contacts and several signed contracts. Between 28 and 31 January 2014, 20,000 visitors from all members of the CIS attended Interplastica and the packaging fair Upakovka/Upak Italia, both of which took place at the same time in Moscow. This result ties in with the one achieved by both trade fairs in the previous year. Erhard Wienkamp, Division Director of Messe Dsseldorf, was delighted with this positive result: Thanks to its representative international portfolio, Interplastica is perceived and valued as an outstanding platform for technological innovation in Russia. This positive feedback and the fact that there was even a slight increase in the demand for exhibition space - only a few weeks after the flagship fair K 2013 - underlines the importance of this event. The companies know how important their market presence is. Even in turbulent Alexei Stolyarov, Chief Expert, Department of Advertising, Exhibition Activities and Branding, LLC Sibur/ Sibur Holding OJSJ, Moscow/Russia: We have long and fruitful cooperation and ties with Messe Dsseldorf Moscow. We are always satisfied by the attentive attitude and professionalism of the organisers team.. Next year we plan to expand our stand area and to occupy the central part of the first pavilion. We had active and large work with our clients during Interplastica and its time to expand and reveal. times, they rely on Interplastica to present their innovations to customers from the CIS market, to maintain their customer contacts and to initiate new relations. Introducing a clearer structure to the fair, the new hall distribution elicited predominantly positive feedback from visitors and exhibitors.

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Sebastian

Schneider,

Key-Account-

in the CIS states along with the interest in high-quality recycled products. At Interplastica, we had some interesting new contacts, and the prospects for long-term business cooperations seem positive. However, we are well aware that this market requires a lot of patience. Dragan Visekruna, Director of the Plastics Sales Units in Central and Eastern Europe, Greece and Turkey, Dow

Europe GmbH, Moscow/Russia: Dow took part with an own booth in Interplastica 2014 for the first time ever. We consider that the exhibition is very successful. The customers appreciated our desire to participate in the exhibition highly. Our approach is to work in cooperation with distributors. In the previous years we joined the booths of our partners and this year we invited them to work on our own booth.

Manager PM Rezyklate, DKR Deutsche Gesellschaft fr Kreislaufwirtschaft und Rohstoffe mbH, Cologne/Germany: As we are new to the Russian market, it presents some challenges, one of which is the language barrier. Also, recycled products do not have a good reputation in Russia, mainly because very few such products are available in high quality. But appreciation for regrinds is growing

Organised by Messe Dsseldorf and its subsidiary Messe Dsseldorf Moskau Ltd, the 17th Interplastica was again hosted at Moscows trade fair grounds of Krasnya Presnya. A total of 687 exhibitors from 28 countries presented their products and services on 13,500 sq.m net exhibition area, the Forum as well as exhibition halls 1 and 8 and, for the first time, hall 3 were fully booked, the latter by a cluster of extrusion and injection moulding machinery manufacturers. Official national participations came from China, Germany, France, Italy, Austria and Portugal. The largest contingencies of exhibitors came from Russia, Germany and China. Germany remains to be number one among the most important suppliers to the Russian plastics and rubber processing industry, exporting a total of 32.2 % to this segment, followed by Italy (15.5 %) and China (13.9 %). In the first eleven months of 2013, German exports in this segment amounted to EUR 204 million, up 10,2 % on the result posted for the same period during the previous year. Between 2011 and 2012, global exports from plastics and rubber machinery manufacturers to Russia increased by 7.5%, corresponding to an overall value of about EUR 640m. For Bernd Ntel from the German Association for Plastics and Rubber Machinery within the VDMA (Verband

Robert F. Binder, Area Sales Manager, EREMA, Ansfelden/Austria : Our equipment has met with a keen interest. As a supplier of recycling systems for all thermoplastic materials, we have been active in Russia for sixteen years. So far, our core business focused on in-house recycling of waste scrap directly at the processing companys site. Recently however, the post-consumer market seems to have become more active as the population demands recycling regulations. This development could open up a major market for us! We are optimistic about the future development

of our business relations with the CIS states, because we have consolidated our position and won the trust of our customers in that market not only because of our training programmes and cooperation with research institutes but also because of our tenacity. Rauf Rustamov, Sales & Marketing Director, Mikrosan, Gebze-Kocaeli/ Turkey: We have been exporting pipe and profile extrusion machinery and pelletisers to Russia since 1991. With more than 1,000 machines installed in that country, we have become established as a major player in

this segment. We expect to continue our business in Russia successfully. The Russian economy will continue to grow, the Olympic Games and the World Cup 2018 will trigger further growth. There is a lot to do and enough money for investment, particularly in window construction, in the infrastructure of this vast country and in centralised heating. These projects are supported by state funding. We participate in Interplastica because we want to promote our good reputation, maintain our existing customer contacts and make new ones.

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Ulrich Reifenhuser, Managing Director Reifenhuser GmbH & Co. KG, Troisdorf/Germany : The CIS market continues to have a lot of potential for the plastics processing industry. The exhibition was livelier and the visitors even more professional than expected. But the currency problem is a real dampener, particularly as the Russian mentality seems to have a bias towards pessimism when confronted with such problems. Therefore, some projects will likely be delayed. Antonio Cappadono, General Director Transtechnika-Vostok Representation of Arburg, Moscow/Russia : While the Russian market is characterised by steady ups and downs, it offers excellent long-term prospects. We have been active in this market for a long time and have become well established reliDeutscher Maschinen- und Anlagenbau - German Engineering Federation), the Russian market remains promising, despite the dampening effect of political vagaries and the current weakness of the rouble on the demand for plastic and rubber machinery: Negotiations drag on, some projects are postponed. In other areas however, there is still a great willingness to invest, contracts that were prepared at K 2013 in Dsseldorf for example, are now being signed. Business is going strong in the

ability and comprehensive service are the key to success! For me, the current weakness of the rouble does not constitute a major problem, but an opportunity: the export of finished products such as packaging has become more expensive, hence domestic products will be in demand. Arburg customers from the packaging segment are enjoying full order books. The Russian automotive and medical technology segments are also experiencing an upturn, and they are now investing in modern, efficient machinery. Dr. Semen Chlesberg, Senior Sales Manager, Zeppelin Systems, Friedrichshafen/Germany : Moving into the CIS market requires money and patience. In the long-term however, this commitment will bear fruit. Twelve years ago, Zeppelin started its activiinjection moulding and thermoforming segments, and rubber processing machines are in high demand. Thanks to state funding, investments into plastic pipe production and into the production of insulation material are rising. The emergence of recycling as an important issue in Russia is rated as a positive development. So far, this development is still in its infancy, but there is a growing awareness that even countries with an abundance of natural resources must economise.

ties in that region, initially with one sales agency. Only recently, we set up our own subsidiary there, so as to provide a localised services and spare parts supply and support for our sales team. As a leading global plant engineering company for the handling of high-quality bulk materials and liquids we work in a wide variety of industry sectors, i.e. polymer producers and processors, the rubber and tire industry and plastic cable sheathing. We also operate a separate division with a special focus on the food segment. We provide our customers, mainly major corporations, with a complete service package from the delivery of complete lines right through to training. This will consolidate our long-term success even if this market is prone to ups and downs. Dr. Rdiger Baunemann, Director General PlasticsEurope Deutschland e.V., recognises a lot of potential in the raw material segment, both for polymer producers as well as for suppliers of additives such as stabilisers and flame retardants. At Interplasticas Meeting Point Raw Materials, Dr. Baunemanns presentations on resource and energy efficiency as a driving force for innovation and sustainability attracted a lot of attention and met with keen interest. For the second time at Interplastica, open seminars for exhibitors on new developments in raw material production and application were again conducted in cooperation with the Russian plastics portal Plastinfo.ru. The exhibitors were impressed with the high level of professionalism among Interplasticas visitors, who appeared to be well prepared and approached the exhibitors with practical inquiries. In turn, visitors were delighted with the wide range of international exhibits presented at Interplastica. The next Interplastica will take place in Moscow from 27 until 30 January, 2015, as usual in tandem with Upakovka/Upak Italia.

10 Eurasian chemical market 1(85) February 2013

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Polymers

Prices

Prices for polymers and polymer compounds of Russian, Uzbek, Turkmenistan, Belarus, Ukraine manufacturers in 1Q, 2014
Product Company City Country Notes For reinforced plastics, coatings, building materials, electrical insulating compounds, lacquers, enamels, adhesives For production of resins For production of reinforced plastic For manufacturing of technical products used in mechanical engineering Price per tonnes, ex. VAT

Oligoester acrylates MGF-9

Armoplast PJSC

Severodonetsk (Luhansk region)

Ukraine

83333 UAH

Oligoester acrylates TGM-3 Phenol-formaldehyde resin solution in ethyl alcohol (lacquer bakelite) LBS-20, 71-78% Polyamide PA 6 210/310 Polyamide PA 6 210/311 Polyamide PA 6 66-3 Polyamide PA 6 66-4 Polyamide PA 6 66/610 Polyamide PA 610L

Armoplast PJSC

Severodonetsk (Luhansk region) Severodonetsk (Luhansk region) Yekaterinburg (Sverdlovsk region) Yekaterinburg (Sverdlovsk region) Yekaterinburg (Sverdlovsk region) Yekaterinburg (Sverdlovsk region) Yekaterinburg (Sverdlovsk region) Yekaterinburg (Sverdlovsk region) Kazan (Republic of Tatarstan)

Ukraine

85000 UAH

Armoplast PJSC

Ukraine

22000 UAH

Anid Ltd Anid Ltd Anid Ltd Anid Ltd Anid Ltd Anid Ltd Kazan Synthetic Rubber Plant JSC

Russia Russia Russia Russia Russia Russia

101695 RUR 101695 RUR

Moulding grade Moulding grade Moulding grade Moulding grade Up to 100 kg / For noncrystallizable urethane rubber and polyurethane foam for bottom of shoes Up to 100 kg / For manufacturing inking rollers, polyurethane compositions Up to 100 kg / To obtain optically sensitive polymers as components of adhesive compositions Up to 100 kg / manufacturing products for special purposes Barrel 240 kg / For production of thickwalled, large-sized and complex-shaped goods / For RTM-technologies Barrel 240 kg / Binding agent for fibreglass products / For use in mechanised processes

355932 RUR 355932 RUR 355932 RUR 432203457627 RUR 78814 RUR

Polyester mixed EDA-50

Russia

Polyester mixed PV

Kazan Synthetic Rubber Plant JSC

Kazan (Republic of Tatarstan)

Russia

78814 RUR

Polyester P 9A

Kazan Synthetic Rubber Plant JSC Kazan Synthetic Rubber Plant JSC

Kazan (Republic of Tatarstan) Kazan (Republic of Tatarstan)

Russia

78814 RUR

Polyester P-9-14 Polyester resin PN-1KT-A, unsaturated, thixotropic, pre-accelerated, 30-33% styrene Polyester resin PN-1KT-M, unsaturated, thixotropic, pre-accelerated, 30-33% styrene

Russia

78814 RUR

Zhylevsky Plastics Plant JSC

Sitne-Schelkanovo (Moscow region)

Russia

101900 RUR

Zhylevsky Plastics Plant JSC

Sitne-Schelkanovo (Moscow region)

Russia

101900 RUR

1(85) February 2013 Eurasian chemical market 11

Polymers

Prices

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Product Polyester resin PN-1KT-NR, unsaturated, thixotropic, pre-accelerated, 31-34% styrene Polyester resin PN-54KTA, unsaturated, thixotropic, pre-accelerated, 36-42% styrene Polyester resin PN-60921M, unsaturated Polyester resin PN-82K, unsaturated

Company Zhylevsky Plastics Plant JSC

City Sitne-Schelkanovo (Moscow region)

Country

Notes Barrel 240 kg / For production of thickwalled,large-sized and complex-shaped goods Barrel 240 kg /For fibreglass products and RTM-technology Manufacturing fiberglass products Barrel 240 kg / For polymer concrete and artificial marble Barrel 240 kg / For water- and acid-resistant polymer concrete and sanitary ware products, and artificial marble For production of glass fiber, polymer concrete and artificial marble For manufacturing of chemically resistant pipes, containers, boat hulls, boats, yachts, pressed materials, varnishes, adhesives, putties, coatings Barrel 240 kg Binder for fiberglass and as impregnating and casting resins inautomotive, electrical industry Up to 100 kg / to manufacture of polyurethane compositions EXW / Cisterns 31-36 tonnes, metal barrels / For producing rigid polyurethane foams For producing resilient polyurethane foams EXW / Cisterns 31-36 tonnes, metal barrels / For producing rigid polyurethane foams and brake fluids EXW / Cisterns 31-36 tonnes, metal barrels / For producing rigid polyurethane foams

Price per tonnes, ex. VAT 101900 RUR

Russia

Zhylevsky Plastics Plant JSC Granat Synthetic Material Plant CJSC Zhylevsky Plastics Plant JSC

Sitne-Schelkanovo (Moscow region) St. Petersburg Sitne-Schelkanovo (Moscow region)

Russia

118500 RUR

Russia Russia

186440 RUR 109600 RUR

Polyester resin PN-85, unsaturated

Zhylevsky Plastics Plant JSC

Sitne-Schelkanovo (Moscow region)

Russia

99000 RUR

Polyester resin unsaturated PN-1

Armoplast PJSC

Severodonetsk (Luhansk region)

Ukraine

30000 UAH

Polyester resin unsaturated PN-15, chemically resistant

Armoplast PJSC

Severodonetsk (Luhansk region)

Ukraine

55000 UAH

Polyester resin unsaturated PN-1 Polyester resin unsaturated PN-609-21

Zhylevsky Plastics Plant JSC

Sitne-Schelkanovo (Moscow region) Severodonetsk (Luhansk region)

Russia

100750 RUR

Armoplast PJSC

Ukraine

55000 UAH

Polyesters PEFD

Kazan Synthetic Rubber Plant JSC

Kazan (Republic of Tatarstan)

Russia

78814 RUR

Polyether Laprol 373 Polyether Laprol 5003-2B10

Khimprom Ltd

Kemerovo

Russia

90000 RUR

Khimprom Ltd

Kemerovo

Russia

90000 RUR

Polyether Laprol 502

Khimprom Ltd

Kemerovo

Russia

90000 RUR

Polyether Laprol 503B

Khimprom Ltd

Kemerovo

Russia

90000 RUR

12 Eurasian chemical market 1(85) February 2013

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Polymers

Prices

Product Polyether Laprol 6003-DE

Company Khimprom Ltd

City Kemerovo

Country Russia

Notes EXW / Cisterns 31-36 tonnes, metal barrels / For producing oil demulsifiers EXW / Cisterns 31-36 tonnes, metal barrels / For producing filling, rigid polyurethane foams Cable grade Cable grade Film grade Moulding grade Film grade Moulding grade Moulding grade Film grade Moulding grade

Price per tonnes, ex. VAT 90000 RUR

Polyether Laprol ES-564 Polyethylene LDPE 153-01, top grade Polyethylene LDPE 153-10, top grade Polyethylene LDPE 15303003, top grade Polyethylene LDPE 15303003, top grade Polyethylene LDPE 15803020, top grade Polyethylene LDPE 15803020, top grade Polyethylene LDPE 15803020, 2 grade Polyethylene LDPE 17603006, 2 grade Polyethylene LDPE 17803015, 1 grade Polyethylene LDPE 18003030, top grade Polyethylene LDPE 18103035 Polyethylene LDPE B-Y456

Khimprom Ltd

Kemerovo

Russia

90000 RUR

Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan Gaz Chemical Complex Unitary Branch Establishment

Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Shurtan (Qashqadaryo province) Shurtan (Qashqadaryo province) Shurtan (Qashqadaryo province) Shurtan (Qashqadaryo province) Shurtan (Qashqadaryo province) Shurtan (Qashqadaryo province) Shurtan (Qashqadaryo province)

Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Uzbekistan

58051 RUR 57627 RUR 56780 RUR 55932 RUR 53814 RUR 52966 RUR 45508 RUR 46271 RUR 46780 RUR 47881 RUR 47881 RUR

Blow-moulding grade

3696003 UZS

Polyethylene LDPE B-Y460

Uzbekistan

Blow-moulding grade

4776594 UZS

Polyethylene LDPE F-Y346

Uzbekistan

Film grade

4026118 UZS

Polyethylene LDPE I-0760

Uzbekistan

Moulding grade

3080195 UZS

Polyethylene LDPE I-1561

Uzbekistan

Moulding grade

1400 USD

Polyethylene LDPE P-Y342

Uzbekistan

Pipe grade

4629629 UZS

Polyethylene LDPE R-0448

Uzbekistan

Rotational grade

3186762 UZS

1(85) February 2013 Eurasian chemical market 13

Polymers

Prices

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Product Polyethylene LDPE -Y750

Company

City

Country Uzbekistan

Notes Film grade

Price per tonnes, ex. VAT 3035072 UZS

Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Tomskneftekhim Ltd Tomsk

Polyethylene LDPE -Y456 Polyethylene LDPE, grade A, off grade Polyethylene LDPE, grade B, off grade Polyethylene LLDPE F-0120

Uzbekistan

Pipe grade For manufacturing of technical products, packaging materials For manufacturing of technical products, packaging materials Film grade

3902756 UZS

Russia

48051 RUR

Tomskneftekhim Ltd

Tomsk

Russia

48051 RUR

Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Tomskneftekhim Ltd SIBUR-PETF JSC Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomsk Tver Tomsk Tomsk Tomsk Tomsk

Uzbekistan

1500 USD

Polyethylene LLDPE F-0220 S

Uzbekistan

Film grade

1450 USD

Polyethylene LLDPE F-0320

Uzbekistan

Film grade

5174166 UZS

Polyethylene LLDPE F-Y 957

Uzbekistan

3859671 UZS

Polyethylene LLDPE I-0525

Uzbekistan

Moulding grade

1400 USD

Polyethylene LLDPE I-1625

Uzbekistan

Moulding grade

3406728 UZS

Polyethylene MDPE R-0333

Uzbekistan

Rotational grade

3589187 UZS

Polyethylene MDPE R-0338 Polyethylene MDPE WCY734 Polyethylene NMPE-2 Polyethylene terephthalate TverPET, granulated Polypropylene Tolen PP H031 BF /3 Polypropylene Tolen PP H270 FF /3 Polypropylene Tolen PP H450 GP/2 Polypropylene Tolen PP R003 EX/1

Uzbekistan

Rotational grade

3073018 UZS

Uzbekistan

Cable grade Used inrubber industry, in construction, for greases and mastics Packaging for food

3156433 UZS

Russia Russia Russia Russia Russia Russia

26949 RUR 55085 RUR 50847 RUR

Manufacture of nonwovens

54237 RUR 55085 RUR 66102 RUR

14 Eurasian chemical market 1(85) February 2013

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Polymers

Prices

Product Polypropylene Tolen PP H007 EX/1 Polypropylene Tolen PP H022 CM /1 Polypropylene Tolen PP H030 GP Polypropylene Tolen PP H030 GP/1 Polypropylene Tolen PP H030 GP/2 Polypropylene Tolen PP H030 GP/3 Polypropylene Tolen PP H031 BF /2 Polypropylene Tolen PP H031 BF /3 Polypropylene Tolen PP H032 TF/1 Polypropylene Tolen PP H032 TF/2 Polypropylene Tolen PP H033 FF /1 Polypropylene Tolen PP H040 GP/1 Polypropylene Tolen PP H060 GP/1 Polypropylene Tolen PP H080 GP/1 Polypropylene Tolen PP H080 GP/3 Polypropylene Tolen PP H085 CF/1 Polypropylene Tolen PP H085 CF/2 Polypropylene Tolen PP H120 GP Polypropylene Tolen PP H120 GP/1 Polypropylene Tolen PP H120 GP/3 Polypropylene Tolen PP H250 GP/2 Polypropylene Tolen PP H252 IM /2 Polypropylene Tolen PP H270 FF /1 Polypropylene Tolen PP H270 FF /3 Polypropylene Tolen PP H273 FF /1

Company Tomskneftekhim Ltd Tomskneftekhim Ltd Poliom Ltd, Omsk Polypropylene Plant Company Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd

City Tomsk Tomsk Omsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk

Country Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia

Notes Pipe grade Production of caps for PET bottles General purpose General purpose

Price per tonnes, ex. VAT 56356 RUR 58051 RUR 53390 RUR 53390 RUR 53390 RUR 53390 RUR 53390 RUR 52542 RUR

Thermoforming Thermoforming

54237 RUR 54237 RUR 53390 RUR

General purpose General purpose General purpose General purpose

53390 RUR 53390 RUR 55932 RUR 55932 RUR 57203 RUR 55508 RUR

General purpose General purpose

55932 RUR 55932 RUR 55932 RUR 56356 RUR

Moulding grade Manufacture of nonwovens Manufacture of nonwovens Manufacture of nonwovens

57203 RUR 57203 RUR 56356 RUR 58051 RUR

1(85) February 2013 Eurasian chemical market 15

Polymers

Prices

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Product Polypropylene Tolen PP H352 IM/2 Polypropylene Tolen PP H450 GP/2 Polypropylene Tolen PP H451 IM/2 Polypropylene Tolen PP H452 IM/1 Polypropylene Tolen PP R003 EX Polypropylene Tolen PP R003 EX/1 Polypropylene TPP D 30 S

Company Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Tomskneftekhim Ltd Turkmenbashi Complex of Oil Refineries Turkmenbashi Complex of Oil Refineries

City Tomsk Tomsk Tomsk Tomsk Tomsk Tomsk Turkmenbashi (Balkan province)

Country Russia Russia Russia Russia Russia Russia

Notes

Price per tonnes, ex. VAT 57203 RUR 56356 RUR 59746 RUR

Moulding grade

58051 RUR 66102 RUR 59492 RUR

Turkmenistan

Extrusion grade For production nonwovens for hygiene and medical spheres Manufacturing foam plastic for noise and heat insulation and drainage board Manufacturing foam plastic for noise and heat insulation and drainage board Manufacturing foam for thermal insulation of external walls Manufacturing foam for thermal insulation of external walls under load For manufacturing of blocks with waterproof protective coating

1350 USD

Polypropylene F 79 FB

Turkmenbashi (Balkan province)

Turkmenistan

3278 TMT

Polystyrene expandable EPS ALPHAPOR 101

SIBUR-Khimprom CJSC

Perm

Russia

61864 RUR

Polystyrene expandable EPS ALPHAPOR 201

SIBUR-Khimprom CJSC

Perm

Russia

70339 RUR

Polystyrene expandable EPS ALPHAPOR 301

SIBUR-Khimprom CJSC

Perm

Russia

72034 RUR

Polystyrene expandable EPS ALPHAPOR 401

SIBUR-Khimprom CJSC

Perm

Russia

72034 RUR

Polystyrene expandable EPS ALPHAPOR 501 Polystyrene expandable EPS ALPHAPOR 90

SIBUR-Khimprom CJSC SIBUR-Khimprom CJSC

Perm

Russia

70339 RUR

Perm

Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars

38983 RUR

Polystyrene expandable EPS-F- 15, 20, 1 grade, unsaturated

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

56949 RUR

Polystyrene expandable EPS-F-- 0,2-1,25, 1 grade, saturated

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

61017 RUR

16 Eurasian chemical market 1(85) February 2013

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Polymers

Prices

Product

Company

City

Country

Notes For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars Self-extinguishing Self-extinguishing Self-extinguishing Self-extinguishing Self-extinguishing Self-extinguishing Self-extinguishing Without cost of packaging Film grade Cable, pipe grade / Molding, extrusion methods General purpose

Price per tonnes, ex. VAT

Polystyrene expandable EPS-F-- 0,2-1,25, 2 grade

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

61017 RUR

Polystyrene expandable EPS-F-- 0,4-0,3, 1 grade

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

52542 RUR

Polystyrene expandable EPS-F-- 0,4-0,3, 2 grade

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

52542 RUR

Polystyrene expandable EPS-F-- 0,6-0,8, 1 grade

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

57627 RUR

Polystyrene expandable EPS-F-- 0,6-0,8, 2 grade Polystyrene expandable EPS-, grade 1 Polystyrene expandable EPS-, grade 2 Polystyrene expandable EPS-, grade 3 Polystyrene expandable EPS-, grade 4 Polystyrene expandable EPS-, grade 5 Polystyrene expandable EPS-, grade 5m Polystyrene expandable EPS-, grade 6 Polyvinyl alcohol, 10% solution Polyvinylchloride PVC-C 5868PZh Polyvinylchloride PVC-C 6149U Polyvinylchloride PVC-C 6358

Angarsk polymer plant JSC

Angarsk (Irkutsk region)

Russia

57627 RUR

Plastic JSC Plastic JSC Plastic JSC Plastic JSC Plastic JSC Plastic JSC Plastic JSC Lakokraska JSC Kaustik JSC Kaustik JSC Kaustik JSC

Uzlovaya (Tula region) Uzlovaya (Tula region) Uzlovaya (Tula region) Uzlovaya (Tula region) Uzlovaya (Tula region) Uzlovaya (Tula region) Uzlovaya (Tula region) Lida (Grodno region) Volgograd Volgograd Volgograd

Russia Russia Russia Russia Russia Russia Russia Belarus Russia Russia Russia

66949 RUR 68644 RUR 68644 RUR 66949 RUR 59322 RUR 56780 RUR 31356 RUR 6820000 BYR 40000 RUR 40000 RUR 40000 RUR

1(85) February 2013 Eurasian chemical market 17

Polymers

Prices

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Product Polyvinylchloride PVC-C 6669ZhS Polyvinylchloride PVC-C 6768 Polyvinylchloride PVC-C 7059 Polyvinylchloride PVC-C 8059U Urea-formaldehyde concentrate UFC-85 Urea-formaldehyde concentrate UFC-85, 58% formaldehyde, 23% carbamide Urea-formaldehyde resin KF-NU Urea-formaldehyde resin KFZh grade L,F, Urea-formaldehyde resin KFZh, 67-69% dry residue Urea-formaldehyde resin KFZh, 67% dry residue Urea-formaldehyde resin KFBZh, 6569% dry residue Urea-formaldehyde resin P Urea-formaldehyde resin FB-, 65% dry residue Urea-formaldehyde resin F--15 Urea-formaldehyde resin F--15 Urea-formaldehyde resin F-15, 64-68% dry residue Urea-formaldehyde resin F--20PS Urea-formaldehyde resin FZh Urea-formaldehyde resin S11, 60-64% dry residue

Company Kaustik JSC Kaustik JSC Kaustik JSC Kaustik JSC UCC Shchekinoazot

City Volgograd Volgograd Volgograd Volgograd Schekino (Tula region) Gubaha (Perm territory) Lida (Grodno region) Lida (Grodno region) Navoiy Lida (Grodno region) Sitne-Schelkanovo (Moscow region) Sitne-Schelkanovo (Moscow region) Sitne-Schelkanovo (Moscow region) Borisov (Minsk region) Navoiy Sitne-Schelkanovo (Moscow region) Sitne-Schelkanovo (Moscow region) Sitne-Schelkanovo (Moscow region) Navoiy

Country Russia Russia Russia Russia Russia

Notes Profile windows Profile windows Cable, pipe, film grade Extrusion, calendering and moulding

Price per tonnes, ex. VAT 40000 RUR 40000 RUR 50000 RUR 50000-52000 RUR 15000-18000 RUR

Metafrax JSC

Russia

Up to one cistern 65 tonnes / For plywood, chipboard Without cost of packaging With cost of packaging

15000 RUR 12458000 BYR 14385000 BYR 980 USD

Lakokraska JSC Lakokraska JSC Navoiyazot JSC Lakokraska JSC Zhylevsky Plastics Plant JSC Zhylevsky Plastics Plant JSC Zhylevsky Plastics Plant JSC Lesohimik JSC Navoiyazot JSC Zhylevsky Plastics Plant JSC Zhylevsky Plastics Plant JSC Zhylevsky Plastics Plant JSC Navoiyazot JSC

Belarus Belarus Uzbekistan Belarus Russia Russia Russia Belarus Uzbekistan Russia Russia Russia Uzbekistan

Without cost of packaging 12458000 BYR EXW / Tank trucks, drums / For plywood EXW / Barrels / For making paper- resin films EXW / Tank trucks, drums / For cladding furniture made of chipboard 29330 RUR 21500 RUR 29330 RUR 4955000 BYR 550-600 USD Barrels / For chipboard For production of heat and sound insulating foam EXW / Tankers, barrels 26160 RUR 26560 RUR 29330 RUR 1000 USD Barrel 240 kg / Binding agent for water and chemically resistant polymer concrete and fibreglass products, anticorrosion coatings

Vinyl ester resin RP-14S, unsaturated, 38-45% styrene

Zhylevsky Plastics Plant JSC

Sitne-Schelkanovo (Moscow region)

Russia

258700 RUR


1 EUR = 45,0559-49,5839 RUR 1 EUR = 3000,05-3053,73 UZS 1 EUR = 3,8982-3,9159 1 EUR = 10,8496-13,6372 UAH 1 EUR = 12650-13400 BYR

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 Official exchange rate, according to the National Bank of Ukraine during 1Q 2014 Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014

18 Eurasian chemical market 1(85) February 2013

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Rubbers and tyres

Prices

Product Butadiene rubber SKD-ND, grade B Butadiene rubber SKD, grade B Butyl rubber B-1675N Butyl rubber B-1675 Isoprene rubber SKI-3 Latex butadiene BS-65, grade B Latex butadiene SD-1S Latex styrene-butadiene BS-50 Latex styrene-butadiene BS65, grade Latex styrene-butadiene BS-85 Latex styrene-butadiene BS-1 Latex styrene-butadiene BS-2 Latex styrene-butadiene BS-70/2 Latex styrene-butadiene SKS-30U Latex styrene-butadiene SKS50GPS Latex styrene-butadiene SKS50GP Latex styrene-butadiene SKS-65GP Latex styrene-butadiene SKS65GP (B) Rubber fluorosiloxane SKTF Silicone rubber S

Prices for some synthetic rubbers and latexes in Q1, 2014


Manufacturer City Voronezh Voronezh Togliatti (Samara region) Togliatti (Samara region) Togliatti (Samara region) Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Kazan Kazan Country Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia For manufacturing mechanical rubber goods preserving dielectric properties and elastic at temperatures ranging from -70 to +200 C For manufacture of compounds, sealants For the manufacture of compounds, sealants Notes EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW Price per 1 tonne, ex.VAT 66949 RUR 69492 RUR 101695 RUR 101695 RUR 94915 RUR 96610 RUR 101780 RUR 93559 RUR 96610 RUR 100000 RUR 110000 RUR 110000 RUR 104322 RUR 110000 RUR 102542 RUR 110000 RUR 93559 RUR 89068 RUR 254237847458 RUR 254237847458 RUR

Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Togliattikauchuk Ltd Togliattikauchuk Ltd Togliattikauchuk Ltd Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Kazan Synthetic Rubber Plant JSC Kazan Synthetic Rubber Plant JSC

Silicone rubber SE

Kazan Synthetic Rubber Plant JSC

Kazan

Russia

254237847458 RUR

Silicone rubber SN Silicone rubber SNF

Kazan Synthetic Rubber Plant JSC Kazan Synthetic Rubber Plant JSC

Kazan Kazan

Russia Russia

254237847458 RUR 254237847458 RUR

1(85) February 2013 Eurasian chemical market 19

Rubbers and tyres

Prices

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Product

Manufacturer

City

Country

Notes Intended for manufacture of rubber goods, preserving elastic and dielectric properties in the temperature range of from -50 to +250 C EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW EXW Big bags

Price per 1 tonne, ex.VAT

Silicone rubber SV

Kazan Synthetic Rubber Plant JSC

Kazan

Russia

254237847458 RUR

Sodium-butadiene rubber BNKS-18AMN Sodium-butadiene rubber BNKS-18N Sodium-butadiene rubber BNKS-28AMN Sodium-butadiene rubber BNKS-28AMNP Sodium-butadiene rubber BNKS-28N Sodium-butadiene rubber BNKS-33AMN Sodium-butadiene rubber BNKS-40AMN Sodium-butadiene rubber BNKS-40N Sodium-butadiene rubber PBNK-33 (PVC) Sodium-butadiene rubber SKN-26PVC-30 Sodium-butadiene rubber SN-18SN Sodium-butadiene rubber SN-26SN Styrene-butadiene rubber BS-1502 Styrene-butadiene rubber DSS-2560-27, grade Styrene-butadiene rubber SKS-30 ARKM-15, grade , SBR-1706 HI-AR Styrene-butadiene rubber SKS-30 ARKM-27, grade A Styrene-butadiene rubber SKS-30 ARKM-27, grade Styrene-butadiene rubber SKS-30 R, grade , Styrene-butadiene rubber SKS-30 R-15, grade , SBR-1706 TDAE Styrene-butadiene rubber SS-30R-15 Styrene-butadiene thermoplastic elastomer DST30-01, group 1, granules

Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Synthetic Rubber Plant JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Togliattikauchuk Ltd Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Voronezhsintezkauchuk JSC Togliattikauchuk Ltd Voronezhsintezkauchuk JSC

Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Krasnoyarsk Voronezh Voronezh Togliatti (Samara region) Voronezh Voronezh Voronezh Voronezh Voronezh Voronezh Togliatti (Samara region) Voronezh

Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia

83475 RUR 83475 RUR 83475 RUR 83475 RUR 83475 RUR 83475 RUR 83475 RUR 83475 RUR 110169 RUR 108475 RUR 83475 RUR 83475 RUR 66949 RUR 80085 RUR 60169 RUR 67373 RUR 63983 RUR 66949 RUR 63983 RUR 60169 RUR 103390 RUR

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Rubbers and tyres

Prices

Product Styrene-butadiene thermoplastic elastomer DST30-01, group 1, powder Styrene-butadiene thermoplastic elastomer DST30-01, group 2, granules Styrene-butadiene thermoplastic elastomer DST30R-01, group 1, granules Styrene-butadiene thermoplastic elastomer DST30R-01, group 3, granules Styrene-butadiene thermoplastic elastomer DST30R-01, group 3, powder Styrene-butadiene thermoplastic elastomer SBS R30-00, granules Styrene-butadiene thermoplastic elastomer SBS R30-00, powder Thermoplastic dynamic Kvartopren, grade (50,60, 70, 80,90), black Thermoplastic dynamic Kvartopren, grade (50,60, 70, 80,90), black Thermoplastic dynamic Kvartopren, grade (90) E, gray Thermoplastic dynamic Kvartopren, grade (90), gray Urethane rubber (polyurethane elastomer) SKU-8 Urethane rubber (polyurethane elastomer) SKU-8 Urethane rubber (polyurethane elastomer) SKU-8B Urethane rubber (polyurethane elastomer) SKU-PEF-3 Urethane rubber (polyurethane elastomer) SKU-PFL-100

Manufacturer Voronezhsintezkauchuk JSC

City Voronezh

Country Russia

Notes

Price per 1 tonne, ex.VAT 107627 RUR

Voronezhsintezkauchuk JSC

Voronezh

Russia

Big bags

103390 RUR

Voronezhsintezkauchuk JSC

Voronezh

Russia

Big bags

103390 RUR

Voronezhsintezkauchuk JSC

Voronezh

Russia

Big bags

103390 RUR

Voronezhsintezkauchuk JSC

Voronezh

Russia

107627 RUR

Voronezhsintezkauchuk JSC

Voronezh

Russia

Big bags

103390 RUR

Voronezhsintezkauchuk JSC

Voronezh

Russia

Bags

107627 RUR

Kvart CJSC

Kazan

Russia

Moulding

98000 RUR

Kvart CJSC

Kazan

Russia

Extrusion

117000 RUR

Kvart CJSC Kvart CJSC Kazan Synthetic Rubber Plant JSC Kazan Synthetic Rubber Plant JSC Kazan Synthetic Rubber Plant JSC Kazan Synthetic Rubber Plant JSC

Kazan Kazan Kazan

Russia Russia Russia

Extrusion Moulding For manufacturing shoes In the production of magnetic lacquers For manufacture of products with improved resistance to frost and to abrasion For preparation of casting and impregnating compositions as elastic epoxy resin For manufacture of machinery components working in the range of from -60 to +120 C, sheet-metal production, as anti-corrosion coatings

117000 RUR 98000 RUR 169492296610 RUR 169492296610 RUR 169492296610 RUR 169492296610 RUR

Kazan

Russia

Kazan

Russia

Kazan

Russia

Kazan Synthetic Rubber Plant JSC

Kazan

Russia

169492296610 RUR

Urethane rubber Kazan Synthetic Rubber (polyurethane elastomer) Plant JSC SKU-PFL-74
1 EUR = 45.0559-49.5839 RUR

Kazan

Russia

169492296610 RUR

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1(85) February 2013 Eurasian chemical market 21

Organics

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CIS Market in Salicylic Acid and its Derivatives

Salicylic acid belongs to aromatic hydroxy acids. Its anti-inflammatory properties, as a component of the bark of the willow tree, have been known for more than 2,500 years. Currently, more than half of the produced salicylic acid is used for pharmaceutical manufacture. For example, one of its derivatives is acetylsalicylic acid or aspirin - one of the most important drug of the twentieth century.

Salicylic acid (C6H4 (OH) COOH, orthohydroxybenzoic acid, 2-hydroxybenzoic acid, phenol acid) - white needle-shaped crystals with a bitterish taste, soluble in hot water, freely soluble in ethanol, diethyl ether and other polar organic solvents. Leaves and flowers of some plants are natural sources of salicylic acid. It is known that ancient doctors used an infusion of the willow bark as antipyretic and analgesic medicines. In 1829, Henri Leroux, a French pharmacist, isolated physiologically active

glycoside salicin (from Latin salix - willow) from a willow bark extract. In 1838, Raffaele Piria, an Italian chemist, hydrolysed salicin with further oxidation. This is how salicylic acid was obtained. It was found that the acid had been previously obtained from flowers of meadowsweet, or Spiraea (spirea ulmaria) by a German chemist Carl Lwig, who called it spiraea acid and later the substance became known as salicylic acid. The analysis showed that it was a derivative of phenol. Subsequently, a German chemist

Adolph Hermann Kolbe proposed a method of synthesising salicylic acid from phenol in 1860, which has been used to the present day. Salicylic acid acts as an antiseptic. The acid is used as a keratolytic agent when present in high concentrations, and as a keratoplastic substance when present in low concentrations. The keratolytic agent breaks down the outer layer of skin (keratin). A keratoplastic effect is when the drug does not generate a quick destruction and sloughing, thereby loosening keratin.

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Salicylic acid is used to treat various skin diseases, in particular, hyperkeratosis and excessive sweating. Taken orally, salicylic acid may cause severe irritation of the mucous membrane lining of the stomach. That is why a sodium salt of salicylic acid instead of the pure acid is often used. Salicylic acid is well absorbed from the gastrointestinal tract exerting antipyretic, analgesic and anti-inflammatory actions. The drug is rapidly excreted from the body. Salicylic acid and salicylates are low-toxic and fairly well tolerated. Since salicylates are used in large doses for rheumatism treatment they can cause poisoning, which easily ceases as soon as one stops taking the drugs. Until the 50s of the 20th century, salicylic acid was one of the most popular food preservatives. It was used for preserving egg melange, fish marinades, salted and pickled cucumbers as well as olives and fruit. Salicylic acid is no longer used as a food preservative. Food applications of the acid are banned in America, Europe and Russia. However, salicylic acid with a concentration of up to 0.5% can be used for preserving cosmetic products. The acid with a concentration of up to 10% is used for keratosis (dandruff) treatment. The manufacture of azo dyes and odoriferous compounds (salicylic acid esters) is one of its applications as well. Salicylic acid is capable of forming derivatives in each functional group. The most important of them are methyl salicylate and phenyl salicylate (esters of the carboxyl group) and acetylsalicylic acid (esters of the hydroxyl group). P-aminosalicylic acid and salicylamide are ne more significant derivatives of salicylic acid. Acetylsalicylic acid (2-acetoxybenzoic acid; aspirin) is one of the most widely used drugs in the world. The pure substance is a white crystalline powder, almost odourless. The odour of acetic acid indicates that the substance started to hydrolyse in the air. Acetylsalicylic acid is sparingly soluble in water, soluble in ether and chloroform, and freely soluble in 96% ethanol.

An ester formed by acetic and salicylic acids or acetylsalicylic acid was first synthesised by Charles Gerhardt, a French chemist, in 1853. Soon, it became known as aspirin, from the name of meadowsweet (spirea ulmaria). This was the first synthetic drug in the history of medicine. In 1874, aspirin was applied to treat acute articular rheumatism. In 1899, aspirin was patented by Bayer and has been produced on an industrial scale since that time. For this reason, pharmaceutical companies in most countries has no right to apply the trademark aspirin to their products and use basically the chemical name acetylsalicylic acid. Bayer has been owning the exclusive right to the brand aspirin in Russia since 1992. However, the term aspirin became a common word in the former Soviet Union. John Vane was awarded the Nobel Prize for his discovery of how acetylsalicylic acid produces pain-relief and anti-inflammatory effects in 1982. He found out that aspirin blocked the synthesis of hormone-like substances - prostaglandins - which are intensely formed by microbial intoxication causing an inflammatory reaction. Besides antipyretic and analgesic actions aspirin prevents the formation of blood clots and also has a vasorelaxant action. At the same time, it irritates the mucous membrane of the gastrointestinal tract, and its overdose can cause bleeding. Sodium salicylate (sodium 2-hydroxybenzoate) is a sodium salt of salicylic acid. It is a white crystalline powder or small, odourless flakes with a sweet and salty taste. Sodium salicylate is easily soluble in water (1:1) and alcohol (1:6). Sodium salicylate has analgesic, antipyretic and anti-inflammatory effects. It is used in medicine as antirheumatic and antigout agents as well as for the treatment of febrile diseases and migraine. Para-aminosalicylic acid (PAS, 2-oxy4-aminobenzoic acid) has been used to treat tuberculosis (TB) in the form of sodium or calcium salts since the 40s of the 20th century. PAS is an antagonist of p-amino benzoic acid needed for normal activity of

microorganisms. However, due to relatively low efficiency, PAS finds application only in case of intolerance to other anti-TB drugs or mycobacterial drug resistance. The drug has a bacteriostatic action only against tubercle bacillus. It is not an antifebrile medicine, although it relates to derivatives of salicylic acid. Some derivatives of para-aminosalicylic acid, for example, its phenyl ester or parabenzoylaminosalicylic acid, have the same therapeutic activity as PAS proper. Calcium benzoyl-p-aminosalicylate gives significantly fewer side effects when taken orally than PAS, and is used instead of the latter. Methyl salicylate (salicylic acid methyl ester) is a colorless or yellowish liquid with a strong, aromatic odour. It is slightly soluble in water, and is miscible with alcohol and ester in any proportions. Its density is 1,176-1,184 g/cm3. Methyl salicylate is one of the well-known aromatic substances. It was first isolated as the main ingredient of some natural essential oils (wintergreen and cherry birch oils). As the component of these oils, one began to widely use it in medicine. Methyl salicylate is also an ingredient of some ointments, balms and liniments often used in combination with chloroform, turpentine and fatty oils. Pharmaceuticals on the basis of methyl salicylate are meant only for external use as antiinflammatory and analgesic agents to treat neuralgia, migraine and rheumatism. Phenyl salicylate (salol) is a white, crystalline powder or small colourless crystals with a faint odour. It is virtually insoluble in water but soluble in alcohol (1:10) and alkaline solution, easily soluble in chloroform, and extremely easily soluble in esters. Phenyl salicylate was first synthesised by Wilhelm Marceli Nencki in 1886. He aspired to find a drug that preserving antiseptic properties of phenol would not cause irritation like salicylic acid. For this purpose, he blocked the carboxyl group of salicylic acid and obtained its ester with phenol.

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In some cases, salicylamide is better tolerated than other salicylates rarely causing some side effects. Thiosalicylic acid is used as an anthelmintic agent. It possesses bactericidal and fungicidal properties.

Figure 1. Preparation of salicylic acid


This principle of using substances with an irritating action in the form of their esters became known as the salol nencki principle. It was further used for synthesising a lot of medicines. Hydrolysing in the alkaline environment of the gastrointestinal tract, phenyl salicylate releases salicylic acid and phenol - denaturing protein molecules. Salol does not decompose in the acidic environment of the stomach and does not irritate gastric mucosa as well as oral and esophageal mucosae. Phenol, which forms in the small bowel, suppresses pathogenic intestinal microflora, and sodium salt of salicylic acid has antiinflammatory and antipyretic actions. Partly excreting from the body by the kidneys, both compounds disinfect the urinary tract. Phenyl salicylate is far less active in comparison with modern antimicrobials, but it is low toxic provoking no dysbacteriosis and other complications. It is often used in outpatient practice. Phenyl salicylate is often used for coating tableted drug dosage forms, when it is necessary for them to pass through the stomach unchanged and to release the active pharmaceutical ingredient substances in the intestine. Benzyl salicylate (salicylic acid benzyl ester) is a liquid crystallising at 18 C. The boiling point of the liquid is 208C and density is 1,785-1,180 g/cm3. Salicylic acid benzyl ester is odorless and is used in perfumery as a preservative and a solvent of aromatic substances in perfume compositions. The technique of producing benzyl salicylate is based on the transesterification of methyl ester of salicylic acid by benzyl alcohol in the presence of sodium salt of salicylic acid methyl ester. The transesterification is conducted at underpressure with simultaneous distilling disengaged methyl alcohol. The yield of benzyl salicylate is about 70% of the theoretical one calculated in terms methyl salicylate. Benzyl salicylate can be also obtained through the interaction between salicylates and benzyl chloride under heating. The reaction noticeably accelerates in the presence of small amount of diethylamine. The yield in this case is about 85% of the theoretically possible. Saligenin (salicyl alcohol) is another derivative of salicylic acid to be mentioned here. It occurs in compound with glucose as glycoside salicin in roots and bark of different species of willow and some other plants. For the first time it was synthesised exactly from this glycoside. Saligenin is a solid substance, easily soluble in alcohol, ester and in hot water. In case of cooling or evaporating, it occurs precipitation of saligenin from the solution in the form of white leaves with pearly luster. Saligenin has a pharmacological effect similar to that of salicylic acid. Although this medication apparently does not cause side effects attributable to salicylic acid, in medical practice, it is hardly used, partly due to high cost, partly due to its significantly weaker effect compared to salicylic acid. Salicylamide (salicylic acid amide, salamide) is a medicine as well. The medical application of salicylamide is the same as that of acetylsalicylic acid. It is mainly used as an analgesic and an antipyretic. Salamide is more stable compared to acetylsalicylic acid. While acetylsalicylic acid is easily hydrolysed in the human body with releasing salicylic acid, salicylamide hardly undergoes hydrolysis and is excreted from the body in an unchangeable state in significant volumes.

A lot of esters of salicylic acid are used in perfumery as perfume compounds and fixing agents. Ethyl salicylate (salethyl) has the same though much weaker odour as methyl salicylate. Isobutyl salicylate has floral fragrance reminding blooming clover. Ethyl salicylate is produced by the method described for methyl salicylate being used in perfumery as a substitution for the latter. Isopropyl and isoamyl esters of salicylic acid are liquids with the fragrance of orchids. A technology for isopropyl ether production is similar to that of methyl salicylate. Isoamyl salicylate is not found in natural essential oils. It is obtained by heating isoamyl alcohol with salicylic acid in the presence of concentrated sulfuric acid. Allyl salicylate with a specific fruity floral odour, phenylethyl salicylate with a rose fragrance transforming into a heliotropin odour and isobutyl salicylate with a floral odour of blooming clover are also applied.

Preparation
Currently the Kolbe-Schmitt method is used for salicylic acid synthesis (Figure 1). Sodium phenoxide is obtained via a reaction between phenol and a solution of sodium hydroxide. Then sodium phenoxide is dried and saturated with carbon dioxide under pressure and heated up to 125 C. The resulted substance is dissolved in water and the solution is acidified, to form salicylic acid. Salicylic acid is a feedstock for the production of sodium salicylate, acetylsalicylic acid, methyl salicylate and phenyl salicylate. Methyl salicylate, in its turn, is a raw material for the synthesis of salicylamide. Moreover, methyl salicylate can be prepared from wastes of acetylsalicylic acid manufacture. Thus, there are strong interdependent relationships

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between these chemical substances, and the advantages of integrated manufacture of salicylates at a single production complex are quite obvious. This allows solving the problems of recycling and regeneration of several waste products, in particular, mother liquors, which contain acetyloxide and acetic acid as well as unreacted salicylic acid. Sodium salicylate is prepared by a reaction between equimolar amounts of purified salicylic acid (by sublimation) and sodium bicarbonate in ethanol (Figure 2). Acetylsalicylic acid is manufactured by acetylation of technical salicylic acid and acetyloxide in the presence of chlorobenzene or chlorobenzene and acetic acid with utilising recycled mother liquors; Figure 3). The process route starts with loading chlorobenzene or recycled mother liquor, salicylic acid or distillation residues from mother liquors taken from the manufacture of the pharmaceutical grade product. It is followed by mixing and heating up to 34-36 C. Then acetylating is carried out by adding acetyl oxide at temperatures of up to 78-82 C during two hours. The obtained product is crystallised by cooling down to 15-20 C followed by centrifuging the crude product and washing off by cold water and by isopropyl alcohol (IPA). The mother liquor containing chlorobenzene, acetic acid, acetyl oxide, acetylsalicylic acid (up to 15-20%), salicylic acid (up to 1% ), water (up to 1.5%) and resins (up to 4-5%) is returned to the acetylation stage (up to 10-15 times). After that the mother liquor is removed from the cycle and supplied to a wastes treatment unit or sent for regeneration. The flushing water is discharged into sewage facilities and the flushing isopropyl alcohol is sent for alcohol regeneration. The product of pharmaceutical grade is prepared by recrystallisation from 40-60% isopropyl alcohol with coal treatment. Coal is filtered and disposed or incinerated. The product is crystallised, centrifuged and washed off with cold water and IPA. The flushing water is discharged, and the mother liquor and flushing IPA are sent for aqueous IPA regeneration by distillation. The distillation residue of the wet salicylic acid (after isopropyl distillation) is dried down to a residual moisture content of max. 0.3% and then returned for acetylation. The washed pharma grade product is dried. The yield of the product is 90% in terms of salicylic acid. There is also a method of acetylation of wet distillation residues (containing 10-20% water ) by existing technologies at 55-60 C in the presence of pyridine. The resulting active complex - acetic anhydride pyridin - accelerates the process of acetylation by four times. That is why the water present in the substance has no time to hydrolyse acetic anhydride (the latter was an obstacle for using wet distillation residues due to increased consumption of acetic anhydride). There is also an old method of preparation of acetylsalicylic acid by acetylisation of salicylic acid with acetic anhydride and its compounds with acetic acid using recycled mother liquors at 65-70 C. The yield of the product in this case is 80-82%. The technique is characterised by by-products formation, a complex process of acetous mother liquor utilisation and high consumption of acetic anhydride. However, the significant advantage of this method is the absence of problems related to the use of large amounts of an organic solvent - chlorobenzene. Methyl salicylate (salicylic acid methyl ester) is prepared by esterification of salicylic acid with methanol in the presence of concentrated sulphuric acid (a catalyst and a dehydrating agent), i.e., virtually with methyl sulphuric acid (Figure 4). According to the applied method, a prepared reactor is loaded with methanol, and sulphuric acid is gradually added at a maximum temperature of 30 C followed by a hold up period of 30 minutes at 25-30 C (the temperature is maintained by cooling with water through the reactor jacket). The resulting solution of methyl-sulphuric acid in methanol, is fed into an esterifier with loaded technical salicylic acid at an initial temperature of 70 C followed by heating up to 70-74 C till salicylic acid is dissolved and the substance is dilluted. After that the substance is cooled down till its sedimentation and the lower layer of aqueous sulhuric acid is separated.

Figure 2. Sodium salicylate production process

Figure 3. Acetylsalicylic acid production process

Figure 4. Methyl salicylate production process


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Figure 5. Salicylamide production process


The resulted commercial methyl salicylate is washed with hot water (70-80 C) till the aqueous layer has a 2.5-3pH level. The sulphuric acid residue is neutralised by washing with a 10% sodium carbonate solution at 40 C till 7-7.5pH followed by one more washing with hot water (70-80 C). As a result of the purification of the technical product by high-vacuum fractional distillation, the yield amounts to 87% in terms of salicylic acid. In case of utilising recycled salicylic acid, the yield is 86.5-86.8% of the theoretical one. Salicylamide is prepared by a reaction of amidation of methyl salicylate with 22-25% aqueous ammonia in a leakproof reactor (Figure 5). The flow chart includes stages of crude salicylamide and pharmacopeia salicylamide production. At first, aqueous ammonia and methyl salicylate are loaded into a prepared leak proof reactor, in which amidation occurs at temperatures of 40-47 C during six hours. Then aqueous methanol with ammonia are distilled under vacuum. Distillation residues of salicylamide ammonium salt are dissolved in water and clarified with a solution of sodium dithionite (Na2S2O4) at 60-65 C. Later the product is acidified at 60-65 C with a 10% sulfuric acid solution to 3-4pH. The resulted salicylamide is crystallised at 15-20 C, centrifuged and washed off with cold water. The yield of the crude product is 87-92% in terms of methyl salicylate. Crude salicylamide is purified by its recrystallisation from distilled water with clarifying by coal and sodium dithionite at pH=5 (salicylamide an amphoteric compound; at pH <3, salicylamide starts to melt partially due to protonation of the amide group). After sedimentation, the mother liquor is sucked out with vacuum and the residue is filtered by centrifuging. The product is washed off with cold distilled water. The mother liquors and the Aspirin was first commercially produced by Bayer in 1899. Initially, it was sold in a powdered form and in tabbletts since 1904. Aspirin usage in Russia dates back its history to 1901. The countrys own production of this medicine began after WW1, when German supplies halted. In the former Soviet Union, commercial production of aspirin started at powerful new plants during the first five-year plans. washing waters are used 3-4 times instead of water for dissolving during the recrystallisation of the following batches, and then they are removed from the cycle and discharged. The yield of of the pharmaceutical grade product reaches 82-86% in terms of methyl salicylate. At present, salicylic acid is not synthesised in the former Soviet states. This also pertains to its most important derivative acetylsalicylic acid despite stable demand. At the same time, numerous pharma companies in Russia, Ukraine and Belarus use foreign acetylsalicylic acid for their own manufacturing of medicines under various trade marks. The companies that used to produce aspirin in large volumes removed from operation their manufacturing According to Transparency Market facilities long time ago. In particular, aspirin production at Organica OJSC (Novokuznetsk, Kemerovo region) launched as far as 1971 is no longer operational. Earlier before, there Research, the capacity of the global salicylic acid market in 2012 totalled 95,000 tonnes with the pharmaceutical sector accounting for 51.3% of thios amount or 48,700 tonnes (Figure 6). The sector of skin care products consumed 24,200 tonnes or 25.5% followed by shampoos and hair care products 14,300 tonnes (15,1%). Global output is expected to rise 6.4% on average between 2013 and 2019. North America is the biggest consumer of salicylic acid having a 35% share globally. Nevertheless, the Asia-Pacific region will soon display higher growth rates. Salicylic acid is more and more widely used in cosmetics, in particular, hair care products. This niche will be possibly the main growth driver of the entire salicylic acid market. Aspirin demand will still go up exerting a paramount influence upon salicylic acid production. Governmental health protection initiatives aimed at wider use of aspirin by elderly persons to prevent cardiovascular deseases make a significant contribution to this process. On the other hand, growing consumer concerns over aspirin side affects will to some extent hinder the development of the salicylic acid market at the cost of aspirin.

CIS market

Global market

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Figure 6. Breakdown of salicylic acid applications worlwide in 2012


was large-scale acetylsalicylic acid production there. Among pharmaceutical enterprises, only Irbit Pharmaceutical Chemistry production plant (Irbit, Sverdlovsk region) has at its disposal chemical synthesis of such pharmaceutical active ingredients as salicylic and acetylsalicylic acids. But the company is not synthesising the above-mentioned chemicals currently processing (re-crystallising) technical foreign salicylic acid into a purified active ingredient fit for pharmaceutical production at its existing production facilities. Usolye-Sibirskiy khimiko-farmatsevticheskiy zavod (Usolye-Sibirskoye chemical and pharmaceutical plant; Usolye-Sibirskoye, Irkutsk region) has developed its own methylsalicylate synthesis technology, but its production volumes are rather small and sporadic. Thus, CIS countries meet their salicylates demand via import deliveries. Besides, acetylsalicylic acid is imported both as an active ingredient for pharmaceutical production (API) and as finished dosage forms. Our analysis of export-import operations will cover only API forms. Russia Russian imports of salicylates for 2011 amounted to 192,47 tonnes, a 28,5% YOY

Figure 8. Geographical breakdown of Russian salicylic acid imports in 2012 Figure 7. Russian imports of salicylates in 2010-12, tonnes
increase (Figure 7). Next year the import supplies virtually remained at the same level equalling 191,8 tonnes (-0,36%). About 87% of this figure fell on salicylic acid proper. The rest 13% were imported in the form of sodium salicylate mainly used as a preserving antiseptic for shampoos and other cosmetics. Chinese suppliers dominated the Russian market in salicylic acid and sodium salicylate with a 45% share in 2012 (Figure 8). Among the producers from China, we can single out the following ones: Hebei Haihua Energy Development Group (45.8 tonnes) and JQS (Huayin) Pharmaceutical (28 tonnes). Romania, namely, Romfarmachim (54 tonnes) is in second place. About 20% or 37.8 tonnes were delivered from France represented predominantly by Rhodia Eurohim-1 CJSC (Moscow) occupied 15% shares each in total Russian imports. Altair imported 29.3 tonnes of salicylic acid and sodium salicylate by Hebei Haihua Energy Development Group Co. Ltd in 2012. All this volume was meant for paints and coatings applications. Eurohim-1 purchased 28 tonnes of salicylic acid from JQS (Huayin) Pharmaceutical Co. Ltd. Uralchimplast JSC (Nizhny Tagil) imported 21 tonnes for intraOperationss products. In 2012, Kontur LLC located in St. Petersburg imported 54 tonnes of salicylic acid becoming the biggest its Russian importer with a 28% share (Figure 9). In addition, this enterprise was the only one to buy salicylic acid made by Romfarmachim. The product was used for cosmetics manufacture. Altair LLC (St. Petersburg) and

Figure 9. Basic Russian importers of salycilic acid and its salts in 2012

1(85) February 2013 Eurasian chemical market 27

Organics

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bouhgt 16 tonnes of technical salicylic acid from Hebei Haihua Energy Development Group Co. Ltd (China) further used in aniline dyes manufacture. The rest acid was basically imported for the needs of the cosmetics industry. For pharmaceutical purposes, salycilic acid was purchased from abroad by Russopharm LLC (10 tonnes) and Khimiko-farmatsevticheskiy kombinat Akrikhin JSC (Chemical and pharmaceutical integrated works Akrikhin; 0.7 tonnes). It is Rhodia that exports to Russia salycilic acid for pharmaceutical purposes. Salicylates were not supplied to Russia in 201011. In 2012, 7.5 tonnes of them were imported. The countrys imports of

bought 40 tonnes each accounting for 3.4% each. Ukraine Salicylic acid and its derivatives are exported to Ukraine in relatively low volumes. For example, their annual imports were no greater than 26 tonnes for the 200912 period (Figure 11). Between January and July of the last year, only 15.4 tonnes were delivered to the country from abroad. Of this amount, 60% (9.3 tonnes) of the Chinese products were purchased by Macrochem PJSC. Supplies of esters of salicylic acid to Ukraine over the last three years were a little bit higher. In 2012, the imports of these products saw an impressive 87% YOY hike, to 27,17 tonnes. From January to July of 2013, Ukraine imported 18 tonnes of esters of salycilic acid, and the share of methyl salicylate among them was 72% (13 tonnes). The main buyer of methyl salicylate in Ukraine was also Macrochem, which imported 12 tonnes of the Chinese products. Acetylsalicylic acid accounts for the lions share of total Ukrainian imports of all derivatives of salicylic acid. For instance, the country imported 468,76 tonnes of this product in 2010, which is 10% more as compared to 2009 (426,43 tonnes). A year later, a 5% YOY reduction in supplies occurred, to 444,73 tonnes. The year 2012 was the only one when imports fell below 400 tonnes over the past five years. To be precise, foreign supplies showed a 18% YOY decline, to 360,89 tonnes in 2012. However, the imports of salicylic acid rose to 422,8 tonnes for the first seven months of the past year. Like the Russian market, the Ukrainian one is dominated by Chinese suppliers with a 90% share. The largest Ukrainian importer of acetylsalicylic acid accounting for 51% of overall purchases from abroad is Farmatcevtichna firma Darnitsa PJSC (Kyiv) one of the leaders of the Ukrainian pharmaceutical market. Darnitsa imported 216,55 tonnes of acetylsalicylic acid of Chinese origin for

Figure 10. Basic Russian importers of acetylsalycilic acid in 2012

acetylsalicylic acid in 2011 equalled 1,348.9 tonnes, which is 5.7% higher than in 2010 (1,430.4 tonnes). A year later foreign deliveries continued declining totalling 1,175.6 tonnes (-12,8%). Chinese suppliers completely monopolised the Russian market in acetylsalicylic acid, namely, Shandong Xinhua Pharmaceutical (580,65 tonnes) and Hebei Jingye Chemical Engineering (580 tonnes) with a 49% combined market share. JQC (Huayin) Pharmaceuticals (15 tonnes; 1,3%) should also be mentioned. Among Russian importers, the leader was Moscowbased Indukern-Rus LLC. The latter purchased 540 tonnes of acetylsalicylic acid from Hebei Jingye Chemical Engineering Co. Ltd. Indukern-Rus had a 46% share in total imports (Figure 10). Pharmstandard LLC (Moscow) bought 368 tonnes (31%) of the products from Shandong Xinhua Pharmaceutical Co. Ltd, which also made supplies to Protek-SVM LLC (Moscow; 102,65 tonnes). In addition, Protek-SVM purchased 15 tonnes of the chemical from

Figure 11. Ukrainian imports of salicylic acid and its derivatives in 200913, tonnes
plant consumption, which makes up 11% of total imports. This company utilises salycilic acid as a catalyst for furan resins synthesis. Moscow-based ChemPartners CJSC

JQC (Huayin) Pharmaceuticals Co. Ltd. Irbit Pharmaceutical Chemistry production plant (Irbit, Sverdlovsk region) imported 60 tonnes of acetylsalicylic acid by Shandong Xinhua Pharmaceutical Co. Ltd., occupying a 5.1% share in total imports. Finally, Uralbiopharm JSC (Yekaterinburg) and Asfarma LLC (Anzhero-Sunzhensk, Kemerovo region)

28 Eurasian chemical market 1(85) February 2013

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the first seven months of 2013. Lubnyfarm JSC (Lubny, Poltava region) with 15% purchased 65 tonnes over the same period. Stiroloptfarmtorg LLC established on the basis of Kyivs representative office of Stirolbiofarm (Horlivka, Donetsk region) bought 49 tonnes (12%) of foreign acetylsalicylic acid followed by Kievmedpreparat JSC (Kyiv) 39 tonnes (9%). Belarus The only big producer of aspirin in Belarus is Borisovskiy Zavod Medicinskikh Preparatov OJSC (Borisov, Minsk region) using imported salicylic acid for making its own drugs. Acetylsalicylic acid accounted for 9698,5% of total Belarusian imports of salicylic acid and its derivatives in 20092012. In 2010, the imports of this substance enjoyed a staggering 70% YOY rise, to 345.3 tonnes. Further, supplies reduced to 250 tonnes (-27,6%) in 2011 and hit a bottom of 218,2 tonnes (-12,7%) in 2012. Salicylic acid and other its derivatives are imported into Belarus in small amounts. For instance, overall supplies of these products did not exceed 3,5 tonnes in 2012 (Figure 13). Kazakhstan Against the background of the above-mentioned countries, Kazakhstan is distinguished with insignificant consumption volumes of salicylic acid and its derivatives in primary forms. Most likely, this can be explained by predominant imports of prepackaged, finished pharmaceutical products. The annual imports of salicylic acid and its salts during the 2011-2012 period did not exceed 4 tonnes (Figure 14). The situation with consumption of salicylic acid derivatives in the form esters and their salts is similar. In 2010-2012, acetylsalicylic acid supplies did not go beyond 9 tonnes. Thus, acetylsalicylic acid in the form of a substance for pharmaceutical production is imported in large quantities only into In CIS countries, salicylic acid, aspirin and other related derivatives are not synthesised, while existing production plants are idled or used for processing technical salicylic acid and aspirin into the products fit for pharmaceutical production. The market in salicylic acid in the form of the substance for pharmaceutical manufacture is virtually completely monopolised by suppliers from China. CIS pharmaceutical companies are only engaged in processing the active substance of Chinese origin into medicines under their own brands. Consumers from the former Soviet Union are unlikely to see in pharmacies aspirin made of domestically-made salicylic acid. However, demand for both salicylic acid and aspirin will probably grow in accord with global trends. This, in turn, will stimulate imports of salicylicand acetylsalicylic acids. As for acetylsalicylic acid, there is an obvious increase in its imports as both a substance for pharmaceutical production and a finished pharma product.

Figure 12. Basic Ukrainian importers of acetylsalicylic acid in 2013


Russia, Ukraine and Belarus. Kazakhstan and other former Soviet states mainly purchase prepackaged, finished pharma products produced from the acid.

Figure 13. Belarusian imports of salicylic acid and its derivatives in 20092012, tonnes

onclusion

Figure 14. Kazakh imports of salicylic acid and its derivatives in 2009-2012, tonnes

1(85) February 2013 Eurasian chemical market 29

Organics

Prices

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Product Acetic acid synthetic, 70% Acetic acid synthetic, 99.6% Acetic aldehyde, 0.788 g/cm density Acetone technical, 99-99.75% Acetylene, 98.8% Acetylene, 99.1% Benzene petroleum purified, 99.8% Benzene petroleum purified, 99.8% Benzene petroleum refined, 99.8% Benzene petroleum refined, 99.8% Benzene petroleum, for synthesis, 99.7% Benzene petroleum, highest purification, 99.9% 1-Bromonaphthalene, pure, 97% Butane or a mixture of butane, 85% butane and 15% butylene Butane technical, 60% of butane and butylene Butane, 85% butane, 15% butylene Butylene-butadiene fraction not hydrogenated, grade A, 98% of C4 and 40% of butadiene-1.3 Butylene-butadiene fraction, not hydrogenated, grade B, 98% of C4 and 30% of butadiene-1.3 Cyclohexane technical, 99.899.9% Cyclohexane technical, 99.9%

Prices for some organic chemicals produced in Russia, Turkmenistan, Uzbekistan, Belarus in 1Q, 2014
Manufacturer Navoiyazot JSC Navoiyazot JSC Navoiyazot JSC Navoiyazot JSC Chelyabtehgaz Ltd Navoiyazot JSC Uralorgsintez JSC SIBUR-Kstovo Ltd Mozyr Refinery JSC Naftan JSC SIBUR-Kstovo Ltd Mozyr Refinery JSC Chemical line Ltd Sterlitamak Petrochemical Plant JSC Mozyr Refinery JSC Sterlitamak Petrochemical Plant JSC SIBUR-Kstovo Ltd City Navoiy Navoiy Navoiy Navoiy Chelyabinsk Navoiy Chaykovsky (Perm territory) Kstovo (Nizhny Novgorod region) Mozyr (Homiel region) Navopolatsk (Vitsebsk region) Kstovo (Nizhny Novgorod region) Mozyr (Homiel region) St. Petersburg Sterlitamak (Republic of Bashkortostan) Mozyr (Homiel region) Sterlitamak (Republic of Bashkortostan) Kstovo (Nizhny Novgorod region) Country Uzbekistan Uzbekistan Uzbekistan Uzbekistan Russia Uzbekistan Russia Russia Belarus Belarus Russia Belarus Russia Russia Belarus Russia Component of petrol EXW Packing 1.5 kg Cisterns / Automotive fuel component EXW 5 liter balloon, 1 kg Notes In bulk In bulk Price per tonne, ex. VAT 1100 USD 1100 USD 1300-1675 USD 6486665 UZS 260 RUR / kg 33 USD / gascylinder 27966 RUR 27966 RUR 6677400 BYR 6677400 BYR 33475 RUR 6677400 BYR 1864 RUR / kg 11600-11900 RUR 1868260 BYR 10800 RUR

Russia

Raw material for rubber production

36017 RUR

SIBUR-Kstovo Ltd Shchekinoazot UCC JSC KuibyshevAzot OJSC

Kstovo (Nizhny Novgorod region) Schekino (Tula region) Togliatti (Samara region)

Russia

Raw material for rubber production

30127 RUR

Russia EXW / Tank cars (50 tonnes), boiler trucks/ For chemical fibres and solvent Raw material for styrene, component of motor fuels, solvent

85000 RUR

Russia

75000 RUR

Ethylbenzene technical, 99.8%

SIBUR-Khimprom CJSC

Perm

Russia

34746 RUR

30 Eurasian chemical market 1(85) February 2013

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Prices

Product Ethylbenzene technical, 99.8% 2-Ethylhexanoic acid, synthetic oily C8 2-Ethylhexanol technical, 99% Ethylene oxide purified, 99.9% Formalin, 36.9-37.5% Hexamethylenetetramine stabilized technical, 98% of amines

Manufacturer SIBUR-Kstovo Ltd SIBUR-Khimprom CJSC SIBUR-Khimprom CJSC

City Kstovo (Nizhny Novgorod region) Perm

Country Russia Russia

Notes Raw for production of styrene, a component of motor fuel, solvent

Price per tonne, ex. VAT 34746 RUR 76721 RUR

Perm

Russia

For synthesis of plasticisers, stabilisers, additives for lubricating oils, solvents For obtaining highpurity ethylene glycol EXW / PP bags 25 kg, rail-cars 50-60 tonnes For production of phenol-formaldehyde resins EXW / PP bags 25 kg, rail-cars 50-60 tonnes For production of phenol-formaldehyde resins

54237 RUR

SIBUR-Neftekhim JSC Navoiyazot JSC

Dzerzhinsk (Nizhny Novgorod region) Navoiy Gubakha (Perm territory)

Russia Uzbekistan

46610 RUR 315 USD

Metafrax JSC

Russia

38500 RUR

Hexamethylenetetramine technical, 98-99.5% of amines Hexamethylenetetramine technical, tableted, 98-99.5% of amines Isobutane fraction, 97%

Metafrax JSC

Gubakha (Perm territory)

Russia

38500-40500 RUR

Navoiyazot JSC Kinef Ltd SIBUR-Khimprom CJSC Tobolsk-Neftekhim Ltd Uralorgsintez JSC Navoiyazot JSC Shchekinoazot UCC JSC Kaustic JSC SIBUR-Khimprom CJSC Uralorgsintez JSC Tobolsk-Neftekhim Ltd Togliattikauchuk Ltd Naftan JSC

Navoiy Kirishi (Leningrad region) Perm Tobolsk (Tyumen Region) Chaykovsky (Perm territory) Navoiy Schekino (Tula region) Volgograd Perm Chaykovsky (Perm territory) Tobolsk (Tyumen Region) Togliatti Navopolatsk (Vitsebsk region)

Uzbekistan Russia In production of rubber, polyethylenes, polypropylenes, polystyrenes

2400 USD 16697-18054 RUR

Isobutane fraction, 98%

Russia

17797 RUR

Isobutane fraction, 98% Isobutane fraction, 98% Methanol technical, 99.95% Methanol, 99.95%, Methyl chloride technical, 90% Methyl-tert-butyl ether, 98% Methyl-tert-butyl ether, 98% Methyl-tert-butyl ether, 98% Methyl-tert-butyl ether, 98% Methylacetylene-allene fraction

Russia Russia Uzbekistan Russia Russia Russia Russia Russia Russia Belarus Welding gas

17797 RUR 17797 RUR 350 USD 19000-23000 RUR 47000-70000 RUR 44068 RUR 44068 RUR 44068 RUR 44068 RUR 900 EUR

1(85) February 2013 Eurasian chemical market 31

Organics

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Product N, N-dimethyl-pphenylenediamine, 98% N, N-dimethyl-pphenylenediamine, analytical grade, 1.09 g/cm3 Propane technical, max 75% propane and propylene Propane-butane mixture, max 60% of butane and butylene Propane-butane mixture, max 60% of butane and butylene Propane-butane mixture, max 60% of butane and butylene Propane-butane, 20% propane, 80% butane Propane-butane, 60% butanes and butylenes Propylene fraction, 90-98.8% Propylene, 99.8% Styrene, grade SDEB, 99.8% Styrene, grade SDEB, 99.8% Styrene, grade SDEB, for processing, 99.8% Styrene, grade SDEB, for processing, 99.8% Toluene, 99.6-99.75% Vinylidene chloride technical, 99.9% o-Xylene petroleum, 99.2%

Manufacturer Krauft Ltd Chemical line Ltd Surgutneftegas JSC Mozyr Refinery JSC Turkmenbashi complex of refinery Shurtan Gaz Chemical Complex Unitary Branch Establishment Turkmenbashi complex of refinery Surgutneftegaz JSC SIBUR-Kstovo Ltd SIBUR-Kstovo Ltd SIBUR-Khimprom CJSC Plastic JSC Plastic JSC SIBUR-Khimprom CJSC Naftan JSC Kaustic JSC Naftan JSC

City St Petersburg St. Petersburg Surgut (Khanty-Mansi Autonomous District) Mozyr (Homiel region) Turkmenbashi (Balkan province) Shurtan (Qashqadaryo province) Turkmenbashi (Balkan province) Surgut (Khanty-Mansi Autonomous District) Kstovo (Nizhny Novgorod region) Kstovo (Nizhny Novgorod region) Perm Uzlovaya (Tula region) Uzlovaya (Tula region) Perm Navopolatsk (Vitsebsk region) Volgograd Navopolatsk (Vitsebsk region) Navopolatsk (Vitsebsk region)

Country Russia Russia Russia Belarus Turkmenistan Uzbekistan Turkmenistan Russia Russia Russia Russia Russia Russia Russia Belarus Russia Belarus Belarus

Notes Extractant, chemical raw material

Price per tonne, ex. VAT 13559 RUR / kg 13559 RUR / kg 15340 RUR 1868260 BYR 419 USD 899093 UZS 567-725 USD 12213-12390 RUR 32203 RUR 34746 RUR 55932 RUR 55932 RUR 44915 RUR 44915 RUR 5951100 BYR 120000-130000 RUR 6644200 BYR 432500 BYR

p-Xylene petroleum, highest Naftan JSC purification, 99.2%


1 EUR = 45,0559-49,5839 RUR 1 EUR = 3000,05-3053,73 UZS 1 EUR = 3,8982-3,9159 1 EUR = 12650-13400 BYR

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014

32 Eurasian chemical market 1(85) February 2013

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Inorganics

Prices

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Prices of Russian, Belarusian, Uzbek and Turkmen chemical producers for inorganic materials and industrial gases in 1Q, 2014
Product Argon liquid, top grade, 99.993% Aluminum nitride hexagonal, 98.5% Aluminum oxychloride, 1722% Al2O3 Aluminum oxynitride powder, 70% aluminum nitride, 30% aluminum oxide Ammonia liquid, 99.6% Ammonia liquid, 99.6% Ammonium chloride, 99% Argon gaseous, top grade, 99.993% Argon liquid, 99.98% Calcium chloride calcined granulated, 90% Calcium chloride granulated, 90-96.5% Calcium chloride liquid, 32% Calcium chloride liquid, 35% Chlorine liquid, 99.6% Chlorine liquid, 99.6% Chlorine liquid, 99.6% Chlorine liquid, 99.6% Chlorine liquid, 99.6% Chlorine liquid, 99.6%-99.8% Ferric trichloride, water solution, 30% Ferrum oxide (III) granulated, 95% Hydrochloric acid inhibited, 20-23% Hydrochloric acid inhibited, 21-23% Hydrochloric acid inhibited, 22-24% Hydrochloric acid reactive chemically pure, 35-38% Manufacturer Evraz NTMK JSC City Nizhny Tagil (Sverdlovsk region) Smolevichi (Minsk region) Country Russia For producing components of microchips, high-power transistors, absorbents, heat-conducting pastes and compounds EXW For producing heatconducting pastes and compounds Notes Price for 1 tonne, ex. VAT 16900 RUR

Timosha Ltd

Belarus

10 USD

Khimprom Ltd Timosha Ltd Shchekinoazot UCC JSC Navoiyazot JSC Navoiyazot JSC Evraz NTMK JSC KuibyshevAzot JSC Khimprom Ltd Navoiyazot JSC Khimprom Ltd Navoiyazot JSC Kaustik JSC Kaustik JSC Kaustik JSC Kaustik JSC Khimprom Ltd Navoiyazot JSC Kaustik JSC

Kemerovo Smolevichi (Minsk region) Schyokino (Tula region) Navoiy Navoiy Nizhny Tagil (Sverdlovsk region) Togliatti (Samara region) Kemerovo Navoiy Kemerovo Navoiy Volgograd Volgograd Volgograd Volgograd Kemerovo Navoiy Volgograd Novokuznetsk (Kemerovo region) Navoiy Volgograd Kemerovo Volgograd

Russia Belarus Russia Uzbekistan Uzbekistan Russia Russia Russia Uzbekistan Russia Uzbekistan Russia Russia Russia Russia Russia Uzbekistan Russia

20000 RUR 10 USD 25000-30000 RUR

More than 2 tonnes / refrigerant (R717) Mordant in dyeing / Bags

270 USD 330 USD 95 RUR / m3

Tankers 2.5; 7.5 tonnes / Railway tanks 36 tonnes EXW / Containers, 500 kg big bag, 25 kg bags, rail cars

16000 RUR 4500 RUR 845000 UZS

EXW ontainers 900-980 kg Cylinders 55-60 kg In bulk Cisterns 50-55 tonnes EXW / In containers In cisterns

4500 RUR 300 USD 30000-34000 RUR 30000-40000 RUR 4500 RUR 10500 RUR 42500-70000 RUR 140 USD 16000-18000 RUR 2650 RUR

Evraz ZSMK JSC

Russia

Catalyst in production of ammonia, component of ceramics, cements and minerals paints

Navoiyazot JSC Kaustik JSC Khimprom Ltd Kaustik JSC

Uzbekistan Russia Russia Russia EXW / For treatment of oil wells, etching iron, cleaning of boilers

145 USD 6500-8500 RUR 12000 RUR 8000 RUR

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Prices

Product Hydrochloric acid synthetic technical, 31.5-36% Hydrochloric acid synthetic technical, 31.5% Hydrochloric acid synthetic technical, 31.5%-38% Hydrochloric acid waste, 27.5% Hydrochloric acid, reactive, chemically pure, 35-38% Hydrochloric acid, reactive, pure, 35-38% Iodine technical, 99% Iodine technical, 99% Iodine technical, 99% Magnesium chloride (bishofit) technical, grade B, solution 250-400 g/l Magnesium chloride flake, 97% Magnesium chloride granulated, 97% Nitric acid weak, 56-58%, in terms of 100% Oleum improved, 24% SO3 Oleum improved, 24% SO3 Oleum improved, 24% SO3 Phosphoric acid extraction, water solution, 40% Phosphoric acid extraction, water solution, 40% Potassium iodide, 99% Sodium bicarbonate, 99.5% Sodium bicarbonate, 99% Sodium carbonate (soda ash), grade A, 98.2% Sodium carbonate (soda ash), grade A, 98.2% Sodium carbonate (soda ash), grade A, 98.2% Sodium carbonate (soda ash), grade B, 97.5% Sodium carbonate (soda ash), grade B, 97.5%

Manufacturer Navoiyazot JSC Kaustik JSC Khimprom Ltd Kaustik JSC Khimprom Ltd Khimprom Ltd Balkanabat Iodine Plant Bereket Iodine Plant Khazar Chemical Plant Kaustik JSC Kaustik JSC Kaustik JSC Mendeleyevskazot Ltd PhosAgroCherepovets JSC Balakovo Mineral Fertilisers Ltd Shchekinoazot UCC JSC PhosAgroCherepovets JSC Balakovo Mineral Fertilisers Ltd Khazar Chemical Plant Soda JSC Soda JSC Soda JSC Soda JSC Soda JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC

City Navoiy Volgograd Kemerovo Volgograd Kemerovo Kemerovo Balkanabat ( Balkan Province) Bereket (Akhal province) Khazar (Balkan province) Volgograd Volgograd Volgograd Mendeleevsk (Republic of Tatarstan) Cherepovets (Vologda region) Balakovo (Saratov region) Schyokino (Tula region) Cherepovets (Vologda region) Balakovo (Saratov region) Khazar (Balkan province) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Berezniki (Perm territory) Berezniki (Perm territory)

Country Uzbekistan Russia Russia Russia Russia Russia Turkmenistan Turkmenistan Turkmenistan Russia Russia Russia Russia Russia Russia Russia Russia Russia Turkmenistan Russia Russia Russia Russia Russia Russia Russia

Notes

Price for 1 tonne, ex. VAT 120 USD 5500-7500 RUR

Cisterns 60-70 tonnes, PE canisters 20, 30,50 l

16000-17000 RUR 4000-7500 RUR

EXW / PE canisters 20, 30,50 l Cisterns 50 tonnes Prepayment / EXW Prepayment / EXW Prepayment / EXW

23000 RUR 20000 RUR 36000 USD 36000 USD 36000 USD 3000-4000 RUR 9000-11000 RUR 14000-16000 RUR

In customers packaging

17808 RUR 2000 RUR 2000 RUR

EXW

3600-5500 RUR 15500 RUR 15500 RUR 60000 USD

In bulk / Bags / Big bags In bulk / Bags / Big bags Big bags 800 kg Bags 50 kg In bulk In bulk Big bags 650 kg

11100 RUR 10870 RUR 10472-10547 RUR 10911-10986 RUR 9592-9668 RUR 9170 RUR 10070 RUR

1(85) February 2013 Eurasian chemical market 35

Inorganics

Prices

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Product Sodium carbonate (soda ash), grade B, 97.5% Sodium carbonate (soda ash), grade B, 97.5% Sodium carbonate (soda ash), grade B, 98.2% Sodium carbonate (soda ash), grade B, 98.2% Sodium carbonate (soda ash), grade B, 98.2% Sodium carbonate (soda ash), grade B, 98.2% Sodium carbonate (soda ash), grade B, 98.2% Sodium carbonate (soda ash), grade B, 98.2% Sodium carbonate (soda ash), grade B, 98.9% Sodium carbonate (soda ash), grade B, 98.9% Sodium carbonate (soda ash), grade B, 98.9% Sodium carbonate (soda ash), grade B, 98.9% Sodium carbonate (soda ash), grade B, 98.9% Sodium carbonate (soda ash), grade B, 98.9% Sodium carbonate (soda ash), grade , 97.5% Sodium carbonate (soda ash), grade , 97.5% Sodium carbonate (soda ash), grade , 97.5% Sodium carbonate (soda ash), grade , 98.2% Sodium carbonate (soda ash), grade , 98.2% Sodium carbonate (soda ash), grade , 98.2% Sodium carbonate (soda ash), grade , 98.7% Sodium carbonate (soda ash), grade , 98.7% Sodium carbonate (soda ash), grade , 98.7% Sodium carbonate (soda ash), grade , 98.7% Sodium carbonate (soda ash), grade , 85% Sodium chloride, 97.5%

Manufacturer Berezniki Soda Plant JSC Qongirot soda zavodi unitary enterprise Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Soda JSC Soda JSC Soda JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Soda JSC Soda JSC Soda JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Berezniki Soda Plant JSC Soda JSC KuibyshevAzot JSC Guvlyduz Combine

City Berezniki (Perm territory) Qongirot (Karakalpakstan province) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Berezniki (Perm territory) Sterlitamak (Republic of Bashkortostan) Togliatti (Samara region) Guvlymayak (Balkan province)

Country Russia Uzbekistan Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia Turkmenistan

Notes Bags 40 kg EXW / In bulk / PP bags 35 kg Bags 40 kg Big bags 650 kg In bulk Bags 50 kg Big bags 500 kg In bulk In bulk Big bags 650 kg Bags 40 kg Bags 50 kg Big bags 500 kg In bulk In bulk Big bags 1000 kg Bags 40 kg In bulk Big bags 1000 kg Bags 40 kg In bulk Bags 40 kg Big bags 1000 kg In bulk / For production electron-tube glass In bulk / Big bags 800 kg Prepayment / For industrial applications

Price for 1 tonne, ex. VAT 10470 RUR 280 USD 9270 RUR 10170 RUR 10570 RUR 10564 RUR 10124 RUR 9246 RUR 9370 RUR 10270 RUR 10670 RUR 10621 RUR 10183 RUR 9303 RUR 9470 RUR 10370 RUR 10770 RUR 9570 RUR 10470 RUR 10870 RUR 10570 RUR 9670 RUR 10970 RUR 9668 RUR 6500-7500 RUR 40 USD

36 Eurasian chemical market 1(85) February 2013

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Inorganics

Prices

Product Sodium chloride, technical, purified, 99.5% Sodium cyanide, 20-30% Sodium hydroxide reactive, analytical grade, 98% Sodium hydroxide tablet, 98% Sodium hydroxide technical granulated, 99% Sodium hydroxide, RD grade, 44% Sodium hydroxide, RD grade, 46% Sodium hydroxide, RD grade, 46% Sodium hypochlorite, 10-20 g /l NaOH Sodium hypochlorite, 10-20 g/l NaOH Sodium hypochlorite, 40 g/l NaOH, 120 g/l Cl Sulphur gaseous granulated, 99.98% Sulphur gaseous lumps, 99.98% Sulphur liquid, 99.2% Sulphur liquid, 99.98% Sulphur lump, 99.2% Sulphur lump, 99.9% Sulphuric acid accumulator, 92-94% Sulphuric acid contact improved, 92.5-94% Sulphuric acid technical contact, 92.5% Sulphuric acid technical contact, 92.5% Sulphuric acid waste, 72% Sulphuric acid, grade K, 9596.5% Sulphuric acid, high purity, 93.5-95.6%
1 EUR = 45.0559-49.5839 RUR 1 EUR = 3000.05-3053.73 UZS 1 EUR = 3.8982-3.9159 1 EUR = 12650-13400 BYR

Manufacturer Navoiyazot JSC Navoiyazot JSC Kaustik JSC Kaustik JSC Kaustik JSC SIBUR-Neftekhim JSC Kaustik JSC Khimprom Ltd Kaustik JSC Navoiyazot JSC Khimprom Ltd Kinef Ltd

City Navoiy Navoiy Volgograd Volgograd Volgograd Dzerzhinsk (Nizhny Novgorod region) Volgograd Kemerovo Volgograd Navoiy Kemerovo

Country Uzbekistan Uzbekistan Russia Russia Russia Russia Russia Russia Russia Uzbekistan Russia Russia Uzbekistan Belarus Belarus Ukraine Turkmenistan Russia Russia Russia Russia Russia Russia Russia

Notes

Price for 1 tonne, ex. VAT 600 USD

Galvanising and gilding metal products

2822350 UZS 30000 RUR

In production of vinyl chloride as a neutralising agent

60000 RUR 22000-30000 RUR 17797 RUR 13400-23000 RUR

EXW / Cisterns 55-60 tonnes (in bulk), tanks 25-27 tonnes

26500 RUR 10000-20000 RUR 190 USD

EXW / Cisterns 60-70 tonnes; PE canisters

26500 RUR 649-826 RUR 55089 UZS 437200 BYR 437200 BYR

Kirishi (Leningrad region) Buxoro neftni qayata Qorovulbozor (Buxoro ishlash zavodi province) Mozyr Oil Refinery JSC Mozyr (Homiel region) Mozyr Oil Refinery JSC Mozyr (Homiel region) Kremenchug (Poltava Ukrtatnafta PJSC region) Turkmenbashi Turkmenbashi (Balkan Complex of Oil province) Refineries Shchekinoazot UCC Schyokino (Tula JSC region) Shchekinoazot UCC Schyokino (Tula JSC region) PhosAgroCherepovets (Vologda Cherepovets JSC region) Shchekinoazot UCC Schyokino (Tula JSC region) Khimprom Ltd Kemerovo PhosAgroCherepovets (Vologda Cherepovets JSC region) Shchekinoazot UCC JSC Schyokino (Tula region)

Rail, road transport Prepayment / FCA / 50 kg bags

842-917 UAH 57 USD 6000-13000 RUR 3500-6000 RUR 2000 RUR

EXW

EXW EXW / Cisterns 50-60 tonnes

2900-5000 RUR 60 RUR 2000 RUR

For production of high-tech products and analytical materials

23000 RUR

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014

1(85) February 2013 Eurasian chemical market 37

Agrochemistry

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Summing up Ukrainian Fertilisers Production in 2013: No Light at the End of the Tunnel
All in all last year proved extremely unsuccessful for Ukrainian fertilisers producers. The domestic output of the following fertilisers displayed a significant reduction in 2013 as compared to 2012: ammonium nitrate (9.1%); urea (24.8%), ammophos (33.8%), NPK (47.7%), ammonium sulphate (49.5%). Only CAS production rose 14% in 2013. Below are given production results in detail.

Table 1. Ammonium nitrate production in Ukraine in 2013, thousand tonnes


Company December 2013 December 2012 December 2013 to December 2012, % 185,6 85,5 95,4 2013 2012 2013 to 2012, %

Cherkasy-based Azot PJSC Rivneazot JSC Severodonetsk Azot Association PJSC Concern Stirol PJSC Total

80,0 43,2 50,0

43,1 50,5 52,4

953,7 530,7 393,2

789,3 500,7 587

120,8 106,0 67,0

0,0 173,2

63,8 209,8

82,6

374,2 2251,8

599 2476,0

62,5 90,9

Ammonium nitrate
In 2013, the Ukrainian enterprises turned out 2,251,800 tonnes of ammonium nitrate (see Table 1). In December 2012 total production of NH4NO3 amounted to 173,200 tonnes (in physical terms). In December Cherkasy-based Azot PJSC raised its ammonium nitrate output by 85.6%, to 80,000 tpy against December 2012. Rivneazot decreased output of this product by 14.5%, to 43,200 tonnes, and production at Severodonetsk Azot Association fell 4.6%, to 50,000 tonnes. Concern Stirol PJSC (Horlivka, Donetsk region) was not engaged in ammonium nitrate manufacture at all. In November 2013 the countrys enterprises produced 158,100 tonnes of ammonium nitrate (in physical terms).

able 2. Carbamide production in Ukraine in 2013, thousand tonnes


Company December 2013 December 2012 December 2013 to December 2012 in % 106,3 60,1 2013 2012 2013 to 2012, %

DniproAzot PJSC Odessa Port Plant JSC Cherkasybased Azot PJSC Severodonetsk Azot Association PJSC Concern Stirol PJSC Total

69,2 49,2

65,1 81,8

699,5 635,0

684,1 930,1

102,3 68,3

0,0

72,1

548,6

776,5

70,7

0,0

38,4

314,0

404,7

77,6

0,0 118,4

87,3 344,7

34,3

576,9 2774,0

891,9 3687,3

64,7 75,2

Carbamide
In 2013 Ukrainian companies reduced carbamide production by 24.8% or 913,300 tonnes, to 2,774,000 tonnes over 2012 (Table 2).

In December 2013 chemical enterprises in the country cut CO(NH2)2 output (in physical terms) by 65.7% or 226,300 tonnes, to 118,400 tonnes as compared to the same period of 2012. In particular, DniproAzot PJSC increased urea

output by 6.3%, to 69,200 tonnes in December 2013 against December 2012, whereas the production of Odessa Port Plant JSC showed a 39.9% YOY fall, to 49,200 tonnes. Severodonetsk Azot Association, Cherkasy-based Azot and Concern Stirol

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Agrochemistry

did not produce urea in December of the past year. According to more precise data, Ukrainian CO(NH 2) 2 production in 2012 decreased 3.5% or 135,000 tonnes, to 3,678,200 tonnes against 2011. In November 2013 the enterprises reduced urea production (in physical terms) by 64.6% or 204,400 tonnes, to 111,900 tonnes in comparison with November 2012.

Table 3. Ukrainian ammophos production in December, thousand tonnes


Company Dniprovsky mineral fertilizers plant PJSC Crimea Titan PJSC Sumykhimprom PJSC Total December December December 2013 to 2013 2012 December 2012, % 0,2 0,0 0,0 0,2 0,0 1,6 0,0 1,6 12,5 2013 2012 2013 to 2012, %

14,7 25,4 0,0 40,1

19,0 52,4 0,0 71,4

77,4 48,5 56,2

Ammophos Table 4. NPK production in Ukraine in 2013, thousand tonnes


In 2013, ammophos production in the country plunged 43.8% or 31,300 tonnes, to 40,100 tonnes against 2012 (Table 3). In December 2013 the output of Sumykhimprom PJSC Dinprovskiy mineral fertilizers plant PJSC Total 0,0 11,0 ammophos dived 87.5% or 1,400 tonnes, to 0.2 tonnes over December 2012. In particular, Dinprovskiy mineral fertilizers plant PJSC (Dniprodzerzhinsk) produced a total of 200 tonnes of ammophos, whereas Sumykhimprom PJSC (Sumy) and Crimea Titan PJSC did not manufacture this product in December at all. According to more precise data, Ukrainian ammophos production in 2012 amounted to 71,400 tonnes. In November 2013 it slumped 97.6% or 8,000 tonnes, to 0.2 tonnes as compared to November 2012. Cherkasy-based Azot PJSC Crimea Titan PJSC Sumykhimprom PJSC Total 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 Company December 2013 December 2012 December 2013 to December 2012, % 2013 2012 2013 to 2012, %

180,7

343,2

52,7

0,2

0,0

0,4

3,3

12,1

0,2

11,0

1,8

181,1

346,5

52,3

Table 5. Ukrainian ammonium sulphate production in 2013, thousand tonnes


Producers December 2013 December 2012 December 2013 to 2012, % 2013 2012 2013 to 2012, % 50,2 50,5

32,0 0,2 0,0 32,2

63,8 0,0 0,0 63,8

NPK
Ukrainian chemical companies reduced NPK production by 47.7% or 165,400 tonnes, to 181,100 tonnes in 2013 as compared to a year earlier (see Table 4). In December 2013 NPK output plummeted 98.2% or 10,800 tonnes, to 200 tonnes against 2012. Dnirpovskiy mineral fertilizers plant turned out 0.2 tonnes of the product in 2013, while Sumykhimprom was not engaged in NPK production at all. According to more precise data, the Ukrainian production of NPK in 2012 totalled 346,500 tonnes. In November 2013, NPK output rose 26.3% or 3,500 tonnes, to 16,800 tonnes against November 2012.

Table 6. Production of aqueous solution of urea and ammonium nitrate in 2013, thousand tonnes
Company Cherkasybased Azot PJSC Concern Stirol PJSC Total December 2013 December 2012 December 2013 to 2012, % 2013 2012 2013 to 2012, %

0,0

12,7

204,6

190,4

107,5

0,0 0,0

0,0 12,7

97,9 302,5

75,0 265,4

130,5 114,0

1(85) February 2013 Eurasian chemical market 39

Agrochemistry

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Table 7. Ukrainian imports and exports in 2013, million dollars


Imports December 2013 Nitrogen fertilisers Russia Other Poland Uzbekistan Turkey Italy Brazil Total 34,33 0,78 0,13 0,43 35,68 205,04 3,45 1,83 1,49 211,82 Phosphorus fertilisers Russia Total 0,34 0,34 Potassium fertilisers Belarus Russia Other Belgium Lithuania Turkey Total 2,58 0,36 0,01 0,02 2,97 68,16 1,95 1,23 1,11 72,44 Mixed type fertilisers (10 kg bags) Russia Belarus Other Finland Ivory Coast Moldova Benin Total Grand total 21,64 3,71 1,99 0,30 27,65 66,30 393,22 80,30 48,28 9,48 531,28 815,88 0,38 0,38 56,02 10,96 9,54 4,97 11,26 36,72 1 171,08 0,02 0,02 0,04 0,18 0,02 0,59 0,04 0,83 33,12 20,87 1,61 55,60 627,75 295,41 103,33 107,05 1 133,53 December Exports 2013

Ammonium sulphate
In 2013 Ukraines output of ammonium sulphate lunged 49.5% or 31,600 tonnes to 32,200 tonnes in comparison with 2012 (Table 5). Ukrainian enterprises did not produce ammonium sulphate in November and December 2013 and the same months of 2012. According to more accurate data (NH4)2SO4 output in 2012 equalled 63,800 tonnes.

Water solution of urea and ammonium nitrate


In 2013 UAN production in Ukraine (aqueous solution of urea and ammonium nitrate) increased 14% or 37,100 tonnes, to 302,500 tonnes as compared to 2012 (see Table 6). In December 2013 Ukrainian companies did not produce UAN. Over the same period of 2012 they manufactured 13,200 tonnes. According to more accurate data, the production of UAN 265,400 tonnes. In November 2013 the companies did not produce UAN.

Ukrainian fertiliser exports and imports in 2013


In 2013 Ukrainian exported fertilisers worth USD 1.17bn, while the countrys imports amounted to USD 815.8m (Table 7). In December the country exported fertilisers at the amount of USD 56m, and imports totalled USD 66.3m. Nitrogen fertilisers were in the highest demand in December. Their exports amounted to 55.6m. In November Ukraine exports of mineral fertilisers were worth USD 70.5m, the imports USD 38.5m.

Superphosphate
In 2013 Ukrainian enterprises produced a total of 10,000 tonnes of superphosphate. At the same time, the companies did not manufacture superphosphate in November

and December 2013 and in December 2012. According to more precise data, superphosphate production in the country in 2012 amounted to 100 tonnes. The only Ukrainian producer of superphosphates is Sumykhimprom PJSC.
The article is based upon data provided by the the Cherkasy State Scientific Research Institute of Technical and Economic Information in the Chemical Industry and by information agency Ukrainian News.

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Prices

Prices for mineral fertilisers of Russian, Uzbek, Turkmen, and Ukrainian manufacturers in 1Q, 2014
Product Ammonia water, 20.5% Ammonia water, 25% N Ammonia water, 25% N Ammonium nitrate with magnesium additive, 37.4% N Ammonium nitrate with sulphur crystalline ammonium sulphate, grade 6S, N-31%, S-6% Ammonium nitrate with sulphur with granulated ammonium sulphate, grade 6S, N-31%, S-6% Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Manufacturer Dneprovskyy Plant of Chemical Fertilisers PJSC City Country Ukraine Russia Uzbekistan Russia Russia EXW In bulk Big bags 950 kg Notes In bulk / EXW, Rail-car norms Price per tonne, ex. VAT 1350 UAH 4000 RUR 170 USD 10299 RUR 8228 RUR

Dniprodzerzhynsk (Dnipropetrovsk region) Togliatti (Samara KuibyshevAzot OJSC region) Navoiyazot JSC Navoiy Mendeleyevsk Mendeleyevskazot Ltd (Republic of Tatarstan) KuibyshevAzot OJSC Togliatti (Samara region) Togliatti (Samara region) Veliky Novgorod (Novgorod region) Berezniki (Perm territory) Togliatti (Samara region) Mary Rossosh (Voronezh region) Perm

KuibyshevAzot OJSC

Russia

Big bags 950 kg FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk / For agricultural producers Prepayment FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk

8394 RUR

Acron JSC Azot Branch of Uralchem JSC KuibyshevAzot OJSC Maryazot production association Mineral fertilisers JSC Minudobreniya JSC

Russia Russia Russia Turkmenistan Russia Russia Uzbekistan Russia Russia Russia Russia Russia

10350 RUR 10050 RUR 9800 RUR 360 TMT

Ammonium nitrate, 34.4%N Ammonium sulphate, 21% N Ammonium sulphate, 21% N Ammonium sulphate, 21% N Ammonium sulphate, 21% N Calcium ammonium nitrate (CAN), 27% N, 4% CaO Calcium dihydrogen phosphate monohydrate (monocalcium phosphate), 16% a, 22% P

Navoiyazot JSC Navoiy Nevinnomysskiy Azot Nevinnomyssk JSC (Stavropol territory) Novomoskovskiy Azot Novomoskovsk (Tula JSC region) PhosAgro-Cherepovets Cherepovets (Vologda JSC region) Voskresensk Mineral Voskresensk (Moscow Fertilisers JSC region) Verkhnedneprovsky Dorogobuzh JSC Settlement (Smolensk region) Mineral fertiliser Plant Kirovo-Chepetsk of Kirovo-Chepetsk (Kirov region) Chemical Works JSC Togliatti (Samara KuibyshevAzot OJSC region) Chirchiq (Toshkent Maxam-chirchiq JSC province) Navoiyazot JSC Navoiy Shchekinoazot UCC Schyokino (Tula JSC region) Novomoskovskiy Azot Novomoskovsk (Tula JSC region) Balakovo Mineral Fertilisers Ltd Balakovo (Saratov region)

9700-10000 RUR 9700-10050 RUR 230 USD 10300-10600 In bulk / Bags RUR 9900-10200 In bulk / Bags, big bags RUR FCA / In bulk / For agricultural 7095-9195 producers RUR FCA / In bulk / For agricultural 10050 RUR producers FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers PP bags 50 kg / Big bags 800 kg EXW Bags 50 kg 10350 RUR

Russia Russia Uzbekistan Uzbekistan Russia Russia Russia

9700 RUR 6300-6900 RUR 225430 UZS 140 USD 8500 RUR

In bulk / Bags Enables gain of live weight of animals and birds by 5-12%

8350-8650 RUR 23282 RUR

1(85) February 2013 Eurasian chemical market 41

Agrochemistry

Prices

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Product Complex liquid fertiliser slurry NP 6-24 Complex liquid fertiliser slurry NP(S) 8:22(10) Complex liquid fertiliser, sulphur-containing nutrient solution, 7% N, 8% S, 30-40% ammonium sulphate Magnesium sulphate technical, 91.7% Nitrogen-calcium-magnesium fertiliser, grade B, 33% N, 4% CaO Nitrophosphate 22-28% N; 1-6% P NP 10-46 NP 12-52 NP 12-52 NP 12-52 NP 12-52 NP 18-46 NP 18-47 NP(S) 17-17(40)

Manufacturer Dneprovskyy Plant of Chemical Fertilisers PJSC Dneprovskyy Plant of Chemical Fertilisers PJSC KuibyshevAzot OJSC

City Dniprodzerzhynsk (Dnipropetrovsk region) Dniprodzerzhynsk (Dnipropetrovsk region) Togliatti (Samara region) Chirchiq (Toshkent province) Kemerovo Navoiy Olmaliq (Toshkent province) Belorechensk (Krasnodar territory) Cherepovets (Vologda region) Kingisepp (Leningrad region) Voskresensk (Moscow region) Cherepovets (Vologda region) Kingisepp (Leningrad region) Dniprodzerzhynsk (Dnipropetrovsk region) Belorechensk (Krasnodar territory)

Country Ukraine

Notes In bulk / EXW, Railway norms

Price per tonne, ex. VAT 2667 UAH

Ukraine

In bulk / EXW, Railway norms

2667 UAH

Russia

In bulk / Tank container 18-19 tonnes EXW In bulk

1542 RUR

Maxam-chirchiq JSC Azot JSC Navoiyazot JSC Ammofos-Maxam JSC EuroChem Belorechenskie Minudobrenia JSC PhosAgroCherepovets JSC Phosphorit Industrial Group Ltd Voskresensk Mineral Fertilisers JSC PhosAgroCherepovets JSC Phosphorit Industrial Group Ltd Dneprovskyy Plant of Chemical Fertilisers PJSC EuroChem Belorechenskie Minudobrenia JSC PhosAgroCherepovets JSC Voskresensk Mineral Fertilisers JSC PhosAgroCherepovets JSC PhosAgroCherepovets JSC

Uzbekistan Russia Uzbekistan Uzbekistan Russia Russia Russia Russia Russia Russia Ukraine

1090835 UZS 9900 RUR 230 USD

In bulk In bulk / Bags, big bags FCA / Big bags 800 kg, bags50 kg In bulk / Bags, big bags FCA / In bulk / For agricultural producers

774113 UZS 15600-15900 RUR 15380 RUR 15600-15900 RUR 14600 RUR 15400 RUR

In bulk / Bags, big bags Rail-car norms / EXW (Bags 50 kg or big bags) In bulk / Bags, big bags FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk / Big bags 800 kg, bags 50 kg In bulk / Big bags 800 kg, bags 50 kg FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk / Bags, big bags FCA / In bulk / For agricultural producers

15600-15900 RUR 3333-3417 UAH 12000-12300 RUR 12414 RUR 14000 RUR 10650 RUR 10195 RUR 12180 RUR 11950 RUR 11100-11400 RUR 12180 RUR

NP(S) 20-20 (8) NPK 10-26-26 NPK 10-26-26 NPK 13-19-19 NPK 15-15-15 NPK 16-16-16 NPK 16-16-16 NPK 16-16-16 NPK 16-16-16

Russia Russia Russia Russia Russia Russia Russia Russia Russia

Cherepovets (Vologda region) Voskresensk (Moscow region) Cherepovets (Vologda region) Cherepovets (Vologda region) Veliky Novgorod Acron JSC (Novgorod region) Rossosh (Voronezh Mineral fertilisers JSC region) Nevinnomysskiy Azot Nevinnomyssk JSC (Stavropol territory) Verkhnedneprovsky Dorogobuzh JSC Settlement (Smolensk region)

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Agrochemistry

Prices

Product NPK 17-0,1-28

Manufacturer

City

Country Russia Russia Ukraine

Notes In bulk / PP Bags, big bags 500 kg In bulk / PP Bags, big bags 500 kg Rail-car norms / EXW (Bags 50 kg or big bags) Rail-car norms / EXW (Bags 50 kg or big bags)

Nevinnomysskiy Azot Nevinnomyssk JSC (Stavropol territory) Nevinnomysskiy Azot Nevinnomyssk NPK 21-0,1-21 JSC (Stavropol territory) Dneprovskyy Plant of Dniprodzerzhynsk NPKS 5-16-30-10 Chemical Fertilisers (Dnipropetrovsk PJSC region) Dneprovskyy Plant of Dniprodzerzhynsk (Dnipropetrovsk NPKS 7-21-21-13 Chemical Fertilisers PJSC region) Dneprovskyy Plant of Dniprodzerzhynsk Phosphogypsum, 90% CaSO4 Chemical Fertilisers (Dnipropetrovsk PJSC region) Potassium chloride powder, 95% Uralkali Combined Berezniki (Perm KCL Company territory) Dehkanabad Potash Dehqonobod Plant Unitary Potassium chloride, 58-60% K2O (Qashqadaryo region) Enterprise Potassium fertiliser iquid APP PhosAgro-Cherepovets Cherepovets (Vologda 11-37, 11% N, 37% P JSC region) Potassium nitrate, 34% P, Navoiyazot JSC Navoiy 12.2% N Chirchiq (Toshkent Maxam-chirchiq JSC Potassium sulphate, 48% K2O province) Turkmenabat Chemical Trkmenabat (Lebap Superphosphate ammoniated Plant named after S.A. province) Niyazov Superphosphate ammoniated Qoqon superfosfat Qoqon (Fargona granulated, 13% zavodi JSC province) Dneprovskyy Plant of Dniprodzerzhynsk Superphosphate double NP 10Chemical Fertilisers (Dnipropetrovsk 32, (20) CaO-14% PJSC region) Superphosphate granulated Phosphorit Industrial Kingisepp (Leningrad enriched N-P-Ca-S-Mg 6-26Group Ltd region) (12-17)-(8-10)-0.5 Suprefos-NS, NPCaS 12-24Olmaliq (Toshkent Ammofos-Maxam JSC 14-25 province) Togliatti (Samara UAN-28, 28% N KuibyshevAzot OJSC region) Chirchiq (Toshkent UAN-32, 32% N Maxam-chirchiq JSC province) Nevinnomysskiy Azot Nevinnomyssk UAN-32, 32% N JSC (Stavropol territory) Novomoskovskiy Azot Novomoskovsk (Tula UAN-32, 32% N JSC region) Urea, 46.2% N Fargonaazot JSC Fargona Gazprom Neftekhim Salavat (Republic of Urea, 46.2% N Salavat JSC Bashkortostan) Togliatti (Samara Urea, 46.2% N KuibyshevAzot OJSC region) PhosAgro-Cherepovets Cherepovets (Vologda Urea, 46.2% N JSC region) Urea, 46.2% N Tejen Carbamide Plant Tejen (Ahal province)
1 EUR = 45,0559-49,5839 RUR 1 EUR = 3000,05-3053,73 UZS 1 EUR = 3,8982-3,9159 1 EUR = 10,8496-13,6372 UAH

Price per tonne, ex. VAT 10000-10300 RUR 8800-9100 RUR 3583-3625 UAH 3583-3625 UAH 45-58 UAH

Ukraine

Ukraine Russia Uzbekistan Russia Uzbekistan Uzbekistan Turkmenistan Uzbekistan Ukraine Rail-car norms / EXW (Bags 50 kg or big bags) In bulk / Bags, big bags Bags Bags Prepayment In bulk / FCA / For agricultural producers EXW FCA / For agricultural producers

5927 RUR 757308 UZS 13013 RUR 975-1100 USD 4436540 UZS 500 TMT 272430 UZS 3583-3667 UAH 11500-11800 RUR 443258 UZS 8729 RUR

Russia Uzbekistan Russia Uzbekistan Russia Russia Uzbekistan Russia Russia

In bulk In cisterns In cisterns In bulk FCA / In bulk

252500 UZS 8900 RUR 7900 RUR 485807 UZS 10576 RUR 11510 RUR 10955 RUR 400 TMT

FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural Russia producers Turkmenistan Prepayment

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 Official exchange rate, according to the National Bank of Ukraine during 1Q 2014 1(85) February 2013 Eurasian chemical market 43

Specialty chemicals

Prices

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Prices for some specialty chemicals produced in Russia, Belarus, Uzbekistan, Turkmenistan and Ukraine in 1Q, 2014
Product Acrylic emulsion, polymerisation product of methyl acrylate ester, 20% solids Acrylonitrile technical, 0,008-0,806 g/cm3 density Additive high-octane motor / product of esterification of olefins with methanol, 5% actual resin Alcaline Adipate Plastificator (AAP), 1830% sodium adipate Aluminum potassium sulphate, pure for analysis Ammonium alum alumina, pure Ammonium nitrate, grade A, 98% Benzene-toluene fraction (bentol), 20-50% benzene, 50-80% toluene Benzene-toluene fraction (bentol), 20-50% benzene, 50-80% toluene Bischofite brine, GreenRide Calcium and magnesium carbonate (dolomite powder), 40% CaO, 22% MgO Calcium carbonate dispersed technical MTD2, 98% Calcium carbonate milled MM-3 Calcium carbonate milled separated MMS-2, 98% Calcium carbonate milled separated S-1, 98.2% Calcium carbonate MMK, powder feed, 98% Calcium carbonate MMZHP, powder Manufacturer City Country Notes For leather finishing and nonwovens For production of butadiene nitrile rubber, synthetic fibers, plastics, ABC, SAN - plastic, acrylamide, methyl acrylate, glutamic acid, as insecticide Price per tonne, ex. VAT 4800 USD

Navoiyazot JSC

Navoiy

Uzbekistan

Navoiyazot JSC

Navoiy

Uzbekistan

2400-2600 USD

Togliattikauchuk Ltd

Togliatti

Russia Used for the production of building materials, oil and gas extraction (upstream processes) Bag 50 kg / coagulant in pulp and paper industry Bags 50 kg, big bags 700 kg / Raw materials For production of synthetic crystals (corundum) In bulk / PP bags 50 kg / Big bags 800 kg / Components of explosive Ovtane booster

29237 RUR

Shchekinoazot UCC JSC Promchimperm CJSC Promchimperm CJSC

Schyokino (Tula region) Perm Perm Togliatti (Samara region) Perm Uzlovaya (Tula region) Volgograd

Russia Russia Russia

4600-6900 RUR 26 RUR / kg 20 RUR / kg 9530-9800 RUR 27966 RUR

KuibyshevAzot OJSC SIBUR-Khimprom CJSC Plastic JSC Kaustik JSC R&D enterprise Kaltsyt Ltd Volcheyarovsky Quarry PJSC Volcheyarovsky Quarry PJSC Volcheyarovsky Quarry PJSC Volcheyarovsky Quarry PJSC Volcheyarovsky Quarry PJSC Volcheyarovsky Quarry PJSC

Russia

Russia

Russia Russia

Ovtane booster

27966 RUR 15000-17000 RUR

Donetsk

Ukraine

As flux, refractories, for magnesium

792 UAH

Lisichansk (Luhansk region) Lisichansk (Luhansk region) Lisichansk (Luhansk region) Lisichansk (Luhansk region) Lisichansk (Luhansk region) Lisichansk (Luhansk region)

Ukraine Ukraine Ukraine Ukraine Ukraine Ukraine For feeding animals and birds For building mixes Used inpolymer, paint, rubber and cable industry Used in plastic, paint, rubber and cable industry

458 UAH 350 UAH 525-558 UAH 550-583 UAH 350-425 UAH 392 UAH

44 Eurasian chemical market 1(85) February 2013

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Specialty chemicals

Prices

Product Calcium chloride technical, inhibited, 80% Carbon black K-354 Carboxymethylcellulose, 50-60% Cellulose trinitrate / Pyroxylin Chladone R600a (isobutane) Colloxylin solution in organic solvents / Mastic, 22% Copper oleate Dibutyl phthalate, density 1.045-1.049 g/cm3 Diethyleneglycol, 99.5% Dimethylamine, 40%

Manufacturer Khimprom Ltd Khazar Chemical Plant Cellikom JSC Tambov Powder Plant FSE Promchimperm CJSC Tambov Powder Plant FSE Tambov Powder Plant FSE Lakokraska JSC SIBUR-Neftekhim JSC Scientific and Industrial Association Tehnolog JSC

City Kemerovo Khazar (Balkan province) Kazan (Republic of Tatarstan) Kotovsk (Tambov Region) Perm Kotovsk (Tambov Region) Kotovsk (Tambov Region) Lida (Grodno region) Dzerzhinsk (Nizhny Novgorod region) Sterlitamak (Republic of Bashkortostan)

Country Russia Turkmenistan Russia Russia Russia Russia Russia Belarus Russia Russia

Notes EXW / Big bags 500 kg, bags 25 kg, rail-cars

Price per tonne, ex. VAT 21000 RUR 2350 USD 29661-61017 RUR

For obtaining smokeless powder, dynamite, explosives / reusable packaging 18-22kg Container 400 kg Formanufacture of binding materials and artificial leather Antiwear additive for internal combustion engine Plasticiser Plasticiser of film materials, adhesives For rubber, dimethylformamide, dimethylacetamide, in organic synthesis / Barrel 216.5 l For obtaining alkyd resins, terpene resins, carvone, rubber chemicals, substitute of chlorinated solvents inprinting industry For rubber, paint materials / Bags 20 kg Flocculant for obtaining explosives, gels for chemical analysis, and in gold mining, coal mining For producing electrical insulation / For cable For rubber production / In bulk In bulk / Feedstock for organic synthesis

248500 RUR 200 RUR / kg 82797 RUR 327966 RUR 2377900025081000 BYR 40254 RUR 40000 RUR

Dipentene (1-methyl-4-iso propenyl cyclohexen-1), 0.8411 g/cm3 density Filler Carbosil, grade KS-20, 20% carbon, 70% silicon dioxide Flocculant PAA-GS / Polyacrylamide granulated 50-56%, sulphate ammonia 34-40%, mixture Gum rosin, noncrystallisable, modified Gum rosin, pine, 6% unsaponifiables Gum turpentine, 60% and -pinenes Hexachloroparaxylene Hepsol-HKP, 53-62% Cl Inhibitor of sediments mineral salts IOMS-1 / 25% sodium salts aminomethylene phosphonic acids of nitrilotrimethylphosphonic acid

Delios Ltd

Dzerzhinsk (Nizhny Novgorod region)

Russia

271186 RUR

Ecochemmach JSC

Buy (Kostroma region)

Russia

12797 RUR

Navoiyazot JSC

Navoiy Borisov (Minsk region) Borisov (Minsk region) Borisov (Minsk region) Volgograd

Uzbekistan

3680 USD 31020000 BYR 28200000 BYR 23970000 BYR 58500-70000 RUR

Lesohimik JSC Lesohimik JSC Lesohimik JSC Kaustik JSC

Belarus Belarus Belarus Russia

Chemical company Niton JSC

Yekaterinburg (Sverdlovsk region)

Russia

For water treatment

50848 RUR

1(85) February 2013 Eurasian chemical market 45

Inorganics

Prices

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Product Inhibitor of sediments mineral salts IOMS-1M, 25% Na3NTF Inhibitor of sediments mineral salts ZnOEDFK / Oxyethylidene diphosphonic acid zinc complex, 20-25% Inhibitor of sediments mineral salts, corrosion and biofouling, grade KISK2, KISK-B / sodium salts of organic phosphonic acid water solution Inhibitor of sediments of mineral salts IOMS-2, 25% Na3NTF Inhibitor Zn-IOMS / mixture of sodium salts nitrilotrimethylphosphonic methyliminobismethylphosphonic acids and complexes of zinc, 25% organophosphate Lanthanum nitrate, pure, 98% Monoethyleneglycol, 99.5% Monoethyleneglycol, 99.8% Monoethyleneglycol, 99.8% Neutral cake soda calcinated Nickel nitrate, 98%

Manufacturer Chemical company Niton JSC

City Yekaterinburg (Sverdlovsk region)

Country Russia

Notes For water treatment

Price per tonne, ex. VAT 59322 RUR

Chemical company Niton JSC

Yekaterinburg (Sverdlovsk region)

Russia

For water treatment

67797 RUR

Chemical company Niton JSC

Yekaterinburg (Sverdlovsk region)

Russia

For water treatment

118644 RUR

Chemical company Niton JSC

Yekaterinburg (Sverdlovsk region)

Russia

For water treatment

67797 RUR

Chemical company Niton JSC

Yekaterinburg (Sverdlovsk region)

Russia

For water treatment

67797 RUR

Centers of technology Lantan Ltd SIBUR-Neftekhim JSC SIBUR-Neftekhim JSC SIBUR-Neftekhim JSC Shchekinoazot UCC JSC Centers of technology Lantan Ltd

Novosibirsk Dzerzhinsk (Nizhny Novgorod region) Dzerzhinsk (Nizhny Novgorod region) Dzerzhinsk (Nizhny Novgorod region) Schyokino (Tula region) Novosibirsk

Russia Russia Russia Russia Russia Russia

For production of highoctane gasoline and hydrogen batteries of mobile phones

26 USD 44068 RUR 44068 RUR 27966 RUR

Used for the production of building materials, oil refining (downstream processes) For production of alkaline batteries Binder inproduction of reinforced plastics, protective coatings, building materials, electrical insulating compounds, lacquers, enamels, adhesives

9700 RUR 230 RUR / kg

Oligoetheracrylates MGF-9

Armoplast PJSC

Sievierodonetsk (Luhansk region)

Ukraine

83333 UAH

Oligoetheracrylates MGF-9 Oligoetheracrylates TGM-3 Paraffin crude fraction II Paraffin in styrene solution, density 0.9010.903 g/cubic meter

CHIMEX Limited CJSC Armoplast PJSC Fargona Refinery unitary subsidiary Zhylevsky Plastics Plant OJSC

St. Petersburg Sievierodonetsk (Luhansk region) Fargona Sitne-Schelkanovo (Moscow region)

Russia Ukraine Uzbekistan Russia Monomers for production of resins For production hard paraffin Canister 5, 10 kg / Curing accelerator

381356 RUR 85000 UAH 600 USD 123100 RUR

46 Eurasian chemical market 1(85) February 2013

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Inorganics

Prices

Product Paraffin petroleum solid, grade T1, T2, T3 Paraffin hlorinated, grade CP-250, 24-29% Cl Paraffin hlorinated, grade CP-418, 40-43% Cl Paraffin hlorinated, grade CP-470, 45-49% Cl Paraffin hlorinated, grade CP-52, 50-54% Cl Paraffin hlorinated, grade CP-66, 53-54% Cl Pentaerythritol technical filtrate, 20% of sodium formate a-Pinene, 95% Pinene natural (of gum turpentine), 90% Polyacrylamide-gel ammoniacal, 6%

Manufacturer Fargona Refinery unitary subsidiary Kaustik JSC Kaustik JSC Kaustik JSC Kaustik JSC Kaustik JSC Metafrax JSC

City Fargona Volgograd Volgograd Volgograd Volgograd Volgograd Gubaha (Perm territory) Dzerzhinsk (Nizhny Novgorod region) Dzerzhinsk (Nizhny Novgorod region) Navoiy

Country Uzbekistan Russia Russia Russia Russia Russia Russia

Notes

Price per tonne, ex. VAT 1358333 UZS

For production of coatings, component for processing leather Plasticiser in polymer compositions Plasticiser in polymer compositions Plasticiser in polymer compositions Flame retardant for paintwork materials and plastics EXW / Tank-cars 50-60 tonnes For obtaining camphor, solvents paints and varnishes, raw material for pine oil, terpineol and fragrances Used in cosmetics Flocculant for water purification and preparation of mineral fertilisers, for drilling and oil production, sizing of fabric Flocculant for natural and waste water, to trap heavy metals and toxic substances / Bag 45 kg For petrochemical industry,addition of detergents, for sizing of warp yarns, thickener inks Component of finishing agents intextile industry and inleather industry Used in electronic equipment, cables, paper isolation, polishes and creams, household chemicals, printing inks, pigments, masterbatches In modeling wax compositions For giving fabrics abrasion resistance and in leather industry Additives to lubricants and cutting fluids For obtaining adhesives, hydrogels, paint formulations, as conditioning additives for mineral fertilisers

34900-43200 RUR 34900-43200 RUR 34900-43200 RUR 34900-43200 RUR 50000-65000 RUR 2000 RUR

Delios Ltd

Russia

135593 RUR

Delios Ltd

Russia

118644 RUR 3400-3900 USD

Navoiyazot JSC Zavod imeni Sverdlova Federal government enterprise Cellikom JSC

Uzbekistan

Polyacrylamide-gel ammoniacal, 6%

Dzerzhinsk (Nizhny Novgorod region)

Russia

16949 RUR

Polyanionic cellulose, 50-60% Polyethylene emulsion Oxalen-30, 25% PE wax

Kazan (Republic of Tatarstan) Navopolatsk (Vitsebsk region)

Russia

50848127118 RUR

Naftan JSC

Belarus

49500 RUR

Polyethylene wax nonoxidized, grade PV-200 Polyethylene wax nonoxidized, grade PV-300 Polyethylene wax oxidized, grade PVO-30 Polyglycols Polymer VRP-3 (based onproduct of alkaline hydrolysis of polyacrylonitrile fibers, neutralized by acetic acid), grade B, 35-55% of dry substance

Naftan JSC

Navopolatsk (Vitsebsk region) Navopolatsk (Vitsebsk region) Navopolatsk (Vitsebsk region) Dzerzhinsk (Nizhny Novgorod region)

Belarus

70000 RUR

Naftan JSC Naftan JSC SIBUR-Neftekhim JSC

Belarus Belarus Russia

70000 RUR 130000 RUR 63559 RUR

Lesohimik JSC

Borisov (Minsk region)

Belarus

6900000 BYR

1(85) February 2013 Eurasian chemical market 47

Inorganics

Prices

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Product Preparation K-4 (watersoluble polymer) Propyleneglycol, 99% Salt OEDFK / 1 oxyethylidendiphosphone acid trisodium salt, pure, 96% Silicon dioxide precipitated / silica filler Rosil-175, grade A, 90% Silicon dioxide precipitated / silica filler Rosil-175, grade B, 90% Silicon dioxide precipitated / silica white BS-100 compacted with calcium chloride, 86% Silicon dioxide precipitated / silica white BS-100 compacted, 86% Silicon dioxide precipitated / silica white BS-120 compacted, 87% Silicon dioxide precipitated / silica white BS-120 uncompacted, 87% Silicon dioxide precipitated / silica white BS-50, 76% Silicon dioxide precipitated / silica white U-333, 88% Silicon dioxide, 30% solution

Manufacturer Navoiyazot JSC Khimprom Ltd Chemical company Niton JSC

City Navoiy Kemerovo Yekaterinburg (Sverdlovsk region) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Navopolatsk (Vitsebsk region)

Country Uzbekistan Russia Russia

Notes As glue in printing industry EXW / PE canisters, barrels Forperfume industry

Price per tonne, ex. VAT 400 USD 90000 RUR 211864 RUR

Soda JSC

Russia

In bulk / Bags / Big bags

54900 RUR

Soda JSC

Russia

In bulk / Bags / Big bags

54590 RUR

Soda JSC

Russia

In bulk / Bags / Big bags

48410 RUR

Soda JSC

Russia

In bulk / Bags / Big bags

48410 RUR

Soda JSC

Russia

In bulk / Bags / Big bags

50610 RUR

Soda JSC Soda JSC Soda JSC

Russia Russia Russia

In bulk / Bags / Big bags In bulk / Bags / Big bags In bulk / Bags / Big bags Binder and stabilizing component of refractory linings in metallurgical and engineering industries, carrier for various catalysts Plasticiser for elastomers reagent treatment of fabrics and leathers, to reduce foaming, without prejudice to the lubricating properties of engine oil, in the production of household chemicals and cosmetics Heat transfer medium, hydraulic, damping and coolant, dielectric transitions in defoamers Surfactant inproduction of detergents Surfactants in synthetic detergent

52920 RUR 58140 RUR 61990 RUR

Naftan JSC

Belarus

437200 RUR

Silicone fluid PMS-50, PMS-100, PMS-200, PMS-300, PMS-400 / Polymethylsilicone fluid (oil) Silicone fluid PMS-500 Polymethylsilicone fluid (oil) Sodium alkyl benzene sulfonate Sulphonol, grade bleached, 40-45% solution Sodium alkylbenzene sulphonate (sulphonol), 25%

Penta-91 Ltd

Moscow

Russia

127119 RUR

Penta-91 Ltd Zavod imeni Sverdlova Federal government enterprise Soda JSC

Moscow

Russia

135593 RUR

Dzerzhinsk (Nizhny Novgorod region) Sterlitamak (Republic of Bashkortostan)

Russia

93220 RUR

Russia

22740 RUR

48 Eurasian chemical market 1(85) February 2013

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Inorganics

Prices

Product Sodium chloride, 96% Sodium chloride, aqueous solution (280 g/l), 50 g/l sodium sulphate, 10 g/l caustic soda Sodium formiate, 25% solution Sodium silicate, 19,228,8% silicon dioxide Sodium silicate, min 99% of SiO2 + Na2O Substances textile auxiliaries Sorbital S-20 / Product of oxyethylation of sorbitan S Substances textile auxiliaries Sorbitan S / Product of esterification of sorbitol and stearic acid Tetrabutoxytitanium technical

Manufacturer Soda JSC

City Sterlitamak (Republic of Bashkortostan) Kemerovo

Country Russia

Notes Reagent, antiglaze material technical / Big bags For regeneration of ion exchange resins at water treatment plants

Price per tonne, ex. VAT 1318 RUR 3000 RUR / m3

Khimprom Ltd Scientific and Industrial Association Tehnolog JSC Soda JSC Zaporozhye Factory of Welding Fluxes and Glass Products JSC Naftan JSC

Russia

Sterlitamak (Republic of Bashkortostan) Sterlitamak (Republic of Bashkortostan) Zaporizhzhia

Russia Russia Ukraine

Antifreeze additive in concrete For silicate paints PP Big bags 1000 kg / rail-car, tank-car, tank norms Used for finishing fibers and fabrics

6780 RUR 11815 RUR 2115 UAH

Navopolatsk (Vitsebsk region)

Belarus

110000 RUR

Naftan JSC

Navopolatsk (Vitsebsk region)

Belarus

Used for finishing fibers and fabrics Drum 200 kg, 40 kg / Catalyst inproduction of plasticisers, paints, component in cable industry For illumination optics, deposition of thin films of titanium dioxide, catalyst inproduction of plasticisers, polymers Floated reagent of metals, in manufacture of mercantans, dyes synthetic resins Coating composition of glass / Packaging 2 kg, 5 kg

130000 RUR

Promchimperm CJSC

Perm

Russia

189 RUR / kg

Tetraethoxytitanium, pure

Promchimperm CJSC

Perm

Russia

3980 RUR / kg

Thiourea (thiocarbamide), 95% Tin tetrachloride 5-water (crystalline), pure Triethanolamin titanat technical Triethylaluminum

Navoiyazot JSC Promchimperm CJSC Promchimperm CJSC Tomskneftekhim Ltd

Navoiy Perm Perm Tomsk

Uzbekistan Russia Russia Russia

9270345 UZS 750 RUR / kg 249 RUR / kg

Used for the production of polypropylene, linear polyethylene and HDPE Reductant type NOx for diesel engines

361017 RUR

Urea in demineralised water, solution of high Grodno Azot JSC Grodno purity AUS-32, 32%
1 EUR = 45,0559-49,5839 RUR 1 EUR = 3000,05-3053,73 UZS 1 EUR = 3,8982-3,9159 1 EUR = 12650-13400 BYR 1 EUR = 10,8496-13,6372 UAH

Belarus

4169954 BYR

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 Official exchange rate, according to the Central Bank of Turkmenistan during 1Q 2014 Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014 Official exchange rate, according to the National Bank of Ukraine during 1Q 2014

1(85) February 2013 Eurasian chemical market 49

Paints and coatings

Prices

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Product Acrylic acid, 99.5% Acrylic acid, 99% Acrylic dispersion Akrilan 121 / Aqueous dispersion of a copolymer of esters of acrylic and methacrylic acids, 50% solids Alcohol-ether concentrate, grade A Alcohol-ether concentrate, grade B Butylacrylate, 99.5% Calcium phosphate lamellar Cellulose dinitrate / Kolloksilin lacquer, anhydrous, grade PSV Cellulose dinitrate / Kolloksilin lacquer, dehydrated, grade VV, VNV

Prices for some feedstocks for paintwork production in Russia, Ukraine, Belarus and Uzbekistan as of 1Q, 2014
Manufacturer Acrylate JSC Acrylate JSC City Dzerzhinsk (Nizhny Novgorod region) Dzerzhinsk (Nizhny Novgorod region) Vladimir Country Russia Russia Notes Price per tonne, excluding VAT 68644 71186 RUR 77119 RUR

Akrilan Ltd SIBUR-Khimprom CJSC SIBUR-Khimprom CJSC Acrylate JSC Kronakril Ltd Tambov powder factory

Russia

Without cost of packaging

67373 RUR

Perm Perm Dzerzhinsk (Nizhny Novgorod region) Yaroslavl Kotovsk (Tambov region)

Russia Russia Russia Russia Anticorrosive pigment for paints water For production of lacquers, enamels, primers, mastics, celluloid / corrugated boxes 12-18 kg For production of lacquers, enamels, primers, mastics, celluloid / corrugated boxes 12-18 kg For the production of lacquers, enamels, primers, mastics, fillings, celluloid / reusable packaging 18-22 kg Binder in solution with fillers (chalk, cement), for manufacture of lacquers, enamels, adhesives For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber

29661 RUR 16525 RUR 77119 RUR 1500 USD

Russia

191000 RUR

Tambov powder factory

Kotovsk (Tambov region)

Russia

187000 RUR

Cellulose dinitrate / Kolloksilin lacquer, not anhydrous, grade NH

Tambov powder factory

Kotovsk (Tambov region)

Russia

223203 RUR

Co-polymer of methacrylic acid and butyl ester of methacrylic acid BMK-5 Dye cationic black Dye cationic blue Dye cationic bright green 4S Dye cationic bright green Zh Dye cationic brown 4Zh Dye cationic brown Zh Dye cationic cyan 2 3 Dye cationic golden yellow 2K 200% Dye cationic red S Dye cationic violet 2K

Experimental Plant of acrylic dispersion Ltd KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC

Dzerzhinsk (Nizhny Novgorod region) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic)

Russia

150000 RUR

Russia Russia Russia Russia Russia Russia Russia Russia Russia Russia

228814 RUR 266949 RUR 205932 RUR 213559 RUR 125424 RUR 117797 RUR 221186 RUR 282203 RUR 282203 RUR 198305 RUR

50 Eurasian chemical market 1(85) February 2013

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Paints and coatings

Prices

Product Dye cationic violet 2S Dye cationic violet S Dye cationic violet SN Dye direct green Dye direct yellow Dye direct yellow 200% Ethylcellosolve technical, 99.5% Glyptal resin in organic solvents (Resin 188) Hardener E-45 / Polyamide resin solution in xylene, 69-71% solids Hardener 1 / Hexamethylenediamine, solution in ethyl or isopropyl alcohol, 50% Hardener 2 / Polyamide resin solution in a mixture of organic solvents, 30% solids Hardener 3 / Polyamide resin solution in a mixture of organic solvents Hardener 4 / Polyamide resin solution in a mixture of organic solvents, 69-71% solids Hardener 5 / Polyamide resin solution in a mixture of organic solvents, 48-52% solids Isobutanol technical, 99.3% Isobutanol technical, 99.3% Melamine-formaldehyde resin K-421-02 Methylacrylate, 98.5-99.3% Methylacrylate, 99.7% n-Butanol technical, 99.4% n-Butanol technical, 99.4% Pentaerythritol technical, 95% Pentaerythritol technical, 98% Pentaphthalic resin PF-053, 54% nonvolatile substances Pentaphthalic resin PF-060, 5255% nonvolatile substances

Manufacturer KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC KrasS CJSC Khimprom Ltd Tambov powder factory Lakokraska OJSC Lakokraska OJSC

City Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Novocheboksarsk (Chuvash Republic) Kemerovo Kotovsk (Tambov region) Lida (Grodno region) Lida (Grodno region)

Country Russia Russia Russia Russia Russia Russia Russia Russia Belarus Belarus

Notes For coloring PAN-fiber For coloring PAN-fiber For coloring PAN-fiber For coloring cotton and viscose For coloring cotton and viscose For coloring cotton and viscose EXW / Cistern 40-50 tonnes In consumers packaging / Barrels 50 l With cost of packaging

Price per tonne, excluding VAT 198305 RUR 198305 RUR 198305 RUR 228814 RUR 152542 RUR 99153 RUR 70000 RUR 41000-44703 RUR 35001000 BYR 2990300030931000 BYR 1852800022963000 BYR 2506600031061000 BYR 1852800022963000 BYR 2506600030767000 BYR 42686 RUR 40254 RUR 3670700037379000 BYR 3700 3710 USD 76721 RUR 45339 RUR 42797 RUR

Lakokraska OJSC

Lida (Grodno region)

Belarus

Lakokraska OJSC

Lida (Grodno region)

Belarus

Lakokraska OJSC

Lida (Grodno region)

Belarus

Lakokraska OJSC Gazprom Neftekhim Salavat JSC SIBUR-Khimprom CJSC Lakokraska OJSC Navoiyazot JSC Acrylate JSC SIBUR-Khimprom CJSC Gazprom Neftekhim Salavat JSC Metafrax JSC Metafrax JSC Lakokraska OJSC Lakokraska OJSC

Lida (Grodno region) Salavat (Republic of Bashkortostan) Perm Lida (Grodno region) Navoiy Dzerzhinsk (Nizhny Novgorod region) Perm Salavat (Republic of Bashkortostan) Gubaha (Perm territory) Gubaha (Perm territory) Lida (Grodno region) Lida (Grodno region)

Belarus Russia Russia Belarus Uzbekistan Russia Russia Russia Russia Russia Belarus Belarus For the amount of up to 1 rail-car For the amount of up to 1 rail-car

58730 RUR 60730 RUR 1554900020213000 BYR 1290000015245000 BYR

1(85) February 2013 Eurasian chemical market 51

Paints and coatings

Prices

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Product Phthalic anhydride, 99.9% Pigment on the basis of zinc phosphate, subgrade AM, 3444% Zn, max 30% of calcium phosphate PVA dispersion , grade D 50N PVA dispersion , grade DF 16/5N PVA dispersion , grade DF 47/50V PVA dispersion , grade DF 51/10SL PVA dispersion , grade DF 51/15VP PVA dispersion, grade D 50S PVA dispersion, grade D 51S PVA dispersion, grade D 51S PVA dispersion, grade D 51V PVA dispersion, grade D 51V PVA dispersion, grade DD 50/10S PVA dispersion, grade DD 50/10S PVA dispersion, grade DD 51/15V PVA dispersion, grade DF 51/10S PVA dispersion, grade DF 51/10S PVA dispersion, grade DF 51/15S PVA dispersion, grade DF 51/15S PVA dispersion, grade DF 51/15V PVA dispersion, grade DF 51/15V Solvent Nefras 130-210 Solvent Nefras 135-220 Solvent Nefras S4-150/200 / light kerosene condensate Solvent Nefras S4150/200, light kerosene condensate Solvent R-4 / 62% toluene, 26% acetone, 12% butyl acetate Solvent R-4A / mixture of esters, ketones, aromatic hydrocarbons Solvent R-5 / 30% butyl acetate, 30% acetone, 40% xylene

Manufacturer Lakokraska OJSC Kronakril Ltd Lakokraska OJSC Lakokraska OJSC Lakokraska OJSC Lakokraska OJSC Lakokraska OJSC Plastpolymer JSC Lakokraska OJSC Plastpolymer JSC Lakokraska OJSC Plastpolymer JSC Lakokraska OJSC Plastpolymer JSC Plastpolymer JSC Lakokraska OJSC Plastpolymer JSC Lakokraska OJSC Plastpolymer JSC Lakokraska OJSC Plastpolymer JSC Fargona oil refiney Unitary subsidiary enterprise Buxoro neftni qayata ishlash zavodi Kaustik JSC Naftan OJSC Lakokraska OJSC Lakokraska OJSC Lakokraska OJSC

City Lida (Grodno region) Yaroslavl Lida (Grodno region) Lida (Grodno region) Lida (Grodno region) Lida (Grodno region) Lida (Grodno region) St. Petersburg Lida (Grodno region) St. Petersburg Lida (Grodno region) St. Petersburg Lida (Grodno region) St. Petersburg St. Petersburg Lida (Grodno region) St. Petersburg Lida (Grodno region) St. Petersburg Lida (Grodno region) St. Petersburg Fargona Qorovulbozor (Buxoro province) Volgograd Navopolatsk (Vitsebsk region) Lida (Grodno region) Lida (Grodno region) Lida (Grodno region)

Country Belarus Russia Belarus Belarus Belarus Belarus Belarus Russia Belarus Russia Belarus Russia Belarus Russia Russia Belarus Russia Belarus Russia Belarus Russia Uzbekistan Uzbekistan Russia Belarus Belarus Belarus Belarus

Notes Without cost of packaging Up to 3 tonnes / Bags 40 kg Without cost of packaging With cost of packaging

Price per tonne, excluding VAT 11960000 BYR 2000 USD 9347000 BYR 10857000 BYR 1129100012305000 BYR 1210800013752000 BYR 1236700014011000 BYR

With cost of packaging (Barrels 50l) With cost of packaging With cost of packaging (Barrels 50l) With cost of packaging With cost of packaging (Barrels 50l) With cost of packaging With cost of packaging (Barrels 50l) With cost of packaging (Barrels 50l) With cost of packaging With cost of packaging (Barrels 50l) With cost of packaging With cost of packaging (Barrels 50l) With cost of packaging With cost of packaging (Barrels 50l)

38983 RUR 12349000 BYR 38983 RUR 13128000 BYR 39831 RUR 12843000 BYR 38983 RUR 38983 RUR 13752000 BYR 38983 RUR 13442000 BYR 38983 RUR 14011000 BYR 38983 RUR 1084583 UZS 2351758 UZS

Substitute for white spirit Substitute for white spirit Without cost of packaging / Barrels 180 kg Without cost of packaging / Barrels 180 kg Without cost of packaging / Barrels 180 kg

27000 29000 RUR 5451700 BYR 1232900014169000 BYR 1029800011972000 BYR 1248300014323000 BYR

52 Eurasian chemical market 1(85) February 2013

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Paints and coatings

Prices

Product Solvent R-5A / 30% of butyl acetate; acetone, toluene Solvent R-646, 50% toluene, 15% ethanol, 10% butyl acetate, 10% butanol, 8% ethylcellosolve, 7% acetone Solvent RE-2V / mixture of esters, ketones, alcohols and aromatic hydrocarbons Solvent RE-4V mixture of esters, ketones, alcohols and aromatic hydrocarbons Styrene-acrylic dispersion Akrilan 101 / Aqueous dispersion copolymer butylacrylate and styrene, 50% solids Styrene-acrylic dispersion Akrilan 101 / Aqueous dispersion copolymer butylacrylate and styrene, 50% solids Styrene-acrylic dispersion Akrilan 103 / Aqueous dispersion copolymer butylacrylate and styrene, 29-31% solids Styrene-acrylic dispersion Akrilan 105 / Aqueous dispersion of 2-ethylhexylacrylate and styrene co-polymer, 50% solids Styrene-acrylic dispersion Akrilan 106 / Aqueous dispersion of copolymer butyl acrylate and styrene Styrene-acrylic dispersion Akrilan 107 / Aqueous dispersion copolymer butylacrylate and styrene, 50% solids Varnish semi-finished PE-246 / solution of the unsaturated polyester resin in styrene, butyl acetate and acetone Zinc borate, 37% ZnO, 47% B2O3 Zinc oxide, grade TD, 97-98%

Manufacturer Lakokraska OJSC

City Lida (Grodno region)

Country Belarus

Notes Without cost of packaging / Barrels 180 kg Without cost of packaging / Barrels 180 kg

Price per tonne, excluding VAT 1338500014883000 BYR 1975600022330000 BYR

Lakokraska OJSC

Lida (Grodno region)

Belarus

Lakokraska OJSC

Lida (Grodno region)

Belarus

Without cost of packaging Without cost of packaging / Barrels 180 kg

17988000 BYR 2071200022770000 BYR

Lakokraska OJSC

Lida (Grodno region)

Belarus

Akrilan Ltd

Vladimir

Russia

Without cost of packaging

61441 RUR

Akrilan Ltd

Vladimir

Russia

Iincreased mechanical stability during freezing / thawing

62288 RUR

Akrilan Ltd

Vladimir

Russia

Without cost of packaging

50424 RUR

Akrilan Ltd

Vladimir

Russia

Without cost of packaging

63983 RUR

Akrilan Ltd

Vladimir

Russia

62288 RUR

Akrilan Ltd

Vladimir

Russia

For use in low filled systems

57203 RUR

Zhylevsky Plastics Plant OJSC

Sitne-Schelkanovo (Moscow region)

Russia

Barrel 240 kg / For furniture Pigment prevent smoking while burning (added to plastics, rubber, cable), flame retardant

106500 RUR

Kronakril Ltd GartMet-XXI Ltd

Yaroslavl Zaporizhzhia Olmaliq (Toshkent province)

Russia Ukraine Uzbekistan

2300 USD 4000 UAH

Olmaliq KonZinc powder, grade PTS6, lass B Metallurgiya Kombinati JSC


1 EUR = 45,0559-49,5839 RUR 1 EUR = 3000,05-3053,73 UZS 1 EUR = 3,8982-3,9159 1 EUR = 10,8496-13,6372 UAH

For production of zinc oxide and paints

4247790 UZS

Official exchange rate, according to the Central Bank of Russia during 1Q 2014 Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 Official exchange rate, according to the National Bank of Ukraine during 1Q 2014

1(85) February 2013 Eurasian chemical market 53

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A Systemic Analysis of an Economic Policy of Regulating Hydrocarbons Flows Worldwide under the Conditions of the Shale Gas Revolution
U.S. financial system as a determining factor in shale gas exports
It is necessary to remind how the American financial system is organised in order to understand the nature of global hydrocarbons flows. It should be mentioned that the current monetary and financial system is characterised by the domination of U.S. dollar functioning as the main global currency. The crisis of the monetary system, which is only worsening now, turn out a direct consequence of the money issuing mechanism of the USA. The Federal Reserve issues money, and the American government amasses more and more debts. The U.S. government takes a decision on debt servicing and discharge of liabilities. State expenditures in the USA grow much faster than revenues, the budget has a chronicle deficit and the national debt consequently increases. This process only continues to accelerate and reminds an avalanche. Countries less and less trust in the stability of the U.S. economy and dollar. Now shale gas appears on the scene to come to the rescue. 1) LNG is exported on a small scale. The main advantage of this scenario will be achieved not only through a multiplicative effect, but also via creating an image of securing the American dollar and debt liabilities at the expense of a cheap shale gas effect, which may influence the entire economy. It is important for meeting export liabilities and creating speculative demand (or on the contrary - panic) on the market. If the USA borrows to pay its debts and create an image of solvent before creditor countries, why it cannot do the same with LNG - lets create an image of an exporter sending two-three tankers to Europe, while using shale gas for our own needs as a source of economic prosperity. One should also understand that according to various expert estimates, low-cost gas increases the market Today there are two scenarios of LNG exports from the USA: added value of U.S. economy by 2-6 times via related consuming industries (especially the petrochemical industry). Simply put, this is the mentioned multiplicative effect. Owing to it, America has dethroned China in terms of investment attractiveness worldwide for the first time over more than ten years taking the first place. It is also curious how a significant reduction in gas prices (due to the shale gas revolution) in the United States has led to a decrease in manufacturing costs in America. It came to the point that transnational companies began to repatriate their capital from the traditional regions of commodities production in the Southeast Asia back to the USA. Manufacturing output and the whole economy have started to gradually rise. Today America can boast of the lowest unemployment rate over the recent five years. The housing market is recovering. The machine-building sector has created additional jobs firstly since 1990. As this takes place, the country is developing its own Text by: Zabolotskiy Sergey (Phd in economics) Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences 17 Lavrentyev Ave., Novosibirsk, Akademgorodok, 630090 Tel:+7 (383) 330-10-59. Fax:+7 (383) 330-25-80. E-mail: monzul@yandex.ru

Two scenarios of LNG exports from the USA

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low-cost power generation and petrochemical industry. 2) Theoretically, we can assume that America will export LNG on a large scale. This contradicts sound economic logic but still can take place in exceptional conditions, if, for instance, U.S. gas exports leads to rapid depletion of shale gas resources followed by a regular military intervention against a hydrocarbons producing country in the Middle East or South America. This scenario is advantageous in terms of promoting an image of prosperity of the U.S. economy, which has entered global exchange in hydrocarbons. This may also support the American financial pyramid (Ponzi scheme) confirming the reality of some part of the U.S. economy, which is not based upon speculative operations. In this case, one can expect that traditional suppliers of hydrocarbons, i.e. OPEC countries and other gas suppliers (Norway, Algeria, Nigeria, Qatar, etc.) will mount stiff resistance. Thus, the USA could certainly raise up business rivals among the traditional exporters. In other words, this scenario is not about profits from gas exports, which will be negligible owing to eating away added value during gas liquefaction, transportation and dilution but rather about creating a positive image. In doing so, America will inevitably lose the main driver of its economy in years to come, because profitable gas reserves with low production costs are pretty small, as official forecasts say. Preserving hydrocarbons reserves for future use, given that they could be bought for uncovered dollars (debt liabilities), explains why these scenarios are mutually exclusive.

article. That is why the given article uses conventional terms for worlds economic centres: the USA, the EU, Russia, etc. The U.S. shale gas (and oil) production has led to a number of consequences including those at the global hydrocarbons market. Various studies forecasts that additional volumes of gas produced from shale rock can be exported from the USA approximately starting with 2016 competing with traditional gas suppliers. This article shows why this scenario will be either scarcely probable or hardly influence the worlds economy if realised. We should adopt a systemic approach so as to fully explore the topic of the present article. It is to be also mentioned that no material in some or other way relating to conspiracy theories is used to prove basic principles of the present article. All the materials used are taken from official sources. One of theories that subsequently became a legislative act envisaging temporary replacement of more than 75% of oil imports from the Middle East by 2025 is assumed as a basis for the article . It should be noted once again that the modern world stands in desperate need of gas, oil, and other hydrocarbon resources. That is why we cannot imagine the existence of our civilization without ever growing consumption of these raw materials. And when difficulties with extraction of readily available hydrocarbons appear, this affects the entire global economy. The most difficult challenges mankind faces now are introducing innovative technology for developing problematic and difficult reserves, striking a balance between hydrocarbons producing countries and consuming nations and optimizing gas consumption. Harry Oppenheimer* noted in his day: People buy diamonds out of vanity. They buy gold because they are too stupid to think of any other monetary system which will work. The international system of hydrocarbons supply and maintaining a supply / demand balance are the most effective business direction based on technological and

commercial relations, economic and, consequently, political interests. The vast majority of technological systems in the modern industry as well as energetics and transport are based on using hydrocarbons. Amidst the absence of reliable and stable suppliers of raw materials, ways of their shipments to consumers, there may occur serious failures in global financial and economic processes. Until hydrocarbon resources and reserves are not developed, their actual value increases in a long-term prospect (due to awareness of limits of their us). But as soon as they have been produced and sold, they turn into financial flows. These are sources of new investments in fixed assets and the opportunity to purchase the latest technologies for various tangible and intangible assets. In addition, they are a source of financial receipts or cheap money (in case of their inefficient use). In order to get a clear idea of hydrocarbon flow, one should realise the commercial nature of money, regardless of the currency of the country under consideration. Under these conditions, the task of efficient development of one of the key sectors of Russias economy - oil and gas sector is not increasing exports of raw materials at any price but transforming money income into capital, i. e. self-expanding value, due to efficient investments in the development of a raw material base and further processing hydrocarbons into semi-finished products, gradual creation of assets and products, for example, materials with relatively high added value. It is to be stressed that money is the most universal but not the best mechanism of exchange and one of the main instruments for influencing the world trade. In global conditions, money tends to flow from one system to another. Money inflate the economy and makes it grow. Levels and rates of economic development depend on how money is used by recipients. In this regard, it is important to understand that this is not a group of hydrocarbons

Introduction
Many global processes have to be described in terms of hardly formalized and tangible factors. Today, global economic players are conventionally denoted as financial and industrial groups that cannot always be related to borders of certain countries. However, this is a theme for a separate

1(85) February 2013 Eurasian chemical market 55

Chemistry and economy

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Figure 1. Financial flows from oil importing countries to the exporters in 2012, USD billion dollars

of the above-mentioned region at the expense of its own gas production. Gas is proposed to be used as a substitute for oil products. If we make a brief historical insight, we can see that the United States faced the same problems in 2013 as earlier before. The country faced the same energy issues and the difference was only in other fuel sources. At one time, Americans used whale oil, but were always looking for a cheaper fuel. Coal became an alternative to whale oil followed by crude oil, and eventually shale gas. In the mid-70s, more than 50% of oil consumed by Americans at the domestic market was imported from the Middle East. But the United States were searching for a cleaner and better fuel, which was to be produced locally. First, they pursued a policy

Source: BP Statistical Review of World Energy 2013

exporters have got hooked on oil and gas needle but a group of countries-importers. Such economic methods as an infusion of excessive amounts of hydrocarbons into the market may not have a significant impact on other players, as the exporters have been long using a mechanism of tackling such situations. In other words, these are one-time transactions, which may be resisted by hydrocarbons supplying countries via reducing of excessive amounts of gas supplying to the market. In case of a negative scenario, releasing some insignificant volumes of hydrocarbons are used for domestic consumption, while gas and oil are processed in the country-producer. Thus, all fluctuations in hydrocarbons supplies can be easily regulated by the consuming countries. The dependence of the supplying countries on financial support is less than that of the consuming countries upon hydrocarbons. Continuous flows of hydrocarbons from the suppliers to the consumers will guarantee that in future hydrocarbons will not be used only for domestic consumption in the exporting countries but will still be supplied to the importers. Otherwise, the exporting countries can prepare for consuming the released volumes of hydrocarbons meant for export. In other words, it is not reasonable to

stop buying hydrocarbons, as exporters will still be able to sell hydrocarbons in the future. At the same time, they could be bought for mottled slips of paper dollars, euros, yens or their electronic variant. The question is not how much supplying countries will get for their hydrocarbons, although it is important, but how fast the economy of the supplier and that of the consumer will grow and who will faster create more high-tech assets, which will utilise these hydrocarbons more effectively. These are questions of systemic dynamics, in which the speed of technological development and a real (not hydrocarbon) economy decisively influence the flow of capital from one country to another. In particular, oil price is high enough for Russia, so it is not about meeting the basic demand of any economic system, but rather about rationality of investments and controlling additional financial flows from creating high added value products.

of cultivation of crops for biofuels in Latin America and built windmills and solar panels. In the end, they invented what they are having now. Americans constantly searched through all possible sources of fuel, conducting a systematic analysis of their effectiveness at each time point and analysing their performance indicators over time. So, it is not surprising that that country was the first to produce shale gas. Going over to the crux of the matter, it should be stressed that many American experts believe that low cost shale gas could be a temporary substitute for oil products for motor, railway and sea transport, and could be also used as a raw material for the petrochemical industry and as an instrument for reducing financial flows from the U.S. to the Middle East. The USA transferred USD 1 trillion to the Middle East from 2001 to 2010 and a total of as much as USD 7 trillion from 1976 to 2010 provided that expenditures on military purposes in the region are also taken account. This is the biggest re-distribution of wealth from one group to another over the whole history of mankind. Over the next 10 years it was planned to transfer USD 2.2-2.6 trillion additionally if shale gas is excluded. Figure 1 shows the main financial flows between regions and countries*.

Shale gas revolution


Shale gas revolution is a way to hold financial flows to the Middle East and other oil and gas producing regions of the world. Not long ago, America developed a theory of limiting purchasing hydrocarbons (oil) from countries

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Chemistry and economy

Figure 2. U.S. natural gas production and consumption in 19702012

Source: BP Statistical Review of World Energy 2013.

The United States consumes about 11m barrels daily, which makes up 19.1% of global consumption. In this connection, we can emphasise that demand for hydrocarbons will double only from 2020 to 2040. About 70% is used for transport purposes. Thus, America is implementing an economic strategy of spreading financial flows across the countries-exporters of hydrocarbons so as not to strengthen some particular nation or economic centre / region. The recent cancellation of economic sanctions against Iran and its involving in global economic ties only proves this fact. Save for isolated cases of transferring shale gas technologies to traditional oil and gas producing regions, the said technologies have been transferred only to the consuming regions in order to weaken their dependence from the suppliers. In 20122013, shale gas production technologies were licensed and tested in China and European countries, despite the fact that China became a powerful economic center competing with the United States and getting stronger and stronger year in year out. Thus, with a higher

degree of certainty, we can assume that fears of increasing financial flows to Russia from China and Europe, to the Middle East from the U.S., Europe and China turned out greater due to increased hydrocarbons exports from the first ones. However, problematic geological conditions of occurrences of gas in the main hydrocarbons consuming regions and less extravagant ways of purchasing natural gas from other countries testify to the fact that there will be no breakthrough in shale gas production in China and Europe in the nearest future. It is more reasonable for these regions to acquire natural gas via pipelines and in a liquefied form keeping shale gas reserves for future use. The U.S. strategy is obvious - making hydrocarbons cheaper worldwide. But this strategy cannot be realised in full since the countries-suppliers of hydrocarbons could agree on a reduction in production to support an acceptable level of profitability. As for the European region, it will consume natural gas from Russia as an alternative to LNG supplied from other countries including those from the Middle East.

Still, America is most likely to export LNG on a modest scale and not for long. But if the United States decides to make this step (insignificant LNG exports for a short time), the traditional suppliers of hydrocarbons can agree on cutting production to maintain their profits at an acceptable level.

An important economic driver


Shale gas is an important driver of the U.S. economy. Despite a global slowdown in growth of demand for pipeline and liquefied natural gas in recent years, that country displayed an opposite trend in recent years. Figure 2 clearly shows convergence of supply and demand curves. In 2009-2012 (post-crisis period), there was a slowdown in growth rates of natural gas consumption in all the regions of the world except for the United States. Partly, it could be related to increasing production of cheap shale gas, which pushed an increase in industrial production including in power generation.

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Table 1. Global exports / imports of methanol, thousand tonnes


Net imports Region 2006 12071 4967 7104 2015 25532 7983 17549 Average growth rates, % 1,69 10,6 2006 12071 1567 4 979 5525 Net exports 2015 25558 5327 13465 6766 Average growth rates, % 3,89 1,00 10,6

Japanese and other Asian products as well as by Middle Eastern countries.

Total Europe North East Asia Russia Middle East Other


Source: CMAI

Prospects for optimising a resource base for gas chemical synthesis in Russia
The power intensity of the Russian economy is twice as much as that of Japan and leading Western European countries. Simultaneously, Russia is lagging behind the mentioned regions in terms of GDP per capita. High electric intensity of the Russian economy is associated with its structure. The manufacturing industry prevails in terms

In 2012, the United States were the world leader in terms of absolute growth of gas consumption. We can make a cautious conclusion: low prices for natural gas pushed the countrys economy and gas consumption proper. This is one of the oblique proofs that the USA will not probably export LPG from shale deposits. Certainly, there have been sporadic cases of exporting small LPG volumes from one of the oldest plants of its kind Kenai LNG (Alaska) to Japan starting in 1969. However, the capacity of the plant is only 1,4m tonnes, and it still remains operational only in order to avoid staying idle and saving jobs. Certainly, America has invested a lot of money in LNG terminals. Therefore their lying idle may create another rust belt. But using these production facilities to create a temporary glut of hydrocarbons at some world markets so as to reduce prices may have a short-term effect and, consequently, will not succeed and be implemented in the maximum volume claimed. Hydrocarbons can be purchased via additional issuing of USD dollars, but using domestic reserves of hydrocarbons produced from hard-to-reach oil and gas formations for economic expansion appears illogical. On the opposite, in the nearest future we should expect for the United States to start importing LNG from Qatar and other countries, as a result of consumption growth. This may be

an obvious chance for Russia to occupy its niche in the LNG market in the Asia-Pacific region. In addition, it is expected that total switching of boiler stations from coal to natural gas in China by 2018 and the accident at the nuclear power plant in Japan (leader in terms of LNG consumption) will make these countries key drivers of natural gas consumption in the nearest future. In these conditions, taking into consideration opinions of experts that up to 85% of Russian reserves of hydrocarbons are off-shore reserves, Russia will be able to provide the importing countries with gas for many years to come. It would be much more reasonable for the USA to increase the consumption of gas by resuming purchases from Qatar followed by growing production of high-tech products and an increase in exports of value added products, while maintaining its reserves of shale gas for the future when other countries will run out of them. America would rather concentrate on producing hightech products to exchange them for hydrocarbons at international markets instead of buying them in debt. While China is developing fast, Americans should further exploit a niche for high-quality products. Heavy-duty cars and trucks, stateof-the-art electronics, high-tech aircraft and spacecraft and weapons are those directions that can be developed without competing in low-range segments occupied by Chinese,

of power consumption - its share is 44,5% (without power generation), and in recent years it has been growing. In other words, in the USSR we used to sell products with high added value, and low production costs were based on cheap natural gas. So why should we go away from such an economy? It is far more reasonable to develop it. Supplying methanol, a basic semi-finished product of gas chemical synthesis used for further conversion to a number of chemical substances (including methanol-to-olefins technology) is very promising in this regard. Supplies of pseudo-gas in the form of nitrogen fertilisers should be developed as well. Methanol can be processed into dimethyl ester and used in energetics. And it can become a major factor in the development of the fuel market in the future (lower permeability coefficient and safety). In China, dimethyl ether is widely used as a fuel. In the future, we should expect that countries with poor environment will start purchasing cleaner fuels (such as dimethyl ether). But do not forget that production of cleaner fuels is also harmful to the environment. So, it is rational to move it to remote and sparsely populated areas. Russia may take a larger share of methanol and fertilisers at the world market. This requires cheap gas. According to Russian experts, by 2015 in China a deficit of methanol can reach 5.0-9.6m tonnes (14-

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20 % of domestic demand). In the coming years, China will commission several major production units for methanol, which may reduce the deficit. Its size will probably be determined by a number of production factors, primarily, by feedstock provision of the Chinese methanol sector. As regards outlooks for methanol sales, it is of interest to look at data on the global methanol market presented by CMAI (Table 1). Any process of re-industrialization and increasing competitiveness of the national economy can be achieved by using the Soviet model, which was oriented towards low-cost natural gas. Any production plant based upon cheaper gas will get an advantage at the international markets. In 2013 domestic gas prices in Russia caught up with the U.S. ones fixed at about USD 120 per 1,000 m3 , without taking into consideration seasonality and about a tenfold fluctuation in prices due to abnormally low temperatures during winter. Today Russia still needs to find cheap natural gas to maintain the competitiveness of its economy.

Figure 3. A diagram of Russian gas consumption optimisation

deep-hole drilling or developing off-shore gas. In doing so, the most promising way of improving efficiency of the Russian industrial sector should be replacing obsolete gas turbines with the new ones, i.e. enhancing the coefficient of efficiency of heat power plants . There is no way of refusing from the development of the Arctic shelf, since it is not clear whether warming in the north is temporary or whether there will be climatic cooling again. At the moment, climatic conditions are quite favourable for developing the Arctic shelf. Therefore this period of climatic changes should be used to the utmost to derive substantial benefits from warming. In this regard, to enhance the efficiency of the economy at the expense of saving additional volumes of cheap gas, technologically obsolete turbines at heat power plants should be replaced much more intensively, because more than half of gas is just burned in vain by reason of low technology. The proposed variant of replacing the turbines, however, is not regarded seriously due to the well-known incident at the platform Prirazlomnaya in 2013 (the Prirazlomnaya platform in the Arctic was the focus of a high profile Greenpeace protest in September). Nevertheless, the idea of

turbines replacement actively promoted by Greenpeace in 2006 should be paid scrupulous attention to. This idea is unfairly forgotten, though it is becoming of urgency under the current conditions owing to the success of the Prirazlomnaya, the shale revolution and the necessity to keep domestic gas process at an acceptable level. At the same time, an option of replacing gas turbines at heat power plants to the detritment of investments that could be made in the Arctic shelf development should be entirely excluded. Gas consumption saving will exert a profound multiplicative effect upon the economy. The main difficulty consists in simply making private owners modernise heat and power plants. This may be some legislative measure such as upgrading heat and power plants via a partnership between state and private owners by a certain term. However, one should be completely aware of necessity to enforce modernization. According to the most conservative estimates, aggregate capacity of heat and power stations can increase 1.5-1.7 times at the very least at the cost of increasing their degree of efficiency. Therefore, additional volumes of natural gas could be used for other purposes. A strong stimulus

A source of cheap gas for Russia


Under the current conditions, these are not the countries-exporters of hydrocarbons that have oil / gas addiction but, on the contrary, - a group of the countriesimporters. The exporters could use mineral resources for developing and keeping economy afloat, but the importers have to squeeze the last drops of oil and gas out of the earth, which still remain in shales (save for such exotic hydrocarbons sources as the Arctic shelf and hydrates). They do it in order to maintain the competitive strength of their economies against the background of the fast-growing global economic centres. Hydrocarbons are the second most important factor for any economy after human capital assets. Today to maintain exports level, there are no options left except for

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Table 2. Advantages and disadvantages of replacement with gas


Target area Internal combustion engines in passenger cars, trucks, public motor transport and sea transport Advantage of replacement with gas Bigger fuel tank capacity, longer mileage with the same fuel consumption, high performance engines, low operating costs, lower CO2 emissions Saving gas (smaller consumption of gas in current time direct effect from gas sales by large Russian companies) or releasing cheap gas at the expense of high-tech turbines Disadvantage of replacement with gas (complexity of replacement) High permeability of natural gas, hazards related to high pressure while storing

Out-of-date turbines at HPP

Complexity of modernisation process a large number of HPP owners

for the development of the new economy in Russia can be provided by optimizing gas consumption in accord with a diagram shown in Figure 3. Simultaneously, it is of big interest to consider the key advantages and shortages of using natural gas a fuel (Table 2). It is to be noted that Siberian scientists are carrying out research into mechanisms and a system of optimizing investments in the development of new gas fields and heat and power plant modernisation for from using saved gas.

significant fluctuations. In years to come, All in all, shale gas production is forecast to decline, according to EIA . Thirdly, the accident and subsequent failures at nuclear power stations in Japan, which takes the lead in LPG consumption, as well as total switching of coal boiler rooms to natural gas in China by 2018 make the mentioned countries the key drivers of global gas demand in the nearest future. Large-scale LPG exports from the USA should not be expected; on the contrary, that country may be a potential destination for gas streams in the long-term prospect. Finally, to improve the efficiency of the Russian economy, it is necessary to reduce its power intensity, thus releasing additional gas volumes (at the cost of modernisation and replacement of turbines) of heat and power stations for the sake of gas chemical synthesis and / or generation of cheap power. At the same time, to develop hard-to-get-to resources at the Arctic shelf is also a basis for Russias economic advancement. The Arctic shelf accounts for nearly 80% of hydrocarbons reserves in the country. Therefore, developing them is an inevitable process. Also, the main

task is to facilitate HPP modernisation at the level of legislation to release cheap gas for providing a new stimulus for the economy. It is necessary to upgrade heat and power stations in Russia at a growing rate using a mechanism of state and private partnership along with the development of industry on the basis of business clusters. There should be created an all-Russian information and analytical system on the basis of systemic-dynamic modelling so as to optimise investments in the shelf and HPP modernisation. LNG exports from the USA will probably be insignificant and short-term. The opposite, hardly probable scenario, if the USA did take a step in that direction (large LNG exports for a short period of time), means that the tradional countries-exporters of hydrocarbons could agree on reducing production with the purpose of maintaining their profitability at a suitable level. This is not critical to Russia, since the country will direct its hydrocarbon flows to Asia, of which European countries are well aware. Europeans need Russia in order to put pressure on Qatar and the other countriessuppliers. Pipeline supply is the stability, which Europeans have no intention to lose.

Conclusions
Thus, comparatively recently, a theory of restricting hydrocarbons purchases from the Middle East at the expense of its own production of gas and replacement of oil products with gas in sea, railway and motor transport evolved in America. Secondly, growth of shale gas production in that country contributed to growth of gas consumption and to increased efficiency of the economy. In 2012, gas production growth rates in the USA noticeably reduced. In 2013, monthly production of shale hydrocarbons underwent

* Average oil price is taken for calculation. Aggregated calculation is made on the basis of prices for the following brands of oil : Urals, REBCO, ESPO, Siberian Light, Brent, Dubai Crude, Light Sweet, WTI. 1 Subsidizing Oil Shale: Tracing Federal Support for Oil Shale Development in the United States, Taxpayers for Common Sense, November 29, 2012, link: http://www.taxpayer.net/images/uploads/downloads/OilShale-v7.pdf 2 Henderson D., . Belova M., LNG: Made in USA. Skolkovo energetic centre. hyperlink: http://energy.skolkovo.ru/upload/medialibrary/07c/SEneC_LNG_ Made_in_USA.pdf 4 Russian gas export price in 2013 averaged USD 380 /1,000 m3. U.S. price USD 132 /1,000 m3. Company news http://neftegaz.ru/news/view/118120 5 Wearing of equipment a systemic problem of the entire power industry // Power market. 2011. 3(39) MayJune 2011. hyperlink:http://market.elec. ru/nomer/36/iznos-oborudovaniya-sistemnaya-problema-vsej-elekt/ 7 Zabolotsky S.A. Outlooks for development of LNG supplies: changes in the global markets // Neftegaz.ru. 2013. 10. p. 2126 (http://lib.ieie.nsc.ru/ docs/NeftegazRU_2013_10.pdf)

60 Eurasian chemical market 1(85) February 2013

Re

gis

Re gis ter t i by s O ra tio 31 M pe n ay n ! fo r


be st r ate .

Industry CEOs to provide innovative perspectives to help your business thrive!

Kasper Rorsted, CEO, Germany

Michitaka Sawada, President and CEO, Japan

Peder Holk Nielsen, President and CEO, Denmark

Kurt Bock, Chairman of the Board of Executive Directors, Germany

Itsuo Hama, President and CEO, Japan

H. Fisk Johnson, Chairman and CEO, USA

Additional insight from

UNICEF

Veolia Water Solutions & Technologies

x u e r t n o M 2014

World Conference on Fabric and Home Care


6-9 October 2014 | Montreux.aocs.org | Montreux, Switzerland

Where global leaders shape the future of the fabric and home care industry to enhance our quality of life.

Chemistry and business

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EuroChem Reports IFRS Financial Information for 2013

EuroChem Antwerpens premises

EuroChem

Mineral

and

Chemical

by 8% to 10.6m metric tons (MMT) as compared to 2012 sales volumes (or up less than 1% on a like-for-like basis, excluding EuroChem Antwerpen and EuroChem Agro). Mining raw material sales volumes, which include iron ore and baddeleyite, added over half am tonnes and grew to 5.9 MMT, which represented an 11% increase on the previous year. CEO Dmitry Strezhnev commented: Despite the growth in fertiliser demand falling short of market expectations, we continued to challenge ourselves to increase volumes and gain market share. As highlighted by our results, our unique asset base

is well positioned to drive and support robust cash flow generation across the business cycle. The ensuing value creation is set to be boosted by our targeted strategic initiatives, such as in potash, nitrogen and phosphates, which will serve to further entrench our resilience.

Company (EuroChem) announced consolidated full year 2013 revenues according to IFRS of RUR 176.9bn (USD 5.6bn), which represented a 6% increase on revenues of RUR 166.5bn (USD5.4bn) in 2012. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) amounted to RUR 43.0bn (USD 1.3bn), as compared to RUR 49.2bn (USD 1.6bn) in the previous year. Full year fertiliser sales volumes for the companys nitrogen and phosphate segments, excluding sales of mining co-products, increased 788 thousand metric tons (KMT) or

2013 Market Conditions


The fertiliser markets had a rather tumultuous year. While the year started off slowly on account of adverse weather in some key markets, conditions had materially improved by

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late spring. Farmers quickly made up for the lost time as favourable soft commodity prices provided the incentive to increase yield and expand acreage. Despite the return of healthy demand levels for all three nutrients, the first quarters inventory build-up limited any significant pricing appreciation. Urea prices proved the most vulnerable on account of record urea exports from China where ample coal supply and lower prices boosted the global competitiveness of local producers. On the demand side, Indias currency devaluation coupled with what has been described as an archaic subsidy system left one of the worlds largest fertiliser importers incapacitated for the better part of the year. In a positive for both producers and customers, raw material price dynamics mirrored the softer market conditions. Over the course of the year, gradually weakening ammonia, sulphur and phosphate rock prices helped alleviate some of the margin pressure on the producer side. Prilled urea (FOB Yuzhny) averaged USD 341/tonne in 2013, down 16% from its 2012 average of USD 408/tonne. Ammonium nitrate (AN) (FOB Black Sea) performed slightly better and finished 2013 with an average of USD 288, 5% below its average for the previous year. While phosphate prices received some support from the growth in planted acreage in Latin America, the market remained otherwise fragile given the limited buying activity from India. Average MAP and DAP (FOB Baltic Sea) prices for 2013 were USD 454 and USD 457USD/tonne respectively, trailing their 2012 average prices by 18% and 17% respectively. Midway through the year, unexpected strategic repositioning by Uralkali wreaked chaos over the potash landscape. Citing lost market share and declining sales volumes, the Russian potash producers abrupt exit from the BPC marketing vehicle, which it formed with neighbour Belaruskali, brought the market to a standstill. Potash prices reacted in a knee-jerk fashion and went on to shed over 25% by year end. While many potash expanThe companys 2013 nitrogen segment sales volumes continued to benefit from the added depth to its fertiliser production chain. Full year volumes increased 11% and rose to 8,217 KMT, which corresponded to an additional 838 KMT of product as compared to 2012. While the year proved challenging sion projects were reassessed in the wake of this market reshuffling, EuroChem reiterated its commitment to the third nutrient with work continuing at both its greenfield potash projects in Russia. At an average of USD 352/tonne in 2013 MOP (FOB Baltic Sea) contract prices fell 17% YOY as compared to an average of USD 424/tonne in 2012. The spot price premium to contract prices tightened as buyers held out given the market uncertainty. MOP (FOB Baltic Sea) spot prices ended 2013 with an average USD 379/ tonne, 19% behind their 2012 average of USD 467/tonne. Spot prices for MOP on the Baltics finished the year at around USD 290/ tonne, or ca. 40% below their late December 2012 levels. Buoyed by stronger-than-expected demand from China, iron ore (63.5%Fe, China CFR) averaged USD 136/tonne for the year, a 3% increase versus its 2012 average. for urea and AN trading, the breadth and flexibility of the companys production and distribution assets alleviated some of the pressure. The consolidation of EuroChem Antwerpen and EuroChem Agro yielded significant gains for the companys more advanced crop nutrition products. Sales in NPK, UAN, and granulated AN increased a combined 978 KMT over the previous year, more than compensating the slightly lower urea and AN sales volumes, which slipped 7% and 11% YOY respectively. CAN sales volumes were also strong, increasing 24% to 943 KMT as compared to 759 KMT in 2012. The companys nitrogen revenues for the 12 months ended 31 December 2013 climbed to a record high of RUR 100.1bn, which represented an 8% increase on what was a strong 2012 performance. Average prices for nitrogen products nevertheless reflected the challenging market backdrop and pulled nitrogen segment EBITDA down 14% to RUR 26.2bn as compared to RUR 30.6bn in 2012. Sales to Europe, which represented 26% of total nitrogen sales in 2012, increased 29% and accounted for 31% of the Groups nitrogen sales in 2013. The increase in sales to Europe was primarily brought on by the expansion of the companys distribution network and asset base in Western Europe coupled with challenging conditions on the other side of the Atlantic. The companys sales to Russia increased 14% and accounted for 23% View of Severneft-Urengoy

BUSINESS SEGMENTS Nitrogen segment

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The companys mining operations mitigated the weakness in phosphate-based fertilisers as healthy demand from China carried average iron ore prices 3% higher YOY. Iron ore and baddeleyite, which are the coproducts of apatite mining operations at the companys Kovdorskiy GOK mine, together generated 38% and 74% of phosphate segment revenues and EBITDA, respectively, as compared to 31% and 51% in 2012. The sales geography of the companys phosphate segment reflected the contribution of mining co-products to the segments performance. The share of revenue from Asia increased three percentage points as comGeneral view of Fosforit (Kingisepp, Leningrad region), a member of Eurochem chemical company of segment sales (2012: 22%).Ureas relative weakness versus other nitrogen products was especially felt in the Americas. Sales to Latin America and North America decreased 31% and 18% respectively. Together these two regions accounted for 23% of sales in 2013 (2012: 32%). At the companys upstream nitrogen operations, its Severneft-Urengoy (SNU) natural gas subsidiary provided RUR 5.1bn and RUR 1.5bn to the Groups revenues and EBITDA, respectively. Natural gas sales volumes increased 27% YOY to reach 830m m3 while gas condensate sales volumes expanded 26% to 141 KMT as compared to 2012. The natural gas volumes were sold to Novomoskovskiy Azot at regulated prices less a 5% discount. For the year, the companys Novomoskovskiy Azot and Nevinnomysskiy Azot ammonia facilities paid average natural gas prices of RUR 3,966 and RUR 4,120 per 1,000m3 respectively (c. USD 3.87 and USD 4.03/mmBtu), as compared to average prices of RUR 3,432 and RUR 3,594 per 1,000m3 respectively (c. USD 3.43 and 3.60/mmBtu) for the 12 months ended 31 December 2012. Two natural gas price increases were implemented in 2013 in Russia. An increase of 15% took effect from July 1st followed Total sales volumes for the phosphate segment, excluding raw material mining operations, slipped 2% or 50 KMT to 2,405 KMT in 2013, as compared to last year. MAP/DAP sales remained practically flat with a modest 13 KMT YOY increase while NP sales finished the year 53 KMT below their 2012 levels. Iron ore demand remained resilient throughout the year. Sales of the companys apatite-mining co-product finished the year up 11% to 5,858 KMT as compared to 2012. The strong iron ore backdrop lent support to the companys phosphate segment revenues for the January to December 2013 period and limited the effects of the years lacklustre MAP/ DAP showing. Full year revenues for the companys phosphate segment amounted to RUR 58.3bn, representing a 4% decline on 2012 segment revenues of RUR 60.8bn. Phosphate segment EBITDA had a more pronounced decline, pulled down by the lower average realised prices for phosphate fertiliser products, particularly MAP/DAP, and finished the year at RUR 13.9bn, 15% below the RUR 16.2bn recorded a year earlier. With the cage shaft bottom cleared of water and debris, the companyresumed sinkEurochem VolgaKaliy (Gremyachinskoe deposit, Volgograd region) by a 2-3% raise from October 1st. No price increases have been announced for 2014. pared to 2012 and accounted for 30% of total segment sales. Higher feed phosphate sales drove gains in Europe. As in 2012, it was the companys second largest phosphate market and represented 29% of 2013 sales, a three percentage point increase on last year. Sales to Russia declined six percentage points on lower MAP/DAP prices and accounted for 18% of sales in 2013. In late October 2013 the companyannounced the launch of drilling and blasting operations at the companys phosphate rock mining project in Kazakhstan. Most of the major equipment items required to build the initial phase have been purchased, including but not limited to excavators, dozers, haul trucks, crushers, as well as screening, conveying and loading facilities. First production is expected to come on stream in the fourth quarter of 2014. With its targeted initial production capacity of around 640 KMT of phosphate ore per year, the companys Kazakh mining project has been an important part of the companys upstream raw material strategy.

Phosphate segment

Potash segment

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ing in the fourth quarter and had progressed to a depth of -148 meters as of 31 January. As previously announced, the restart of sinking was delayed by several months. Once the shaft was cleared, detailed surveying revealed that corrections to the shaft liner were required. These issues were inherited from the companys initial contractor for the project and included the need to remove and replace eleven tubing rings and the concrete backing. Work also continued on schedule at the skip shaft #1 where the freeze wall was completed in December. Sinking operations resumed after extensive testing of the water and pressure below the bottom concrete plug. The plug was then removed and sinking operations resumed from -572 meters. As of 31 January, the skip shaft #1 had reached a depth of -601 meters out of its planned -1,147 meters. The freeze wall for the skip shaft #2 was further developed and had achieved its designated thickness at the time of this release. Sinking efforts on the companys phase 2 skip shaft are currently scheduled to start later this month. On the surface, the companysaw good progress on the construction of the main process beneficiation building, warehousing facilities, and loading and shipping facilities. The main electrical substation is essentially complete and undergoing rigorous commissioning checks prior to energising.] EuroChem Usolskiy Potash (Verkhnekamskoe deposit, Perm region) The companysuccessfully completed

As of 31 January, underground operations at the Usolskiy skip shaft were down to 509 meters with only 37 meters left to sink before the shafts planned depth. The companyalso made progress on other excavations in this shaft such as openings for the loading bins and pockets. Above ground, the companys teams were engaged in the construction of the tailings pond and railroads. The landscape of the site further evolved with the erecting of the foundations for various buildings including the administration building, mine rescue building and permanent canteen. For the January to December 2013 period, total capital expenditure at both VolgaKaliy and Usolskiy amounted to RUR 12.4bn, bringing the aggregate total to RUR 57bn since the start of the companys greenfield potash developments.

and Q3 2012, respectively, the companys revenues and EBITDA for 2013 amounted to RUR 135.0bn and RUR 39.2bn respectively. For the twelve months ended December 2013, the companys total cost of sales displayed a 15% increase over the previous year and amounted to RUR 112.8bn. The increase in costs outpaced the 6% revenue growth as average costs and tariffs for key raw materials such as natural gas, phosphate rock, ammonia, and energy moved slightly higher than in the previous year. In line with the growth in production volumes, group costs for materials and components used or resold increased from RUR 64.6bn in 2012 to RUR 70.1 bn in 2013. However, their share within the Groups costs of sales structure decreased four percentage points to 62%. Within cost of sales, labour costs, which include social fund contributions, increased 11% in 2013 and amounted to RUR 10.9bn. Most of the uptick in labour costs was driven by a salary indexation in January 2013 combined with an increase in personnel brought on by the integration of assets acquired in the previous year. As in 2012, labour costs comprised 10% of the Groups total costs of sales in 2013. Despite the considerable increase in production volumes, the share of energy costs within the companys cost structure remained flat at 7%. Although the companyregistered a 14% YOY increase in energy costs following the upward revision to tariffs in the Russian power generation, the companys efficiency upgrade program yielded substantial savings. Particularly, in addition to increasing internal power generation capacity at Phosphorit, the replacement of obsolete catalysts at Novomoskovskiy Azot provided RUR 45m in energy savings in 2013. Total distribution costs ticked up 8% to RUR 25.3bn as compared to RUR 23.3bn for the same period in 2012. Within S&D costs, transportation expenses registered a slight 3% growth to RUR 18.6bn (2012: RUR 18.1bn). Despite increasing YOY, transportation costs comprised 74% of total distribution

Distribution segment
The companys distribution segment comprises the sale of fertilisers and services via a number of retailers located within the CIS, specifically in Russia, Ukraine and Belarus. The strategy to provide its clients with yields, not just fertilisers is there to support its customers improve yields through better crop nutrient balance. In 2013, the companys distribution segment realised sales of RUR 17.0bn and generated EBITDA of RUR 683m.

FINANCIAL Income statement


Consolidated revenues for the twelve months ended 31 December 2013 grew 6% to RUR 176.9bn (USD 5.6bn). The additional 838 KMT in nitrogen sales volumes coupled with an 11% increase in iron ore sales volumes helped alleviate the pricing erosion in phosphates and drive the YOY revenue expansion. Excluding EuroChem Antwerpen and EuroChem Agro, consolidated from Q2

cage shaft sinking operations in October 2013 and expect to wrap up skip shaft sinking efforts within the next quarter. The abandonment of the sites two freeze walls, which were designed, installed, and operated by Thyssen Schachtbau is underway, a program also contracted with the German mining specialists.

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a club facility for an amount of USD1.3bn. Structured as a 5-year unsecured finance facility and priced at LIBOR 3M + 1.8%, the facility includes a 2-year grace period. The proceeds were immediately used to pay down the outstanding amount under EuroChems 2011 USD1.3 billion pre-export facility. While the companys debt ratio remained well below bank covenant levels and at all times within the companys targeted acrossthe-cycle range, the volatility in the fertiliser Eurochem-Belorechensk Mineral Ferulisers plant produces DAP and sulphoammophos expenses in 2013, down from 78% a year earlier. While lower maritime freight rates provided a 14% reduction in transportation costs, the savings were offset by an increase in rail shipments of iron ore concentrate to Zabaikalsk (Chinese border). General and administrative (G&A) expenses for the Group increased 20% from RUR 5.6bn in 2012 to RUR 6.7bn in 2013. Accounting for 47% of G&A expenses, labour costs increased 16% over the same period. Total staff costs, including social expenses, grew to RUR 16.6bn, up15% from RUR 14.4bn a year ago. As highlighted earlier, the growth in staff expenses was primarily linked to recent acquisitions and organic growth initiatives. Some of the key ongoing projects of 2013 were the development of phosphate rock mining operations in Kazakhstan, the launch of the companys railcar depot to service the Groups 6,500+ rolling stock, and its ambitious VolgaKaliy and Usolskiy potash projects in Russia. For the full year 2013 the companyrecognised other operating expenses of RUR 425m versus other operating income of RUR 371m in 2012. The main items behind other operating expenses for the period were sponsorship expenses of RUR 839m (2012: RUR 516m) and foreign exchange gains of RUR 393m (2012: losses of RUR 263m). The main sponsorship expenses included a new sports facility in Kedainiai, Lithuania, constructed as part of celebrations commemorating Working capital needs decreased slightly as lower prices for finished goods slightly balanced higher prices for certain raw materials. The Companys net working capital decreased 3% from RUR 23.9bn in 2012 to RUR 23.1bn as at 31 December, 2013 EuroChems portfolio of borrowings from banks remained fairly unchanged until late August when the companysuccessfully closed In 2013 the Group finalised the acquisition of 54,613 ordinary shares of OJSC 2013 corporate developments Lifosas 50th anniversary, and the upgrade of social infrastructure and public utilities in Novomoskovsk, site of the companys Novomoskovskiy Azot nitrogen facility. Below the operating profit line, the companyrecognised unrealised financial foreign exchange losses of RUR 5.9bn, compared to an unrealised gain of RUR 4.3bn in 2012. Changes in these noncash items reflect the impact of the weaker Russian rouble on the companys primarily US dollar-denominated debt which matches the companys mainly USD-denominated revenues. Interest expenses for 2013 increased in line with the Companys higher debt level and amounted to RUR 5.2bn (2012: RUR 4.3bn). For 2013 the companyrecognised other financial losses of RUR 945m on changes in the fair value of USD/RUR non-deliverable forward contracts and changes in the fair value of cross currency interest rate swaps in amounts of RUR 535m and RUR 165m, respectively. At RUR 36.2bn, operating cash flow for the twelve months ended 31 December 2013 remained within 7% of the previous years level. The companys total capex spending for the January to December 2013 period amounted to RUR 32.6bn (USD 1.0bn), comprised of investments of RUR 12.4bn in potash, RUR 10.4bn in nitrogen and RUR 8.6bn in phosphates. The remainder was allocated to its distribution network and logistics infrastructure. Cash flow markets prompted the Groups shareholders to proceed with a pre-emptive USD 300m capital injection in the fourth quarter of 2013 through the acquisition of 2.36% of share capital of the Groups holding company. Consequently, the companyclosed 2013 with a net debt to 12-month rolling EBITDA ratio of 2.07x as compared to 2.27x in Q3 2013 (2012: 1.53x). Highlighting EuroChems strong product and geographic diversification, its partial vertical integration and its advantageous position on the industry cost-curve as its core strengths underpinning its cash flow generation, Fitch Ratings and Standard & Poors both affirmed EuroChem at BB / stable outlook in 2013.

Balance sheet

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Murmansk Commercial Seaport for a total consideration of RUR 3.15bn. These ordinary shares represent 48.26% of the total number of the ordinary shares and 36.20% of the total issued share capital of the Company. As at 31 December 2013, the Group held 36.20% of the OJSC Murmansk Commercial Seaport voting rights. On 10 July 2013, EuroChem announced its intention to consider building an ammonia and urea production plant in Louisiana. A final decision on the parameters and location of the facility should be taken later in 2014. On 29 July 2013, the companyannounced its plans to create a joint venture (JV) with the Migao Corporation, a specialty potash fertiliser producer based in the southern Chinese province of Yunnan. The JV is expected to bring up to 60,000 tonnes per year of potassium nitrate (NK) and 200,000 tonnes per year of chloride-free NPK capacity online by the end of 2014. Legal proceedings In October 2012 the group filed a claim against Shaft Sinkers (pty) ltd and Rossal 126 (pty) limited (formerly known as Shaft Sinkers (pty) ltd.), (Shaft Sinkers), the contractor involved in the construction of the mining shafts at the Gremyachinskoe potash deposit, seeking compensation for the direct costs and substantial lost profits arising from the delay in commencing potash production, due to the inability of that construction company to fulfil its contractual obligations. Further details of the proceedings are available in note 34 of the Groups 2013 IFRS accounts. In March 2013 the Group filed a claim against International Mineral Resources B.V. (IMR) which, the Group believes, held a controlling interest in Shaft Sinkers, claiming IMR is responsible for its subsidiarys actions. In July 2013, a Dutch Court granted EuroChem definitive leave for levying the requested prejudgment attachments against IMRs Dutch assets, while fixing the amount Despite the lingering presence of global imbalances and market volatility, the growth of the fertiliser industry remains solidly underpinned by global food demand. Growing yield gaps in certain regions coupled with the increasing pressure on the global food system from emerging economies and dietary shifts will continue to support and further drive the use of fertilisers. Following their significant rally, nitrogen prices have reached more comfortable levels which could be sustained heading into the second quarter on account of plant turnarounds in the Middle East and limited export flows from China to North America as compared to last year. At the same time, weather related delays to spring planting in the US could erode some of the price gains. Nevertheless most producers are in a comfortable spot with many reportedly sold for which the leave is granted, including interest and cost at EUR 886m. The court held an in-depth hearing on 21 January 2014 where it considered the arguments and witnesses of both sides, following which, the court notified that a final judgment is to be rendered on 16 April 2014. out until March. While Chinese urea export parameters have been relaxed for 2014, EuroChem expects yearly export volumes from China to remain in line with 2012-2013 levels. In Europe, annual benefit payments to the agricultural sector have been distributed and should provide a positive impact on fertiliser purchasing activity. Re-emerging demand in phosphates has tightened supply and provided a boost to prices. While lower ammonia prices may help margins at producer levels, the companywould expect to see any significant upward movement in DAP/MAP prices to be matched by a ramp-up in capacity utilisation. Prices are expected to gradually come down as seasonal demand diminished. Indias market presence is likely to remain limited until after the May elections. In potash, contract prices have established a floor price for the upcoming months. Potash producers have been applying upward pressure on spot prices with product in Latin America and Southeast Asia trading at around USD 350 CFR.While the changes in the ownership of Uralkali should eventually restore joint marketing of product with Belaruskali, this does not appear to be imminent in the near term and presents a challenge to significant price appreciation. Nevinnomysskiy Azot is the largest producer of nitrogen fertilisers in Russia

Outlook

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Certificates for Industrial Equipment and Installations Needed to Access Market of Customs Union
By Yvonne Oppermann, TV Hessen and Yury Kulikou, TV SD Industrie Service

Manufacturers of industrial equipment wishing to sell their products in the Customs Union (CU) need to obtain special national certifications such as the new Technical Regulation on pressure equipment that came into effect on February 1, 2014. Working with their affiliate TV SD RUS, TV Hessen and TV SD support and assist manufacturers throughout the entire process.

Equipment for the oil and gas industry, such as pumps and production systems, is in particular demand by the chemical industry in the Russian Federation and the Customs Union. The reason is that to date there have not been enough small- and medium-sized enterprises in these sectors to ensure competitive production also at international level. This makes the market highly interesting for European manufacturers and their suppliers. However, market access involves challenges that must not be underestimated and a host of regulatory aspects, some of them deviating significantly from European regulations. Matters are rendered even more difficult by the fact that extended customs formalities or special local infrastructure features make the import of products for some sectors of industry even more complicated. Other examples include more restrictive import regulations and somewhat extensive certification requirements. Imported industrial equipment is subjected to in-depth testing in test organisations. While in the past the certification procedure has been prone to misuse in individual cases, with certificates in Moscow sometimes available within hours after money changing hands, a separate authority and clear rules

have now been established. There are several certification bodies, testing laboratories and intermediaries for the new TR certificates of the Customs Union (of Russia, Belarus and Kazakhstan). However, even in existing supplier relationships it is important to have a partner that offers command of the language, familiarity with the market and long-standing local experience. Differing safety and quality requirements The Customs Union created a significant economic area that has established its own standards to monitor and ensure that products satisfy minimum safety and quality requirements. For this purpose, the CUs own set of technical regulations (TR) came into effect in February 2013 and now comprises over 20 different safety and quality standards, including the CUs Technical Regulation On the safety of equipment working under excessive pressure. Products imported anywhere in the CU need a CU TR certificate. Only mandatory certificates and mandatory declarations meet this requirement. As an important rule, many certificates require manufacturers to submit product samples or involve factory inspec-

tions by experts. In addition, the application for certification can only be filed by a legal entity located in Russia, such as the manufacturers subsidiary, a retailer or the customer. Certification can refer to either a batch of goods or series production. In the latter case, certificate validity ranges from one to five years. In this context manufacturers must observe the transition from GOST R and TR to TR CU certificates. All certificates that are still based on the old standards will continue to apply up to 15 March 2015. This time is considered a transition period during which manufacturers can apply for TR CU certificates. What costs and efforts must be expected? Small- and Medium-sized Enterprises should expect costs in the four-digit range and allow adequate time for the new certification process. Manufacturers that frequently deliver components or systems require certificates on series production that are valid for one, three or five years. These certificates are slightly more costly. Manufacturers that need certificates for many different equipment or components may have to expect costs in the five-digit range. Some installations

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TV Hessen and TV SD provide comprehensive consulting services on GOST and the new TR CU certificates issued. Experts with longstanding experience determine the certificates that German manufacturers must submit to export their products and place them into service, and the criteria their products must meet to obtain these certificates. For certification, products have to undergo desktop/document review plus conventional conformity assessment. The documentation is in Russian. A further advantage for German exporters is the direct contact to Russian authorities they can establish via the affiliate TV SD RUS. and equipment may fall under the scope of multiple technical regulations, consequently requiring several certificates. In case of a one-off export or exports at irregular longer time intervals, a single certification which is available at relatively low costs may be sufficient. Companies preparing for certification in accordance with the new standards often invest

30 to 40 person-days of work, not including translation into Russian. Comprehensive support by a qualified partner can help to speed up the process. As the Customs Union increasingly orients itself to European standards, processes are expected to become less time-intensive in the future. What documents are required? In addition to the application form, customs code (HS code) and product name in English or Russian (series number, model etc), manufacturers must supply technical documentation (in Russian, German or English) as well as product design drawings, material specifications and assembly instructions. Test records and an ISO 9001 certificate, where available, are also considered important documents. The product description should cover all components included in the scope of delivery. Service providers commissioned to carry out certification can prepare their quotations on the basis of these documents. Where appropriate, a checklist that specifies the other documents to be submitted can be enclosed with the quotation. After the Russian regulatory bodies have

checked the documentation for conformity with the Russian codes and standards, the service provider will coordinate the certificate with the client. Clients should normally receive an acceptance report by email, with the original certificates and certified copies following by post; they can then be presented to import and customs controls. Once all documents are complete, processing of the applications takes an average of three weeks. TV Hessen Yvonne Oppermann Rdesheimer Str. 119 64285 Darmstadt Germany Tel.: +49 6151 600-373 yvonne.oppermann@tuevhessen.de www.tuev-hessen.de TV SD Industrie Service Yury Kulikou Gottlieb-Daimler-Strae 7 70794 Filderstadt Germany Tel.: +49 711 7005-248 yury.kulikou@tuev-sued.de www.tuev-sued.de/is

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Review of the Chemical Industry of Uzbekistan: A Strong Focus on Modernisation


Almost eight years have passed since the first issues of our magazine containing articles reviewing the chemical industry of different countries were published including an article covering the then state of the Uzbek chemical sector. The country is the 56th largest in the world by area and the 42nd by population. Among the CIS countries, Uzbekistan is the 5th largest by area and the 3rd by population after Russia and Ukraine. In fact, the chemical industry of Uzbekistan has a long history of development. The first chemical plants were launched in the early 30s of the 20th century. A number of large agrochemical factories were constructed in the country because of the demand of the agricultural sector for mineral fertilisers and pesticides. As a result, it became a strong foundation for the creation of one of the most vigorous industry sectors in Central Asia. Major economic changes took place thanks to the privatisation of the chemical industry over the first 15 years of the independence of the country. Several new chemical plants together with mining and processing complexes supplying feedstocks to the first ones were constructed. Our journal has dedicated a great deal of information to difficulties connected with the transition from the planned Soviet economy to up-to-date market models. The planned economy inherited from the Soviet Union and closer government control over privatisation processes with keeping the controlling stake in the hands of state companies are the main vectors of the economic development in Uzbekistan. This model has been operating relatively successfully till nowadays. This model is the most effective for the development of natural resources - oil, gas, etc. As for factories of the manufacturing industry, which were built before the collapse of the USSR, production output at most of them stabilised and gradually ramped up. Through some uncompetitive workshops and sometimes even entire manufacturing plans were closed down. Now, after raising investment resources and improving the legislative framework, the government has prepared the chemical industry for radical changes, which are taking place today. In recent years, the chemical industry of Uzbekistan produces more than 1m tonnes of mineral fertilisers, more than 120,000 tonnes of chemical crop protection products, 1.35 million tonnes of sulphuric acid, 50,000 tonnes of chemical fibres, more than 90,000 tonnes of coatings, over 120,000 tonnes of plastics and synthetic resins. A considerable part of these products are successfully exported. Uzbek chemical output showed a 5.3% YOY rise due to stable development of the chemical industry. Total production of the industry amounted to UZS 1,554 bn. In H1, 2013 the production of the following chemical products increased: phosphate fertiliser (+5.1%); complex compound fertiliser by 3 times; sulphuric acid (+6.2%); wet-process phosphoric acid (+10.5%); ammonium sulphate - (+18.2 %); strong nitric acid by 1.8 times; suprephos - (+3.2%); soda ash - (+26.3 %); hydrochloric acid - (+9.7 %); acetic acid by 9.1 times; acetaldehyde by 1.7 times; chemical crop protection agents - (+12.4 %); Uzbekistan has a strong mineral raw material base, which is one of the major sources of income for the countrys economy. Today this base consists of more than 1,800 of mineral deposits, about 1000 of mineral occurrences and 118 types of minerals, of which 65 are mined. Mineral resources of Uzbekistan are estimated at about USD 3.5 trillion. Geological reserves of natural gas in Uzbekistan are over 5 trillion cubic metres. Proven reserves of natural gas - 3.4 trillion cubic metres (including the following deposits: Shortan - 0.5 trillion cubic metres and Alania - 0.2 trillion cubic metres and Urga with reserves of 1.5 trillion cubic metres). The Gazly deposit is located 100 km to the north- west of Buxoro and has been developed for several decades. Reservoir rock is sandstones. Gas contains 96-97% of methane. Sulphur-free gas accounts for the main share of total production, but more and more low sulphurous gas and sour gas are produced. The Shakhpakhty and Kuanish gas deposits are located in the Ustyurt district. In 2010, new natural gas fields were found in Uzbekistan near the Kosbulak downfold and North Ustyurt region (Western Aral), as well as at the prospective area of Ernaz in the Buxoro-Xiva oil and gas region. Uzbekistan occupies the 14th place in the world in terms of natural gas reserves and the 11th in terms of gas production. Natural gas production in Uzbekistan in 2012 totalled 62.9bn cubic I. Raw material recourses carbon dioxide - (+4.8%); technical salt by 2.4 times; polyethylene film by 5 times.

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metres. Production of liquefied gases for the same period amounted to 273.600 tonnes. Ozbekneftegaz produces 70bn cubic metres of gas and 8m tonnes of liquid hydrocarbons per year. CNPC (China National Petroleum Corporation), KNOR (Korea), Gazprom and Lukoil (Russia) hold strong positions in the Uzbek energy industry. Oil geological reserves in the country are estimated at 5m tonnes and proven reserves 530 m tonnes. Hydrocarbons fields of the Fargona Basin - North Sox, South Alamyshik, Polvontosh, Galcha-Changara and smaller Chimyon, Shorsuv and others mostly contain oil. Oil is mainly light, sweet, paraffin, with a high content of light distillates. Ozokerite (earth wax) is a by-product of refining the oil from these deposits. The oil fields Xaudag, Uchkyzyl, Kokayty, Kashgar and Amudaryo are discovered in the Surxondaryo Province. The oil and gas deposit Lalmikar is almost completely depleted. Oils in the region are heavy and sulphur. Gas condensate (Adamtash, Gumbulak, Pachka-mar, Kyzylbayrak and Amanat) and oil fields are located in the South-West Hisor. North Muborak and Akdzhar are oil-bearing deposits in the Buxoro-Xiva province. In 2012, oil and gas condensate production in Uzbekistan amounted to 3,16m tonnes: oil production - 1,56m tonnes and gas condensate 1,6m tonnes. There are three major coal deposits in Uzbekistan: Angren (Toshkent province), Shargun and Boysun (Surxondaryo province) as well as several smaller ones. All these deposits consist of alternating layers of sand and clay rocks, with subordinate coal beds formed in the wetland conditions of rivers valleys and deltas. The Angren deposit is located in the valley of the River Angren, and is known for heavy beds of lignite with a total amount of 1.9bn tonnes. The deposit is developed by an open-pit method. The Angren heat and power station operates on its basis. The Shargun deposit is located in a mountainous area (altitude 600-800 metres). Coal seams average 4.5m and may even reach 12m; the heating

value of coal is 22,000 kcal/kg. The Boysun deposit has two coal-bearing strata of up to 2.5m. Probable reserves of oil shales in Uzbekistan are about 47bn tonnes. The yield of diesel fraction from combustible shale of the Sangruntau deposit (C1 + C2 = 357m tonnes) reaches about 30%. This yield is the highest among the major deposits of this type in the country. The country takes the 7th place in terms of uranium reserves accounting for 4% of global reserves) and the 5th in terms of uranium production. Currently, about 40 deposits are explored, and the largest one is Uchkuduk. Such deposits as Kendyktube, Ljavljakan, Sugraly, Tohumbet, North Kanimekh, Alenda, Mejlisaj are operating as well. The estimated reserves of uranium are 185,800 tonnes (138,800 tonnes - arenated deposits of uranium, 47,000 tonnes - black shale deposits). Uzbekistan is ranked fourth in the world for gold reserves, and ninth in terms of gold production. According to the State Geological Committee of Uzbekistan, 41 gold deposits are discovered in the country, and nine of them are being developed. Explored and proven gold reserves in Uzbekistan are estimated at about 2,100 tonnes. Total reserves reach approximately 3,350 tonnes. Gold is mined in the basin of the River Zarafshon and in the Kyzyl Kum. The Muruntau, a unique gold deposit, is considered to be the largest one in Eurasia and has been developed since 1967. Its ores are of the gold-quartz type. In 2012, 90 tonnes of gold were produced at this deposit and nearby ones (Kokpatas, Marjonbuloq, Guzhumsay, Promezhutochnoe, Charmitan, Kara-Kutan and others 12 in general). About 900 ore occurrences and deposits of copper are known in Uzbekistan, but only three deposits are operated. Uzbekistan holds the 10th place in the world in terms of proven copper reserves. Copper deposits and ore occurrences are common for the Middle Tien Shan and especially the Qurama Ridge. The main deposits are concentrated in the Olmaliq province. These are Kalmakyr,

Dalnee and Sary-Chequ as well as a number of smaller ones (Balykty, Karabulak and others). Olmaliq KMK (Olmaliq MiningMetallurgical Complex) operates on the basis of porphyry copper deposits. Lead and zinc deposits are mainly located in the Middle Tien Shan, in the ChatkalKuraminsky mountains and, in particular, at the Kurgashinkansky mine (the Olmalig province) and a number of smaller manifestations (Koshmansay, Miskan). The main ore minerals are galenite, sphalerite, chalcopyrite and pyrite. Magnetite and hematite also occur there. Trace elements are indium, silver, bismuth and gold. Rare-metal mineralisation, including scheelite and molybdenite, are essentially developed at the Koshmansay deposit. The Kurgashinkan deposit is currently operational. Namely owing to the development of this deposit the country is on the third place in the world in terms of cadmium production. Ores are processed at the Olmaliq KMK. Sulphide-polymetallic deposits of lead and zinc are located in the southwest Hissar (Handiz). The main ore minerals are pyrites, sphalerite, galenite and chalcopyrite, but there are also gold and silver minerals. Carbonate-polymetallic lead-zinc deposits (Uchquloch, Sarykan, Kandzhaylau and Kulchulak) are typical for the Middle Tien Shan. The Uchquloch deposit, which is located in the foothills of the Nurota North Range, the Hanbandytau Range, is the most promising field. The main ore minerals are galenite, pyrite; secondary - chalcopyrite, marcasite, covellite, bornite-chalcocite. Lode lead-zinc deposits are common in the Middle Tien Shan Mountains, especially in the Kurama mountaines. The ores of these deposits contain high amounts of bismuth and silver (especially the Lashkerek deposit). Tungsten deposits are concentrated mainly in the Southern Tien Shan. They are presented by a group of postmagmatic contact skarn scheelite formations, which occur in the Nurota, Zirabulak, Karatyubin and Chakylkalyan mountains. The Ingichka and Qoytosh deposits are operated on their

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basis. The most interesting deposits are Langar, Qoytosh, Ingichka, Kara Tube and Yahton; less promising for industrial development Chash-Tepe, Kamangaran, Djam, Sarykul and Sazagan. Such tungsten deposits like Sargardon and a group of deposits and ore occurences of Maydontol - Oygaing district (Anaulgan-Karakyz, Oygaing) are the most important in the Middle Tien Shan and the Chatkal-Kurama mountains. Uzbekistan has a number of molybdenum ore occurrences of hydrothermal type: Obizarang in the west of the Hissar Ridge, Oygaing in Chatkal, quartz-sericitescheelite-molybdenite (Chavata, Unkurtash in Chatkal, Shaugaz in the Kurama Ridge), skarn-molybdenite (Chimgon in Chatkal), skarn-scheelite with molybdenite, quartzsericite-molybdenite-chalcopyrite (Olmaliq district). However, molybdenum is recovered as a by-product of copper porphyry ore mining, which is the 8th deposit in terms of Mo reserves. Bismuth deposits are discovered in the Chatkal-Kurama Burchmullo) and Mountains. The main The formation is arsenic-bismuth (Urtasaray, copper-bismuth. Ustasaray is the only operating deposit. There are also copper-bismuth deposits, such as Kyzylgut in the Kurama Mountains, Tashkesken in the Chatkal Ridge and Uzumlek in the Maygashkan. There are several hundred of iron deposits and occurrences of different genetic types and formations in Uzbekistan, as well as a number of magnetic anomalies, which are possible indicators of iron ore. The Tebinbulak titanium-magnetite deposit (Qaraqalpaqstan Respublikasi) is the most significant. The Kazgantau deposit, which is located in the Hissar belt, presumably refers to this type. Skarn-magnetite deposits mainly occur in the Middle and South-Western Tien Shan in the ChatkalKurama mountains. Sedimentary iron ore occur in the Aral sea region, the Kyzyl Kum desert and the Sultan Uwais. There are ore objects containing silver in Uzbekistan. The country takes the

third place among the world leaders in terms of silver reserves. Uzbekistan also has manganese deposits in the Zarafshon, Zirabulak, Karatyube and Lolabulak mountains Ziyovuddin, Dautash, Kyzyl Bayrak, Tahta Karachinsk, Tersaksay and Chapanatin. The content of manganese is 8-28%. Reserves of some deposits are small but promising and in the total amount is about 8 million tonnes. Sedimentary manganese deposits and occurrences are found in the northern and northeastern parts of the country (Azatbash, Mazarskos, Morguzar and Karaalminsk occurrences). Magmatic deposits of chromium of Kyzyl Kum-Fatgona belt in the Tamdytau and Sultan Uwais are of particular interest. More than a hundred of tin ore occurrences and several small deposits are known, but only the Karnab deposit operated in the 50s of the 20th century. Mercury and antimony are not mined in Uzbekistan because of the lack of identified cost-effective commercial deposits. A large number of ore occurrences that can become operating mines have been discovered. The most promising one is located in the South Fargona belt, where more than a hundred of mercury and more than ten of antimony occurrences have been discovered. The most significant occurrences are located near Kokpatas in the Navoiy province. The Myksk, Shutsk and Karasu deposits can also be developed. A lot of bauxite (a raw material for aluminum production) occurrences are found in Uzbekistan, but there are no deposits. Bauxites occur in the Kyzyl Kum, Nurota, and South Fargona regions. The most significant ore occurrence is Aktau in the Tomditov Mountains. Karst occurrences are found in the Nurota district (Mirishkor, Kyzyl Bulak) and coastal bauxite occurrences are located there as well (Qoytosh, Narvan, and Karatau). Bauxites are also available in the Hissar and Kyzyl Kum districts. More than 70 ore occurrences are available in the Hissar district. The Kayrak occurrence in the

Boysuntov Mountains and the Kandadzhuaz in the Mechetly Mountains may be commercial deposits. In general, there are prospects of developing commercial bauxite deposits in the country. This also applies to other two feedstocks for aluminum production - alunite and kaolin. There are alunite ore occurrences and deposits in the Kurama, Chatkal and Hissar mountains. The largest one is the Gushsay deposit in the Kurama Ridge. Pilot testing showed a high degree of extraction of alumina. We should also mention the Angren kaolinic coal deposit a quite large one. A ceramic factory is built on the base of this deposit. So, kaolin is currently used as a raw material for refractories. Primary kaolin seams are within the range of 2-46m. Uzbekistan has large reserves of dolomite. The Farkhad rock deposit provides dolomites, which are used as refractory materials. Bentonite clays are mainly located in the Ustyurt in the South Aral, Sultan Uwais, the central part of the Kyzyl Kum desert and the Zirabulak-Ziadin mountains. A total of 40 deposits have been discovered. Commercial talc can be found only in the Sultan Uwais. The major deposits are Zinelbulak, Kazgantau and Kyzylsay. Natural sulphur occurs in the Fargona district: Kyzyl-Archinsk, Andijan, Kurshab and Amu Darya district with sulphur-bearing deposits in the Ustyurt. The Tyubegatan deposit is considered to be the most promising one. However, in Uzbekistan big volumes of sulphur are produced not at natural deposits but by removing sulphur from natural gas at the Muborak gas processing plant in Qashqadaryo province. More than 30 ore occurrences and deposits of graphite are known in the country. Uzbekistan is rich in sodium chloride and potash salts and has lower reserves of magnesium and sodium sulphates. The most significant deposits are Tubegatan, Baybichekan, Akbash, Lyalimkan, Hodzhaikan and Gaurdak-Kugitang. Salt-bearing layers in all the mentioned

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above deposits occur at substantial depths and can be mined by in situ leaching methods. Since 2010, Dehkonobod Potash Fertiliser Plant has been operating on the basis of the Tyubetagan deposit. Salt formations (lacustrine and saline) occur on the plains, in the erosion and intermountain areas. The largest deposits of this type are Kushkanataus, Karaumbet, Kumysbulak and Tumryuk. The Barsa-Kelmes deposit of sodium chloride, which is located close to the former island of the almost dryed Aral Sea, is the main source of raw materials for Qongirot Soda Zavodi (Qongirot soda plant). Its proven reserves - 131 m tonnes of salt with a NaCl content of more than 97%. Since 1997, the Navoiy kon-metallurgiya kombinati (Navoi Mining and Metallurgical Plant) has been developing the DzheroySardara phosphorite deposit. This deposit is located in the Central Kyzyl Kum. The reserves of the deposit are estimated at 300m tonnes of ore and 58m tonnes of phosphorus pentoxide. The reserves will cover the demand of the countrys agricultural sector for phosphorus fertilisers for more than 100 years. Total reserves of phosphorite of the Kyzyl Kum region exceed 1bn tonnes. However, the deposit has low-grade ores, which are characterised by a high content of carbonate minerals and chlorides. That is why phosphates here require preliminary beneficiation. In addition, there have been carried out preliminary exploration of the Karakatinsk deposit and evaluation of the South Dzhetym Tau deposit. Both deposits are also located in the Central Kyzyl Kum., It is possible to start the beneficiation of phosphorites (there are significant reserves of phosphorites in the country) on the basis of the Karakatinsk and South Dzhetym Tau phosphorite deposits with the help of foreign investors in order to increase production and exports of phosphate fertilisers. There are eight explored deposits of gypsum in Uzbekistan (the largest one is Tubegatan).

A total of 17 deposits of limestone and chalk have been explored, and five of them are operating (Sherobod, Jizzax, Qorovulbozor, Quvasoy and Dzhamansaysk). They are located throughout the country. The Dzhamansaysk limestone deposit, which is mined 250km from the production site of Qongirot Soda Zavodi, is characterised by proven reserves of about 70m tonnes. It should be especially noted, that there are large reserves of such cement raw materials as limestone, chalk, marlstone, clays and clay loam in Uzbekistan. The deposits of fluorspar, which is used as a source of fluorine, are located in the Chatkal-Kurama Mountains, with occurrences in the southwestern Hissar, and a few of them can be found in the boundary belts of the Southern Tien Shan. Commercial deposits of fluorite are operated in the country. In Uzbekistan, magmatic deposits of feldspar are found (Langar, Lolabulak, Karichsay in the Southern Tien Shan). Sedimentary deposits - quartz-feldspar sands - are discovered in the Zirabulak-Ziadin Mountains (Kermininsk, Karzhantau). Uzbekistan is one of the 15 largest countries in the world in terms of mining feldspar. Feldspars are used in the ceramic industry as a flux; in the glass industry -as fillers and light abrasives (e.g., in the manufacture of toothpaste). Uzbekistan has about 50 occurrences and deposits of wollastonite. Most wollastonite deposits are located in the Southern and Middle Tien Shan (Qoytosh, Langar, Karatube, Chimgan, Ingichka, Yakhton, Akbulak, and Barkrak). Kumyshkan,

in the Suren Atinsk Ridge. A high content of potassium oxide and the ability to yield to weathering makes glauconite a useful fertiliser. It is also used as a raw material for manufacturing green paints. There are also reserves of corundum in the country (the Sharaksay deposit in the Malguzar mountains and the Aktash deposit in the Karzhantau mountains). Mirabilite deposits with reserves of sodium sulphate, which exceed 1.5 b tonnes, are discovered in the western deepwater area of the Aral Sea, in the Gulf Tuschibas, and in the western part of the Small Aral under a 0.5 - 1.5m layer of silt on the total area of about 2000 km2. Uzbekistan takes the 5th position in the world in terms of cotton production and the second position for of cotton exports. In order to develop the mining industry, the government offers more than 500 industrial facilities to potential investors including 4 deposits of metallic ores, 26 deposits of various ores and 10 deposits of minerals intended for chemical production. All in all 38 mineral fields are proposed to be invested in. A total of 159 large deposit occurrences are proposed for geological survey. II. Subsidiaries of JSC Ozkimyosanoat All industrial enterprises in Uzbekistan, which are engaged in chemical production, can be divided into two groups - the part of the state joint-stock company Ozkimyosanoat (Uzhimprom), which was founded in 2001, and independent companies. Most chemical plants in the country belong to the first group. The Uzbek chemical industry is mainly based on agrochemical production. On one hand, it is determined by the need to intensify the use of farmlands along river valleys, while most of the country is covered with deserts and mountain ranges, which are not arable. On the other hand, Uzbekistan has rich deposits of phosphoric and potash ores, and natural gas - basic raw materials for the production of mineral fertilisers.

Wollastonite is used as an additive filler in plastics, non-ferrous metallurgy, in the tyre, asbestos and coating industries, and in the production of ceramics. Wollastonite is also used in the car industry, as a part of a filler for a number of important automotive components: brake pads, plain bearings etc. It is used in anti-corrosion coatings as well. Only one glauconite sandstones deposit has been discovered in Uzbekistan - Changi

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Ozkimyosanoat implements production, innovation, marketing programmes aimed at developing chemical enterprises, creating conditions and prerequisites for sustainable development of the chemical industry. An important aim of the company is privatisation of chemical companies with attracting foreign and domestic investors. Ozkimyosanoat includes 14 manufacturing plants turning out more than 170 chemical products. 13 regional distribution organisations marketing fertilisers across the country are also involved in the structure of Ozkimyosanoat. Scientific research and design institutes, haulage companies Kimyotrans and Kimyotrans-logistik engaged in foreign economic activities, as well as brokerage company Hamqor-kimyoservis, are members of Ozkimyosanoat JSC. As for the companys production results of the first nine months of 2013, we should mention the following: the subsidiaries of Ozkimyosanoat produced goods at current prices for UZS 1.25bn (about EUR 414m); consumer goods were manufactured for UZS 90.2bn (about EUR 30m); 846,430 tonnes of fertilisers were turned out including nitrogen fertilisers 648,570 tonnes, phosphoruscontaining fertilisers 122,000 tonnes and KCl fertilisers 75,860 tonnes. According to an import-substituting programme, in January-September 2013

Ozkimyosanoat produced goods worth UZS 270.6bn (about EUR 89m), or 107.6% of the planned figure. Within the framework of investment projects included in the companys investment programme, the plants of Ozkimyosanoat spent USD 136.66m of investments on various purposes. Now it is time to tell about the subsidiaries of Ozkimyosanoat in details.

acetaldehyde and ammonium sulphate were launched. In 1971 a new production line for ammonia, weak nitric acid and ammonium nitrate was put into operation. In 1973 the first batch of acrylonitrile was produced, and commercial production of Nitron synthetic fibres was set up. In 1975, the company became a production association, and the following year production at the complex Catalyst started up. In 1982-1983, the plant continued capacity expansion and widening a range of Nitron synthetic fibres Nitron.

Navoiyazot JSC
Founded in 1961, Navoiyazot JSC

In 1988, a thiourea and hydrochloric acid plant came on stream. In 1990-1991, production of consumer goods started up. In the following two years the company proceeded to manufacturing epoxy resins, polyelectrolytes and synthetic fabrics; polyacrylamide glue, salt, sodium tripolyphosphate and colloidal sulphur. In 1996-1999, lithium carbonate, ammonium thiocyanate, methanol, acetone, argon went into production. In 2001, a workshop for caustic soda and liquid chlorine was put into operation. The workshop was built in cooperation with Germany-based Lurgi. After that production of formalin, hydrochloric acid, sodium hypochlorite and ammonium chloride was mastered. In 2002 the company was transformed into a joint-stock company. The authorised capital of the company as of July 2009, when the companys assets were revaluated, exceeded UZS 42bn (about EUR 139m). Total number of shares was 753,696 shares. Nominal value per share was UZS 55,918. In accordance with the order of the State Property Committee, the shareholding structure of Navoiyazot is as follows: the states share is 51% (384,385 shares), the share for sale to foreign investors - 49% (369,311 shares). Today the company manufactures more than 60 kinds of products. The main ones are liquid ammonia, ammonia water, caustic soda, ammonium nitrate, nitrogen-phosphate fertiliser (mixture of melt NH4NO3 and

(Navoiy) is the largest chemical enterprise in Uzbekistan. Today the plant employs more than 11,000 people. It accounts for over 30% of chemical production manufactured in Uzbekistan. Its product range includes products of several segments of the chemical industry. Initially, Navoiy Chemical Plant (this was the name of the company till 1975) manufactured weak nitric acid and ammonium nitrate, which went into production at the end of 1964. Launching a unit for filling cylinders with technical oxygen in November 1965 was a significant event for the company. In 19651967 the plant started production of ammonia and ammonia water. In 1968-1970, workshops for carbon dioxide, sodium cyanide, hydrocyanic and acetic acids, acetylene,

Outdoor production unit at Navoiyazot

phosphorite meal), ammonium sulphate,

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liquid chlorine, hydrochloric acid of various grades, ammonium chloride, sodium chloride, sodium chloride of pharmacopeia grade, sodium hypochlorite, sodium cyanide, nitric acid, carbon dioxide, argon gas, oxygen gas, pyrolysis acetylene, acrylonitrile, acetaldehyde, acetic acid of different concentrations, methanol of various grades, polyacrylamide gel, formalin, thiourea, methyl acrylate and acetone. Polyacrylic fibre and yarn made under the trade name Nitron is one of the major products of the company, which is used in the production of womens and childrens hygiene products by a joint Uzbek-Chinese company Navoiy Hunan Pulp LLC. The company is located in the free industrial economic zone Navoi. A carpet weaving company Horazm Gilamlari JSC (Xorazm) and Ozoda Ozod Joint Venture (Buxoro) are the largest consumers of fibres from Navoiy. Thiourea solutions manufactured in Navoiy are used to dissolve gold from refractory ores and concentrates, while a cyanide process does not yield good results (thiourea dissolves gold in acidic solutions in the presence of an oxidant with forming a cation type complex. Water-soluble polymeric agent Uniflok (hydrolysed polyacrylonitrile) produced by the company is used for strengthening wellbore walls, reducing fluid losses while drilling and stabilising drilling muds, enhancing oil & gas reservoir performance, for sedimenting suspended particles in sedimentation tanks and water tanks, filtering and precipitating different pulps in domestic and industrial water supply. Another water-soluble polymer - agent K-4 - is used to reduce fluid loss and stabilise drilling muds. It also finds application in agriculture as a gelling agent; for sedimenting suspended particles in sedimentation tanks and water tanks; as an adhesive in the printing industry; for dust control in the metallurgical industry; as a flocculant for fighting sand movement. Another water-soluble polymer agent K-9 is intended for well drilling opera-

t Production structure of Navoiyazot


Production workshops Ammonia-I,II Ammonia-III Production of nitric acid second (II) stage Production of nitric acid second (III) stage Production of ammonium nitrate first and second (I-II) stages Production of ammonium nitrate third (III) stage Production of N-P fertiliser Start-up 1964 1971 1965 1971 1964 1971 2010 Capacity, thousand tonnes / year 370 180 351 400 350 600 180 Including: 1) NaOH, chlorine, 26,000 tpy chlorine-based production; 2) NH4Cl; 3) Unifloc preparation; 4) polyacrylamide; 5) hydrochloric acid; 6) methanol; 7) pentaerythritol; 8) formalin; 9) urea-formaldehyde resin; 10) water-soluble polymers; 11) NaCl; 12) flammable liquid storage facility Including: 1) acetylene; 2) hydrocyanic acid and sodium cyanide; 3) acetic acid; 4) acrylic acid nitrile; 5) ammonia liquefying workshop In addition to fibre, K-9 preparation 1,4

Production of caustic soda and lowtonnage chemical products

1976

Organic chemicals Production Nitron fibres Production of technical thiourea tions. Granulated polyacrylamide

1969 1983 1987 (a

which is applied for production of mineralcotton materials as a binder. There are production facilities for pentaerythritol and zinc nitrate as well. Today Navoiyazot JSC is dozens of workshops, which make up a single industrial mechanism for accomplishment of production tasks (Table 1). The main raw materials purchased by the company are: natural gas, soda ash, industrial salt, ferrous sulphate, sulphur, catalysts, monoethanolamine, isopropanol, cationic dyes, hydroquinone, diisopropyl ether, itaconic acid and sorbital. Domestic raw materials account for a substantial part of the companys feedstock consumption. The major local suppliers of raw materials are Navoiy Kon-Metallurgiya Kombinati Metallurgical JSC (Navoiy Mining and Plant), Samarqandkimyo

mixture of polyacrylamide with ammonium sulphate), manufactured under the trade name Flocculant PAA-GS, is used in the form of diluted aqueous solution for suspension flocculation in the mining, chemical, pulp and paper and by-product coking industries as well as domestic and industrial water supply. Acrylic emulsion also produced by the company is used for manufacturing water-based paints, in the leather, textile and furniture industries and for producing adhesives. Urea-formaldehyde resin of KFZH grade is widely used for manufacturing plywood, gluing furniture parts; building products and joinery; for production of moulding cores and casting moulds; soil stabilisation; as well as for manufacture of moulding materials, laminated and foam materials, adhesives, coatings, paper and fabrics manufacture; for gluing abrasive grains onto abrasive paper. KS-11 is another urea-formaldehyde resin,

JSC, Olmalik Kon-Metallurgiya Kombinati JSC (Olmaliq Mining and Metallurgical Combine), Muborak Gazni Qayta shlash

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Table 2. Projects of Navoiyazot


Project Construction of an ammonia and carbamide complex Expansion of thiourea production Construction of potassium nitrate production Construction of unit for bleaching agents for textile manufacture Construction of monochloroacetic acid production Start-up 2014 2014 2015 2015 2015 Capacity 660,000 tpy of ammonia, 1,000,000 tpy of carbamide Capacity expansion up 3,000 tpy 3,000 tpy 10,000 tpy 5,000 tpy

The plant is due on stream in 2016. Navoiyazot JSC actively implements other investment projects aimed at developing innovative technologies and upgrading equipment in order to achieve sustainable competitiveness of products at the domestic and foreign markets by improving products quality and reducing their production costs (Table 2).

Fargonaazot JSC
According to the feasibility study, the cost of the project totals USD 501.1m and its estimated capacity for suspension PVC 100,000 tpy, caustic soda 71,800 tpy, methanol 295,400 tpy. The payback period including the investment period - 9.2 years. The implementation of the project will provide the needs of the construction, electrical, medical, petrochemical and chemical industries of the country for the mentioned products. Moreover, it is planned to export 50,000 tonnes of PVC and 22,500 tonnes of caustic soda annually. Creating PVC production will enable the company to utilise chlorine obtained in the course of caustic soda manufacture. It has already been noted that the country has sufficient reserves of technical sodium chloride for producing caustic soda and chlorine. PVC production will utilise acetylene (via chloride monomer), and acetylene will be obtained from natural gas. The feasibility study also envisages the construction of an oxygen and argon gas workshop to cover the growing needs of Uzbek companies for technical gases. It is planned to use methanol as a petrol additive. Wastes of methanol production (distillates) will be used as an additive to natural gas during transportation through trunk pipelines to fight gas blocks. In the future, the bulk of methanol will be directed to a methanol-to-olefins complex planned to be built in years to come. After putting the integrated plant into operation, about 900 new jobs will be created. Products worth USD 234.5mn will be manufactured annually, including exports more than USD 68.5m. Fargonaazot JSC (Fargona) is one of the leading manufacturers of ammonia, ammonium nitrate and urea in the country. It was commissioned in 1956. The companys production facilities have been repeatedly upgraded and increased over the last ten years. Now it can turn out up to 400,000 tonnes of ammonia, 360,000 tonnes of weak nitric acid, 425,000 tonnes of ammonium nitrate and 270,000 tonnes of urea per year. Moreover, Fargonaazot manufacture sodium chlorate intended for production of defoliants and chlorine dioxide for bleaching pulp and fabrics, water disinfection, and weed killing (herbicide). Another important product of the company is liquid defoliant - 36% aqueous solution of magnesium chlorate. It is used in agriculture for preharvesting elimination of leaves and for drying plants (cotton plants, soybeans, sunflowers and potatoes). Universal complex action defoliants UzDef and PoliDef complete the range of agrochemicals. In 2010 Fargonaazot put into operation a baking soda production line designed to manufacture 1,000 tonnes of NaHCO3 per year. The equipment utilised for production of sodium bicarbonate was made by local manufacturers, and only local raw materials are used. A few years ago, with the assistance of Chinese company Greencool Engineering, a cellulose diacetate unit was revamped. Cellulose diacetate is used for manufacturing acetate filament and acetate silk as well as cigarette filters. The former

Zavodi JSC (Muborak Gas Processing Plant) and Ammofos Maxam JSC. Navoiyazot sells its products both on the domestic and foreign markets. Positive dynamics of export supplies plays an important role in ensuring the financial stability of the company. One of the main income items of the company is nitrogen fertilisers supplied to local agricultural producers. Other major consumers include Ozkimyosanoat SJC, Navoiy Kon-Metallurgiya Kombinati JSC, Olmalik Kon-Metallurgiya Kombinati JSC, Navoiy TES JSC (Navoi TPP), Chkalov Nomli Toshkent Aviasiya shlash Chiqarish Birlashmasi (Toshkent Aviation ON by Chkalov) and Toshkent Traktor Zavodi. The main export markets of the company are Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, China, Iran, Pakistan, Turkey, Ukraine, Russia and United Arab Emirates. So, we know what the company produces today, but what Navoiy chemists will manufacture in the coming years? Currently Ozkimyosanoat is considering the project Construction of a plant for polyvinyl chloride (PVC), caustic soda and methanol on the basis of Navoiyazot. The development of a preliminary feasibility study was completed in August 2012 followed by its agreeing with an authorized expert group. The latter gave its positive verdict after giving recommendations and eliminating deficiencies. In May 2013 a tender for turnkey construction of the plant was announced. The winner - China National Chemical Engineering Group Corporation (CNCEC) was announced on 28 August, 2013.

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Fargona chemical fibre plant, a subsidiary of Fargonaazot became a production site for cellulose acetate fibre manufacture. The plant, which can also produce tyre cords and nylon-6, was put into operation in 1998. The main raw material for tyre cords and nylon-6 was caprolactam. Polyamide-6 capacity totalled 7,000 tonnes per year. But polyamide-6 capacity is currently idling due to lack of floating capital and sales markets, but is in good condition and ready for operation. Besides the company can turn out sodium nitrate and carbamide-ammonia mixtures. The major importers of its products are Russia, Tajikistan, Turkmenistan, Kyrgyzstan, China, Iran and Afghanistan. The main raw materials consumed by the company are natural gas, sulfuric acid, hydrochloric acid, industrial salt, magnesium chloride, caustic soda, monoethanolamine and cotton cellulose. Currently, it employs about 7,000 people. The Fargona plant follows the course for upgrading chemical production taken by Ozkimyosanoat SJC. In 2014-2015, it is planned to conduct large-scale modernisation of ammonia synthesis unit AM-76 and urea production. One of the key results of the modernisation at Fargonaazot JSC will be a reduction in ammonia production costs. The expediency of the reconstruction is determined by three factors: ammonia is a basic component of many mineral fertilisers; the volume and cost of the product determine the amount of fertiliser produced and their cost; the construction of the new units require large capital expenditures. The main aim of the new investment project is to improve the reliability and performance of equipment at AM-76 unit and its operational safety, reduce energy consumption and, as was previously mentioned, ammonia manufacturing costs. The project envisages increasing ammonia capacity by 50,000 tpy; urea production - by 30,000 tpy, to 300,000 tonnes; ammonium nitrate capacity - by 62,000 tpy and nitric acid manufacture by 50,000 tpy.

Natural gas consumption per one tonne of ammonia will be reduced by 20.3 Nm , the
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(100% P2O5 per year) and for sulphuric acid (monohydrate) 500,000 tonnes. The main products of the company are: ammophos containing monoammonium phosphate NH4H2PO4 with an admixture of diammonium phosphate (NH4)2HPO4), ammonium-phosphate-sulfate containing monoammonium phosphate (NH4H2PO4) and ammonium sulphate (NH4)SO4, NP 15:23), suprephos -NS (a mixture of CaHPO4, (NH4)2SO4, NN4N2RO4, (NH4)2N2RO4 and from 0.5-2% of Mg salts of four grades with a total content of active substances of 80-90%), monoammonium phosphate (NP 12:52), ammonium sulphate (granulated, for alkaline soils), sulphuric acid (improved; first and second grades), sulphuric electrolyte for batteries (32-35% H2SO4), orthophosphoric acid (four grades - from 18% to 31% P2O5), phosphogypsum for soil improvement (three grades a with CaSO4 2H2O content of from 80% to 90%, and hygroscopic moisture 15-25%), feed ammonium phosphates of A and B grades (monoammonium NN4N2RO4 with low and controlled content of As, Pb and F), ground sulphur (for agricultural use), sodium biphosphate (NaH2PO4 with moisture content of 20.5%, application areas - refining of metals, water treatment, an auxiliary agent in the dyeing of textiles, a buffer in solutions for electroplating); mono disodium phosphate, a mixture of NaH2PO4 and Na2HPO4 with a moisture content up to 23%), disodium phosphate (Na2HPO4 with a moisture content of up to 25%; application fields - boiler water treatment, production of glazes for pottery and porcelain, enamel manufacture, tin plating, tanning, a reagent for electroforming (galvanoplastic processes, production of pigments in the textile industry); trisodium phosphate (Na3PO4, there are two grades with a moisture content of 15% and 45%, it is used for water treatment and softening, and as cleaning and degreasing agents). In addition, the Olmaliq company produces fiberboards from cotton stalks and plant fibres. Its products are in great demand both in the domestic and foreign markets. The fertilisers are used in different climatic

total consumption of gas - by 81.2m Nm3 per year. Project execution will reduce electric energy consumption for production of one tonne of ammonia by 72 kWh and total power consumption will be cut by 28.4m kWh per year. These factors will allow the company to reduce costs of ammonia by 12.6% in 2015, thereby increasing competitiveness of the product. In January 2014, Fargonaazot repeatedly announced a tender for equipment procurement for USD 15.5mn. The tender was announced within the frames of a project for reconstructing the urea and ammonia workshops. First, the USD 18.8m tender was planned to be held in June 2013 and the results were to be announced in the Q3 of 2013. However, it was not held due to lack of competitive bids. The project involves spending USD 16.3m of the companys own funds in the coming years. In addition, it will be financed at the cost of the Fund for Reconstruction and Development of Uzbekistan for USD 24m and cost of Uzbek banks for USD 22m.

Ammofos-Maxam JSC
Ammofos-Maxam JSC (Olmaliq, Toshkent province) is one of the largest companies in Uzbekistan. It was launched in 1969. Today the plant manufactures complex N-P fertilisers on the basis of phosphorite of the Kyzyl Kum deposit. The company is a member of Ozkimyosanoat SJC. In 2009, 49% of the companys shares were sold to a foreign investor a Spanish corporation Maxam. The production site of Ammofos-Maxam is located at the foot of the Kurama Range, 60 km from Toshkent and 7 km from Olmaliq occupying 194.5 hectares. The plant has two workshops for ammophos, two phosphoric acid workshops, sulphuric acid production, production of consumer goods and a number of auxiliary facilities. Installed capacity of Ammofos-Maxam for phosphate fertilisers is 217,500 tonnes

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the accumulation of sugars in root vegetables and fruit. UAN is a new type of nitrogen fertilisers produced by the company containing carbamide (30%) and ammonium nitrate (40%). All-in-one nutrient solutions based on ammonium nitrate solution - is a liquid complex fertiliser prepared by mixing ammonium nitrate, monoammonium phosphate and potassium chloride. All-in-one nutrient solution is a liquid compound fertiliser obtained by mixing carbamide-ammonia mixture, ammophos and potassium chloride. The fertiliser mixture manufactured by Maxam-Chirchiq is used for pre-sowing application, pre-sowing seed treatment and foliar feeding of plants Panorama of Maxam-Chirchiq zones and for various soil types for all kinds of crops, thanks to the balanced composition of nutrients. The company is certified under ISO 9001 QMS standards. It cooperates with the research and development institutes of Uzbekistan and the Russian Federation. The main raw material is burnt phosphorus concentrate, which is supplied by the Kyzyl Kum phosphorite complex. Muborak Gazni Qayta shlash Zavodi (Muborak, Qashqadaryo province) supplies sulphur and Maxam-Chirchiq JSC (Chirchiq, Toshkent province) ammonia. Using natural gas doubled the output and significantly reduced products costs. In 1975 the company was renamed Elektrokhimprom Production Association. In 2002, in accordance with a state programme for denationalisation and privatisation Elektrokhimprom was transformed into Elektrkimyosanoat JSC. In 2007, Spanish company Maxam purchased 49% of the companys stock of shares. In this regard, the company was renamed Maxam-Chirchiq JSC. Ozkimyosanoat SJC has 51% of the shares. The products of the company can be divided into 4 groups: mineral fertilisers, chemicals, resins and catalysts. This company was the first one in Central Asia to produce nitrogen fertilisers. In 1932 it was decided to build Chirchiq nitrogen fertiliser plant in the Toshkent province. Since its commissioning in 1940, the company bore the name Chirchiq electrochemical plant. In the beginning it was specialised in production of nitrogen fertilisers by the fixation of nitrogen via electrical arc. Due to the development of deposits of natural gas in the Buxoro province, the company began to use natural gas supplied by pipelines to Chirchiq. The range of fertilisers, produced in Chirchiq is the widest in Uzbekistan. This group includes carbamide, ammonium nitrate, ammonium sulphate and 9 other types of fertilisers and one pesticide. A mixed highly concentrated granular nitrogenphosphorus fertiliser (NPF) is obtained by mechanical mixing ammonium nitrate with ammophos in the ratio 9:1. High phosphorus content helps to increase plant resistance to unfavorable environmental factors (drought and frost), and increases the resistance of plants to diseases, promotes by spraying them in greenhouses and on the open ground. Technical magnesium sulphate improves crop yields due to the formation of carbohydrates and promotes fruit formation. Phosphourea is a mixed fertiliser produced by mechanical mixing of urea and ammophos. It is particularly useful for neutral and acidic soils. Another type of fertiliser, urea sulphate, is derived by mixing urea and ammonium sulphate. Potassium sulphate produced in Chirchiq is a highly concentrated potassium fertiliser with a minimum 48% potassium content. Sodium nitrate is a nitrogen fertiliser containing 16% of nitrogen. It is meant for soils of all types potatoes, beet-root, other various vegetables, fruit and decorative plants. Lime-sulphur spray is a product designed for crops affected by powdery mildew, red spider, anthracnose and other fungal diseases. Lime-sulphur spray can also be used for other industrial purposes. It is produced from technical sulphur, limestone and water. The product line of fertilisers is extremely diverse both in terms of chemical composition and application areas. So, in addition to ammonium nitrate of agricultural application three varieties of NH4NO3 are produced in Chirchiq. Ammonium nitrate of low density is used for commercial purposes; ammonium nitrate

Maxam-Chirchiq

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without conditioners for technical application is produced exclusively for the needs of foreign customers. And ammonium nitrate solution is purchased by companies manufacturing industrial explosives. The company produces 4 types of HNO3: nitric acid (56%) of reactive grade (used in the electronics and medicine industries), nitric acid for special purposes (designed for the electronic and metallurgical industries), weak nitric acid (for production of ammonium nitrate, complex fertilisers and metal etching), and concentrated nitric acid of A and B grades. Grade A is used in the electronic and radio electronic industries, for nitration of organic compounds in manufacture of explosives, chemical treatment of metals, in the medical industry and plastics manufacture. Grade B is applied for galvanic processes, in production of chemical reagents, for dissolving chemicals impurities, in processes of nitration of organic compounds in manufacture of explosives. Technical aqueous ammonia of reactive grade as well as liquid ammonia of three grades (A, B, and Ak) is produced on the basis of NH3 synthesised in Chirchiq. Ammonium carbonate (Ak grade) is a mixture of ammonium carbonate and bicarbonate intended for synthesis of ammonium sulphate. Industrial gases occupy an important place in the product range of Maxam-Chirchiq. Technical hydrogen is used in the electronics, chemical, pharmaceutical industries, in ferrous metallurgy and in the communications and energy industries. Solid carbon dioxide is used for cooling in refrigeration equipment, processing, storage, transportation and sale of frozen and chilled foods by direct or indirect contact with them. Gaseous and liquefied carbon dioxide is used to create protective environment for welding of metals; for food processing in manufacture of carbonated drinks, dry ice, for cooling, freezing and storing food in direct and indirect contact with them; for drying casting moulds; for fire extinguishing.

Gaseous oxygen is used for welding non-ferrous metals, light-weight alloys and intensifying metallurgical processes. Liquid oxygen is a by-product of manufacturing liquid nitrogen from atmospheric air by lowtemperature rectification. It is applied after gasification for flame treatment of metals and other industrial purposes. Gaseous nitrogen is intended to create an inert atmosphere during production of easily oxidizable products, high-temperature processing of metals, which do not interact with nitrogen, for preserving closed metal vessels and pipelines. Liquid nitrogen is derived from atmospheric air by deep cooling and it is used by agricultural companies as a refrigerant. Chemists in Chirchiq produce two types of urea-formaldehyde resins (COP -11 and KFZH), similar to those by Navoiyazot JSC (see above). The plant produces a number of important industrial catalysts. Thus, for ammonia synthesis catalysts CA-C (oxidized) and CA-CB (reduced) are designed to operate at temperatures from 400 C to 600 C at pressure from 15 MPa to 55 MPa. Nickel catalyst GIAP-8 is designed for steam, air and vapour carbondioxide conversion of gaseous hydrocarbons to produce commercial hydrogen and various industrial gases. Chrome-alumina catalyst GIAP-14 is meant for loading in the upper zone of second stage shaft reactors for air-steam conversion of natural gas under pressure of 4 MPa. Methanation catalyst TS-2 is designed to purify a mixture of nitric oxides from carbon oxide. Catalysts UCC-02, UCC-02E are applied for the process of conversion of carbon oxide with steam under pressure of 5 MPa and at temperatures from 320 C to 350 C. Low temperature methanation catalyst for carbon oxide conversion NTK-4U is used for catalytic processes in carbon oxide conversion with water vapour in ammonia production. It contains primarily metal oxides and produced in the form of cylindrical pellets. Aluminium nickel molybdenum catalyst CGI-09 is manufactured for intraplant con-

sumption for hydrogenation of sulphur compounds from hydrocarbons in production of ammonia. Sulphur absorbent NPV-03 is manufactured at the existing equipment for production of catalyst GIAP-8 from zinc oxide, which is derived from spent catalysts (zinc sinks) GIAP-10. The main raw materials consumed by Maxam-Chirchiq are: natural gas, caustic soda, sulphur, hydrochloric acid, formaline, methanol and monoethanol amine. The main consumers of the local plant are agro-industrial companies and farms, chemical and other industries. Major importers are Russia, Kazakhstan, Tajikistan, Afghanistan, Turkmenistan, Kyrgyzstan, China, Iran and Turkey.

Qoqon superfosfat zavodi


Qoqon superfosfat zavodi JSC (Qoqon Superphosphate Plant, Qoqon, Fargona province) is one of the oldest companies in the country for production of phosphate fertilisers. It employs 500 workers. The plant was built on the basis of a bulk blending plant, which was part of Peoples Commissariat of Heavy Industry of the USSR GlavAzot, and it was put into operation in 1935. The initial product range included organo-mineral fertiliser mixtures. In wartime, the factory manufactured defense products. In 1942-1945 the plant produced explosive Dinamon Zh. In 1941, construction of a superphosphate plant started using the equipment delivered from Nevsky (St. Petersburg) and Voskresensky (Moscow region) chemical fertiliser plants. The first stage of the plant started up in 1946. Apatite and imported sulphuric acid were raw materials for superphosphate production. At the same time the construction of a sulphuric acid plant started and it was completed in 1947. After discovering the Karatau phosphorite basin, the plant mastered a technology for production of superphosphate from the

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deposit. In 1949, designing and constructing a new superphosphate plant with a design capacity of 42 tonnes per year (in terms of 100% P2O5) started, and in 1958 the plant was put into operation. In 1956, the sulphuric acid plant was reconstructed and its capacity was increased due to the growing output of superphosphate. In 1953, a pilot plant was installed and production of ammoniated superphosphate started up. At the same time construction of an ammoniated superphosphate plant with a designed capacity of 45,500 tonnes per year (in terms of 100% of P2O5), began. In 1962, the plant was put into operation. In 1964 a technology for producing ammoniated superphosphate by a new flow sheet was introduced ammonation - drying - sieving crushing. In 1967, two more drum ammonation units were installed. In 1971, the reconstruction of the drying plant was made. Battery cyclones were replaced with cyclones with a self-cleaning device. In 1973, two additional screens GIL-52 were integrated into the process flow sheet. Since 1998 with the commissioning the Kyzyl Kum phosphorite plant, Qoqon superfosfat zavodi started processing local raw materials - raw phosphorites from the Tashkura deposit. In 1999, Chirchiq leading research institute OzkimyosanoatLoyiha (Uzbek chemical industrial projects) established ammoniated superphosphate capacity at 178,000 tonnes per year in physical terms during the transition to phosphate raw material from the central Kyzyl Kum. In 2004, the first stage of reconstruction including drying, grading and packaging of fertilisers was completed at Qoqon superfosfat zavodi JSC. In 2008, Russian company Monolith LLC (Moscow) became the owner of 85.2% of the companys shares, paying for them approximately USD 3.6m to State Property Fund of Uzbekistan (SPF). In 2011, this deal was cancelled by mutual consent. Investment commitments of the Russian company at closing the deal were USD 5m, which had to

be implemented within 5 years. The volume of investments accounted for about USD 3m before the cancellation of the contract. As for the structure of the share capital of the company, 85.2% of the shares have been returned to the SPF, 10% are the share of the labour collective and the rest 4.8% belong to other minority shareholders (companies and natural people). In 2010, as a result of series of implemented innovative technical solutions, the capacity of the plant for ammoniated superphosphate reached 230,000 tonnes. Ammoniated superphosphate is the main product. The nutrient content of the fertiliser is: P2O5 - 13 1%, nitrogen in ammonium form - 1,5 0,5%. It is used in agriculture for growing different crops - vegetables, fruit and both technical and decorative plants. Ammoniated superphosphate is recommended for using in conjunction with potassium fertilisers. It is sold to consumers at USD 90 per tonne (bulk) by railway or in consumers bags (50 kg bags) by the buyer FCA (railway station Qoqon -1). The main consumers of ammoniated superphosphate are agricultural companies, which are mainly located in the Fargona, Andijon and Namangan provinces. The fertiliser is in demand in the neighboring countries, particularly in Tajikistan, Kazakhstan and Kyrgyzstan; it is also shipped to Iran and Afghanistan from time to time. The export potential of producers of ammoniated superphosphate is increasing from year to year. If the volume of exports in 2005 amounted to 900 tonnes, in 2009 it was 19,300 tonnes, and during the last years it has been at the level of 30,000-32,000 tonnes. The main types of process feedstock come from the local market. This is phosphorite meal, sulphuric acid and ammonia. The company produces building gypsum and mineral fertilisers in small packaging for the domestic consumer market. The future plans of the company are: launching of pigment production with an annual capacity of

1,000 tonnes, and magnesium compounds with an annual capacity of 1,000 tonnes.

Samarqandkimyo
The plant was founded in 1949. In 1950, according to a project of the USSR Giprokhim the construction of sulphate, superphosphate, oxygen and mechanical repair and engineering workshops was started. A network of access roads, which included two railway stations and two auxiliary stations (Superfosfatnaya and Zavodskaya) was built. The main focus of the plant was phosphorus-containing mineral fertilisers of superphosphate type for the needs of the cotton-growing republics of Central Asia. The phosphorite deposit in Karatau (Dzhambul region, Kazakhstan) was the raw material base. A workshop for production of sulphuric acid by contact process with the main apparatus located out of specialised industrial premises was built in the USSR at the Samarqand superphosphate factory. The experience of the Samarqand plant showed that under conditions of careful development of manufacturing processes and maintenance, equipment of sulphuric acid plants can be used in the open area, which significantly reduces the capital cost of construction of workshops and equipment installation; makes it easier to install ventilation, remove harmful gases and excessive heat. Planned output of sulphuric acid, which is needed to produce mineral fertilisers, started in 1954. In 1955, a superphosphate workshop began operating. However, the fertiliser produced from phosphate of the Karatau deposit had poor physical properties, which made their soil application difficult. In order to improve the properties of simple superphosphate, construction of a granulation workshop was started, and it was completed in 1960. A little earlier, a unit for production of battery acid and selenite sludge was installed. In 1962 the plant started production of ammoniated superphosphate. The output of concen-

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trated and complex fertilisers was growing quickly. The most important type of fertiliser was ammophos, and its production started in 1976. In 1978, ammophos was awarded the State Quality Mark. In 1984, a plant for extraction phosphoric acid of the third stage was put into operation. The capacity of the plant was 136,400 tonnes per year. In 1994, due to cessation of deliveries of phosphate raw materials from Kazakhstan, the second stage of the plant was switched to production of granulated ammonium sulphate. Since 1994, a new technology for production of fertilisers based on the processing of local raw materials was developed on the basis of the second of the plant. In 2004, specialists of the company and Design Institute OzkimyosanoatLoyiha activates enzymes and strengthens the cell walls. The efficiency of this complex fertiliser has been proven at several Uzbek farms. Studies have shown that it has a positive effect on plant growth and development, thereby increasing the crop yield by 17-20% on average. It is recommended for cereals crops, cucurbits crops, cotton and forage crops, fruit and berry crops, vegetables as well as houseplants. N-P-Ca should be used as a base fertiliser before sowing and as a plant food throughout the growing season. All its components are well absorbed by plants in neutral carbonate-containing soils, even highly saline soils of the Central Asian region, and in all other types including black soil. N-P-K (nitrophoska) is a highly effective mineral fertiliser, which contains the basic nutrients needed for plant growth - nitrogen, phosphorus, potassium and calcium (N - 5%, P2O5 - 14%, K2O - 14% and CaO - 12%) in the available form. The technology of production of this fertiliser was mastered at the plant not that long ago - after the company Dehqonobod Kaliyli Ogitlar Zavodi (Dehqonobod Potash Fertiliser Plant) started manufacture of crystalline potassium chloride. Potassium is one of the most important nutrients for plants. It keeps and retains water in stems and leaves, enhances the formation of sugars; it increases the resistance of plants to disease, drought and frost. N-P-K (nitrophoska) is produced by mixing nitrophosphate pulp and crystalline KCl. The technology for producing N-P-K fertilisers has been developed by specialists of Samarqandkimyo JSC. Complex mineral fertiliser ZHSFS (suspended liquid phosphorus-containing nitrate) contains nitrogen (7% N), phosphorus (7% P2O5) and water-soluble calcium (7% CaO). It is manufactured by mixing calcium nitrate-phosphate pulp with ammonium nitrate solution. The solution is used in agriculture to feed all kinds of crops throughout the period of their vegetation. According to test results of the Uzbek Research Institute of Cotton in conjunction with the Institute of General and Inorganic Chemistry of the Academy of Sciences of Uzbekistan recommendations for its use in agriculture have been developed. ZHSFS is used for foliar application by spraying the suspension solution onto leaves, and for root nutrition during the formation of leaves, during budding and blooming periods. These methods of applideveloped a new kind of fertiliser - NPF (nitrogen-phosphorus fertiliser). In 2005, by order of the State Property Committee of Uzbekistan, the company became an open joint-stock company and was renamed Samarqandkimyo JSC. Currently the company employs over 800 people. Unfortunately, in recent years Samarqandkimyo has been unprofitable. In this regard, in January 2014, the Cabinet of Ministers, the Ministry of Economy, the Ministry of Finance with the involvement of stakeholders had to develop and adopt a programme for tackling financial crisis and actual bankruptcy of some industrial companies in a three-month period. Now the product range of the plant includes N-P-Ca (nitrofos), N-P-K (nitrophoska) and suspended nitre. Complex fertiliser N-P-Ca (nitrofos) contains 6% of nitrogen, 16% of phosphorus and 11% of calcium. Nitrogen regulates the growth of vegetative mass and determines the level of productivity. Phosphorus activates root growth, accelerates the development of all processes and increases winter hardiness. Calcium stimulates plant growth and root development, increases metabolism, liquid phosphorus-containing Production facilities at Samarqandkimyo plant

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JV Elektrokimyozavod
JV Elektrokimyozavod CJSC (Navoiy) electrochemical plant was founded in 1971 for production of chemical crop protection products: insectoacaricides, herbicides and fungicides for Central Asia and other former Soviet republics. The second birth of the company was the creation of the Uzbek-Panamanian joint venture, Elektrokimyozavod JSC, in 1994. After the plant became a joint-stock company, it took a course on production of chemical crop protection agents from imported active ingredients and components from local raw materials. Economic expediency of Dehqonobod potash fertiliser plant cation stimulate growth and development of crops, and also serve as means of protection from diseases. Beside the main products fertilisers - the plant manufactures battery sulphuric acid. The main importers of plant products are: Tajikistan, Afghanistan, Kyrgyzstan and Iran. The basic raw materials required for production are phosphorite meal and nitric acid. operation. In 2010, the company produced 55,000 tonnes of potassium chloride; in 2011 180,000 tonnes, and in 2012 reached its design capacity. Construction of the second stage of the plant at the cost of USD 254.5m provides an increase of the capacity of the plant by three times - up to 600,000 tonnes of potash fertilisers per year, and about 350,000 tonnes will be exported. In 2011, ZUMK signed a contract with Ozkimyosanoat to expand capacity of the production complex worth USD 128m, and with CITIC Ltd - to expand capacity of the proThe construction of Dehqonobod potash fertiliser plant on the basis of the Tubegatan sylvite deposit in the Qashqadaryo province started in 2007. In 2008, Ozkimyosanoat SJC concluded contracts with ZUMK (ZAO UK Western-Ural Machine Building Concern CJSC Management Company; Perm) and CITIC Pacific Ltd. (China) for building on a turnkey basis; with the Russian company - to build a mining complex; with the Chinese for the construction of a processing complex. The first tonne of sylvite mined by Tubegatan potash mine group (TPMG) was processed at the plant in December 2009. And in mid-2010 the plant at the cost of USD 123.7m and with capacity of 200,000 tonnes of potash per year was put into commercial cessing complex at the cost of USD 110m. The construction started in late 2011 and in the mid2014 production should be put into operation. USD 110.5m from Export and Import Bank of China, Ozkimyosanoats own finances and credits of the Fund for Reconstruction and Development of Uzbekistan in the amount USD 128.1m were allocated for the project. The payback period from the beginning of construction is 7.5 years. The number of created jobs is 944. Potassium chloride according to State Standard GOST 4568-95 produced by the plant is shipped to local farmers, factories producing complex mineral fertilisers, as well as abroad - Sri Lanka, UAE, Iran, Kazakhstan, Georgia, Vietnam, Malaysia and China. the plant, which would allow the country to save up to one third of the currency for purchasing finished crop protection agents, was taken into consideration. To expand the range of products and to improve their quality, a reconstruction of basic workshops was carried out, modern technology and packaging equipment was purchased, as well as modern analytical equipment. The company used to produce only four kinds of products but today the range of products includes more than 60 articles. Some are manufactured under licenses of the following companies: Dalston Associated (Panama), Syngenta (Switzerland), BASF (Germany), FMC (USA), Keminova Agro (Denmark), United Phosphorus (India) August JSC (Russia), Schyolkovo Agrochim JSC (Russia) using brands of the companies. Products quality fully meets the requirements of the licensors. For using at household plots, fertilisers are available in small packaging. Production of veterinary drugs for controlling parasites for animals and poultry, as well as drugs for use as disinfectants, disinsectants and exterminating substances was launched. However, today the companys economy is based on production from local raw materials. Manufacture of some products such as chemical crop protection agents and simple superphosphate is included in the Republican

Dehqonobod Kaliyli Ogitlar Zavodi Unitary Enterprise

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programme of localisation of finished products, components and materials on the basis of local raw materials. In the new economic environment, the company confidently took a leading position in production of chemical plant protection products not only in Uzbekistan, but in all Central Asia. Lets review the company products in detail. The herbicidal group includes Estamp (emulsion concentrate containing 330 g/l of active substance pendimethalin 2,6-Dinitro-N-(1-ethylpropyl) -3,4-xylidine; pre-emergence herbicide of a broad-spectrum designed for combating annual cereal and dicotyledonous weeds at arable farmlands). Dalstar (dry flowable suspension, containing 750 g/kg of the active ingredient tribenuron methyl (methyl-2-[4-methoxy6-methyl-1,3,5.triazin-2-yl(methyl) carbomoylsulfomoyl] benzoate); it is used in small doses as a highly effective postemergence herbicide for fighting broadleaf weeds in winter and spring grain crops) and Dalzlak Extra (emulsion concentrate, containing 104 g/l of active substance haloxyfop-(Pmethyl - methyl (R)-2-{4-[3-chloride-5-(tri fluoromethyl)-2-pyridyloxy]phenoxy}propionate; the postemergence systemic herbicide designed to control annual and perennial gramineous weeds in cotton sowing). The group of insectoacaricides includes Esfen Alpha (emulsion concentrate containing 5% and 20% esfenvalerate - A, -fenvalerate(S)-3-methyl-2-(4-chlorophenyl)-butyric acid (S)--cyano -3-phenoxybenzyl ester; it has contact and enteral damage effects on insects and worms), Tsiraks (25% emulsion concentrate cypermethrin - (R, S)-a-cyano3-phenoxybenzyl (1RS)-cis-trance-3-(2,2-di vinyl chloride)-2,2-dimethyl cyclopropane carboxylate, which has contact and enteral damage effects), Karbofos (emulsion concentrate, containing 50% of malathion - organophosphorus compound, which has contact partly fumigant effects on insects and ticks) and Dalprid (water soluble concentrate containing 200 g/l of imidacloprid - 4,5-dihydro-N-nitro-1-[(6-

chloride-3-pyridyl)-methyl]-imideazolidine2-ilene-amine; it is intended for cotton and wheat against sucking insects). The group of protectants includes Tebu (microemulsion containing 60 g/l of tebuconazole - (RS)-1-chlorophenyl-4,4-dimethyl3-(1H-1,2,4-triazole-1-il-methyl)pental-3-il; it is used for pre-sowing treatment of grain), Daltebu (water soluble suspension, containing 6% of tebuconazole; it is applied for pre-sowing treatment of grain); Dalucho (wettable powder, containing 70% of imidacloprid; it is applied against insects that feed on moisture of plants and infect seed stocks) and Dalbron (an active ingredient - Bronopol, or 2-bromo-2-nitropropane-1,3-diol; it enhances the ability of seeds for germination. Its application increases cotton crop by 5-6 centners per hectare. The company produces two veterinary drugs - Cypermethrin (25% emulsion concentrate of pyrethroid cypermethrin; it is used to combat leaf-eating insects) and Tsiperfos (emulsion concentrate containing two active substances - 5% of cypermethrin and 50% of chlorpyrifos - 0.0 - diethyl- 0 -( 3,5,6 - trichloro -2- pyridyl) phosphothioate; it is used for combating leaf-eating insects and psyllas, suppresses and prevents from ticks). Rodenticides are presented by Zookumarin (sodium salt compound of technical warfarin, 4- hydroxy -3 -(3 - oxo -1- phenylbutyl) coumarin; it is used for deratisation). Growth-regulating chemicals, which are manufactured in Navoiy, include Uzrep and Dalrost (aqueous solution containing 720 g/l of ethephon - 2-chloroethylphosphonic acid; it accelerates plant growth and ripening of cotton) and Dalpiksi (5% aqueous solution of mepiquat chloride - N, N-dimethylpiperidinium), which accelerates ripening cotton bolls). Extra Avguron (a suspension concentrate containing two active components - 360 g/l of tidiazuron - 3 - (1,2,3-Tiadiazolin5)-1-phenyl-urea and 180 g/l of diuron - 3 - (3,4-dichlorophenyl) -1,1-dimethylurea) -

the only defoliant for cotton, which is manufactured by the company and applied before harvesting. In 2003, after development work, the construction of simple superphosphate production was started, and in 2004 the first processing line was launched. Since 2007, simple superphosphate is also available in granular form. Experience has shown that using poor phosphate of the Tashkura deposit and sulphuric acid of the Uchkuduk deposit as raw materials allows manufacturing mineral fertilisers of high quality. That is why Navoiy superphosphate is in high demand not only among local farmers, but it is also exported abroad. An important step towards improving the economic performance of the company was re-starting previously mothballed capacity. Production of sodium sulphide ethyl acetate and sodium chloride was launched at idled capacity. A subsidiary company Eltuz was established specially for production of sodium chloride. It should be mentioned that iodised salt of the highest quality, produced under the brand name JP, is known throughout the country. Each month, 500 tonnes of edible salt are shipped to consumers. Quality management system of the company was certified in 2007 according to the international standard ISO 9001:2000.

Maxam-Uzbekistan JV
Uzbek-Spanish company, which employs more than 40 people, is located in Olmaliq (Toshkent province) and produces industrial explosives Manfo-8, 7. It is a mixture of ammonium nitrate, diesel fuel, fuel oil and aluminum powder. Its main customers are domestic mining companies.

Qongirot Soda Zavodi Unitary Enterprise


Unitary Enterprise Qongirot Soda Zavodi (Qongirot Soda Plant, located in the vil-

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Commissioning the plant allowed to refuse from imports of soda ash from Russia and Ukraine. The plants products are demanded by the light industry, production of detergents, glass, paper and cellulose, the non-ferrous industry and other sectors of the Uzbek economy, which consume about 80% of soda ash. Quvasoy glass factory is the main customers. Furthermore, sodium carbonate is exported to foreign consumers, mainly to Kazakhstan, Russia and Turkey. Over the last three years, the sales of the companys products abroad rose fivefold. By the results of 2013, 22,000 tonnes of soda ash were Qongirot Soda Plant lage Elobod in the north of the country, in Qaraqalpaqstan Respublikasi is the only company producing soda ash on the territory of Central Asia. The plant was founded in 1995. However, it was a difficult task to build a modern chemical company in the desert. It was necessary to build a 40 km road to the deposit of sodium chloride; to provide electric power supply, natural gas and water; to create normal conditions for personnel. Later, the main production units of the plant were built workshops of sodium bicarbonate, calcination, lime burning and slaking, purification of salt solutions, technical and aqueous support, as well as a boiler station. Some ancillary facilities were built: a motor pool, a testing area for reinforce concrete products, mechanical repair shops, a compressor station, an administrative and amenity building and a fire station. Most of the installed equipment was manufactured in China, and some was delivered from the United States, Italy and Germany. The plant, which currently employs 1,360 people, was commissioned in 2006 by a Chinese company CITIC Pacific Ltd and Ozkimyosanoat SJC. Total project cost was USD 100m. The company CITIC Pacific Ltd, according to the contract, carried out the turnkey design and installation of process equipment of the plant at the cost of USD 32.3m. The technological part of the project was funded on account of a loan from the Industrial and Commercial Bank of China under insurance cover of China Corporation of export-credit insurance (90% of the contract value) and on account of a loan from Uzpromstroybank (10% of the contract value) under the guarantee of the government. General construction works were carried out by local construction companies at expenses of Ozkimyosanoat. Its designed capacity is 100 tonnes of soda ash per year. The main raw materials for soda ash production are sodium chloride and calcium carbonate (limestone). All major raw materials are mined in Uzbekistan and they have been described above. According to a conclusion of geologists, the rational use of underground resources of the Ustyurt plateau can ensure the needs of the plant for over the next 100 years. Ozkimyosanoat, material. In 2006, the factory produced 12,810 tonnes of soda ash, and in 2011 this figure increased sevenfold. In 2012 more than 92,000 tonnes of soda ash were produced, and in 2013 - about 102,000 tonnes. Maxam-Chirchiq and Navoiyazot supply ammonia another raw Jizzax plastmassa JSC (Jizzax) is the largest producer of films, pipes and consumer goods from high and low pressure polyethylene in Central Asia. The plant was commissioned in 1972. Its capacity is about 60% of total capacity of polymer producers in Uzbekistan. Jizzax plastmassa manufactured 18,200 tonnes of PE film per year, 10,800 tonnes of polyethylene pipes 315-630 mm in diameter, and 1,370 tonnes of consumer goods (fittings). shipped to foreign customers. Due to increasing demand for soda ash in domestic and foreign markets, it was ruled to increase soda ash production of Qongirot Soda Zavodi by more 100,000 tonnes by the presidential decree On the priorities of industrial development of Uzbekistan for 2011-2015 dated 15 December, 2010. In April 2013, Ozkimyosanoat started constructing the II stage of the plant. Increasing capacity of the plant up to 200,000 tonnes per year is one of the priorities of industrial development of Uzbekistan until 2015. The start up of a production line for hyper pressed bricks is scheduled for the second half of 2014. Manufacture of new products from limestone should start in the mid-year, which will employ 65 people. By the end of 2015 it is planned to commission a glass containers unit.

Jizzax plastmassa

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Pipes produced in Jizzax are used for utilities, installation of hot and cold water supply networks and gasification, and that is why these products are practically not affected by seasonal decline in consumption. The company has a modern unit for PE films and pipes, injection moulding equipment, and equipment for packaging manufacture, as well as several crushing machines, which are used for recycling plastic waste. Number of workers employed at the plant - 439. Shortan Gas Chemical Complex, which was put into operation in 2001 and produces 125,000 tonnes of polyethylene per year, supplies raw materials to Jizzax. The main local consumers are: the agricultural sector, farms, private firms and construction companies. The main importers of products are Kazakhstan and Tajikistan. Unfortunately, over the years, the company has been in a financial crisis. In this regard, the President of Uzbekistan Islam Karimov in January 2014 instructed the government to develop and adopt a roadmap, which would allow the company to avoid bankruptcy (by the way, most of the shares of Jizzax plastmassa still belong to the state). III. Other chemical companies Jizzax plastmassa is equipped mainly with Chinese is mainly equipped with Chinese machinery stable gas condensate, commercial liquid and lump sulphur, commercial granulated sulphur, granulated polyethylene of various grades, polyethylene pipes and fittings, polyethylene film, parts for drip irrigation systems. Below we will describe only two companies that use chemical technology processes. gas were processed. Production of liquefied gas (propane-butane) reached 15,000 tonnes instead of the planned 8,500 tonnes. The plant produced 298,400 tonnes of stable gas condensate and 347,800 tonnes of elemental sulphur, which was certified in 2007 according to the international quality management system. For six months of 2013 the volume of liquefied gas production increased by almost 6.4 times, and gas condensate by almost 4.4 times, compared to the same period last year. Muborak Gazni Qayta shlash Zavodi (Muborak Gas Processing Plant, Muborak, Ozneftgazqazibchiqarish (Uzneftegazdobycha) includes the largest companies of Uzbekistan for oil production, natural gas and condensate recovery and natural gas processing: Muborakneftgaz USE, Shortanneftgaz USE, Andijonneft JSC, Jarqorgonneft JSC, Usturtgaz USE, Gazlineftgazqazibchiqarish USE, Shortan Gaz Kimyo Majmuasi USE and Muborak Gazni Qayta shlash Zavodi USE. Companies of Ozneftgazqazibchiqarish produce commercial oil, natural gas (supplied via trunk pipelines), liquefied hydrocarbon gas for municipal consumption, liquefied hydrocarbon gas for automobile transport, Qashqadaryo region) is a pioneer in the field of processing of natural gas on the territory of Uzbekistan. Here, natural gas is converted into liquefied gas, gas condensate and other hydrocarbons. The company is one of the largest gas processing plants in the world. The plant was commissioned in 1971 and it is designed for annual processing 30bn m3 of gas. The main processes of Muborak plant are absorption purification of natural gas, followed by low-temperature drying, commercial sulphur gas production by the Claus method and condensate stabilisation to obtain liquefied gas. In 2012, 27,65bn m3 of natural We mentioned the course for modernisation of chemical production conducted by the national government. According to the course, a special programme for technical re-equipment at the plant was developed. In particular, in July 2013, three production lines of propane -butane mixture were put into operation. Construction of this large industrial facility is the result of the implementation of an important investment project Construction of a propane-butane mixture processing unit to increase production of liquefied gas at Muborak Gazni Qayta shlash Zavodi USE worth USD 244m. Funding for the project was provided by Ozbekneftgaz proper, a loan of Fund for Reconstruction and Development of

Muborak Gazni Qayta shlash Zavodi USE

Petrochemical companies

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enable Muborak Gazni Qayta shlash Zavodi to increase operating rate, and employ 186 people. In addition, by 2015 Ozbekneftgaz is planning to proceed to construction of a gas chemical complex on the basis of Muborak Gazni Qayta shlash Zavodi. The project will be implemented by a 50:50 joint venture with Indorama Group (Singapore). It envisages production of 492,000 tonnes of polyethylene, 66,000 tonnes of gas condensate and 53,000 tonnes of pyrolysis petrol per year. The construction period of the complex is three years. The project initially estimated at USD 2.5bn, will be financed by funds raised by Indorama, a loan of the Fund for Reconstruction and Uzbekistan, as well as loans of the National Bank for Foreign Economic Activities and the China Development Bank. Construction of a new complex is also a result of cooperation of the leading companies from Russia, Ukraine, France, the USA, Poland and China. Foreign manufacturers installed unique high-tech equipment. At the same time, most of it is made in Uzbekistan by specialists of Ozbekkimyomash Zavodi JSC and Namanganmash JSC. The new unit, which is designed to strengthen the exports potential of the industry, can process 12bn m of
3

OzLITIneftgaz, construction and installation works were carried out by local contractors, most of manufacturing equipment is produced in workshops of Ozbekkimyomash Zavodi. The advantage of the new equipment is the ability to process not 250,000 m but 300,000 m
3 3

Development of Uzbekistan and equity funds of Ozbekneftgaz.

Shortan Gaz Kimyo Majmuasi


Shortan Gaz Kimyo Majmuasi Unitary Daughter Enterprise (Shortan Gas Chemical Complex; Shortan, Guzor district of Qashqadaryo province) is a perfect example of the new way of the economic development of Uzbekistan. Being a part of the USSR, Uzbekistan was mainly regarded as a source of cheap gas and cotton, but after declaration of independence, the countrys industrial production has been reoriented sufficiently to deep processing of raw materials close to their location. This is undoubtedly one of the most successful projects of the National Holding Company Ozbekneftgaz, which was carried out during the years of independence. There was a need for construction of such a complex. Ten years ago, the country experienced a serious shortage of polyethylene, and consumers were completely dependent on imports from Russia, China and South Korea, and that required significant investments and increased plastic goods production costs. However, a feedstock for manufacture of polyethylene - natural gas with a high con-

of natural gas per hour. USD 171.8m has been invested in this project. At the next step of modernisation of the plant, which will be implemented by the end of 2015, Ozbekneftgaz will gradually build the eighth stage of gas desulphurisation. USD 220m will be allocated from the funds of Ozbekneftgaz. The implementation of the project will ensure reliable operation of the system for purification of natural gas from hydrogen sulphide and acid gas in the longterm prospect. Blocks of the new stages also allow solving the problem of processing hydrocarbon raw materials supplied from the gas-bearing area Khausak -Shady in the Buxoro province, which is being developed by the Russian company Lukoil within the frames of a joint venture with Uzbekistan. In October 2013, the company Lukoil Uzbekistan started producing and transporting gas to Muborak Gazni Qayta shlash Zavodi. It is planned to process and transport 2.2 bn m3 of gas per year. The implementation of the project will

natural gas and produce up to 258,000 tonnes of liquefied gas and 125,000 tonnes of gas condensate per year. In addition, taking into account decommissioning of outdated installations, the construction of the seventh stage of desulfurisation consisting of three universal units with a total capacity of 6bn m of gas
3

per year was completed. All the three units were put into operation in the period from August 2012 to March 2013. The absorption system of the new units is equipped with modern contacting tip Peton that gives the opportunity to save electricity, heat and absorbents, and to increase output of high-quality products by 20%. Construction documents of the new units were prepared by the institute

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Panorama of Shortan Gas Chemical Complex tent of light hydrocarbons (ethane, propane, butane and a relatively small amount of sulphur) was found in the Shortan gas deposit (30% of all Uzbek gas) and in the South Tandyrcha, Adamtash and Gumbulak deposits. In addition, the local gas condensate contains a significant content of aromatics - a valuable raw material for petrochemical synthesis. After conducting necessary geological survey in November 1997, it was decided to build Shortan Gaz Kimyo Majmuasi. The aim was to build a powerful plant for processing of 3.5bn m of gas per year by etha3

consisting of globally renowned companies (ABB Lummus Global, Shell, Nissho Iwai, Mitsui, Toyo Engineering, Nova Chemicals). The project was financed by export-import banks of the USA and Japan, Germanybased Credit Agency Hermes, by the banks Chase Manhattan (USA) and Commerzbank (Germany). The cost of the engineering aspect of the design was USD 656.6m. Besides foreign loans, an amount equivalent to USD 328m in the national currency of Uzbekistan was invested in the construction of the plant. The total investment exceeded USD 1bn. In 2001, the construction was mostly completed, the plant was commissioned and the company started to approach the design capacity. In 2005, Shortan Gaz Kimyo Majmuasi was successfully certified under ISO 9001:2000 QMS requirements. We will briefly describe the production technology. Natural gas from the Shortan field is fed to a separation unit after amine treatment and its deep processing with fractionation starts. ABB Lummus is a licensor of the gas separation technology and production of ethylene. Ethylene production consists of amine treatment plants, a gas separation plant with a chilling system, a block of pyrolysis gas preparation, pyrolysis furnaces, propane

and ethylene refrigerant systems and a unit for ethylene production. Amine treatment is used for purification from acid components, and separated sour gas goes to a unit for sulphur production. Sulphur granulated and packed in bags of 25 kg is shipped to a warehouse for subsequent sale to consumers. Purified gas is supplied to a gas separation unit, from which pure methane, as a marketable gas, is sent to a gas transmission system. The main component, ethane, is converted at a cracker, where ethylene is derived used in the further production of polyethylene. It should be noted that liquefied natural gas produced at the company is extremely pure, since in the course of the manufacturing process each fraction (propane, butane) is separated to 99.99% purity and a part of propane is used as a refrigerant. Then these two components are mixed in the required proportions according to the existing standards. Propanebutane fraction, just like liquefied gas, is sold to consumers in tanks. Heavier fractions C5 +, which are derived while converting natural gas, are sent to refineries for further processing as gas condensates. The main volume of ethylene is applied for production of polymers and the rest is converted at a dimerization unit into

nolamine method for production of 125,000 tonnes of polyethylene UzClear in granules,

100,000 tonnes of liquefied gas, 100,000 tonnes of gas condensate and 1,500 tonnes of sulphur. Shortan complex became an example of successful international cooperation, as companies from the USA, Japan, Italy, Germany, Canada, France, South Korea and Russia participated in its financing, design, construction, training of staff, in addition to Ozbekneftgaz. In 1998, Ozbekneftgaz signed a turnkey contract for design, equipment supply, construction, and commissioning on the basis of fixed price with an international consortium

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Table 3. Polyethylene grades by Shortan Gaz Kimyo Majmuasi


Grade and type of PE Density, g/cm3 Value HDPE Household goods HDPE HDPE HDPE LLDPE LLDPE 0,958 0,962 0,958 0,962 0,958 0,962 0,922 0.928 0,923 0.927 5,5 8,5 13,0 18,0 20,0 30,0 12,0 20,0 4,0 6,0 General purpose For producing receptacles, containers, boxes General purpose, receptacles, containers Garbage containers For low-capacity articles (caps, artificial flowers) Extrusion Industrial packaging (thick film) General purpose film Ultrathin film (for mulching) Thin film (basic layer of stretch film) For films and bags For films and bags Rustling film and bags Extrusion For cable and wire insulation For insulation of cables and rigid hoses Extrusion Basic grade for gas pipes Piping, basic grade for high-pressure pipelines Large diameter pipes (drainage) Blow moulding Cans Blow moulding goods for general purposes Bottles for packaging and storing liquids Rotational moulding For large-size articles (tanks, containers for agrochemicals, fuel) 0,952 0,956 , g/10 min Processing type Recommended applications

Injection moulding grades I-0754 Injection moulding I-0760 I-1561 I-2560 I-1625 I-0525 5,0 8,0

Film grades F-Y720 F-0120 F-0220 F-0320 F-Y336 F-Y240 F-Y346 WC-Y434 WC-Y734 Pipe grades P-Y337 P-Y342 -Y456 B-Y250 B-Y456 B-Y460 MDPE HDPE HDPE HDPE HDPE HDPE 0,936 0,940 0,940 0,944 0,952 0,958 0,948 0,952 0,954 0,958 0,958 0,962 0,21 0,33 0,24 0,36 0,31 0,51 0,19 0,30 0,33 0,43 0,33 0,43 LLDPE LLDPE LLDPE LLDPE MDPE HDPE HDPE MDPE MDPE 0,918 0,922 0,918 0,922 0,918 0,922 0,918 0,922 0,934 0,938 0,936 0,942 0,942 0,948 0,932 0,936 0,932 0,936 0,60 0,90 0,80 1,50 1,5 2,5 2,5 3,5 0,24 0,30 0,19 0,31 0,19 0,31 0,30 0,46 0,60 0,85

Cable grades

Blow moulding grades

Rotational grades R-0333 R-0338 R-0448 MDPE MDPE HDPE 0,931 0,935 0,935 0,940 0,946 0,950 2,5 3,3 2,0 3,0 3,1 4,1 For tapes, monofilament for industrial bags, oriented films

Oriented grades -Y446 HDPE 0,944 0,948 0,33 0,43 Extrusion

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butene-1 co-monomer for subsequent copolymerisation for production of polyethylene of medium and low density. Using the comonomer allows one to change polyethylene density from 0.918 g/cm3 to 0.962 g/cm3. The production process of the main product, polyethylene, takes place in a solution by liquid-phase technology Sclairtech (it enables the company to quickly adjust the engineering process to manufacturing any of 148 varieties of polyethylene) under the license of Canadian company Nova Chemicals. The main advantage of this technology is the possibility of varying the physical and chemical and rheological parameters of polyethylene using a serial mode of tubular and autoclave type reactors. Thus, the company could produce linear polyethylene of various kinds at a single process line. The resulting polymer is completely separated from the solvent, residual catalysts, purified from harmful substances and in the molten state, with the least content of volatile compounds, is sent into the main extruder. All the necessary additives are added to the liquid or molten form, which ensures good mixing and complete homogenization. Polyethylene produced by this technology can be used to manufacture any products, which contact with food and the human body without any harm. After packing, polyethylene is sent to warehouses for storage and subsequent shipment to consumers by rail or road. Some part of polyethylene is used for production of plastic bags and pallets, which enables the company to package polyethylene on pallets in one tonne in 25 kg bags and to further store and ship it by any type of transport. In 2006, Shortan Gaz Kimyo Majmuasi took ownership under Qarshitermoplast (Uzbekistan, Qarshi), where, after installation of extrusion equipment manufactured by Ermafa (Germany), gas - and water pipes and fittings with diameters from 25 mm to 250 mm for agriculture and municipal complexes were produced. Pipe grades of high density polyethylene are used as raw materials. In

2009, a production line for component parts of drip irrigation system was commissioned there. Since 2010, an extrusion line for production of polyethylene pipes in diameter from 315 mm to 630 mm has been operated. Over the past years, the plant produced more than 10,000 tonnes of finished products per year. Today Shortan Gaz Kimyo Majmuasi produces the lion share of the product range planned by the project: polyethylene (more than 70 % is exported to the EU, as well as to Turkey, China, Israel, Pakistan, Russia, Kazakhstan and Ukraine), liquefied gas (supplied to Iran and Afghanistan), sulphur and gas condensate. Shortan polyethylene has shown itself to good advantage in extrusion processes and blow and rotational molding and injection molding machinery (see Table 3). All kinds of polyethylene produced by the plant have environmental and hygiene certificates guaranteeing the safety of their use. At the domestic market, the products of the Shortan company are marketed through the Republican Commodity Exchange, which weekly trades in liquefied gas and polyethylene in required amounts. It is to be stressed that the share of products sold at the domestic market increases from year to year. Initially, annual state order for cotton mulching film accounted for basic sales of polyethylene at the domestic market, whereas today this amount is less than one fifth of the total consumption of polyethylene at the internal market. Pipe, blown, cable, rotational and film polyethylene grades are in demand among consumers. About 50% of polyethylene is exported to the EU countries (Italy, the Netherlands, Poland, Hungary, Lithuania and Latvia), Asia (Iran, Turkey, Pakistan and China), the CIS countries (Russia, Ukraine, Kazakhstan, Azerbaijan, Kyrgyzstan, Tajikistan). Today, several directions of developing the complex are considered. These are: increasing polyethylene production and synthesis of natural gas for manufacturing environmentally compatible synthetic fuels.

The development plan includes raising the amount and type of natural gas processing, use of methane, which is produced and sold today as a marketable gas and a feedstock for production of pure synthetic fuels (99.99%). In September 2013, in Toshkent, there was held a conference of the main creditors of the project Production of synthetic liquid fuels based on purified methane at Shortan Gaz Kimyo Majmuasi, also known as Oltin Yol GTL. It is expected that the first synthetic premium fuel will be produced in Uzbekistan in 2017. This will allow Uzbekistan to provide fuel for its growing economy and simultaneously reduce energy carriers imports.

Fargona neftni qayta ishlash zavodi


Unitary Daughter Company Fargona neftni qayta ishlash zavodi (Fargona refinery), subsidiary of Ozneftmahsulot (Uznefteproduct), includes 35 process units for production of almost all range of oil products. The plant is one of the leading companies manufacturing fuels and lubricants in Central Asia with a feed capacity 5.5m tonnes of oil and gas condensate. The development of the oil industry in the region dates back to 1868, when Russian industrialists made the first attempts to produce oil in the Fargona Valley, but it was stopped for various reasons. Oil wells with a flow rate sufficient for launching commercial oil refining were discovered only in 1904. The former Vannovskiy oil refinery (presently the Alty-Aryk refinery a subsidiary of Fargona neftni qayta Unitary Daughter Enterprise) was put into operation in 1906. Presently, the Alty-Aryk refinery with a 3.2m tpy feed capacity specialises in engine oil production. The necessity to set up local oil processing and develop industry and transport in Central Asia on the whole forced the construction of a refinery in Fargona. The refinery also allowed for solving a task of bringing industry nearer to the sources of raw materials

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an issue of a harmful emissions reduction an elemental sulphur plant was built. Simultaneously, the refinery began producing high quality diesel fuel (max. 0.5% of sulphur). Starting with 2003, the country has been importing oil from the Kumkol deposit in southern Kazakhstan for processing at the Fargona refinery at the amount of 0.5m tonnes per year. Uzbekistan is forecast to raise oil imports mostly from Turkmenistan and Russia due to reducing production at its own oil fields and switching oil supplies of the Kumkol deposit to the Pavlodar Refinery in Kazakhstan. Today, the Fargona refinery offers more than 60 types of oil products and consumer goods to its clients. Oil solvent Nefras, technical and illuminating kerosene, AI-80, AI-91, B-92 petrols and extraction state-run Production facilities of Fargona refinery and to consuming regions. Its trouble-free operations satisfied demand of Central Asia including Kazakhstan for oil products previously delivered from faraway regions and excluded long-distant haulage and related excessive operating and capital expenditures. The date 27 January, 1959, when an atmospheric vacuum distillation plant AVT-1 the first processing unit of the refinery became operational, is regarded as a birthday of the Fargona refinery. Later, to increase oil conversion ratio, the following processing units were put into operation: 1) Primary oil and gas condensate processing plants of ELOUAVT type (desalting and atmosphric vacuum distillation) from 1959 to 1994; 2) Petrol catalytic reforming units from 1965 to 1978; 3) An extraction azeotropic distillation unit in 1964; 4) Plants for debituminisation of petroleum tar by propane from 1960 to 1969; 5) Selective oil treatment plants from 1960 to 1966; 6) Oil dewaxing plants from 1961 to 1969; 7) A contact final oil treatment plant in 1961; 8) An oil hydrofining plant in 1966; 9) A vacuum distillation plant in 1961; 10) A wax production unit in 1964; 11) A bitumen production plant in 1960; 12) Delayed coking units from 1964 to 1975; 13) A petroleum coke calcination plant in 1987; 14) An ethane unit in 1968; 15) A high quality nitrogen production unit in 1999. Due to switching to a local feedstock with a high sulphur compound content in 1995, Fargona faced a problem of maintaining its product range and quality as well as mastering up-to-date technologies in order to manufacture globally competitive commodities. In this regard, the Cabinet of Ministers of Uzbekistan within the frames of an investment programme together with European Bank for Reconstruction and Development and Export-Import Bank of Japan gave its approval for reconstructing the refinery with the purpose of providing quality of light oil products in accord with global standards and improving environmental state. The reconstruction project worth USD 200m was implemented by Japan-based Mitsui and Toyo Engineering. With the launch of a diesel fuel hydrodesulphurisation unit in 1999, there was solved The first stage of Unitary Daughter Enterprise Buxoro neftni qayta ishlash zavodi (Buxoro refinery), a subsidiary of Ozneftmahsulot JSC, was commissioned in August 1997. The refinery built under a turnkey project by a consortium consisting of Technip (France) and MarubeniJGC petrol belong to a group of light oil products produced at the refinery. Its fuels product line includes black oil, diesel fuel, boiler oil, furnace oil and jet fuel. Apart from these, the company manufactures four kinds of universal oils, two kinds of engine oils for car and tractor diesels, three kinds of other engine oils, two kinds of turbine oils, six kinds of industrial oils Ferganol; hydraulic, transmission, compressor and spindle oils; transformer oil of selective purification; two kinds of lubricating oils from sulphur petroleum for rolling mills. It should be also mentioned three kinds of bitumens (construction, road and impregnating), two kinds of sulphur cokes for delayed coking, grease lubricant Fersol, wax candles and technical sulphur.

Buxoro neftni qayta ishlash Zavodi

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(Japan) was partially financed by the government of Uzbekistan (USD 100m) and export credit agencies of France, the USA and Japan (USD 300m in total). It is equipped with machinery from UK-based Glitch (UK) and Thomasen (the Netherlands). In 2009, the refinery was upgraded and proceeded to manufacturing jet-propulsion fuel (180,000 tpy capacity). The Buxoro refinery with a 2.5m tpy feed capacity is focused on processing gas condensate and producing high quality petrol, diesel fuel, aircraft kerosene and black oil conforming to international standards. It is capable of producing 660,000 tpy of petrol (I-80, I-91 and I-95), 1,030,000 tpy of diesel fuel (two grades) and 300,000 tpy of jet fuel (two grades as well). Apart from these, the enterprise turns out liquefied hydrocarbon gas, black oil, illuminating kerosene, hydrocarbon solvent 4-13 5/220 and technical sulphur. The development programme of the countrys oil & gas industry envisages the construction of the second stage of the Buxoro refinery up to 2016 inclusive. The cost of the project, which is to turn out 960,000 of petrol, 706,000 tpy of diesel fuel and 250,000 tpy of Euro-3 aviation kerosene, totals USD 475m. Within its frames, a 300,000 tpy isomerisation unit for the first stage of the refinery is planned for construction. The project serves to optimise and modernise existing capacity with the use of technologies for increasing light oil products yield up to 95%. US-based UOP and Honeywell Basic were awarded a contract on carrying out an audit, to be followed by doing a preliminary feasibility study. Ozneftgaz will make its own investment in the project and also attract foreign credits. refinery for processing heavy oil in Jarqorgon (Surkhandaryo province) in 2005. The 55:45 joint venture is owned by Petromaruz LLC (St. Petersburg) and Jarqorgon neft JSC. The refinery has capacity to process 130,000 tpy of heavy crude oil, of which 60,000 tpy of bitumen and 50,000 tpy of diesel fuel and related products are produced. In Q1, 2014 the Russian joint proprietor is planning to start up a project for heavy crude refining expansion. Till the end of the year, the JV will carry out a tender for procuring equipment for processing heavy crude at a license production site of the joint venture at a starting Uzbek-Russian joint venture Igilik-gaz LLC was founded by Fargona neftni qayta ishlash zavodi Unitary Daughter Enterprise with a 49% share and by Oil & gas company StroyTransgaz-oil Progress owning 51%. The authorised capital of the JV is USD 547,000. cost of USD 39m as well as solve an issue of financing the project. This project worth USD 42.3m envisages doubling production of petrol, diesel and furnace oil and oil bitumen by 2016 at the cost of increasing a raw materials base and expanding refining capacity. Outdoor installations at Buxoro refinery

JV Igilik-gaz

JV Jarqorgon neftni qayta ishlash


Russian-Uzbek joint venture Jarqorgon neftni qayta ishlash set up a USD 7m new Production facilities of Igilik-gaz

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A mini-plant for processing gas condensate and hydrocarbons raw stock of Igilikgaz located in Qongirot (Republic of Qoraqalpoqiston) employs 72 people. The mini-plant for gas condensate processing 266-PU utilising straight-run fractions produces petrol, kerosene, diesel fuel, solvent Nefras. The first stage of the miniplant with a daily feed capacity of 120-150 tonnes came on stream in 2004. In 2005, feed capacity was increased up to 500 tonnes of gas condensate. Later, a similar 300 tonnes / day mini-plant for gas condensate processing became operational. Plastics processing

categories including trademark certificates, patents of the Republic of Uzbekistan and the Russian Federation on different manufacturing processes and product designs. Its net earnings, and net income have reduced significantly over recent years although assets have increased in value (in particular, they amounted to UZS 14.85bn (EUR 5m) in 2011).

Russian products on price. However, the financial state of the company employing 50 steadily worsened. Finally, a court decision was made to launch bankruptcy proceedings against the JV in July, 2013.

Andijon Polietileni and Andijon Polipropileni JV


Located in Andijon, Uzbek-American Andijon Polietileni JV turns out PE film for cotton cultivation. PE bags by Andijon Polietileni are in high demand both in the local and foreign markets.

Uz-Koram Ko
Uz-Koram Ko LLC was founded by Koram Plastics Co., Ltd (South Korea) and two Uzbek companies Ozavtosanoat JSC and Sabr Ko in 1995. Authorised capital is USD 5m. In 1997, the company started producing large-sized plastic goods (automotive bumpers and toolbars for cars produced at GM-Uzbekistan JSC). Six injection moulding machines by Japan and Korea are installed in the companys workshops capable of producing 270,000 automotive items. Uz-Koram operates a paint spraying line by Yaskawa Motoman for coating bumpers in colours matching with those of car bodies. It should be mentioned that Uz-Koram Ko is the only company in Uzbekistan engaged in hot shaping of polypropylene (the correspondent workshop was commissioned in 2009).

JV Retal Pet
Uzbek-Russian joint venture Retal Pet was created by NB-Retal CJSC. The latter is one of the leaders in producing press moulds for PET processing in the CIS and Russia being a subsidiary of international company Retal Industries one of top-three European producers of press moulds. Retal Pet began its own production of press moulds in Toshkent in 2006. Since late 2007, it has been the biggest player on the Uzbek market in press mould for PET processing.

Sovplastital
Soviet-Italian joint venture Sovplastital JSC was established on the basis of Scientific and Production Enterprise Uzbytplastik and Italy-based Alma Rosa in 1987. In 2007 the enterprise was transformed into an open joint stock company with an authorised capital of UZS 683.2m (EUR 227). The company is focused on producing plastic goods for both consumer and industrial purposes including decorative elements of interior and furniture: artificial flowers, plastic furniture, accessories for bathrooms and toilets and toys. Sovplastital incorporates several daughter companies, among which we should mention only plastic processors: 1) Uzbek-Italian JV Sovplastital & Tabor specialising in manufacturing artificial spruces, various souvenirs and New Years decorations; 2) Uzbek-Italian JV Sovplastital & Fiori (artificial flowers, trees and flower arrangements); 3) Almeko LLC (plastic goods and sheets from polystyrene, ABC-plastic, acryl polymers as well as various co-polymers and vacuum moulding goods); 4) Tashinvestplast LLC (large-sized rotational moulding goods including those for industrial purposes). The product range of Sovplastital has more than 8,000 items. The company possesses more than 800 protection documents of various

Other enterprises of the sector


Among domestic enterprises plastic pro-

Uzbarrelproduction
Toshkent-based Uzbarrelproduction LLC registered as an Uzbek-English joint venture manufactured the first products in May 2005. The main activity of the company is production of 10, 20, 30, 60, 155 and 220 litre polyethylene drums for food and industrial products. Manufacturing capacity amounts to 400-430 drums per day (90 tonnes monthly). These receptacles intended for storing and transporting liquid and loose materials conform with European production and transportation standards having high safety factor and low weight. At first, these drums, which have no analogues in Central Asia, were in great demand in Azerbajan, Kazakhstan, Kyrgyzstan and even competed with similar The construction of Navoiy kon-metallurgiya kombinati (Navoiy Mining and Production of inorganic chemicals cessors we should also single out Nukus Polipropilen LLC (Nukus) producing PE bags (including inflatable bags), PP packages and bags and Uzbek-Turkish joint venture Nur-Plastik LLC (Andijon) manufacturing PE films of different kinds and for various purposes (sleeved films, greenhouse films, co-extrusion three- and five-layer films).

Navoiy kon-metallurgiya kombinati

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Metallurgical Combine, NMMC) started in the late 50s of the past century. This diversified enterprise manufactures various industrial products. The facilities of NMMC are located in most part of flatlands of Uzbekistan in the interfluves of the Rivers Amu Darya and Syr Darya (Kyzyl Kum desert) in the cities of Navoiy, Zarafshon, Uchkuduk, Zafarabad, Krasnogorsk and Hurabad. It employs more than 67,000 people. Key gold and uranium deposits are concentrated in the Central Kyzyl Kum district. Having an extremely broad product range, the company gives priority to mining gold and uranium. All activities of the enterprise as a mining and metallurgical company with a full cycle of production from exploration, ore mining and processing up to producing gold (999,9) and diuranium pentoxide-uranium trioxide are based upon these valuable minerals. NMMC accounts for 80% of total gold output in the country and is the sole operator in Uzbekistan engaged in the mining and export-oriented manufacture of uranium in the form of a ready-to-use product diuranium pentoxideuranium trioxide. The foundation of its raw materials source is twenty deposits and ten promising fields of uranium. The uranium industry is rapidly developing owing to rising production at the operating enterprises and putting into operation new manufacturing facilities. NMMC has been mining all its uranium by underground leaching over the past fifteen years. This technology has enabled the company to radically change and significantly increase its raw materials base via economically viable mining operations at arenated-type deposits with low-grade uranium ores in the Kyzyl Kum region. To raise uranium production became expedient due to high prices in the global market. Since achieving independence, technical upgrading of the uranium enterprises have begun and two underground leaching mines have been built and commissioned at the Kendyktube and Lyavlyakan deposits. Moreover, pilot development of the Mining facilities of Navoiy Mining and Metallurgical Combine Sugraly and Tokhumbet uranium deposits by underground leaching have started. Recently, the Severny Kanimekh, Alendy and Meylisay deposits have become operational. Presently, six uranium mines utilising in-situ leaching are operating, and another nine uranium deposits are being developed. Uranium-containing ore produced at the mines undergoes final processing at GMZ-1 (Hydrometallurgical plant), after which it is marketed as a finished product trioxide). Apart from the above-mentioned, NMMC mines phosphate rock, produces sulphuric acid and gold and silver articles. In addition, the company has mastered manufacture of liquid glass, explosives, PVC and PE pipes. And now we will make a retrospective journey into the history of the enterprise. Navoiy mining and metallurgical combine dates back its history to 1 September 1958, when the gold ore deposit Muruntau was brought into operation. In 1962, pilot workshop #1 was launched by the company, at which a technology for extracting uranium from the (diuranium pentoxide-uranium ores of the Uchkuduk deposit was tested. In 1963, the Severnoye mining administration adopted the underground leaching technology. The Hydrometallurgical plant (GMZ-1) came on stream in 1964 to start commercial production of diuranium pentoxide-uranium trioxide. In 1966, pilot workshop #1 began developing a manufacturing process for extracting gold from the Muruntau deposit followed by the start-up of open-pit mining at the said deposit in 1967. The construction of GMZ-2 began the same year. The year 1969 was marked by developing the Yuzhny Bukinay uranium deposit, which gave its first commercial batch of uranium ore three years later. Also, in 1969, GMZ-1 switched to producing finished products in the form of diuranium pentoxide-uranium trioxide, while GMZ-2 made its first gold ingot. In 1971, Mining administration #5 was established (Leninabad mining and chemical combine). A year later the Yuzhnoye mining administration started pilot production of uranium by underground leaching, while GMZ-2 mastered the manufacture of

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affined silver. The second stage of GMZ-2 went into service in 1973 and the third one in 1975. The first batch of uranium from the Beshkak deposit was mined in 1978. The advancement of the underground leaching technologies in the 80s predetermined the construction of H2SO4 manufacture as part of NMMC. A sulphuric acid plant in Uchkuduk entered into service in 1985. The plant reached its nameplate capacity (450,000 tpy) within only three months. Along with increasing industrial demand for sulphuric acid, the company built the second stage of the Uchkuduk plant with a capacity of 210,000 tpy in January 1989. However, when political and economic reforms in the post-Soviet states began, the second stage was closed down. In 1986, a technology for extracting associated rhenium was developed at the enterprise and ammonium perrhenate production became operational. In 1995 there were brought into service the first stage of GMZ-3 and a gold heap leaching complex (presently CGHL of the Central mining administration). In 1996, mining operations began at the block Tashkura of the Dzheroy-Sardaryo phosphorites field, and the Yuzhnoye mining administration constructed and launched a PVC pipe plant. In 1997, a uranium mine using underground leaching was put into operation at the Kendyk-Tube deposit, and GMZ-1 mastered commercial production of liquid glass. In 1998, the Kyzyl Kum phosphorite complex utilising newest technologies developed by NMMC together with specialised organisations from Russia and Uzbekistan was brought into service. To be precise, the first stage of the complex with a capacity 300,000 tpy of ground phosphate rock came on stream. The Yuzhnoye mining administration started up a polyethylene pipe workshop in 2000. In addition to raw ground phosphate rock, the Kyzyl Kum phosphorite complex began manufacturing calcined phosphorite concentrate supplying it to Samarqand and Olmaliq,

where

phosphorus

fertiliser

production

put into operation a unit for separating phosphorite ore from chlorine. In 2008, after upgrading, GMZ-2 reached its designed feed capacity of 32m tpy of goldcontaining ores. Since its start-up, GMZ-2 had processed 700m tonnes of gold-containing ores by that time. In 2008, the Severnoye mining administration introduced a technology for bacterial leaching BIO as well. In 2009, the company proceeded to the development of the Maylisay deposit of rare earth metals. A high angle conveyor became operational at the Muruntau mine. Besides these, NMMC built a pilot orepicking complex for beneficiating gold-containing ore with a 1.2m tpy feed capacity over the period passed since the country gained independence. At present structural divisions of NMMC that are engaged in chemical production are as follows: 1) Mining administration GMZ-1 - manufacture of diuranium pentoxide-uranium trioxide, rhenium and gold (Navoiy); 2) Central mining administration (Zarafshon): hydrometallurgical plant #2 (GMZ-2) for processing gold-containing ores; a mine and a workshop for heap leaching of gold ores; the Kyzyl Kum phosphorite complex; the packaged emulsion explosives plant; 3) Severnoye mining administration (Uchkuduk): a uranium underground leaching mine; gold-containing ores mines; hydrometallurgical plant #3 (GMZ-3); a sulphuric acid plant; 4) the Yuzhnoye mining administration (Nurobod): hydrometallurgical plant #4 (GMZ-4); underground gold ores leaching mines; gold ores mines; a PVC and PE pipes plant; 5) Mining administration #5 (Zafarabad): uranium underground leaching mines. Modernisation and capacity expansion of chemical production are key areas of concern for the company over many years. The year 2014 will not be an exception. In the short run, NMMC will commence construction of a new sulphuric acid unit. Initially, the company planned to begin it in 2012, but the pro-

started up. By the end of 2001, the calcined phosphorite concentrate unit operated at its full capacity of 430,000 tonnes per year. In 2002, the Central mining administration launched an emulsion explosives plant. The main ingredient of explosives is pelletised ammonium nitrate produced by Navoiyazot JSC. The proximity of a reliable supplier guarantees virtually unrestricted shipments of raw materials. Thus, the country no longer imports expensive foreign explosives. Blasting operations at affiliates of NMMC have entirely switched to up-to-date innovative technologies, whereas dangerous, not efficient labour has been eliminated and the efficiency of ore mining operations has significantly improved. With growing output of packaged emulsion explosives (nobelit and nobelan), the enterprise provides with explosives not only its subsidiaries but also leading companies engaged in blasting operations across the whole country. Today, 80-85% of raw materials used by the emulsion explosives plant are of local origin, which saves the country about USD 8-10m yearly. In 2003, Mining administration #5 commenced the development of the Tokhumbet deposit. In 2005, workshop #1 started working at adopting a technology for biological leaching of ores from the Kockpatas and Daugyztau deposits. In 2005, the Severnoye mining administration began to construct a complex for biological leaching of gold on the basis GMZ-3, and Uzbek-Russian joint venture for processing anthropogenic wastes of mining and metallurgical production was set up. To further facilitate the commercial development of the Dzheroy-Sardaryo phosphorites field, improve quality and phosphorite products output, in 2006, there was introduced an integrated engineering process for beneficiating phosphorite ores. The integrated manufacturing process allows for producing 400,000 tonnes of washed and calcined phosphorite concentrate and 200,000 tonnes of the washed and dried concentrate. In 2007, the Kyzyl phosphorite complex

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Products of Uzbek integrated works of refractory and heat-resistant metals ject was declared economically inadvisable at that moment and postponed. The project preliminary estimated at USD 125m envisages the building of the 500,000 tpy sulphuric acid unit, which will satisfy increasing needs of uranium production due to commissioning new mines and expansion of a raw materials base. Construction period will last two years. Navoiy kon-metallurgiya Kombinati will provide its own finance for the project. In addition, NMMC is planning to raise output of quality phosphorite raw materials up to 716,000 tpy. Within the frames of another investment project entitled Expansion of current phosphorites beneficiation production on the basis of the operating Kyzyl Kum phosphorite complex, there was signed a EUR 19,96m contract on basic and detailed engineering, equipment, material and spare part procurement, installation supervision and start-up activities between Navoiy konmetallurgiya Kombinati and Germany-based Engineering Dobersek GmbH in 2012. The USD 59.9m project will be backed by NMMCs own funds (USD 24,92m) and a USD 35m credit of the State-Commercial National of the Republic of Uzbekistan. 50-year experience of producing tungsten and molybdenum products. The integrated works with a closed process cycle consists of hydrometallurgical, powder, wire, and rolling and melting units. The availability of its own resources of W- and Mo-containing raw materials in Uzbekistan (Koytash and Ingichkin mines) together with the rapid, progressive advance of the chemical sector and fuel and energy complex and the development of Elektrkimyosanoat JSC in Chirchiq producing high purity hydrogen, nitric acid and ammonia water required for W and Mo manufacturing processes predetermined localization of production of these metals in the said region. According to a project made by the Federal State Research and Design Institute of Rare Metal Industry (Giredmet; Moscow), the integrated works was designed as an enterprise with a continuous process, up-to-date equipment and large production capacity. The integrated works traces its history to 1956, when the first molybdenum bar was obtained laying the foundation of the companys development. In 1957, there was approved a planned task for design and construction of a wire workshop and a unit for rolling products for vacuum tube production. In spring 1958, the company started manufacturing new types of products necessary for the metalworking and mining industries Ozbekiston Respublikasi qattiq qotishmalar va otga chidamli metallar Kombinati JSC (Uzbek integrated works of refractory and heat-resistant metals; Chirchiq, Toshkent province) is a diversified company having hard-alloy components. In 1962, workshop #1 mastered production of Mo square bars for further processing. They were used for turning out round bars and flat-rolled products. Starting with 1965 the workshop began manufacturing molybdenum rods of MC grade, of which one was able to produce wires with increased recrystallisation temperatures. In 1963, the company was the first in the former Soviet Union to set up pilot production of single crystals from molybdenum and tungsten and products thereof including bars, wires, flat-rolled products and strips. At different times, the company started producing new kinds of products. In particular, in 1965, manufacture of Mo ingots of MchVP grade began; in 1966 wire made of Mo ingots of MchVP grade; in 1967 wire made of alloy of BP-273VP grade; in 1968 single crystals with preset crystallographic orientation of OChM OM grade (10-20mm) as well as wire for components of vacuum-tube devices and wire with increased recrystallisation temperature from Mo single crystals; in 1969 bars from yttrium tungsten of SVI-1 grade, Mo single crystals with preset crystallographic orientation of OChV PD grade and bars thereof. In 1967, a tungsten anhydride unit came on stream because of rising production of tungsten wire. The integrated works utilised tungsten raw materials from third-party suppliers for six years after its launch and Mo feedstocks from outside producers - over seven years. In April 1962, hydrometallurgical workshop #4 went into service. This enabled the company to largely satisfy demand of its metallurgical workshops for raw mate-

Ozbekiston Respublikasi qattiq qotishmalar va otga chidamli metallar kombinati

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rials. The workshop used a classic technology of autoclave and soda decomposition of artificial scheelites at the beginning of the process and acid decomposition of artificial scheelites up to wolframic acid followed by re-washing the said acid by ammonia water and evaporating paratungstate. Subsequent introduction of a continuous process of artificial scheelite decomposition and washing of wolframic acid in column equipment significantly enhanced the production capacity of the workshop and simplified work of maintenance personnel. Unlike acid treatment with the help of hydrochloric acid used at similar plants at that time, the integrated works adopted a technology for processing artificial scheelites by nitric acid decomposition. In the course of the nitric acid method of Mo concentrates processing, molybdenum and accompanying rhenium entirely go into solution. The company introduced a sorption technology for extracting molybdenum and rhenium from solutions, which had been a difficult task due to their complex salt composition. As a result, the company had the possibility to use equipment and pipelines made of acid-resistant stainless steel, improve equipment reliability and process wastewaters into sodium nitrate. The latter was both used for intraplant consumption and commercial sales. The company together with scientists synthesised a sorbent for sorption of tungsten from concentrated solutions, developed a technology for its extraction and tested sorption processes at a pilot plant. In 1976, there was put into operation an industrial-scale unit for sorption extraction of tungsten, which replaced four basic process steps sources of harmful emissions. The introduction of the sorption technology enabled the integrated works not only to improve production efficiency but also to cut primary and auxiliary raw materials consumption as well as to reduce manufacturing costs and manual labour. In the early 70s, the company developed and introduced automatic production processes for continuous purification of tung-

sten solutions from molybdenum, silicium, fluoride, arsenic and permanent sedimentation of artificial scheelite. A technology for ammonium paramolybdate was improved as well. In 1978, a melting and rolling workshop cane on stream. That large and complex production facility for refractory metal goods had no analogue in the former Soviet Union. Flat-rolled products and round bars from refractory metals were turned out there. Production processes were carried out both in vacuum and inert gas media with the use of complex equipment and process control systems. By mid 80s, the integrated works mastered production of 117 products supplied to more than 5,000 consumers including foreign ones. By mid 90s, the company could turn out 130 kinds of marketable products for industrial purposes and more than 45 kinds of consumer goods. In 1994, production of lamps utilising imported components was set up at the enterprise. Loss of economic ties with the former Soviet Republics oriented towards the defense industry, special metallurgy, radio electronics and illuminating engineering was a shattering blow to the company and resulted in initiating a bankruptcy procedure. From 1996 to 2003, the company remained in the red due to a shortage of its own floating assets, which did not allow the integrated works to complete installation of imported equipment for producing molybdenum rolled stock (a rolling mill and a cutting machine). At the same time, the capacity of a tungsten wire drag line brought on stream in December 1998 already exceeded demand for this product in the global market. Today, re-starting spare capacity, attracting investments in projects for reconstructing the beneficiation plants and maintaining unique tungsten and molybdenum manufacture is of urgency proceeding from rising global demand for tungsten and molybdenum products for steelmaking. In early 2006, the Government of Uzbekistan approved a programme for devel-

oping the countrys tungsten deposits with a total tungsten concentrate output of 2,700 tpy for the 2007-2013 period with the purpose of increasing the capacity utilisation of the integrated works. However, the programme has not been launched yet for a number of financial and technical reasons. Now raw materials for manufacturing Mo-containing products are supplied from Olmaliq mining and metallurgical combine (Olmaliq, Toshkent province), while a tungsten feedstock is delivered from Russia on the basis of tolling agreements. Currently, the operating rate of the company average 20%. Moreover, there is a distinct tendency towards a further decline. For instance, the Uzbek production of metallic tungsten showed a 25% YOY reduction, to 98 tonnes in 2013. The output of metallic molybdenum at the integrated works fell 6.5%, to 490 tonnes. The decline can be related to shrinking global demand for these products. All the companys production facilities are located at two sites. The first site is a stage of obtaining metallic molybdenum and metallic tungsten and their processing into rolled stock, wire and hard alloys. The second manufacturing site is a hydrometallurgical stage combining workshops #4, #5 and #6 for converting concentrates into intermediate products ammonium molybdate, ammonium perrhenate, tungsten trioxide, ammonium paratungstate, etc. The integrated works has a full process cycle from processing concentrate up to manufacturing of commercial products from tungsten and molybdenum, hard alloys and tools thereof as well as incandescent lamps for general purposes. Mo production includes the following stages: 1) hydrometallurgical processing of molybdenum concentrates, industrial products and Mo-containing wastes by nitric acid decomposition with producing ammonium molybdate; 2) production of metallic powders and Mo workpiece blanks by powder metallurgy via reduction of molybdenum trioxide in the hydrogen environment (ammonium molybdate serves as a feedstock for MoO3);

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3) manufacture of molybdenum rolled products and alloys with obtaining Mo rods and wire with a diameter of from 0.03mm to 20mm by treating Mo rods via thermoplastic deformation in the hydrogen environment at forging and drawing equipment; 4) melting and rolling production of vacuum-melted ingots and small and large-size, flat-rolled products from molybdenum; 5) production of hydrogen and oxygen in electrolytic baths via electrolytic decomposition under pressure for production workshops; 6) manufacture of general-purpose lamps with the use of tungsten, molybdenum wire and component parts. Tungsten manufacture includes the following stages: 1) hydrometallurgical processing of tungsten concentrates and tungstencontaining wastes with producing tungsten anhydride (up to 3,900 tonnes / year); 2) production of metallic powders and compact tungsten workpiece blanks via powder metallurgy (1750 tonnes/year), where tungsten anhydride serves as a feedstock; 3) production of hard alloys (1000 tonnes / year); 4) production of tungsten wire (1,75m metres / year), tungsten rolled products (228 tonnes / year) with tungsten rods as a feedstock. The enterprise has a full process cycle for hard alloys and compounds obtained via preparation of tungsten carbide and titanium carbide followed by mixing with cobalt. Hard-alloy compounds after high-temperature pressing and agglomerating convert into hard alloys of two groups WC-Co and WC-TiC Co possessing high hardness, strength and wear resistance. Hard alloys of various types are used for fabricating lathe and woodworking tools and milling as well as drawing and mining equipment. Besides these, non-standard high-wear details for machinery and mechanisms are made of hard alloys from various grades. The product range of the company includes molybdenum and tungsten powders, rods, bars, Mo strips, wire, bars from molybdenum single crystals, Ti-W and Ti-Ta-W compounds, Ti-W and Ti-Ta-W compounds, ferromolybdenum and ferrotungsten, W-Cu Olmalik Kon-Metallurgiya Kombinati JSC (OKK, Olmalik Mining and Metallurgical Combine, Toshkent province) engaged in mining and processing ores of noble and nonferrous metals is an industrial complex consisting of three open pit mines, four underground gold mines, five ore dressing plants, two metallurgical works, sulphuric acid units, an explosives plant and a limestone plant. The governmental decision to construct a lead-zinc mine Altyn-Topkan became fundamental for the Olmalik mining and metallurgical combine and the date of signing that document became a birthday of the OKK. The first products rolled off its production lines in 1954. Altyn-Topkan lead and zinc combine alloy ingots, Y-W rods, powdered tungsten carbide and aluminium sulphate for water treatment (coagulant). was renamed Olmalik Kon-Metallurgiya Kombinati in 1967. This name corresponded with both the profile and the geographical location of the enterprise, which was justly called a flagship of the ferrous metallurgy of the republic by that time. In 1997, Pb-Zn mining activities stopped and the combine switched over to processing Cu-Mo ores mined at a quarry put into operation at the Sary-Chequ deposit in 1974. But the core of copper production was the Qalmaqyr deposit. A copper beneficiation plant and a copper smelting works were established on its basis. In 1959, an act of acceptance of the first stage of the Qalmaqyr deposit was signed. At present, two Cu-Mo ore mines are merged into a single company the Qalmaqyr Mining Administration. The copper beneficiation plant is the largest one of its kind in Uzbekistan producing Cu and Mo concentrates, of which noble and precious metals are recovered including gold, silver, rhenium and cadmium in addition to ferrous metals. A copper-smelting furnace at Olmalik Mining and Metallurgical Combine

Olmalik Kon-Metallurgiya Kombinati

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Table 4. Properties of copper sulphate produced by Olmalik Kon-Metallurgiya Kombinati JSC


Brand Grade Top grade 1 1 % of total uSO4 output 40,60 % 48,20 % 11,20 % uSO4x 5H2O, % 99,50 98,76 97,50 Cu, % 25,32 25,14 24,83 Fe, % 0,017 0,017 0,020 H2SO4, % 0,025 0,025 0,025 Insoluble residue, % 0,03 0,032 0,033

for making mineral fertilisers. Companies from Tajikistan, Kyrgyzstan and Kazakhstan are also among the consumers of the combine. Copper, fine gold and silver occupy a significant share in sales. Like other manufacturing enterprises of the country, Olmalik Kon-Metallurgiya Kombinati has developed and is currently successfully implementing a programme for technical and technological modernisation. Till the end of 2015, it is planned to upgrade the zinc plant, build a sulphuric acid workshop and install a new furnace at the copper smelter, set up production of portland and white cements in the Jizzax province and reconstruct grinding and fine grinding units at the copper beneficiation plant.

A B

The first stage of copper beneficiation plant came on stream and the first batch of Cu concentrate was manufactured in 1961, which is celebrated as its birthday. As a basic feedstock, the company utilises reserves of a group of Cu-Mo, Pb-Zn and Au-Ag ore deposits located in the Toshkent, Jizzax and Namangan provinces. The deposits of the district are notable for high complexity. Currently, a list of minerals includes 179 different names, of which 60 belong to ore minerals. All the deposits are characterised by interbedded layers of molybdenite, pyrrhotine, pyrite, bornite, sphalerite, chalcopyrite, galenite and hematite. These in fact contain noble metals as well as rare and trace elements. The porphyry copper and gold- and molybdenum-containing deposits Qalmaqyr and Sary-Chequ supply raw materials to a copper division of the copper beneficiation plant (CBP) for further processing. The ores from Sary-Chequ are beneficiated at the beneficiation plant CBP-2 and the concentrates are processed at the copper smelting plant. To provide the zinc plant with a feedstock, the combine process zinc concentrates into metallic zinc and cadmium, refined lead and sulphuric acid on the basis of tolling agreements. The Qauldy mine, the Angren mining administration, the Chadaq mining administration, and the Angren and the Chadaq gold recovery factories belong to the gold extraction division of the combine, and their products are supplied to the copper smelter for processing. Copper reserves of the Qalmaqyr deposit amount to 20m tonnes. This fact allows including the raw materials base of the Olmalik mining and metallurgical combine

in one the largest of its kind worldwide. Limestone for production processes are supplied from the Saukbulak lime deposit. The combines raw materials base is notable not only for mineral reserves but also for some other useful resources including mine dumps, mill tailings, and metallurgical production wastes. Raw material reserves accumulated at these man-made objects amount to millions of tonnes and can serve an additional source for manufacturing various metals and other products. More than 30m cubic metres of rock mass are yearly processed at the combine, and twelve various chemical are extracted. The company produces refined copper (in cathodes of min. 50 kg; Cu min. 99,99%, 1000x1100(10-15) mm), metallic cadmium of D-0 grade (Cd min. 99,974%, ingots 38019022 mm, weight about 10 kg), powdered technical selenium of S-1 grade (Se min. 99,3%, Fe min. 0,005%, Cu min. 0,005%), technical tellurium of T-1 (Te min. 99,66%) and T-2 (Te min. 99,34%) grades as well as copper sulphate (see Table 4), ammonium perrhenate of -1 (Re min. 69,23%) and -2 (Re min. 69,245%) grades. A technology for metallic zinc production encompasses stages of concentrate roasting, ore leaching, and electrolysis. The production capacity of the combine enables it to manufacture 125,000 tonnes of zinc per year (Zn min. 99,988%) in 25kg ingot bars. All these products are sold in the domestic market via the Uzbek Commodity Exchange. Zinc is exported to Iran, Russia and Ukraine. Up to 80% of sulphuric acid produced by Olmalik Kon-Metallurgiya Kombinati is shipped to subsidiaries of Ozkimyosanoat

Angren Kaolin LLC


Uzbekistan is extremely rich in primary and secondary kaolinitic clays. Proven reserves of kaolin are located at the Angren deposit (Toshkent province) the largest complex deposit of brown coal, fire clay and kaolin in Uzbekistan. The reserves of secondary, raw kaolin at the Angren deposit total 382.4m tonnes. Primary and secondary kaolinitic clays are used as a feedstock for cement and ceramic goods production. In 1998, Germany-based PAB Bautzen put into operation a 200,000 tpy kaolin beneficiation plant on the basis of the deposit. The project was financed by a DM 57m loan of Berliner Bank under the guarantee of the Uzbek government and refinanced by the National bank for foreign economic activity of the republic of Uzbekistan. The loan was to be repaid within 9.5 years including 2 years of a credit grace period at a 6.8% annual interest rate. An Uzbek-German JV Kaolin (Angren, Toshkent province) took full ownership of the plant. The co-founders of the JV were company KulKoni (51%) and Ugol JSC (49%) (now - Ozbekkomir). In autumn of 1999, KulKoni transferred its proprietary rights to PAB Bautzen. The plant was not capable of entering target sales

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markets in Europe. The JV only made annual supplies of 10-12,000 tonnes to the countries of Central Asia and the Middle East. In March 2007, the Economic court of the Toshkent province declared Kaolin a bankrupt. At the moment of bankruptcy, the share of PAB Bautzen in the JV made up 44% and that of Ozbekkomir JSC 56%. The enterprise went into receivership. The decision of the court was made because the JV had not performed its liabilities for repaying foreign loans attracted under the governmental guarantee. In spring 2009 the government of the country put up for sales 184 bankrupt companies including the JV Kaolin. Angren Kaolin LLC was established at the production site of the joint stock company currently owned by the National bank for foreign economic activity of the republic of Uzbekistan (basic creditor of the JV). By mid 2009 the company restored manufacturing facilities and resumed production of the deficit feedstock. Currently, Angren Kaolin LLC produces high quality raw materials for the pulp and paper, sanitary engineering, delftware and porcelain production and the ceramic industry.

Qongirot natriy sulfat has bright development prospects due to availability of plentiful natural resources for producing this chemical product. To realise the project, the above-indicated reserves of mirabilite in the north of the country will be utilised. The launch of the plant will make a valuable contribution towards developing detergents and glass manufacture as well as to the textile, leather, metallurgical and pulp industries.

Paints and coatings Today, about 400 various paints and coatings are manufactured in Uzbekistan. The capacity of the domestic paintwork materials market in physical terms is 230,000 tonnes. This market is notable for a distinguished upward trend, with yearly growth rates of approximately 9%. In Uzbekistan, several large enterprises with a total capacity of 120,000 tpy are engaged in this business. However, they cannot meet domestic demand, import deliveries accounting for 50-52% of market volume. Despite low production volumes, small companies manufacture nearly 20% of total output. They are basically focused on enamels and semi-finished varnishes for external and internal applications. Basic trends in the market are fast-growing manufacture of water dispersion coatings and oil paints with low concentrations of organic solvents along with a decrease in a share of oil paints with high concentrations of organic solvents. Water dispersion paints, primers and enamels are most popular among consumers. These paintwork materials are used by more than 90% of repair and construction companies. The paints and coatings market in Uzbekistan features stiff competition and rivalry between home and foreign suppliers. Most imported coatings belong to the luxury segment. Key exporters of paints and coatings to the country are Russia, Germany, Belarus, Finland, Korea and Lithuania. The government of the country makes every effort to protect the domestic producer. In 2011, it imposed a special tax on imports of some types of paintwork materials. In particular, foreign paints and varnishes on the basis of synthetic polymers, modified natural polymers, acrylic and vinyl polymers as well as oil paints and varnishes are taxed at USD 0.5 per kg. Due to expansion of the Uzbek market over the past years, this industry is

Boston Talk
Boston Talk LLC specialises in vermiculite ores mining and processing at the Tebinbulak deposit (Qaraozak district of Qoraqalpogiston republic), where an ore mining and processing industrial complex was built. With an annual capacity of 8,000 tonnes, it is capable of producing vermiculite concentrate. Total reserves of the Tebinbulak deposit are estimated at 1,33m tonnes. Owing to its valuable sound- and heat-insulation properties and impressive lightness, vermiculite is useful over a wide range of applications in a number of manufacturing industries, the construction sector and agriculture. Application fields of vermiculite materials in chemical technology and equipment is quite broad. In particular, vermiculite-containing granulated materials are used on a large scale in cleaning and drying of gases and organic liquids, chemical purification and industrial wastewater treatment and separation of required components including oil products. Researches and pilot production confirm the possibility of their use for purifying industrial wastewaters from copper, nickel and cobalt cations. The main consumers of products from exfoliated vermiculite are thermal power stations, glass and cement works, agriculture, paints and coatings manufacture and the construction sector. Boston Talk exports its produce as well. For instance, it has already shipped 82 tonnes of vermiculite to its clients in Ukraine, Poland, Russia and Afghanistan.

Qongirot natriy sulfat


Qongirot natriy sulfat Unitary Enterprise is the youngest chemical enterprise in the country set up in November 2013, when there began production of high quality exportoriented sodium sulphate and top grade iodised table salt in Qongirot district of the Qoraqalpogiston Republic. The company is expected to manufacture 148 tonnes of sodium sulphate and 148 tonnes of iodised salt daily already in the nearest future. In Uzbekistan, domestic sodium sulphate demand amounts to 50,000 tpy. At present, the chemical product is exported at USD 500 per tonne on average. Production costs of a tonne of Uzbek sodium sulphate equal UZS 250-300,000, which is one fifth of those of the foreign analogues.

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(1964) and a 2,000 tpy workshop for iron oxide pigments (1968). A big reconstruction of the plant occurred in 1984, when a chemical water treatment unit was put into operation. In 2003, a unit for lithographic tin plate for labeled cans. Today, the company has at its disposal five basic units: a unit for varnishes based on condensation resins, a metal packaging workshop, a consumer goods workshop, an enamels and primers unit and a yellow iron oxide pigment and zinc white workshop. The enterprise with a total area of 20.1 hectares and a 56% built environment degree is capable of producing 20,000 tpy of paints and coatings. Its product range includes roof paint, road enamel, enamel PF-118 KhS (cold drying), matt enamel PF-117, enamel PF-133 (different colours), PF-266, PF-115, PF-191, waterbased paints VD--112, VD--116, VD--229, textured paint Khoper, varnishes PF-283 and BT-51, primers AK-011, GF-0164 and GF-0163, red and yellow iron Central office of Lok Kolor Sintez regarded as investment-attractive. Foreign majors wish to set up their own production facilities in the republic. Demand for coatings has been lately displaying a stable, upward trend not only in construction but also in furniture production and mechanical engineering. At the same time, paints and coatings consumption in Uzbekistan barely reaches 5 kg per capita. The consumption of paintwork materials rises steadily in recent years as well. Experts note that due to a significant income gap, which will remain in the country for pretty a long time, the price structure of a range of coatings should be differentiated. The fact that the majority of consumers express no preferences to domestic or foreign coatings together with increased activity of Western producers should stimulate Uzbek manufacturers to take all measures aimed at maintaining and developing domestic coatings production. JV Toshkent lok boyok zavodi JSC (Toshkent paints and coatings plant) is the biggest manufacturer of paintwork materials in Central Asia. The decision to build this plant was taken in 1945. The construction of the first facilities began in 1946, and the first products 318 tonnes of oil paints - rolled off its lines in 1947. In 1950, the company put into operation a 10,000 tpy workshop for varnishes on the basis of condensate resins in 1953, followed by a 10,000 tpy enamels and oil paints workshop in 1953. Later there were reconstructed as well as newly built and commissioned a 10,000 tpy workshop for zinc white paints (in 1962), a 5,000 tpy workshop for grinding natural pigments, a 2,000 tpy silicate paints unit (1964), a 10,000 tpy unit for enamels on condensation resins and water-based paints Established in 1996, Uzbek-Dutch JV Lok Kolor Sintez is focused on producing paints and coatings for mechanical engineering, transport, construction and repair works as well as for producing auxiliary materials. The capacity of the joint venture totals 6,000 tpy of alkyde resin (semi-finished varnish) and 20,000 tpy of paints, decorative and protection coatings with maximum resistance to atmospheric conditions for mechanical engineering, construction, aircraft and military industries, railway transport as well as for households. oxide pigments, PVA adhesive, solvent RS-2, drying oil Oksol. All these products are highly demanded on the internal market, all the more, their quality has significantly improved. The company has plans to produce electric insulation, furniture and floor varnishes, automotive enamels and mastics for underbody.

JV Toshkent lok boyok zavodi

JV Lok Kolor Sintez

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Import-substituting products with no analogues in Uzbekistan account for more than 60% of overall coatings output. The companys specialists carry out researches into new paints and coatings and develop available technologies. At present, the company has more than 25 unique, proprietary developments. These enable Lok Kolor Sintez to enter the international market. In 2000 enamel Alur passed successful tests of Marubeni Corporation and was recommended for painting railway passenger cars. The State Standard of Russia issued a conformance certificate for serial production of primer and enamel Alur and a metal primer. The primer and enamel Alur also passed accelerated climatic tests at the Scientific and Production Association Paint Coating (NPO LKP; Moscow) under moderate and cold conditions. Lok Kolor Sintez has developed and put into production flame resistant compound Deflam tested at a laboratory of the Fire Safety Head Administration of the Ministry of Internal Affairs of Uzbekistan. In 2003, the company turned out biocide (antiseptic) paints and enamels Biocavat tested by the R & D Institute for Epidemiology, Microbiology and Infection Deceases and later recommended by the Ministry of Public Health for using in crowded areas. In 2004, it began manufacturing cost-effective mass consumption matt paint Tejam, impregnation Peneton, primer Biogrunt as components of a product line for facade finish, acrylic paints featuring resistance to water and chemicals of Akrilux series. A year later, Lok Kolor Sintez proceeded to manufacturing colour translucent varnishes at imported equipment. In 2009, alkyde enamel of diverse colours for various application fields (analogue of PF-115) and polyacrylic gloss paint Sharq went into mass production.

The company was founded in 1995, when an agreement was signed on establishing a joint venture between Korea-based DongJu Industrial Co. Ltd and Ozavtosanoat with the purpose of constructing a plant in Andijon. As far as 1997, the new plant started pilot production of automotive coatings, with first batches of the products being shipped to Uz-Daewoo Auto CJSC in 1998. The year 1999 was marked by the commencement of manufacturing construction and industrial coatings supplied to clients in the Russian Federation and in Kyrgyzstan. The exports of these products to Afghanistan began in 2004. In 2004-06, the company was certified under ISO 9001:2000, ISO 9001:2000, OHSAS 18001:1999, and ISO 14001:2004. Today, Uz Dongju Paint Company is the only supplier of coatings to GM-Uzbekistan, a manufacturer of passenger cars UzDaewoo and Chevrolet. Among the permanent customers of Uz Dongju Paint Company are two manufacturers of tractors - Toshkent Traktor Zavodi CJSC and Uzbek-American JV OzkeysTraktor, SamAuto (Samarkand Automobile Factory; Samarqand), Uz-Koram LLC, a producer of large-sized auto parts, and JV Uz Saemyung. Uz Dongju Paint Company also produces PVC-based sealants for abrasion-resistance and anticorrosion protection of car bodies and underbodies, polyester putties, enamels on the basis of polyester melamine, alkyde melamine, water-soluble alkyde and acrylic copolymer resins; polyester-based varnishes, alkyde, acrylic melamine and acrylic urethane resins; primers based on alkyde melamine, chlorinated polyolefin, epoxy and acrylic resins. Acrylic copolymer resin road paint -540 U is intended for painting bitumene, concrete, bitumene-concrete road surfaces, etc. Alkali cleaner Chemkleen #49 is used for cleaning by spraying and preparing metallic surfaces for a uniform and deep phosphate coating. Phosphate material Chemfos-168 is a compound containing zinc, iron and phos-

phate specially designed for application of microcrystalline coatings. XW-954 Remover is a mix of organic solvents, thickeners, and leavening agents meant for removing old paint and varnish coatings including those on the basis of epoxy and polyurethane primers and enamels from industrial equipment and aircrafts.

JV Link Paints Trading


Uzbek-Russian JV Link Paints Trading (Toshkent) turns out paintwork materials offering a range of products for wholesale and retail clients both decorative and special protective coatings. Product quality is tested by a certified laboratory fitted out with modern equipment and located at its production site.

East-Kolor
Toshkent-based East-Kolor LLC is

engaged in the production and marketing of more than 40 product names of high quality coatings intended for individual customers and large enterprises. The companys product range includes facade and interior waterbased paints, enamels, primers, liquid glass, colour paste, PVA adhesives, decorative and textured plaster Khoper, acrylic plasters for various applications, polyethylene bucket containers, 100 l polyethylene drums and screw caps. The enterprise has at its disposal a manufacturing line for semi-finished varnish and drying oil as well as a polyethylene receptacles unit. East-Kolor continuously raises its production output and has already established business links with a number of domestic big producers of feedstocks for coatings manufacture including JV Toshkent lok boyok zavodi JSC, Fargona neftni qayta ishlash zavodi and Maxam-Chirchiq JSC. Alcohol industry companies Ethanol is quite demanded product in the domestic market and its output rises all the

JV Uz Dongju Paint Company


Among other companies, Uzbek-Korean JV Uz Dongju Paint Company should be singled out. It produces a wide spectrum of automotive coatings for UZDaewoo cars.

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time. Local alcohol manufacturers are merged into the state company Ozspirtsanoat. Uzbekistan increased production of crude ethyl alcohol by 10.7%, to 6,038m decalitres as compared to 2011. In Q3-Q4 of 2013, food grade alcohol production in the country went up 7.7%, to 4,76m decalitres against the same period of 2012.

Darmon JSC a pharmaceutical supplier. Till 2016, the company is expected to boost ethanol production. The holding company has already announced a tender for equipment procurement.

a complex for rectified food grade alcohol sourcing wheat grain of local origin. Today the company turns out food ethanol of Extra, Highest purity and Lux grades. Its capacity for ethyl alcohol (food grade) is 821,400 decalitres a year and that for rectified ethyl alcohol (technical grade) 170,000 decalitres. Food ethanol manu-

Qoqonspirt
Established under the name

Andijon biokimyo zavodi


Andijon biokimyo zavodi JSC (Andijon biochemical plant) was founded in 1953 for producing technical ethanol on the basis of cottonseed hulls. When supplies of this feedstock were stopped in 1991, the plant switched to production of food grade alcohol from cereal grains (mainly from wheat grain) in accord with a project of the R & D institute Sibgipprobiosintez (Krasnoyarsk, Russia). The manufacture of food grade ethyl alcohol was launched at the then only production line with a capacity of 857,000 decalitres per year in 1999. The second line of the same capacity was built in 1999 but put into operation only in 2001. The production facility was equipped with EUR 2.82m state-of-the-art equipment in 2012 and started producing 30,000 litres of high quality food grade alcohol per day. In 2013 the similar second line worth EUR 2.7m became operational. Both lines operate at full capacity turning out 60,000 litres of ethanol daily. The main product is rectified food grade alcohol of Extra, Highest purity and Lux grades complying with the State Standard GOST 5962-67. The consumers of the end produce are liquor manufacturers subsidiaries of Ozvinosanoat. Apart from alcohol workshops, the company operates a 4,380 tonnes/year carbon dioxide unit, a medicines unit producing 5% tincture of iodine 1.5 tonnes/year, 1% alcoholic solution of brilliant green1% - 0.8 tonnes/year and 70% rubbing alcohol 21 tonnes/year. The consumers of these medicines are daughter companies of Dori-

facture was certified for ISO 9001:2000 Quality Management Standards. Biokimyo continuously works on quality improvement. In particular, under a recommendation of the companys engineers, an additional column for final purification was installed at a brew-purification department, which allows for significant enhancement of organoleptic and physical and chemical properties of the end product. There were also carried out serious work aimed at introducing new, more efficient enzyme preparations and a new race of distillers yeasts. The key consumers of food grade alcohol are liquor and winemaking plants of Ozvinosanoat. Besides these, food alcohol is used in medicine and food processing. Technical grade alcohol finds application in the cable industry, perfumery, scientific and production laboratories, the chemical and other industries. The state has 51% in Biokimyo, employee stock is 9% and the rest 40% is put up for sale.

Novokokandskiy khimzavod (Novoqoqon Chemical Plant) in Qoqon (Fargona povince) in 1983, Qoqonspirt initially produced sulphuric acid and ammophos. In 1989, fertiliser manufacture closed down on account of environmental problems, and the enterprise retrofitted its equipment in order to produce ethyl alcohol from local wheat grain. The capacity of the first stage amounted to 1.6m decalitres of C2H5OH annually. The second 0.8m decalitres stage came on stream in 2000. Currently, utilisation rate exceeds 95%. Most equipment is made in Russia and relatively modern. The company changed its form of ownership and was renamed Qoqonspirt JSC in 1999. The share of the state in the company is 51%, foreign investors own 47% and labour collective 2%. The authorised capital of the company is more than UZS 10bn (about USD 33m). Its product range includes food grade alcohol of the following grades: Extra, Highest purity and Lux marketed mostly within the borders of the country (circa 80%). The rest is exported to the countries of Central Asia.

Bektemir-spirt eksperimental zavodi JSC


The construction of a 300,000 decalitres per year food ethyl alcohol plant in Toshkent started owing to a decision of the Cabinet of Ministers of Uzbekistan in 2006. A year later rectified food grade alcohol production from grain was commissioned. The plant is capable of turning out 915,000 decalitres of alcohol per year. The main type of produce is food grade alcohol of Extra and Highest purity grades. Equipment and tanks used in production processes are made in Russia. The shareholding of the state amounts to 51%.

Biokimyo
The former Yangiyol biochemical plant and now Biokimyo JSC started its activities in 1957, when a hydrolysis alcohol plant with a designed capacity of 170,000 decalitres of technical alcohol was put into operation. The main feedstock was plant-based raw materials sawdust and rice hulls. At present, technical alcohol is obtained by redistillation of ether-aldehyde fraction a by-product of grain-based ethanol manufacture. In 1996, there was commissioned

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Producers of surfactants and household chemicals

Foreign-owned Enterirse My lovely Asia


The niche area of foreign-owned enterprise My lovely Asia . founded in Toshkent in 2008 is household chemicals including shampoos, soap, gels for dish washing, liquid detergents, washing powders, cleaning agents as well as PVA adhesive. All in all the company produces 1000 various products under the trade names Arakc, Arta, Negina, Padide, Mashhad stably demanded in the domestic market. Its customers are more than 100 different organisations across the country.

Agro Bio Kimyo


Agro Bio Kimyo LLC (Toshkent) is a subsidiary of state-owned Ozfarmsanoat and the only domestic maker of new generation disinfectants: ABK-Extra, BKKhloraktiv, Extra-Dez, antiseptin, means for cold chemical sterilisation DS-1 as well as skin antiseptics Antiseptin-OP. All its products are made on the basis of the most up-to-date and highly efficient environmentally friendly disinfectants by Akzo Nobel, Lonza, BASF including coconut benzine dimethylammonium chloride, chlorinated izocyanurate, N,N-Bis(3-aminopropyl)dodecylamine, glutaric aldehyde, polyvinyl pyrrolidone iodine. ABK-Extra a professional disinfecting and washing agent for surfaces in various premises and sanitary equipment possessing antiviral (including HIV and hepatitis viruses), antibacterial and fungicide properties. Disinfectant ABK-Khloraktiv in the form of solutions made from tablets and pellets is meant for disinfecting surfaces in various premises, furniture, sanitary equipment, clothing, dishware, toys, patient care items, products for medical purposes and cleaning utensils. Antiseptin is a readyto-use transparent chemical of a light blue Manufacturing facilities and ready-to-use products of My lovely Asia colour with a characteristic odour of methyl alcohol. It possesses antimicrobial activity (including tuberculosis mycobacteria), viruses, fungi and designed for treatment of small, hard-to-reach surfaces in various premises, pieces of furniture, devices and medical equipment. Disinfectant Extra-dez is a transparent liquid of from colourless to light yellow colours with a weak specific odour having antimicrobial activity against gram-positive and gram-negative bacteria (including tuberculosis mycobacteria), viruses (hepatitis, HIV, poliomyelitis) and fungi. It has washing and deodorising properties. Antimicrobial agent DS-1 is a transparent liquid of from colourless to light yellow colours with a weak specific odour possessing antibacterial action (including that against tuberculosis mycobacteria, germs of especially dangerous infections

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smallpox, cholera, legionellosis), viruses (including viruses of parenteral hepatitides and HIV), fungi and mold with sporocidal, washing and deodorising properties. It is meant for disinfecting surfaces in various premises, furniture, sanitary equipment, surgery and dental appliances, surfaces of various devices and apparatuses, clothing, dishware (including laboratory one, dishwashing products, patient care items, cleaning utensils, medical wastes as well as mold. Preparation Tozaden has a wide spectrum of antimicrobial action possessing antiseptic, disinfectant, antifungal and antiprotozoal actions. It is meant for disinfecting hands and antiseptical treatment of mucous membranes. Skin antiseptic Antiseptin-OP is a transparent light green liquid having possessing antimicrobial activity action against antimicrobial

Currently, the firm is the only in Uzbekistan to make chemical products for fire extinguishing foaming agents produced depending upon application and storage conditions under the brands Sitora, Sitora-1, TFM-50. These are biodegradable, hydrocarbonic, fluorosynthetic, cold resistant foaming agents for general and special purposes intended for extinguishing class A and B fires which generate low-, medium- and high-expansion foams. As a foaming agent for concrete production (cellular concrete) and foam concrete blocks, the company proposes STAR+ - an aqueous solution of anionic surfactants with stabilising additives. Foaming agent STAR+ is used in a technology for manufacturing foam concrete with the use of excessive pressure both without preliminary production of foam (turbulent way by mixing) and with preliminary foam generation (foam generators). Having upto-date processing equipment, the company develops and produces washing powders, technical detergents, dishwashing detergents, products for skin defatting and treatment. At present, the companys specialists are working on developing surfactants that can be used as floatation reagents and wetting agents in various industries as well as liquid coolants for metal processing and producing concrete and foam concrete products for treatment of mould surfaces. Chemical machine building

chemical equipment and turbo compressors. Before 1992 basic consumers (nearly 90%) were enterprises of the USSR. Today about 60% of the products are aimed at the domestic market and approximately 40% are exported to the CIS states. In 1994 the enterprise was transformed into Ozbekkimyomash zavodi JSC, and became an affiliate of National Holding Company Ozbekneftgaz in 1999. Ozbekkimyomash is a leading producer of pressure vessels and equipment for chemical, oil processing, gas processing and other branches of industry. It has a staff of 470 engineers and 1080 employees of key and auxiliary facilities. The production area of Ozbekkimyomash zavodi amounts to 19.3 hectares consisting of a pressure vessel workshop, a compressors and pumps workshop, a forgery unit, a mould workshop, and a consumer goods workshop. The company is the only producer of oil & gas equipment in Uzbekistan providing its machinery to the largest companies in the country including Shortanneftgaz, Muborak Gazni Qayta shlash Zavodi, Navoiyazot JSC, MaxamChirchiq kombinati. companies: JV, Olmalik kon-metallurgiya has also In kombinati JSC and Navoiy kon-metallurgiya Ozbekkimyomash ABB-Lummus supplied its produce on orders of foreign Global (USA), Metal Technology (Israel), KrebsSpeichim (France), Achema JSC (Lithuania), Khimprom (Volgograd, Russia), Severstal (Russia), etc. The company specialises in designing, producing and servicing diverse equipment

gram-positive and gram-negative bacteria (including against tuberculosis mycobacteria), parenteral hepatites, viruses of parenteral hepatites and HIV, fungi, candidiasis germs and dermatomycosis. Preparations ABK-Insecticide and Tsimavet are transparent light yellow or colourless liquids containing cypermethrin and malathion as active substances. They are distinguished with sharp insecticide action against cockroaches, flies, fleas, bed bugs, mosquitoes and their larvae as well as ticks.

Private Enterpise Ablaqulov Y.N.


Private Enterprise Y.N. founded in

Ozbekkimyomash zavodi
Ozbekkimyomash zavodi JSC was

Chirchiq (Toshkent province) in 1998, concentrate its activities on manufacturing products for improving fire fighting efficiency. Over the past time, the company has developed on its own together with specialists of Fire and technical laboratory of the Head Administration of Fire Safety of Uzbekistan process regulations, formulations and technical conditions of manufacturing products for industrial enterprises from different industries including products for ensuring fire safety. formed under the name of Uzbekkhimash in1941 on the basis of evacuated Sumy machine building plant. The plant laid the foundation of developing chemical engineering in Uzbekistan. Initially, it manufactured military goods but as far as 1942 began turning out civil produce. After the WW2, the plant became one of the leading enterprises of chemical machine building of the former Soviet Union. The main type of produce is

including that for the oil and gas industry, processing blocks, heat exchangers, column equipment, evaporating apparatuses, pressure vessels, complete process units, separation equipment, filters, air coolers, centrifuging machines and pumps including turbine compressors and equipment for environmental protection. The used materials are alloy and carbonic steels and alloys, steel castings, grey cast iron and alloyed cast iron and titanium alloys.

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R & D base

There have been developed bases of creating efficient mineral and organomineral fertilisers, defoliants and stimulators. The distinctive feature of the researches conducted is their link with problems and requirements of the Uzbek economy. We should note the following developments of the institute: 1) a technology for producing optimum thinners for high melt oils and oil products; new base oils and additives for sealing greases; 2) a technology for manufacturing solvents from gas condensate used for paints and coatings as well as a solvent for extracting plant oils and press cakes; 3) energy-saving technologies for producing innovative, efficient water-based and weaklysoluble surfactants, emulsifiers, cold bitumen emulsions, high viscosity bitumens, emulsion lubricants and adhesives from local feedstocks and industrial wastes; 4) efficient ways of mixing high viscosity oils as well as technologies for producing and applying multipurpose catalysts on the basis of nickel and molybdenum compounds for manufacturing motor fuels, lubricants and solvents directly from oil , its residues and by-products; 5) scientific bases of processing polymetallic raw materials and wastes of metallurgical production; the institute has defined ways of obtaining iron sulphate from metal-containing wastes, chrome oxide pigment from chrome-containing solutions; aluminium sulphate - on the basis of wastes of chemical etching of aluminium wastes; 6) technologies for extracting iodine from associated petroleum and geothermal waters with the assistance of sorption and desorption methods; obtaining pure crystalline iodine and potassium iodide from iodine paste as well as iodizing edible salt; 7) technologies for production of cement and exfoliated vermiculate for manufacturing heat insulation materials as well as enriching talc-magnesite ore for manufacturing magnesite concentrate used for obtaining high flame-resistant materials, talc concentrate for producing ceramic, rubber, abrasive and cable products; 8) organo-clay and carbon-clay sorbents have been obtained; 9) a number of surfactants and polyelectrolytes for use as stabilisers, flocculants adsorbents and plasticisers

of various natural and technical dispersions have been obtained on the basis of local raw materials and industrial wastes; 10) an original technology for producing superphosphate from highly carbonaceous Kyzylkum phosphorites; 11) new kinds of complex phosphorus-, calcium-, nitrogen- and sulphur-containing fertilisers; 12) Khosil type stimulators for plant growth have been obtained; 13) physical and chemical and technological foundations of synthesis of a number of new defoliants have been developed; 14) low toxic, highly efficient defoliants Sikhat and Mezon and universal defoliants Nazhot, Sardor and SuperKhMD-Zh have been developed; 15) the institute has developed a highly efficient technology for producing a nitrogen-calciumphosphate fertiliser from phosphorites of the Central Kyzylkum. Science intensive technologies developed by the institute are widely used by Samarqandkimyo JSC, Fargonaazot JSC, JV Elektrokimyozavod CJSC and Buxoro neftni qayta ishlash Zavodi Unitary Daughter Enterprise. This institute has considerable experience of successful scientific collaboration with R & D centres in Germany, France, Italy, the UK, the USA, the Russian Federation, Japan, Korea and other countries. Future production plants and those under construction

Institute of general and inorganic chemistry of Academy of Science of Uzbekistan


The Institute of general and inorganic chemistry of Academy of Science of Uzbekistan was established in Toshkent in 1933. The main sphere of activities is Development of scientific and practical bases of complex processing of mineral raw materials in Uzbekistan. The laboratories of the institute carry out fundamental and applied researches into defining interrelations between composition, and properties of new compounds. Scientific researches are targeted at developing efficient technologies for deep processing of oils from new deposits of Uzbekistan, sustainable use of by-products of oil extraction, creating technologies for recycling metallurgical wastes and solving urgent import-substitution problems of ferrous and non-ferrous metallurgy as well as producing innovative reagents and fire-resistant materials. One of the priority scientific directions of the institute is to develop bases of synthesis and technologies for obtaining mineral and organomineral fertilisers, promising defoliants accelerating reapening of agricultural plants, efficient polyfunctional stimulators for growth of cotton and cereals. The institute has obtained results of a fundamental character, which allowed it to create a new subdivision of science adsorption-energetic stoichiometry. Researches into scientific foundation of controlling properties of disperse systems, obtaining materials with tailor-made properties, regulating colloidchemical processes, directed synthesis of polyelectrolytes and surfactants, flocculants and sorbents enable the R & D establishment to establish regularities of interrelations between colloid-chemical properties of disperse systems with their compositions and structure.

Usturt Gaz Kimyo Majmuasi in Qaraqalpaqstan


In 2008, National holding company

Ozbekneftgaz and a Korean consortium consisting of Kogas, Lotte Daesan Petrochemical Corporation, LG International Corporation, SK Gas and STX Energy founded a joint venture Uz-Kor Gas Chemical on the basis of matching contribution for implementing a project for construction of a gas chemical synthesis complex (Usturt Gaz Kimyo Majmuasi; Usturt). The raw materials base of the project are gas and gas condensate deposits Surgil,

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Vostochniy Berdakh-Uchsay and Severniy Bedrakh. Surgil the largest of these deposits with reserves estimated at 120bn cubic metres of gas was discovered in 2009 and is currently being developed by Ozbekneftgaz. The USD 4.1bn project will be financed by Ozbekneftgazs own financial resources at the amount of USD 200m and a 300m loan of the Fund of reconstruction and development of Uzbekistan in addition to credits of foreign financial institutions. The new enterprise will employ 1,000 people. Ozbekneftgaz is currently developing the Surgil deposit on its own in order to provide Usturt Gaz Kimyo Majmuasi with 3bn m3 of natural gas per year by the moment of its launch. Another 1.5bn cubic metres will be supplied from the other above-mentioned deposits of the Usturt region. The complex in Usturt, the construction of which started in 2012, will annually process 4.5bn m3 of natural gas and turn out 4bn m of com3

A plant for processing combustible shales in Navoiy province


Ozbekneftgaz National holding Company has intentions to start constructing a plant for processing combustible shales from the Sangruntau deposit in the Navoiy province in H2, 2014. At the end of 2013, there was issued a tender for a licensor of a shales processing technology. Its results will be known in FebruaryMarch and the construction of the plant may begin by summer of 2014. In the first half of the current year, a feasibility study of the project should be prepared and negotiations on its financing be completed. At the first stage (2014-15), it is planned to launch a unit for processing 2m tonnes of shales per year. Later (2015-2018) unit is planned to process 8m tones of shale ores yearly and turn out 1m tpy of oil products. The preliminary project of the construction of the shale processing plant was made by Russia-based federal Institute Unitary Atomenergopeoject

pleting the construction of the main building, warehouses, a feedstock reception area, laying external and internal power supply lines, a sewage system, and water supply, foreign specialists proceeded to installation of up-todate equipment.

Future tyre and conveyor belt production in Angren


Tyres are not produced in Uzbekistan and exclusively imported from Russia and China. That is why, Ozkimyosanoat issued an international tender for constructing a turnkey tyre and conveyor belt plant in the special industrial zone Angren on the basis of liquidated Rezinotexnika JSC. The plant will be capable of turning out 100,000 running metres of conveyor belts, 200,000 tyres for agricultural machinery and 3m tonnes of car tyres. The preliminary cost of the project is USD 230m and construction period is 3-4 years. The project will be financed through credits of the Export-Import Bank of China (USD 190m), Ozkimyosanoats financial assets and raised funds. In 2011 Chinese CITIC Ltd signed a contract with Ozkimyosanoat on turnkey basic and detailed engineering and equipment procurement for building the plant. Within the frames of the project, the parties are going to create a JV, in which CITIC will establish a consortium with a tyre producer. Apart from Ozkimyosanoat, Uzbekistan will be represented by Ozbekneftgaz and Ozavtosanoat JSC. In 2012, Linlong Rubber Co (China) and Ozkimyosanoat signed a memorandum of collaboration envisaging the participation of the Chinese company in the creation of the JV for the plants construction.

mercial gas, 400,000 tonnes of polyethylene of various density, 100,000 tpy of polypropylene and 100,000 tpy of pyrolysis petrol. The complex is due on stream in late 2016. Samsung Engineering, GS Engineering and Construction Hyundai Engineering are general contractors of the project. American company KBR will provide technologies and engineering and construction services to JV Uz-Kor Gas Chemical, which will build a polyethylene unit in Usturt. The latter will be the first HDPE unit on the basis of KBRs license utilising its own SCORE process. Within the frames of the project, the American company will also undertake engineering and design of a furnace for polyethylene production and provide equipment and construction services. The HDPE unit will manufacture the following grades of the polymer: 1) injection moulding grades; 2) film grades; 3) pipe grades; 4) cross-linked pipe grades; 5) yarn and monothread; 6) blow moulding grades. The PP plant will turn out homopolymers, random polymers and impact-resistant copolymer. Europe, Eastern and South-Eastern Asia are expected to be the main sales markets.

Enterprise (St. Petersburg) in 2012. The project envisages building of eight solid heat carrier units (U-3000) with a feed capacity of 1m tpy of shales. The USD 600m project will be backed by Ozbekneftgazs own financial resources a loan of the Fund of reconstruction and development of Uzbekistan and foreign credits.

JV Uz-Shindong Silicon in Angren


Uzbek-Korean joint venture Uz-Shindong Silicon is building a 5,000 tpy silicon plant in the special industrial zone Angren (Angren, Toshkent province). The project estimated at USD 8.67m is implemented via direct investments of the co-founders of the JV the State geological and mineral resources committee of Uzbekistan and Korea-based Shindong Enercom Inc. The general contractor is Ozneftgaz qurulishinvest JSC. After com-

Production of base oils from wastes in Angren


Bulgaria-based Prista Oil and

Ozneftmahsulot JSC are going to launch 43,000 tpy production of base oils from

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wastes on the basis of hydrofining in the city of Angren as well. The USD 15m project will be realised on the production site of liquidated Rezinotexnika JSC and financed through direct investments of Prista Oil at the amount of USD 7.65m and Ozneftmahsulots own funds (USD 7.35m) . The project is included in a list of investment projects for expansion of production volumes of competitive products on the basis of operating plants approved by Islam Karimov - President of Uzbekistan. It is planned to use a considerable share of produced base oils as a key feedstock for JV Uz-Prista Oil specialising in synthetic and mineral oils production in Uzbekistan. In late 2011, Prista Oil acquired 50.1% in JV Uz-Texaco from Texaco Overseas Holdings Inc (USA). The JV was subsequently renamed Uz-Prista Oil. The Uzbek founder of the joint venture is Ozneftmahsulot JSC (49.9%). VI. Problems and prospects of Uzbek chemical industry For almost 23 years of independence, the chemical industry of Uzbekistan has undergone quite dramatic changes and the process of transformation is still going on. Though a basic orientation towards meeting diverse needs of the agricultural sector is still prevailing, hydrocarbons processing with producing various polymers is becoming priority for the countrys government. However, the modernisation and upgrade of the chemical industry, as is often the case, take place with considerable losses. For instance, production shutdown has occurred and processing equipment has been dismantled either completely or partially at Uzbekrezinotexnika, Angren chemical and metallurgical plant and Fargona furane compounds plant. The management and personnel of the companies notable for low capacity utilisation such as Samarqandkimyo JSC, Jizzax plastmassa JSC, Olmalik Kon-Metallurg iya Kombinati JSC are faced with rather serious difficulties.

At the same time, new plants and workshops coming on stream across the virtually entire territory of the country allow Uzbekistan not only to make up for these losses but also to support the steady advancement of the chemical industry. There is also a serious problem that cannot be solved even by successful management decisions relating to the geographical location of Uzbekistan. Both the country proper and all its neighbors has no access to global sea trade and, therefore, to the cheapest cargo delivery by sea transport. Due to insatiable needs of agriculture, river navigation is also unavailable de facto. As a result, most finished goods shipments and feedstock supply chains are based on railway transport. Whereas a rail network in the country has substantially improved for the years of independence and a number of its sections have been electrified, it is obvious that Uzbek chemical producers cannot increase railway tonnage capacity and improve infrastructure facilities in the neighboring countries. Relatively cheap fertilisers of the domestic producers are consumed within the limits of Uzbekistan and border areas of the neighbors, i.e. transportation costs account for an insignificant share in price structure. On the contrary, outlooks for mid-range chemicals sales are not so bright due to long-distance haulage, e.g. to Russia or to China via transit states. In this regard, the current policy of the government aimed at developing the internal market in chemical products and encouraging import-substitution seems to be quite reasonable. Programmes for localisation of manufacturing finished goods, spare parts and materials on the basis of industrial cooperation adopted and promptly corrected in case of urgency by the Cabinet of Ministers every three years serve the crucial factor in this policy. The enterprises included in these programmes are exempted from: 1) customs duties (except for customs formalities charges) on imported processing equipment and spare parts as well as on components utilised in engineering processes for making import-substituting products and not

manufactured in the country; 2) income tax, single tax (for entities using a simplified taxation system) on products manufactured under import-substitution projects; 3) tax on basic production assets employed for producing import-substituting products. An attentive reader has probably noted that unlike some former Soviet states, authorities of Uzbekistan retain efficient control under the chemical sector, and not merely administrative but also financial one. Most chemical enterprises are under the auspices of state-owned Ozkimyosanoat, and manufacturing plants that are not its affiliates but possess chemical workshops are managed by relevant state-owned stock companies. Namely, central management companies adopt development strategies of their daughter companies including issues of privatisation and financing technical upgrade projects. They also take decisions on building new large chemical works, which, as it is often the rule, is implemented in close collaboration with foreign companies. The latter may be either general contractors (subcontractors) or investors. At the same time, tactical issues are decided by the management of the daughter companies on their own. It can be seen from the said above that enterprises with 100% foreign capital are rather exceptions from the rule than the rule itself. In case that a foreign partner becomes a shareholder, the state all the same holds the controlling stake. Despite the fact that investing in the Uzbek economy is rather difficult occupation because of a complex and contradictory system of regulating foreign economic activities, the inconvertible currency, obligations to fulfill a number of plan figures traced through monthly statistical reporting, obligations to sell many types of products only via a state commodity exchange, etc., Uzbek chemical companies and their foreign partners in most cases look forward with optimism. Uzbekistan pursues a course of modernisation and is unlikely to turn off this way.

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New Polymers: Polychlorotrifluoroethylene World Market for Phthalic Anhydride Production and Market of Hydrochloric Acid in Former USSR Russian Market for Substituted Silanes Market for White Spirit in FSU

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