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Review of the Global
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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
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04/2013 International
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Styrene Production and Market
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Russian Phenol Production in
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Chinese Phenol and Acetone
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Russia's Market for Fuel
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06/2013 Plastics Recycling:
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Ukrainian Manufacture of
Nitrogen Fertilisers in April, 2013
CIS Silicon Dioxide Market
Heading into H2: Key Russian
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Q1, 2013 Results
07/2013 Overview of Russian
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Russian Tyres Market: Current
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Sodium Sulphate Production in
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Mineral Fertilisers in May, 2013
Tracking Corrosion with
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Russian Production of
Ureafuran Resins
Ukrainian Production of Basic
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Fertilisers in H1, 2013
Review of the Russian
Vulcanisation Accelerators
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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
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Russian Market for PVC
Thermostabilisers
Kazakhstan Petrochemical
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11/2013 Market for Aramid
Fibres in CIS
Ethylene Oxide Market in Russia
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Ukrainian Output of Basic
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1/2014 Review of Global
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Polymers
A Review of the Global Polyimide Market
Interplastica 2014 : Solid Business and
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Organics
CIS Market in Salicylic Acid and its
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Inorganics
Agrochemistry
Summing up Ukrainian Fertilisers
Production in 2013: No Light at the End
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of regulating hydrocarbons ows worldwide
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#12(84) December 2013
2
Polymers
2013: Flagship Event in Plastics
Industry
Polymers Production Goes Up
in Russia
Prices
Rubbers & tyres
SIBUR Increases its Butyl Rubber
Production Capacity in Togliatti
Ukrainian Tyres Production Up
36.4% in October, 2013
Prices
Organics
On the Way to MDI. Nitrobenzene
market in Russia and the CIS
Acrylic Acid Complex Construction
Starts in Bashkortostan
Russian Methanol Production
in 2012-2013
Prices
Inorganics
Ukrainian Output of Basic
Inorganics in October, 2013
Cherkasy Azot Upgrades Ammo-
nia Shopoors
World-scale Copper Ore-Dressing
Plant Commissioned in Russia
Prices
Agrochemistry
Phosphorite Meal Production
in Russia
Stamicarbon Goes East
Ukrainian Production of Mineral
Fertilisers in October, 2013
Sunkar to Build NP Fertiliser Plant
in Kazakhstan
Prices
Specialty chemicals
Rostec, Rosneft and Pirelli
to Develop New Materials
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Tambov-based Pigment Intro-
duces New Products
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Rafarma Pharmaceuticals
Announces Large Private
Placement
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Chemical Aspects of Solar Energy:
Polycrystalline Silicon Market
in the CIS
TVEL to Construct Nuclear
Chemical Fuel Plant in Ukraine
Chemistry and business
Uralchem Reports IFRS Financial
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Rosneft Demonstrates Strong
Financial Performance
SIBUR Reports Q1-3, 2013 IFRS
Results
Chemical equipment
Uralmashplant at the Cutting
Edge of Russian Industry
Modernisation
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Ukrainian Output of Chemical
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India Ready to Invest in Chemi-
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#1(85) March 2013
2 Eurasian chemical market 1(85) February 2013
Polymers
www. chemmarket. i nfo
A Review of the Global
Polyimide Market
Polyimides (PIs) is a group of high performance polymers with excellent thermal, mechanical, and physi-
cal 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, fexibility, inertness, and a broad range of working temperatures are required.
3 1(85) February 2013 Eurasian chemical market
Polymers
www. chemmarket. i nfo
DuPonts baby
The frst information about the synthe-
sis of aromatic polyimides dates back to
1908. A big contribution to the develop-
ment and introduction of polyimides was
made by DuPont, which brought to market
Kapton H flms, Vespel moulded parts,
and Pyre-ML insulating varnish. To obtain
its frst 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: frstly, polyamic
acid is synthesised and secondly, the
acid undergoes imidization. Dianhydride
and diamine are used as mother sub-
stances (Table 1). The condensation is
Table 1. Basic dianhydrides and diamines used for polyimide production
Dianhydride Diamine
Formula Abbreviation Name Formula Abbreviation Name
PMDA Pyromellitic anhydride pDA 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
Figure 1. Obtaining polyimide from PMDA and ODA
4 Eurasian chemical market 1(85) February 2013
Polymers
www. chemmarket. i nfo
carried out at low and medium tem-
peratures in a polar, aprotic solvent, for
instance, in N,N-dimethylformamide,
N,N-dimethylacetmide or in N-methyl-
pyrrolidone.
The process involving the obtaining of the
soluble prepolymer has been for more than
ffty years the main technology of polyimide
production. The point is that most polyimides
are insoluble and high melting due to their
fat 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 solv-
ing route allowed for commercial production
of polyimides.
The intermediate polyamic acid is con-
verted to polyimide by thermal or chemical
imidization. Thermal imidization is con-
ducted at 100350 C basically for manufac-
turing PI flms, while chemical imidization is
used for producing moulded goods as well as
flms and fbres. At that point, aliphatic car-
boxylic 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
fnal 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 polyim-
ides with higher and more stable mechanical
properties (Table 2). However, due to the
usage of additional reagents, the fnal product
is more expensive. Leading global producers
of polyimide flms use namely this chemical
process of imidization, whereas the Chinese
producers - the thermal route. As a result, the
products of the frst have an integral proce-
dural 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 tem-
perature 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 carboxy-
lates of alkali metals or zinc. This method
is especially effcient for polymerising
dianhydrides and diamines with low reac-
tivity 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
resins are obtained by adding low molecular
maleimide, acetylene, benzene dicarbinol
(benzocyclobutene) groups. These resins
fnd application in the impregnation of textile
fbres and in composites production.
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 ther-
mal resistance. They begin decomposing only
at temperatures higher than 450

C. At the
same time, polyimides are resistant to oxida-
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 polyim-
ides determine their wide application in
the electronic industry as dielectrics, fex-
ible substrates and wire insulation. Fluoride-
containing polyimides possess the best
dielectric properties.
Outstanding properties are conditioned by
a structure of a polymer chain and intermo-
lecular interactions. Molecules of polyimide
have rigid aromatic chains. There are two
types of interactions between polyimide
chains: frstly, between aromatic rings of
fragments of dianhydride and diamine form-
ing a complex with charge transfer and sec-
ondly, 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 flms. Polyimide flms have high mechani-
cal 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 flm with a thickness of 1mcm
is no more than 200 V. Besides, these flms
possess high radiation resistance. Polyimide
Table 2. Comparison of chemical and thermal polyimide films
Property
Polyimide film
Chemical Thermal
Physical properties (strength
and relative elongation)
Isotropic
Anisotropic (difference
up to 40%)
Shrinkage (at 200 C during
two hours)
Less than 0,05% Up to 1%
Dielectric breakdown, W/mm Around 7 Around 5,5
Moisture absorption (during 24
hours)
Less than 2,8% Around 4%
Width, (max.) 1570 1000
Length, (max.) 4000 1500
Source: Saint-Gobain HPM
5 1(85) February 2013 Eurasian chemical market
Polymers
www. chemmarket. i nfo
flms are coated with acrylic and organosili-
con compounds for manufacturing self-adhe-
sive tapes. Also, an adhesive layer is applied
to them in order to glue copper foil (on one
or two sides). Such flms are further supplied
to manufacturers of printed circuit boards
for producing fexible 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 flm either by
evaporation deposition or by coating copper
foil with polyimide varnish followed by its
hardening. The flms with refective 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 sur-
face of the flm forming a refective 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, fbres, 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 fnd aplication gas chromotog-
raphy as chromatographic columns as well
as in medicine in the capacity of catheters.
Polyimide fbres 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 fbres, nevertheless, cannot
compete with aramid and other hi-tech fbres
due to high manufacturing costs. These fbres
are mainly used for producing industrial flter
bags and protective clothing.
PI membranes are widely used for sepa-
rating gases. Pure polyimide membranes
have, as a rule, low gas permeability. For this
reason, they are modifed with various alkyl
and fuoroalkyl substitutes.
Films
Currently, the production of fexible
printed circuits accounts for 70% of PI con-
sumption worldwide. Due to specifc require-
ments of the fnal market and their properties,
polyimides are mostly produced in the form
of flms. At present, global polyimide flm
capacity totals 13,000 tonnes. Top three pro-
ducers 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 flms 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 frst manufac-
turing line for Apical flms in Shiga prefec-
ture (Japan). Today it operates seven lines
with a total capacity of 2,400 tpy. In North
America, Kaneka began manufacturing poly-
imide flms 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 com-
pany 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 flms
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
flms 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 capac-
ity up to 2,920 tonnes.
Space fight 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
insulation. They were used for protecting
propelling and steering control engines
of Mars rovers. Moreover, fexible printed
circuits and plate heaters in the Mars rov-
ers were made of polyimide flms. In May
2010, the JAXA (Japan Aerospace Explo-
ration Agency) launched IKAROS the
worlds frst spacecraft propelled by solar
power sails made on the basis of square
polyimide flm with a 7.5 mcm thickness
and a 200 m
2
total area.
Figure 2. Breakdown of global
polyimide film capacity by company
as of early 2014
6 Eurasian chemical market 1(85) February 2013
Polymers
www. chemmarket. i nfo
SKC Kolon PI is a JV established in 2008
on the basis of polyimide assets of Korea-
based companies SK Chemical Kolon
Industries. SK Chemical was the frst in
Korea to manufacture polyimides. In 2004,
it launched a 40 tpy pilot production line at
its manufacturing site in Suvon. The com-
mercial production of polyimide flms began
at a 300 tpy unit in Chinchkhon. In 2008, the
second 600 tpy line became operational in
Chinchkhon. Kolon Industries started poly-
imide 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 pol-
yimide flm 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 frst
stage of the project envisages the construc-
tion of a 11,000 polyimide monomer unit, a
30,000 tpy polyimide and multilayer coextru-
sion flm plant, and a 30,000 tpy composites
unit. At the second stage, there will come on
stream a 40,000 tpy polyimide monomer and
fne organic chemicals plant, a 35,000 tpy
polyimide and multilayer coextrusion flm
unit, and 5,000 tpy polyimide fbres produc-
tion. 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 flms in Xinzhu
(Taiwan); IST Corporation, which puchased
polyimide businesses Pyre-ML

from
DuPont (Parlin, NJ) and Skybond

from
Monsanto (Indian Ochard, Springfeld, MA);
Japanese companies Ube Industries (Ube,
Yamaguchi prefecture and Sakai, Osaka
prefecture) and Mitsubishi Gas Chemical
(Hiratsuka, Kanagawa) producing Upilex
and Neopulim flms respectively.
Fibres
In the early 80s of the 20th century, Lenzing,
a leading producer of viscose fbre, began
developing a new kind of fbre for protective
clothing. Polyimide was selected as a polymer
base. The company obtained a licence for a
polycondensation process from Upjohn (Dow
Table 3. Basic polyimide producers in China
Company Location Capacity, tpy
CEN Electronic Material Co. Ltd Ningpo, Zhejiang province 240
Changshu Zhongxun Space Flight Insulating Material Co. Ltd Changshu, Jiangsu province 160
Hipolyking Polyimide Materials Co. Ltd Jilin City, Jilin province 300
Jiangsu Yabao Insulation Material Inc. Yangzhou, Jiangsu province 300
Jiangyin Tianhua Technology Co. Ltd Jiangyin, Jiangsu province 100
Liyang Huajing Electronic Material Co. Ltd Liang, Jiangsu province 230
New Century (Tianjin) Polyimide Films Insulating Materials
Co. Ltd
Tianjin 200
Shanghai Research Institute of Synthetic Resins Shanghai N/A
Shenzhen Ruihuatai Film Technology Shenzhen, Guandong province 350
Tecnidd Enterprises Co. Ltd Hangzhou, Zhejiang province 1000
Tianjin Jiayi Insulation Material Co. Ltd Tianjin 100
Wuxi DiAo Insulating Material Co. Ltd Wuxi, Jiangsu province 60
Wuxi Goto Polymer Materials Co. Ltd Wuxi, Jiangsu province N/A
Flexible circuits the main application of polyimide flms
7 1(85) February 2013 Eurasian chemical market
Polymers
www. chemmarket. i nfo
Chemical), whereas a thread drawing technol-
ogy 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 vir-
tually the only large producer of polyimide
fbres. In small quantities, however, polyim-
ide fbres are manufactured by Hipolyking
Polyimide Materials (Yilun fbre, China), and
Russia-based Lirsot Ltd (Arimid, Pion, and
Tvim brands).
Because of increased demand for its prod-
ucts, Inspec Fibres expanded its capacity
by 35% in 2006 and by 40%, to 1,400 tpy in
2009. Except for the fbres, the company pro-
duces powdered polyimides for manufacturing
moulded goods and actively develop a poly-
imide flm production technology. Polyimide
fbres are predominantly used in the produc-
tion of high temperature flter systems for
metallurgical works, cement plants, and other
industrial facilities. These fbres have irregular
cross-sectional shapes consequently possess-
ing twice as much surface area as compared to
traditional fbres with round or elliptical cross-
sections. Therefore, polyimide fbres display
the best fltering capacity. This advantage is
complemented with high thermal and chemical
resistance over a wide range. These fbres
are used as an additive enhancing fltering
capacity and increasing service life of flter fab-
ric in industrial flters both on their own or in
combination with various polyester fbres and
glass fbres.
The second most signifcant application
of polyimide fbres is the manufacture of
protective clothing for racing drivers, fre
brigades and military units. It is to be noted
that usually polyimide fbres are not used in
a pure form but are mixed with aramid and
fre-resistant viscose fbres.
Foam polyimides
Polyimide foam was frst synthesised in
the 1970s by Evonik Foams for NASAs
space programmes. The latter required non-
combustible, light-weight foam material for
heat and sound insulation of Space Shuttles.
Later polyimide foam was utilised in space-
crafts 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 insignifcant at frst
glance. However, this allows for transporting
more cargo and substantially improves fuel
economy, which is especially important tak-
ing into account a long service period. Due to
high prices, polyimides fnd 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 mate-
rials 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).
Resins and other products
Polyimide resins are made in small vol-
umes because of processing complexities.
Powdered polyimide is one of the main
forms of polyimide products. Ube Industries,
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 mar-
ket. They are used for producing composites
and adhesives. The most popular and wide-
spread 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 fast-
growing application feld of polyimide flms.
According to Kaneka, annual growth rates
in this market make up 20-30%. Demand
for special purpose products made of poly-
imide flms 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 con-
sumption in the production of self-adhesive
tapes grow 5% and in mechanical engineer-
ing, and the cable and automotive industries
by 2% per year. SMP Corporation (a pro-
ducer of polyimide flms, in particular, SKC
Kolon PI flms) forecasts that the capacity of
the global polyimide flm 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 geo-
graphical terms, China and Korea will be
the most rapid-growing polyimide markets
expanding by more than 15% annually.
8 Eurasian chemical market 1(85) February 2013
Polymers
www. chemmarket. i nfo
The CIS market for plastic and rubber
products stands for solid business and posi-
tive prospects. Despite the dampening effect
of political vagaries and the current weak-
ness of the rouble on the demand for plastic
and rubber products, the country still has a
signifcant 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 plas-
tics and rubber processing industry are very
much in demand, particularly because issues
such as energy effciency 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, promis-
ing 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 posi-
tive result: Thanks to its representative inter-
national portfolio, Interplastica is perceived and
valued as an outstanding platform for techno-
logical innovation in Russia. This positive feed-
back and the fact that there was even a slight
increase in the demand for exhibition space
- only a few weeks after the fagship fair
K 2013 - underlines the importance of this
event. The companies know how important
their market presence is. Even in turbulent
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.
Interplastica 2014: Solid Business
and Good Prospects for Russias
Plastics and Rubber Industry
Victor Nemera, Atlant CJ SC,
Baranovichi/Belarus: We participate
regularly in Interplastica, know what
we want and usually get it. It satis-
fes 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 Repre-
sentative 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 rub-
ber industry and every year we meet
with lots of customers and get in
contact with new customers.
Alexei Stolyarov, Chief Expert, De-
partment of Advertising, Exhibition
Activities and Branding, LLC Sibur/
Sibur Holding OJ SJ , Moscow/Russia:
We have long and fruitful coopera-
tion and ties with Messe Dsseldorf
Moscow. We are always satisfed by
the attentive attitude and profes-
sionalism of the organisers team..
Next year we plan to expand our
stand area and to occupy the central
part of the frst pavilion. We had ac-
tive and large work with our clients
during Interplastica and its time to
expand and reveal.
9 1(85) February 2013 Eurasian chemical market
Polymers
www. chemmarket. i nfo
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 ser-
vices on 13,500 sq.m net exhibition area,
the Forum as well as exhibition halls 1
and 8 and, for the frst time, hall 3 were fully
booked, the latter by a cluster of extrusion
and injection moulding machinery manufac-
turers. Offcial 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 frst 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 previ-
ous 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
Sebastian Schneider, Key-Account-
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
in the CIS states along with the inter-
est 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 pa-
tience.
Dragan Visekruna, Director of the
Plastics Sales Units in Central and East-
ern Europe, Greece and Turkey, Dow
Europe GmbH, Moscow/Russia: Dow
took part with an own booth in Inter-
plastica 2014 for the frst time ever. We
consider that the exhibition is very suc-
cessful. The customers appreciated our
desire to participate in the exhibition
highly. Our approach is to work in co-
operation with distributors. In the previ-
ous years we joined the booths of our
partners and this year we invited them
to work on our own booth.
Robert F. Binder, Area Sales Manager,
EREMA, Ansfelden/Austria : Our equip-
ment 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 regu-
lations. This development could open
up a major market for us! We are op-
timistic 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 be-
cause 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 profle extrusion machinery
and pelletisers to Russia since 1991.
With more than 1,000 machines in-
stalled in that country, we have be-
come 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 fur-
ther growth. There is a lot to do and
enough money for investment, par-
ticularly in window construction, in the
infrastructure of this vast country and
in centralised heating. These projects
are supported by state funding. We
participate in I nterplastica because
we want to promote our good repu-
tation, maintain our existing customer
contacts and make new ones.
10 Eurasian chemical market 1(85) February 2013
Polymers
www. chemmarket. i nfo
Deutscher 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 machin-
ery: 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
injection moulding and thermoforming
segments, and rubber processing machines
are in high demand. Thanks to state fund-
ing, investments into plastic pipe produc-
tion 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.
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
fame retardants. At Interplasticas Meeting
Point Raw Materials, Dr. Baunemanns
presentations on resource and energy eff-
ciency 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 produc-
tion 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.
Ulrich Reifenhuser, Managing Di-
rector Reifenhuser GmbH & Co. KG,
Troisdorf/Germany : The CIS market
continues to have a lot of potential for
the plastics processing industry. The ex-
hibition was livelier and the visitors even
more professional than expected. But
the currency problem is a real dampen-
er, 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 Direc-
tor Transtechnika-Vostok Representa-
tion of Arburg, Moscow/Russia : While
the Russian market is characterised by
steady ups and downs, it offers excel-
lent long-term prospects. We have been
active in this market for a long time and
have become well established reli-
ability and comprehensive service are
the key to success! For me, the current
weakness of the rouble does not con-
stitute a major problem, but an oppor-
tunity: the export of fnished 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, effcient
machinery.
Dr. Semen Chlesberg, Senior Sales
Manager, Zeppelin Systems, Frie-
drichshafen/Germany : Moving into
the CIS market requires money and
patience. I n the long-term however,
this commitment will bear fruit. Twelve
years ago, Zeppelin started its activi-
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 engi-
neering 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 indus-
try 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.
11 1(85) February 2013 Eurasian chemical market
Polymers Prices
www. chemmarket. i nfo
Prices for polymers and polymer compounds of Russian, Uzbek, Turkmenistan, Belarus,
Ukraine manufacturers in 1Q, 2014
Product Company City Country Notes
Price per
tonnes, ex. VAT
Oligoester acrylates MGF-9 Armoplast PJSC
Severodonetsk
(Luhansk region)
Ukraine
For reinforced plastics,
coatings, building
materials, electrical
insulating compounds,
lacquers, enamels,
adhesives
83333 UAH
Oligoester acrylates TGM-3 Armoplast PJSC
Severodonetsk
(Luhansk region)
Ukraine For production of resins 85000 UAH
Phenol-formaldehyde resin
solution in ethyl alcohol
(lacquer bakelite) LBS-20,
71-78%
Armoplast PJSC
Severodonetsk
(Luhansk region)
Ukraine
For production of
reinforced plastic
22000 UAH
Polyamide PA 6 210/310 Anid Ltd
Yekaterinburg
(Sverdlovsk region)
Russia
For manufacturing of
technical products used
in mechanical engineering
101695 RUR
Polyamide PA 6 210/311 Anid Ltd
Yekaterinburg
(Sverdlovsk region)
Russia 101695 RUR
Polyamide PA 6 66-3 Anid Ltd
Yekaterinburg
(Sverdlovsk region)
Russia Moulding grade 355932 RUR
Polyamide PA 6 66-4 Anid Ltd
Yekaterinburg
(Sverdlovsk region)
Russia Moulding grade 355932 RUR
Polyamide PA 6 66/610 Anid Ltd
Yekaterinburg
(Sverdlovsk region)
Russia Moulding grade 355932 RUR
Polyamide PA 610L Anid Ltd
Yekaterinburg
(Sverdlovsk region)
Russia Moulding grade
432203-
457627 RUR
Polyester mixed EDA-50
Kazan Synthetic
Rubber Plant JSC
Kazan (Republic of
Tatarstan)
Russia
Up to 100 kg / For non-
crystallizable urethane
rubber and polyurethane
foam for bottom of shoes
78814 RUR
Polyester mixed PV
Kazan Synthetic
Rubber Plant JSC
Kazan (Republic of
Tatarstan)
Russia
Up to 100 kg / For
manufacturing inking
rollers, polyurethane
compositions
78814 RUR
Polyester P 9A
Kazan Synthetic
Rubber Plant JSC
Kazan (Republic of
Tatarstan)
Russia
Up to 100 kg / To obtain
optically sensitive
polymers as components
of adhesive compositions
78814 RUR
Polyester P-9-14
Kazan Synthetic
Rubber Plant JSC
Kazan (Republic of
Tatarstan)
Russia
Up to 100 kg /
manufacturing products
for special purposes
78814 RUR
Polyester resin PN-1KT-A,
unsaturated, thixotropic,
pre-accelerated, 30-33%
styrene
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg / For
production of thick-
walled, large-sized and
complex-shaped goods /
For RTM-technologies
101900 RUR
Polyester resin PN-1KT-M,
unsaturated, thixotropic,
pre-accelerated, 30-33%
styrene
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg / Binding
agent for fibreglass
products / For use in
mechanised processes
101900 RUR
12 Eurasian chemical market 1(85) February 2013
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polyester resin PN-1KT-NR,
unsaturated, thixotropic,
pre-accelerated, 31-34%
styrene
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg / For
production of thick-
walled,large-sized and
complex-shaped goods
101900 RUR
Polyester resin PN-54KTA,
unsaturated, thixotropic,
pre-accelerated, 36-42%
styrene
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg /For
fibreglass products and
RTM-technology
118500 RUR
Polyester resin PN-609-
21M, unsaturated
Granat Synthetic
Material Plant CJSC
St. Petersburg Russia
Manufacturing fiberglass
products
186440 RUR
Polyester resin PN-82K,
unsaturated
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg / For
polymer concrete and
artificial marble
109600 RUR
Polyester resin PN-85,
unsaturated
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg / For
water- and acid-resistant
polymer concrete and
sanitary ware products,
and artificial marble
99000 RUR
Polyester resin unsaturated
PN-1
Armoplast PJSC
Severodonetsk
(Luhansk region)
Ukraine
For production of glass
fiber, polymer concrete
and artificial marble
30000 UAH
Polyester resin unsaturated
PN-15, chemically resistant
Armoplast PJSC
Severodonetsk
(Luhansk region)
Ukraine
For manufacturing of
chemically resistant
pipes, containers, boat
hulls, boats, yachts,
pressed materials,
varnishes, adhesives,
putties, coatings
55000 UAH
Polyester resin unsaturated
PN-1
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia Barrel 240 kg 100750 RUR
Polyester resin unsaturated
PN-609-21
Armoplast PJSC
Severodonetsk
(Luhansk region)
Ukraine
Binder for fiberglass
and as impregnating
and casting resins
inautomotive, electrical
industry
55000 UAH
Polyesters PEFD
Kazan Synthetic
Rubber Plant JSC
Kazan (Republic of
Tatarstan)
Russia
Up to 100 kg /
to manufacture
of polyurethane
compositions
78814 RUR
Polyether Laprol 373 Khimprom Ltd Kemerovo Russia
EXW / Cisterns 31-36
tonnes, metal barrels
/ For producing rigid
polyurethane foams
90000 RUR
Polyether Laprol 5003-2-
B10
Khimprom Ltd Kemerovo Russia
For producing resilient
polyurethane foams
90000 RUR
Polyether Laprol 502 Khimprom Ltd Kemerovo Russia
EXW / Cisterns 31-36
tonnes, metal barrels
/ For producing rigid
polyurethane foams and
brake fluids
90000 RUR
Polyether Laprol 503B Khimprom Ltd Kemerovo Russia
EXW / Cisterns 31-36
tonnes, metal barrels
/ For producing rigid
polyurethane foams
90000 RUR
13 1(85) February 2013 Eurasian chemical market
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polyether Laprol 6003-DE Khimprom Ltd Kemerovo Russia
EXW / Cisterns 31-36
tonnes, metal barrels / For
producing oil demulsifiers
90000 RUR
Polyether Laprol ES-564 Khimprom Ltd Kemerovo Russia
EXW / Cisterns 31-36
tonnes, metal barrels /
For producing filling, rigid
polyurethane foams
90000 RUR
Polyethylene LDPE 153-01,
top grade
Tomskneftekhim Ltd Tomsk Russia Cable grade 58051 RUR
Polyethylene LDPE 153-10,
top grade
Tomskneftekhim Ltd Tomsk Russia Cable grade 57627 RUR
Polyethylene LDPE 15303-
003, top grade
Tomskneftekhim Ltd Tomsk Russia Film grade 56780 RUR
Polyethylene LDPE 15303-
003, top grade
Tomskneftekhim Ltd Tomsk Russia Moulding grade 55932 RUR
Polyethylene LDPE 15803-
020, top grade
Tomskneftekhim Ltd Tomsk Russia Film grade 53814 RUR
Polyethylene LDPE 15803-
020, top grade
Tomskneftekhim Ltd Tomsk Russia Moulding grade 52966 RUR
Polyethylene LDPE 15803-
020, 2 grade
Tomskneftekhim Ltd Tomsk Russia Moulding grade 45508 RUR
Polyethylene LDPE 17603-
006, 2 grade
Tomskneftekhim Ltd Tomsk Russia Film grade 46271 RUR
Polyethylene LDPE 17803-
015, 1 grade
Tomskneftekhim Ltd Tomsk Russia Moulding grade 46780 RUR
Polyethylene LDPE 18003-
030, top grade
Tomskneftekhim Ltd Tomsk Russia 47881 RUR
Polyethylene LDPE 18103-
035
Tomskneftekhim Ltd Tomsk Russia 47881 RUR
Polyethylene LDPE B-Y456
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Blow-moulding grade 3696003 UZS
Polyethylene LDPE B-Y460
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Blow-moulding grade 4776594 UZS
Polyethylene LDPE F-Y346
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Film grade 4026118 UZS
Polyethylene LDPE I-0760
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Moulding grade 3080195 UZS
Polyethylene LDPE I-1561
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Moulding grade 1400 USD
Polyethylene LDPE P-Y342
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Pipe grade 4629629 UZS
Polyethylene LDPE R-0448
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan Rotational grade 3186762 UZS
14 Eurasian chemical market 1(85) February 2013
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polyethylene LDPE -Y750
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Film grade 3035072 UZS
Polyethylene LDPE -Y456
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Pipe grade 3902756 UZS
Polyethylene LDPE, grade A,
off grade
Tomskneftekhim Ltd Tomsk Russia
For manufacturing of
technical products,
packaging materials
48051 RUR
Polyethylene LDPE, grade B,
off grade
Tomskneftekhim Ltd Tomsk Russia
For manufacturing of
technical products,
packaging materials
48051 RUR
Polyethylene LLDPE F-0120
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Film grade 1500 USD
Polyethylene LLDPE F-0220 S
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Film grade 1450 USD
Polyethylene LLDPE F-0320
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Film grade 5174166 UZS
Polyethylene LLDPE F-Y 957
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan 3859671 UZS
Polyethylene LLDPE I-0525
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Moulding grade 1400 USD
Polyethylene LLDPE I-1625
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Moulding grade 3406728 UZS
Polyethylene MDPE R-0333
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Rotational grade 3589187 UZS
Polyethylene MDPE R-0338
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Rotational grade 3073018 UZS
Polyethylene MDPE WC-
Y734
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan (Qashqadaryo
province)
Uzbekistan Cable grade 3156433 UZS
Polyethylene NMPE-2 Tomskneftekhim Ltd Tomsk Russia
Used inrubber industry, in
construction, for greases
and mastics
26949 RUR
Polyethylene terephthalate
TverPET, granulated
SIBUR-PETF JSC Tver Russia Packaging for food 55085 RUR
Polypropylene Tolen PP
H031 BF /3
Tomskneftekhim Ltd Tomsk Russia 50847 RUR
Polypropylene Tolen PP
H270 FF /3
Tomskneftekhim Ltd Tomsk Russia
Manufacture of
nonwovens
54237 RUR
Polypropylene Tolen PP
H450 GP/2
Tomskneftekhim Ltd Tomsk Russia 55085 RUR
Polypropylene Tolen PP
R003 EX/1
Tomskneftekhim Ltd Tomsk Russia 66102 RUR
15 1(85) February 2013 Eurasian chemical market
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polypropylene Tolen PP
H007 EX/1
Tomskneftekhim Ltd Tomsk Russia Pipe grade 56356 RUR
Polypropylene Tolen PP
H022 CM /1
Tomskneftekhim Ltd Tomsk Russia
Production of caps for
PET bottles
58051 RUR
Polypropylene Tolen PP
H030 GP
Poliom Ltd, Omsk
Polypropylene Plant
Company
Omsk Russia General purpose 53390 RUR
Polypropylene Tolen PP
H030 GP/1
Tomskneftekhim Ltd Tomsk Russia General purpose 53390 RUR
Polypropylene Tolen PP
H030 GP/2
Tomskneftekhim Ltd Tomsk Russia 53390 RUR
Polypropylene Tolen PP
H030 GP/3
Tomskneftekhim Ltd Tomsk Russia 53390 RUR
Polypropylene Tolen PP
H031 BF /2
Tomskneftekhim Ltd Tomsk Russia 53390 RUR
Polypropylene Tolen PP
H031 BF /3
Tomskneftekhim Ltd Tomsk Russia 52542 RUR
Polypropylene Tolen PP
H032 TF/1
Tomskneftekhim Ltd Tomsk Russia Thermoforming 54237 RUR
Polypropylene Tolen PP
H032 TF/2
Tomskneftekhim Ltd Tomsk Russia Thermoforming 54237 RUR
Polypropylene Tolen PP
H033 FF /1
Tomskneftekhim Ltd Tomsk Russia 53390 RUR
Polypropylene Tolen PP
H040 GP/1
Tomskneftekhim Ltd Tomsk Russia General purpose 53390 RUR
Polypropylene Tolen PP
H060 GP/1
Tomskneftekhim Ltd Tomsk Russia General purpose 53390 RUR
Polypropylene Tolen PP
H080 GP/1
Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR
Polypropylene Tolen PP
H080 GP/3
Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR
Polypropylene Tolen PP
H085 CF/1
Tomskneftekhim Ltd Tomsk Russia 57203 RUR
Polypropylene Tolen PP
H085 CF/2
Tomskneftekhim Ltd Tomsk Russia 55508 RUR
Polypropylene Tolen PP
H120 GP
Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR
Polypropylene Tolen PP
H120 GP/1
Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR
Polypropylene Tolen PP
H120 GP/3
Tomskneftekhim Ltd Tomsk Russia 55932 RUR
Polypropylene Tolen PP
H250 GP/2
Tomskneftekhim Ltd Tomsk Russia 56356 RUR
Polypropylene Tolen PP
H252 IM /2
Tomskneftekhim Ltd Tomsk Russia Moulding grade 57203 RUR
Polypropylene Tolen PP
H270 FF /1
Tomskneftekhim Ltd Tomsk Russia
Manufacture of
nonwovens
57203 RUR
Polypropylene Tolen PP
H270 FF /3
Tomskneftekhim Ltd Tomsk Russia
Manufacture of
nonwovens
56356 RUR
Polypropylene Tolen PP
H273 FF /1
Tomskneftekhim Ltd Tomsk Russia
Manufacture of
nonwovens
58051 RUR
16 Eurasian chemical market 1(85) February 2013
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polypropylene Tolen PP
H352 IM/2
Tomskneftekhim Ltd Tomsk Russia 57203 RUR
Polypropylene Tolen PP
H450 GP/2
Tomskneftekhim Ltd Tomsk Russia 56356 RUR
Polypropylene Tolen PP
H451 IM/2
Tomskneftekhim Ltd Tomsk Russia 59746 RUR
Polypropylene Tolen PP
H452 IM/1
Tomskneftekhim Ltd Tomsk Russia Moulding grade 58051 RUR
Polypropylene Tolen PP
R003 EX
Tomskneftekhim Ltd Tomsk Russia 66102 RUR
Polypropylene Tolen PP
R003 EX/1
Tomskneftekhim Ltd Tomsk Russia 59492 RUR
Polypropylene TPP D 30 S
Turkmenbashi
Complex of Oil
Refineries
Turkmenbashi
(Balkan province)
Turkmenistan Extrusion grade 1350 USD
Polypropylene F 79 FB
Turkmenbashi
Complex of Oil
Refineries
Turkmenbashi
(Balkan province)
Turkmenistan
For production
nonwovens for hygiene
and medical
spheres
3278 TMT
Polystyrene expandable EPS
ALPHAPOR 101
SIBUR-Khimprom
CJSC
Perm Russia
Manufacturing foam
plastic for noise and heat
insulation and drainage
board
61864 RUR
Polystyrene expandable EPS
ALPHAPOR 201
SIBUR-Khimprom
CJSC
Perm Russia
Manufacturing foam
plastic for noise and heat
insulation and drainage
board
70339 RUR
Polystyrene expandable EPS
ALPHAPOR 301
SIBUR-Khimprom
CJSC
Perm Russia
Manufacturing foam for
thermal insulation of
external walls
72034 RUR
Polystyrene expandable EPS
ALPHAPOR 401
SIBUR-Khimprom
CJSC
Perm Russia
Manufacturing foam for
thermal insulation of
external walls under
load
72034 RUR
Polystyrene expandable EPS
ALPHAPOR 501
SIBUR-Khimprom
CJSC
Perm Russia
For manufacturing of
blocks with waterproof
protective coating
70339 RUR
Polystyrene expandable EPS
ALPHAPOR 90
SIBUR-Khimprom
CJSC
Perm Russia 38983 RUR
Polystyrene expandable
EPS-F- 15, 20, 1 grade,
unsaturated
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
56949 RUR
Polystyrene expandable
EPS-F-- 0,2-1,25, 1
grade, saturated
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
61017 RUR
17 1(85) February 2013 Eurasian chemical market
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polystyrene expandable
EPS-F-- 0,2-1,25, 2
grade
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
61017 RUR
Polystyrene expandable
EPS-F-- 0,4-0,3, 1
grade
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
52542 RUR
Polystyrene expandable
EPS-F-- 0,4-0,3, 2
grade
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
52542 RUR
Polystyrene expandable
EPS-F-- 0,6-0,8, 1
grade
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
57627 RUR
Polystyrene expandable
EPS-F-- 0,6-0,8, 2
grade
Angarsk polymer
plant JSC
Angarsk (Irkutsk
region)
Russia
For manufacturing
insulating blocks,
packaging, disposable
tableware / 3, 5, 20
tonnes of containers,
covered rail-cars
57627 RUR
Polystyrene expandable
EPS-, grade 1
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 66949 RUR
Polystyrene expandable
EPS-, grade 2
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 68644 RUR
Polystyrene expandable
EPS-, grade 3
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 68644 RUR
Polystyrene expandable
EPS-, grade 4
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 66949 RUR
Polystyrene expandable
EPS-, grade 5
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 59322 RUR
Polystyrene expandable
EPS-, grade 5m
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 56780 RUR
Polystyrene expandable
EPS-, grade 6
Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 31356 RUR
Polyvinyl alcohol, 10%
solution
Lakokraska JSC Lida (Grodno region) Belarus Without cost of packaging 6820000 BYR
Polyvinylchloride PVC-C
5868PZh
Kaustik JSC Volgograd Russia Film grade 40000 RUR
Polyvinylchloride PVC-C
6149U
Kaustik JSC Volgograd Russia
Cable, pipe grade /
Molding, extrusion
methods
40000 RUR
Polyvinylchloride PVC-C
6358
Kaustik JSC Volgograd Russia General purpose 40000 RUR
18 Eurasian chemical market 1(85) February 2013
Polymers Prices
www. chemmarket. i nfo
Product Company City Country Notes
Price per
tonnes, ex. VAT
Polyvinylchloride PVC-C
6669ZhS
Kaustik JSC Volgograd Russia Profile windows 40000 RUR
Polyvinylchloride PVC-C
6768
Kaustik JSC Volgograd Russia Profile windows 40000 RUR
Polyvinylchloride PVC-C
7059
Kaustik JSC Volgograd Russia Cable, pipe, film grade 50000 RUR
Polyvinylchloride PVC-C
8059U
Kaustik JSC Volgograd Russia
Extrusion, calendering and
moulding
50000-52000
RUR
Urea-formaldehyde
concentrate UFC-85
UCC Shchekinoazot Schekino (Tula region) Russia
15000-18000
RUR
Urea-formaldehyde
concentrate UFC-85,
58% formaldehyde, 23%
carbamide
Metafrax JSC
Gubaha (Perm
territory)
Russia
Up to one cistern 65
tonnes / For plywood,
chipboard
15000 RUR
Urea-formaldehyde resin
KF-NU
Lakokraska JSC Lida (Grodno region) Belarus Without cost of packaging
12458000
BYR
Urea-formaldehyde resin KF-
Zh grade L,F,
Lakokraska JSC Lida (Grodno region) Belarus With cost of packaging
14385000
BYR
Urea-formaldehyde resin KF-
Zh, 67-69% dry residue
Navoiyazot JSC Navoiy Uzbekistan 980 USD
Urea-formaldehyde resin KF-
Zh, 67% dry residue
Lakokraska JSC Lida (Grodno region) Belarus Without cost of packaging 12458000 BYR
Urea-formaldehyde resin
KFBZh, 6569% dry residue
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
EXW / Tank trucks, drums
/ For plywood
29330 RUR
Urea-formaldehyde resin
P
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
EXW / Barrels / For making
paper- resin films
21500 RUR
Urea-formaldehyde resin F-
B-, 65% dry residue
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
EXW / Tank trucks, drums
/ For cladding furniture
made of chipboard
29330 RUR
Urea-formaldehyde resin
F--15
Lesohimik JSC
Borisov (Minsk
region)
Belarus 4955000 BYR
Urea-formaldehyde resin
F--15
Navoiyazot JSC Navoiy Uzbekistan 550-600 USD
Urea-formaldehyde resin F-
-15, 64-68% dry residue
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia Barrels / For chipboard 26160 RUR
Urea-formaldehyde resin
F--20PS
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
For production of heat and
sound insulating foam
26560 RUR
Urea-formaldehyde resin
FZh
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia EXW / Tankers, barrels 29330 RUR
Urea-formaldehyde resin S-
11, 60-64% dry residue
Navoiyazot JSC Navoiy Uzbekistan 1000 USD
Vinyl ester resin RP-14S,
unsaturated, 38-45% styrene
Zhylevsky Plastics
Plant JSC
Sitne-Schelkanovo
(Moscow region)
Russia
Barrel 240 kg / Binding
agent for water and
chemically resistant
polymer concrete and
fibreglass products, anti-
corrosion coatings
258700 RUR

1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014
1 EUR = 3,8982-3,9159 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014
1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014
1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014
19 1(85) February 2013 Eurasian chemical market
Rubbers and tyres Prices
www. chemmarket. i nfo
Prices for some synthetic rubbers and latexes in Q1, 2014

Product Manufacturer City Country Notes
Price per 1
tonne, ex.VAT
Butadiene rubber SKD-ND,
grade B
Voronezhsintezkauchuk JSC Voronezh Russia EXW 66949 RUR
Butadiene rubber SKD, grade B Voronezhsintezkauchuk JSC Voronezh Russia EXW 69492 RUR
Butyl rubber B-1675N Togliattikauchuk Ltd
Togliatti (Samara
region)
Russia EXW 101695 RUR
Butyl rubber B-1675 Togliattikauchuk Ltd
Togliatti (Samara
region)
Russia EXW 101695 RUR
Isoprene rubber SKI-3 Togliattikauchuk Ltd
Togliatti (Samara
region)
Russia EXW 94915 RUR
Latex butadiene BS-65,
grade B
Voronezhsintezkauchuk JSC Voronezh Russia EXW 96610 RUR
Latex butadiene SD-1S Voronezhsintezkauchuk JSC Voronezh Russia EXW 101780 RUR
Latex styrene-butadiene
BS-50
Voronezhsintezkauchuk JSC Voronezh Russia EXW 93559 RUR
Latex styrene-butadiene BS-
65, grade
Voronezhsintezkauchuk JSC Voronezh Russia EXW 96610 RUR
Latex styrene-butadiene
BS-85
Voronezhsintezkauchuk JSC Voronezh Russia EXW 100000 RUR
Latex styrene-butadiene
BS-1
Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR
Latex styrene-butadiene
BS-2
Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR
Latex styrene-butadiene
BS-70/2
Voronezhsintezkauchuk JSC Voronezh Russia EXW 104322 RUR
Latex styrene-butadiene
SKS-30U
Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR
Latex styrene-butadiene SKS-
50GPS
Voronezhsintezkauchuk JSC Voronezh Russia EXW 102542 RUR
Latex styrene-butadiene SKS-
50GP
Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR
Latex styrene-butadiene
SKS-65GP
Voronezhsintezkauchuk JSC Voronezh Russia EXW 93559 RUR
Latex styrene-butadiene SKS-
65GP (B)
Voronezhsintezkauchuk JSC Voronezh Russia EXW 89068 RUR
Rubber fluorosiloxane SKTF
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
254237-
847458 RUR
Silicone rubber S
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
254237-
847458 RUR
Silicone rubber SE
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
For manufacturing
mechanical rubber goods
preserving dielectric
properties and elastic at
temperatures ranging from
-70 to +200 C
254237-
847458 RUR
Silicone rubber SN
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
For manufacture of
compounds, sealants
254237-
847458 RUR
Silicone rubber SNF
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
For the manufacture of
compounds, sealants
254237-
847458 RUR
20 Eurasian chemical market 1(85) February 2013
Rubbers and tyres Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per 1
tonne, ex.VAT
Silicone rubber SV
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
Intended for manufacture
of rubber goods,
preserving elastic and
dielectric properties in the
temperature range of from
-50 to +250 C
254237-
847458 RUR
Sodium-butadiene rubber
BNKS-18AMN
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-18N
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-28AMN
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-28AMNP
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-28N
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-33AMN
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-40AMN
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
BNKS-40N
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 83475 RUR
Sodium-butadiene rubber
PBNK-33 (PVC)
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 110169 RUR
Sodium-butadiene rubber
SKN-26PVC-30
Krasnoyarsk Synthetic
Rubber Plant JSC
Krasnoyarsk Russia EXW 108475 RUR
Sodium-butadiene rubber
SN-18SN
Voronezhsintezkauchuk JSC Voronezh Russia EXW 83475 RUR
Sodium-butadiene rubber
SN-26SN
Voronezhsintezkauchuk JSC Voronezh Russia EXW 83475 RUR
Styrene-butadiene rubber
BS-1502
Togliattikauchuk Ltd
Togliatti (Samara
region)
Russia EXW 66949 RUR
Styrene-butadiene rubber
DSS-2560-27, grade
Voronezhsintezkauchuk JSC Voronezh Russia EXW 80085 RUR
Styrene-butadiene rubber
SKS-30 ARKM-15, grade ,
SBR-1706 HI-AR
Voronezhsintezkauchuk JSC Voronezh Russia EXW 60169 RUR
Styrene-butadiene rubber
SKS-30 ARKM-27, grade A
Voronezhsintezkauchuk JSC Voronezh Russia EXW 67373 RUR
Styrene-butadiene rubber
SKS-30 ARKM-27, grade
Voronezhsintezkauchuk JSC Voronezh Russia EXW 63983 RUR
Styrene-butadiene rubber
SKS-30 R, grade ,
Voronezhsintezkauchuk JSC Voronezh Russia EXW 66949 RUR
Styrene-butadiene rubber
SKS-30 R-15, grade ,
SBR-1706 TDAE
Voronezhsintezkauchuk JSC Voronezh Russia EXW 63983 RUR
Styrene-butadiene rubber
SS-30R-15
Togliattikauchuk Ltd
Togliatti (Samara
region)
Russia EXW 60169 RUR
Styrene-butadiene
thermoplastic elastomer DST-
30-01, group 1, granules
Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR
21 1(85) February 2013 Eurasian chemical market
Rubbers and tyres Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per 1
tonne, ex.VAT
Styrene-butadiene
thermoplastic elastomer DST-
30-01, group 1, powder
Voronezhsintezkauchuk JSC Voronezh Russia 107627 RUR
Styrene-butadiene
thermoplastic elastomer DST-
30-01, group 2, granules
Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR
Styrene-butadiene
thermoplastic elastomer DST-
30R-01, group 1, granules
Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR
Styrene-butadiene
thermoplastic elastomer DST-
30R-01, group 3, granules
Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR
Styrene-butadiene
thermoplastic elastomer DST-
30R-01, group 3, powder
Voronezhsintezkauchuk JSC Voronezh Russia 107627 RUR
Styrene-butadiene
thermoplastic elastomer SBS
R30-00, granules
Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR
Styrene-butadiene
thermoplastic elastomer SBS
R30-00, powder
Voronezhsintezkauchuk JSC Voronezh Russia Bags 107627 RUR
Thermoplastic dynamic
Kvartopren, grade (50,60,
70, 80,90), black
Kvart CJSC Kazan Russia Moulding 98000 RUR
Thermoplastic dynamic
Kvartopren, grade (50,60,
70, 80,90), black
Kvart CJSC Kazan Russia Extrusion 117000 RUR
Thermoplastic dynamic
Kvartopren, grade (90) E,
gray
Kvart CJSC Kazan Russia Extrusion 117000 RUR
Thermoplastic dynamic
Kvartopren, grade (90), gray
Kvart CJSC Kazan Russia Moulding 98000 RUR
Urethane rubber
(polyurethane elastomer)
SKU-8
Kazan Synthetic Rubber
Plant JSC
Kazan Russia For manufacturing shoes
169492-
296610 RUR
Urethane rubber
(polyurethane elastomer)
SKU-8
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
In the production of magnetic
lacquers
169492-
296610 RUR
Urethane rubber
(polyurethane elastomer)
SKU-8B
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
For manufacture of products
with improved resistance to
frost and to abrasion
169492-
296610 RUR
Urethane rubber
(polyurethane elastomer)
SKU-PEF-3
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
For preparation of casting and
impregnating compositions
as elastic epoxy resin
169492-
296610 RUR
Urethane rubber
(polyurethane elastomer)
SKU-PFL-100
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
For manufacture of machinery
components working in the
range of from -60 to +120 C,
sheet-metal production, as
anti-corrosion coatings
169492-
296610 RUR
Urethane rubber
(polyurethane elastomer)
SKU-PFL-74
Kazan Synthetic Rubber
Plant JSC
Kazan Russia
169492-
296610 RUR

1 EUR = 45.0559-49.5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
22 Eurasian chemical market 1(85) February 2013
Organics
www. chemmarket. i nfo
Salicylic acid (C
6
H
4
(OH) COOH, ortho-
hydroxybenzoic 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 fowers 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 - wil-
low) 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
fowers of meadowsweet, or Spiraea (spirea
ulmaria) by a German chemist Carl Lwig,
who called it spiraea acid and later the sub-
stance 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.
CIS Market in Salicylic Acid
and its Derivatives
Salicylic acid belongs to aromatic hydroxy acids. Its anti-infammatory 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.
23 1(85) February 2013 Eurasian chemical market
Organics
www. chemmarket. i nfo
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 exert-
ing antipyretic, analgesic and anti-infamma-
tory 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 treat-
ment 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 pre-
servatives. It was used for preserving egg
melange, fsh marinades, salted and pick-
led 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 cos-
metic 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 deriva-
tives 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 signifcant deriva-
tives 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 frst synthe-
sised by Charles Gerhardt, a French chemist,
in 1853. Soon, it became known as aspirin,
from the name of meadowsweet (spirea
ulmaria). This was the frst 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 prod-
ucts and use basically the chemical name
acetylsalicylic acid. Bayer has been own-
ing the exclusive right to the brand aspirin in
Russia since 1992. However, the term aspi-
rin 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-infammatory
effects in 1982. He found out that aspirin
blocked the synthesis of hormone-like sub-
stances - prostaglandins - which are intensely
formed by microbial intoxication causing an
infammatory reaction. Besides antipyretic
and analgesic actions aspirin prevents the
formation of blood clots and also has a vas-
orelaxant action. At the same time, it irritates
the mucous membrane of the gastrointestinal
tract, and its overdose can cause bleeding.
Sodium salicylate (sodium 2-hydroxyben-
zoate) is a sodium salt of salicylic acid. It is a
white crystalline powder or small, odourless
fakes with a sweet and salty taste. Sodium
salicylate is easily soluble in water (1:1) and
alcohol (1:6). Sodium salicylate has analge-
sic, antipyretic and anti-infammatory 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-oxy-
4-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 effciency, PAS fnds 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 para-
benzoylaminosalicylic acid, have the same
therapeutic activity as PAS proper.
Calcium benzoyl-p-aminosalicylate gives
signifcantly 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 alco-
hol 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 frst 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 ingre-
dient 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 antiinfammatory and
analgesic agents to treat neuralgia, migraine
and rheumatism.
Phenyl salicylate (salol) is a white, crys-
talline powder or small colourless crystals
with a faint odour. It is virtually insoluble in
water but soluble in alcohol (1:10) and alka-
line solution, easily soluble in chloroform,
and extremely easily soluble in esters. Phenyl
salicylate was frst synthesised by Wilhelm
Marceli Nencki in 1886. He aspired to fnd
a drug that preserving antiseptic properties
of phenol would not cause irritation like sali-
cylic acid. For this purpose, he blocked the
carboxyl group of salicylic acid and obtained
its ester with phenol.
24 Eurasian chemical market 1(85) February 2013
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This principle of using substances with
an irritating action in the form of their esters
became known as the salol nencki princi-
ple. 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 microfora,
and sodium salt of salicylic acid has anti-
infammatory 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 den-
sity is 1,785-1,180 g/cm3. Salicylic acid ben-
zyl 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 salicy-
late is based on the transesterifcation of
methyl ester of salicylic acid by benzyl alco-
hol in the presence of sodium salt of salicylic
acid methyl ester. The transesterifcation is
conducted at underpressure with simultane-
ous 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 deriv-
ative of salicylic acid to be mentioned here. It
occurs in compound with glucose as glyco-
side salicin in roots and bark of different spe-
cies of willow and some other plants. For the
frst time it was synthesised exactly from this
glycoside. Saligenin is a solid substance, eas-
ily 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 lus-
ter. 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 signifcantly
weaker effect compared to salicylic acid.
Salicylamide (salicylic acid amide, sala-
mide) 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 signifcant volumes.
In some cases, salicylamide is better tolerated
than other salicylates rarely causing some
side effects.
Thiosalicylic acid is used as an anthel-
mintic agent. It possesses bactericidal and
fungicidal properties.
A lot of esters of salicylic acid are used
in perfumery as perfume compounds and
fxing agents. Ethyl salicylate (salethyl)
has the same though much weaker odour
as methyl salicylate. Isobutyl salicylate has
foral 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 con-
centrated sulfuric acid. Allyl salicylate with
a specifc fruity foral odour, phenylethyl
salicylate with a rose fragrance transforming
into a heliotropin odour and isobutyl salicy-
late with a foral 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 pres-
sure and heated up to 125 C. The resulted
substance is dissolved in water and the solu-
tion is acidifed, to form salicylic acid.
Salicylic acid is a feedstock for the pro-
duction 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
Figure 1. Preparation of salicylic acid
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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 prob-
lems 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 purifed 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 utilis-
ing 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 prod-
uct 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 fushing water
is discharged into sewage facilities and the
fushing 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 fltered and disposed or incinerated. The
product is crystallised, centrifuged and
washed off with cold water and IPA. The
fushing water is discharged, and the mother
liquor and fushing IPA are sent for aqueous
IPA regeneration by distillation. The distil-
lation 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 prepara-
tion of acetylsalicylic acid by acetylisation
of salicylic acid with acetic anhydride and
its compounds with acetic acid using recy-
cled 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 con-
sumption of acetic anhydride. However,
the signifcant 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 esterifcation of sali-
cylic 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 esterifer 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 sub-
stance 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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The resulted commercial methyl salicylate
is washed with hot water (70-80 C) till the
aqueous layer has a 2.5-3pH level. The sul-
phuric acid residue is neutralised by washing
with a 10% sodium carbonate solution at 40
C till 7-7.5pH followed by one more wash-
ing with hot water (70-80 C). As a result of
the purifcation 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 fow chart includes stages of crude
salicylamide and pharmacopeia salicylamide
production. At frst, 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 clarifed with a solution of
sodium dithionite (Na2S2O4) at 60-65 C.
Later the product is acidifed 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 purifed by its recrys-
tallisation from distilled water with clarify-
ing 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 fltered by
centrifuging. The product is washed off with
cold distilled water. The mother liquors and the
washing waters are used 3-4 times instead of
water for dissolving during the recrystallisa-
tion 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.
Global market
According to Transparency Market
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 sali-
cylic acid having a 35% share globally.
Nevertheless, the Asia-Pacifc region will
soon display higher growth rates. Salicylic
acid is more and more widely used in cos-
metics, 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
infuence upon salicylic acid production.
Governmental health protection initiatives
aimed at wider use of aspirin by elderly per-
sons to prevent cardiovascular deseases make
a signifcant 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
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
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
Figure 5. Salicylamide production process
Aspirin was frst commercially pro-
duced 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, commer-
cial production of aspirin started at
powerful new plants during the frst
fve-year plans.
27 1(85) February 2013 Eurasian chemical market
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was large-scale acetylsalicylic acid produc-
tion there. Among pharmaceutical enterprises,
only Irbit Pharmaceutical Chemistry produc-
tion plant (Irbit, Sverdlovsk region) has at its
disposal chemical synthesis of such pharma-
ceutical active ingredients as salicylic and
acetylsalicylic acids. But the company is not
synthesising the above-mentioned chemicals
currently processing (re-crystallising) techni-
cal foreign salicylic acid into a purifed active
ingredient ft for pharmaceutical production at
its existing production facilities.
Usolye-Sibirskiy khimiko-farmatsevtich-
eskiy zavod (Usolye-Sibirskoye chemical
and pharmaceutical plant; Usolye-Sibirskoye,
Irkutsk region) has developed its own methyl-
salicylate synthesis technology, but its produc-
tion volumes are rather small and sporadic.
Thus, CIS countries meet their salicylates
demand via import deliveries. Besides, ace-
tylsalicylic acid is imported both as an active
ingredient for pharmaceutical production
(API) and as fnished 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
increase (Figure 7). Next year the import
supplies virtually remained at the same level
equalling 191,8 tonnes (-0,36%). About 87%
of this fgure 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 salicy-
late 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
Operationss 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 manu-
facture. Altair LLC (St. Petersburg) and
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 coat-
ings applications. Eurohim-1 purchased 28
tonnes of salicylic acid from JQS (Huayin)
Pharmaceutical Co. Ltd. Uralchimplast JSC
(Nizhny Tagil) imported 21 tonnes for intra-
Figure 6. Breakdown of salicylic acid
applications worlwide in 2012
Figure 7. Russian imports of
salicylates in 2010-12, tonnes
Figure 8. Geographical breakdown of
Russian salicylic acid imports in 2012
Figure 9. Basic Russian importers
of salycilic acid and its salts in 2012
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plant consumption, which makes up 11% of
total imports. This company utilises saly-
cilic acid as a catalyst for furan resins syn-
thesis. Moscow-based ChemPartners CJSC
bouhgt 16 tonnes of technical salicylic acid
from Hebei Haihua Energy Development
Group Co. Ltd (China) further used in ani-
line dyes manufacture. The rest acid was
basically imported for the needs of the cos-
metics industry. For pharmaceutical pur-
poses, salycilic acid was purchased from
abroad by Russopharm LLC (10 tonnes)
and Khimiko-farmatsevticheskiy kombinat
Akrikhin JSC (Chemical and pharmaceuti-
cal 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
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 deliv-
eries continued declining totalling 1,175.6
tonnes (-12,8%). Chinese suppliers com-
pletely 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 Moscow-
based Indukern-Rus LLC. The latter pur-
chased 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
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)
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 prod-
ucts saw an impressive 87% YOY hike, to
27,17 tonnes. From January to July of 2013,
Ukraine imported 18 tonnes of esters of saly-
cilic 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 com-
pared 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 fve years. To be precise, foreign sup-
plies showed a 18% YOY decline, to 360,89
tonnes in 2012. However, the imports of
salicylic acid rose to 422,8 tonnes for the
frst seven months of the past year. Like the
Russian market, the Ukrainian one is domi-
nated by Chinese suppliers with a 90% share.
The largest Ukrainian importer of acetyl-
salicylic acid accounting for 51% of overall
purchases from abroad is Farmatcevtichna
frma 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
Figure 11. Ukrainian imports of
salicylic acid and its derivatives in
200913, tonnes
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the frst 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 offce of
Stirolbiofarm (Horlivka, Donetsk region)
bought 49 tonnes (12%) of foreign acetylsali-
cylic 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 2009-
2012. 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, over-
all supplies of these products did not exceed
3,5 tonnes in 2012 (Figure 13).
Kazakhstan
Against the background of the above-men-
tioned countries, Kazakhstan is distinguished
with insignifcant consumption volumes of
salicylic acid and its derivatives in primary
forms. Most likely, this can be explained by
predominant imports of prepackaged, fn-
ished 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, ace-
tylsalicylic 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
Russia, Ukraine and Belarus. Kazakhstan and
other former Soviet states mainly purchase
prepackaged, fnished pharma products pro-
duced from the acid.
onclusion
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 ft for pharma-
ceutical production. The market in salicylic
acid in the form of the substance for pharma-
ceutical 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 ace-
tylsalicylic acid, there is an obvious increase
in its imports as both a substance for phar-
maceutical production and a fnished pharma
product.
Figure 12. Basic Ukrainian importers
of acetylsalicylic acid in 2013
Figure 14. Kazakh imports of salicylic
acid and its derivatives in 2009-2012,
tonnes
Figure 13. Belarusian imports of
salicylic acid and its derivatives in
20092012, tonnes
30 Eurasian chemical market 1(85) February 2013
Organics Prices
www. chemmarket. i nfo
Prices for some organic chemicals produced in Russia, Turkmenistan, Uzbekistan, Belarus in 1Q, 2014

Product Manufacturer City Country Notes
Price per tonne,
ex. VAT
Acetic acid synthetic, 70% Navoiyazot JSC Navoiy Uzbekistan In bulk 1100 USD
Acetic acid synthetic, 99.6% Navoiyazot JSC Navoiy Uzbekistan In bulk 1100 USD
Acetic aldehyde, 0.788 g/cm
density
Navoiyazot JSC Navoiy Uzbekistan 1300-1675 USD
Acetone technical, 99-99.75% Navoiyazot JSC Navoiy Uzbekistan 6486665 UZS
Acetylene, 98.8% Chelyabtehgaz Ltd Chelyabinsk Russia 5 liter balloon, 1 kg 260 RUR / kg
Acetylene, 99.1% Navoiyazot JSC Navoiy Uzbekistan
33 USD / gas-
cylinder
Benzene petroleum purified,
99.8%
Uralorgsintez JSC
Chaykovsky (Perm
territory)
Russia 27966 RUR
Benzene petroleum purified,
99.8%
SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia 27966 RUR
Benzene petroleum refined,
99.8%
Mozyr Refinery JSC
Mozyr (Homiel
region)
Belarus 6677400 BYR
Benzene petroleum refined,
99.8%
Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus EXW 6677400 BYR
Benzene petroleum, for
synthesis, 99.7%
SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia 33475 RUR
Benzene petroleum, highest
purification, 99.9%
Mozyr Refinery JSC
Mozyr (Homiel
region)
Belarus EXW 6677400 BYR
1-Bromonaphthalene, pure,
97%
Chemical line Ltd St. Petersburg Russia Packing 1.5 kg 1864 RUR / kg
Butane or a mixture of
butane, 85% butane and 15%
butylene
Sterlitamak
Petrochemical Plant
JSC
Sterlitamak (Republic
of Bashkortostan)
Russia
Cisterns / Automotive
fuel component
11600-11900 RUR
Butane technical, 60% of
butane and butylene
Mozyr Refinery JSC
Mozyr (Homiel
region)
Belarus 1868260 BYR
Butane, 85% butane, 15%
butylene
Sterlitamak
Petrochemical Plant
JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Component of petrol 10800 RUR
Butylene-butadiene fraction
not hydrogenated, grade
A, 98% of C4 and 40% of
butadiene-1.3
SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia
Raw material for
rubber production
36017 RUR
Butylene-butadiene fraction,
not hydrogenated, grade
B, 98% of C4 and 30% of
butadiene-1.3
SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia
Raw material for
rubber production
30127 RUR
Cyclohexane technical, 99.8-
99.9%
Shchekinoazot UCC
JSC
Schekino (Tula
region)
Russia 85000 RUR
Cyclohexane technical, 99.9% KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia
EXW / Tank cars (50
tonnes), boiler trucks/
For chemical fibres
and solvent
75000 RUR
Ethylbenzene technical,
99.8%
SIBUR-Khimprom
CJSC
Perm Russia
Raw material for
styrene, component
of motor fuels,
solvent
34746 RUR
31 1(85) February 2013 Eurasian chemical market
Organics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per tonne,
ex. VAT
Ethylbenzene technical,
99.8%
SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia
Raw for production of
styrene, a component
of motor fuel, solvent
34746 RUR
2-Ethylhexanoic acid,
synthetic oily C8
SIBUR-Khimprom
CJSC
Perm Russia 76721 RUR
2-Ethylhexanol technical,
99%
SIBUR-Khimprom
CJSC
Perm Russia
For synthesis
of plasticisers,
stabilisers, additives
for lubricating oils,
solvents
54237 RUR
Ethylene oxide purified,
99.9%
SIBUR-Neftekhim JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia
For obtaining high-
purity ethylene glycol
46610 RUR
Formalin, 36.9-37.5% Navoiyazot JSC Navoiy Uzbekistan 315 USD
Hexamethylenetetramine
stabilized technical, 98% of
amines
Metafrax JSC
Gubakha (Perm
territory)
Russia
EXW / PP bags 25 kg,
rail-cars 50-60 tonnes
For production of
phenol-formaldehyde
resins
38500 RUR
Hexamethylenetetramine
technical, 98-99.5% of
amines
Metafrax JSC
Gubakha (Perm
territory)
Russia
EXW / PP bags 25 kg,
rail-cars 50-60 tonnes
For production of
phenol-formaldehyde
resins
38500-40500 RUR
Hexamethylenetetramine
technical, tableted, 98-99.5%
of amines
Navoiyazot JSC Navoiy Uzbekistan 2400 USD
Isobutane fraction, 97% Kinef Ltd
Kirishi (Leningrad
region)
Russia 16697-18054 RUR
Isobutane fraction, 98%
SIBUR-Khimprom
CJSC
Perm Russia
In production of
rubber, polyethylenes,
polypropylenes,
polystyrenes
17797 RUR
Isobutane fraction, 98%
Tobolsk-Neftekhim
Ltd
Tobolsk (Tyumen
Region)
Russia 17797 RUR
Isobutane fraction, 98% Uralorgsintez JSC
Chaykovsky (Perm
territory)
Russia 17797 RUR
Methanol technical, 99.95% Navoiyazot JSC Navoiy Uzbekistan 350 USD
Methanol, 99.95%,
Shchekinoazot UCC
JSC
Schekino (Tula
region)
Russia 19000-23000 RUR
Methyl chloride technical,
90%
Kaustic JSC Volgograd Russia 47000-70000 RUR
Methyl-tert-butyl ether, 98%
SIBUR-Khimprom
CJSC
Perm Russia 44068 RUR
Methyl-tert-butyl ether, 98% Uralorgsintez JSC
Chaykovsky (Perm
territory)
Russia 44068 RUR
Methyl-tert-butyl ether, 98%
Tobolsk-Neftekhim
Ltd
Tobolsk (Tyumen
Region)
Russia 44068 RUR
Methyl-tert-butyl ether, 98% Togliattikauchuk Ltd Togliatti Russia 44068 RUR
Methylacetylene-allene
fraction
Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus Welding gas 900 EUR
32 Eurasian chemical market 1(85) February 2013
Organics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per tonne,
ex. VAT
N, N-dimethyl-p-
phenylenediamine, 98%
Krauft Ltd St Petersburg Russia
Extractant, chemical
raw material
13559 RUR / kg
N, N-dimethyl-p-
phenylenediamine, analytical
grade, 1.09 g/cm3
Chemical line Ltd St. Petersburg Russia 13559 RUR / kg
Propane technical, max 75%
propane and propylene
Surgutneftegas JSC
Surgut (Khanty-Mansi
Autonomous District)
Russia 15340 RUR
Propane-butane mixture, max
60% of butane and butylene
Mozyr Refinery JSC
Mozyr (Homiel
region)
Belarus 1868260 BYR
Propane-butane mixture, max
60% of butane and butylene
Turkmenbashi
complex of refinery
Turkmenbashi (Balkan
province)
Turkmenistan 419 USD
Propane-butane mixture, max
60% of butane and butylene
Shurtan Gaz Chemical
Complex Unitary
Branch Establishment
Shurtan
(Qashqadaryo
province)
Uzbekistan 899093 UZS
Propane-butane, 20%
propane, 80% butane
Turkmenbashi
complex of refinery
Turkmenbashi (Balkan
province)
Turkmenistan 567-725 USD
Propane-butane, 60%
butanes and butylenes
Surgutneftegaz JSC
Surgut (Khanty-Mansi
Autonomous District)
Russia 12213-12390 RUR
Propylene fraction, 90-98.8% SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia 32203 RUR
Propylene, 99.8% SIBUR-Kstovo Ltd
Kstovo (Nizhny
Novgorod region)
Russia 34746 RUR
Styrene, grade SDEB, 99.8%
SIBUR-Khimprom
CJSC
Perm Russia 55932 RUR
Styrene, grade SDEB, 99.8% Plastic JSC
Uzlovaya (Tula
region)
Russia 55932 RUR
Styrene, grade SDEB, for
processing, 99.8%
Plastic JSC
Uzlovaya (Tula
region)
Russia 44915 RUR
Styrene, grade SDEB, for
processing, 99.8%
SIBUR-Khimprom
CJSC
Perm Russia 44915 RUR
Toluene, 99.6-99.75% Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus 5951100 BYR
Vinylidene chloride technical,
99.9%
Kaustic JSC Volgograd Russia
120000-130000
RUR
o-Xylene petroleum, 99.2% Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus 6644200 BYR
p-Xylene petroleum, highest
purification, 99.2%
Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus 432500 BYR

1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014
1 EUR = 3,8982-3,9159 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014
1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014

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34 Eurasian chemical market 1(85) February 2013
Inorganics Prices
www. chemmarket. i nfo
Prices of Russian, Belarusian, Uzbek and Turkmen chemical producers for inorganic materials
and industrial gases in 1Q, 2014
Product Manufacturer City Country Notes
Price for 1
tonne, ex. VAT
Argon liquid, top grade,
99.993%
Evraz NTMK JSC
Nizhny Tagil
(Sverdlovsk region)
Russia 16900 RUR
Aluminum nitride hexagonal,
98.5%
Timosha Ltd
Smolevichi (Minsk
region)
Belarus
For producing components
of microchips, high-power
transistors, absorbents,
heat-conducting pastes and
compounds
10 USD
Aluminum oxychloride, 17-
22% Al
2
O
3
Khimprom Ltd Kemerovo Russia EXW 20000 RUR
Aluminum oxynitride powder,
70% aluminum nitride, 30%
aluminum oxide
Timosha Ltd
Smolevichi (Minsk
region)
Belarus
For producing heat-
conducting pastes and
compounds
10 USD
Ammonia liquid, 99.6%
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia
25000-30000
RUR
Ammonia liquid, 99.6% Navoiyazot JSC Navoiy Uzbekistan
More than 2 tonnes /
refrigerant (R717)
270 USD
Ammonium chloride, 99% Navoiyazot JSC Navoiy Uzbekistan Mordant in dyeing / Bags 330 USD
Argon gaseous, top grade,
99.993%
Evraz NTMK JSC
Nizhny Tagil
(Sverdlovsk region)
Russia 95 RUR / m3
Argon liquid, 99.98% KuibyshevAzot JSC
Togliatti (Samara
region)
Russia
Tankers 2.5; 7.5 tonnes /
Railway tanks 36 tonnes
16000 RUR
Calcium chloride calcined
granulated, 90%
Khimprom Ltd Kemerovo Russia
EXW / Containers, 500 kg big
bag, 25 kg bags, rail cars
4500 RUR
Calcium chloride granulated,
90-96.5%
Navoiyazot JSC Navoiy Uzbekistan 845000 UZS
Calcium chloride liquid, 32% Khimprom Ltd Kemerovo Russia EXW 4500 RUR
Calcium chloride liquid, 35% Navoiyazot JSC Navoiy Uzbekistan 300 USD
Chlorine liquid, 99.6% Kaustik JSC Volgograd Russia ontainers 900-980 kg
30000-34000
RUR
Chlorine liquid, 99.6% Kaustik JSC Volgograd Russia Cylinders 55-60 kg
30000-40000
RUR
Chlorine liquid, 99.6% Kaustik JSC Volgograd Russia In bulk 4500 RUR
Chlorine liquid, 99.6% Kaustik JSC Volgograd Russia Cisterns 50-55 tonnes 10500 RUR
Chlorine liquid, 99.6% Khimprom Ltd Kemerovo Russia EXW / In containers
42500-70000
RUR
Chlorine liquid, 99.6%-99.8% Navoiyazot JSC Navoiy Uzbekistan In cisterns 140 USD
Ferric trichloride, water
solution, 30%
Kaustik JSC Volgograd Russia
16000-18000
RUR
Ferrum oxide (III) granulated,
95%
Evraz ZSMK JSC
Novokuznetsk
(Kemerovo region)
Russia
Catalyst in production of
ammonia, component of
ceramics, cements and
minerals paints
2650 RUR
Hydrochloric acid inhibited,
20-23%
Navoiyazot JSC Navoiy Uzbekistan 145 USD
Hydrochloric acid inhibited,
21-23%
Kaustik JSC Volgograd Russia
6500-8500
RUR
Hydrochloric acid inhibited,
22-24%
Khimprom Ltd Kemerovo Russia
EXW / For treatment of oil
wells, etching iron, cleaning
of boilers
12000 RUR
Hydrochloric acid reactive
chemically pure, 35-38%
Kaustik JSC Volgograd Russia 8000 RUR
35 1(85) February 2013 Eurasian chemical market
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price for 1
tonne, ex. VAT
Hydrochloric acid synthetic
technical, 31.5-36%
Navoiyazot JSC Navoiy Uzbekistan 120 USD
Hydrochloric acid synthetic
technical, 31.5%
Kaustik JSC Volgograd Russia
5500-7500
RUR
Hydrochloric acid synthetic
technical, 31.5%-38%
Khimprom Ltd Kemerovo Russia
Cisterns 60-70 tonnes, PE
canisters 20, 30,50 l
16000-17000
RUR
Hydrochloric acid waste,
27.5%
Kaustik JSC Volgograd Russia
4000-7500
RUR
Hydrochloric acid, reactive,
chemically pure, 35-38%
Khimprom Ltd Kemerovo Russia
EXW / PE canisters 20,
30,50 l
23000 RUR
Hydrochloric acid, reactive,
pure, 35-38%
Khimprom Ltd Kemerovo Russia Cisterns 50 tonnes 20000 RUR
Iodine technical, 99%
Balkanabat Iodine
Plant
Balkanabat ( Balkan
Province)
Turkmenistan Prepayment / EXW 36000 USD
Iodine technical, 99% Bereket Iodine Plant
Bereket (Akhal
province)
Turkmenistan Prepayment / EXW 36000 USD
Iodine technical, 99% Khazar Chemical Plant
Khazar (Balkan
province)
Turkmenistan Prepayment / EXW 36000 USD
Magnesium chloride (bishofit)
technical, grade B, solution
250-400 g/l
Kaustik JSC Volgograd Russia
3000-4000
RUR
Magnesium chloride flake,
97%
Kaustik JSC Volgograd Russia
9000-11000
RUR
Magnesium chloride
granulated, 97%
Kaustik JSC Volgograd Russia
14000-16000
RUR
Nitric acid weak, 56-58%, in
terms of 100%
Mendeleyevskazot Ltd
Mendeleevsk
(Republic of Tatarstan)
Russia In customers packaging 17808 RUR
Oleum improved, 24% SO3
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia 2000 RUR
Oleum improved, 24% SO3
Balakovo Mineral
Fertilisers Ltd
Balakovo (Saratov
region)
Russia 2000 RUR
Oleum improved, 24% SO3
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia EXW
3600-5500
RUR
Phosphoric acid extraction,
water solution, 40%
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia 15500 RUR
Phosphoric acid extraction,
water solution, 40%
Balakovo Mineral
Fertilisers Ltd
Balakovo (Saratov
region)
Russia 15500 RUR
Potassium iodide, 99% Khazar Chemical Plant
Khazar (Balkan
province)
Turkmenistan 60000 USD
Sodium bicarbonate, 99.5% Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 11100 RUR
Sodium bicarbonate, 99% Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 10870 RUR
Sodium carbonate (soda ash),
grade A, 98.2%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Big bags 800 kg
10472-10547
RUR
Sodium carbonate (soda ash),
grade A, 98.2%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Bags 50 kg
10911-10986
RUR
Sodium carbonate (soda ash),
grade A, 98.2%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk
9592-9668
RUR
Sodium carbonate (soda ash),
grade B, 97.5%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia In bulk 9170 RUR
Sodium carbonate (soda ash),
grade B, 97.5%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Big bags 650 kg 10070 RUR
36 Eurasian chemical market 1(85) February 2013
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price for 1
tonne, ex. VAT
Sodium carbonate (soda ash),
grade B, 97.5%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Bags 40 kg 10470 RUR
Sodium carbonate (soda ash),
grade B, 97.5%
Qongirot soda zavodi
unitary enterprise
Qongirot
(Karakalpakstan
province)
Uzbekistan
EXW / In bulk / PP bags
35 kg
280 USD
Sodium carbonate (soda ash),
grade B, 98.2%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Bags 40 kg 9270 RUR
Sodium carbonate (soda ash),
grade B, 98.2%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Big bags 650 kg 10170 RUR
Sodium carbonate (soda ash),
grade B, 98.2%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia In bulk 10570 RUR
Sodium carbonate (soda ash),
grade B, 98.2%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Bags 50 kg 10564 RUR
Sodium carbonate (soda ash),
grade B, 98.2%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Big bags 500 kg 10124 RUR
Sodium carbonate (soda ash),
grade B, 98.2%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk 9246 RUR
Sodium carbonate (soda ash),
grade B, 98.9%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia In bulk 9370 RUR
Sodium carbonate (soda ash),
grade B, 98.9%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Big bags 650 kg 10270 RUR
Sodium carbonate (soda ash),
grade B, 98.9%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Bags 40 kg 10670 RUR
Sodium carbonate (soda ash),
grade B, 98.9%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Bags 50 kg 10621 RUR
Sodium carbonate (soda ash),
grade B, 98.9%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Big bags 500 kg 10183 RUR
Sodium carbonate (soda ash),
grade B, 98.9%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk 9303 RUR
Sodium carbonate (soda ash),
grade , 97.5%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia In bulk 9470 RUR
Sodium carbonate (soda ash),
grade , 97.5%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Big bags 1000 kg 10370 RUR
Sodium carbonate (soda ash),
grade , 97.5%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Bags 40 kg 10770 RUR
Sodium carbonate (soda ash),
grade , 98.2%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia In bulk 9570 RUR
Sodium carbonate (soda ash),
grade , 98.2%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Big bags 1000 kg 10470 RUR
Sodium carbonate (soda ash),
grade , 98.2%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Bags 40 kg 10870 RUR
Sodium carbonate (soda ash),
grade , 98.7%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia In bulk 10570 RUR
Sodium carbonate (soda ash),
grade , 98.7%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Bags 40 kg 9670 RUR
Sodium carbonate (soda ash),
grade , 98.7%
Berezniki Soda Plant
JSC
Berezniki (Perm
territory)
Russia Big bags 1000 kg 10970 RUR
Sodium carbonate (soda ash),
grade , 98.7%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia
In bulk / For production
electron-tube glass
9668 RUR
Sodium carbonate (soda ash),
grade , 85%
KuibyshevAzot JSC
Togliatti (Samara
region)
Russia In bulk / Big bags 800 kg
6500-7500
RUR
Sodium chloride, 97.5% Guvlyduz Combine
Guvlymayak (Balkan
province)
Turkmenistan
Prepayment / For industrial
applications
40 USD
37 1(85) February 2013 Eurasian chemical market
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price for 1
tonne, ex. VAT
Sodium chloride, technical,
purified, 99.5%
Navoiyazot JSC Navoiy Uzbekistan 600 USD
Sodium cyanide, 20-30% Navoiyazot JSC Navoiy Uzbekistan
Galvanising and gilding
metal products
2822350 UZS
Sodium hydroxide reactive,
analytical grade, 98%
Kaustik JSC Volgograd Russia 30000 RUR
Sodium hydroxide tablet, 98% Kaustik JSC Volgograd Russia
In production of vinyl
chloride as a neutralising
agent
60000 RUR
Sodium hydroxide technical
granulated, 99%
Kaustik JSC Volgograd Russia
22000-30000
RUR
Sodium hydroxide, RD grade,
44%
SIBUR-Neftekhim JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 17797 RUR
Sodium hydroxide, RD grade,
46%
Kaustik JSC Volgograd Russia
13400-23000
RUR
Sodium hydroxide, RD grade,
46%
Khimprom Ltd Kemerovo Russia
EXW / Cisterns 55-60 tonnes
(in bulk), tanks 25-27 tonnes
26500 RUR
Sodium hypochlorite, 10-20 g
/l NaOH
Kaustik JSC Volgograd Russia
10000-20000
RUR
Sodium hypochlorite, 10-20
g/l NaOH
Navoiyazot JSC Navoiy Uzbekistan 190 USD
Sodium hypochlorite, 40 g/l
NaOH, 120 g/l Cl
Khimprom Ltd Kemerovo Russia
EXW / Cisterns 60-70
tonnes; PE canisters
26500 RUR
Sulphur gaseous granulated,
99.98%
Kinef Ltd
Kirishi (Leningrad
region)
Russia 649-826 RUR
Sulphur gaseous lumps,
99.98%
Buxoro neftni qayata
ishlash zavodi
Qorovulbozor (Buxoro
province)
Uzbekistan 55089 UZS
Sulphur liquid, 99.2% Mozyr Oil Refinery JSC Mozyr (Homiel region) Belarus 437200 BYR
Sulphur liquid, 99.98% Mozyr Oil Refinery JSC Mozyr (Homiel region) Belarus 437200 BYR
Sulphur lump, 99.2% Ukrtatnafta PJSC
Kremenchug (Poltava
region)
Ukraine Rail, road transport 842-917 UAH
Sulphur lump, 99.9%
Turkmenbashi
Complex of Oil
Refineries
Turkmenbashi (Balkan
province)
Turkmenistan
Prepayment / FCA / 50 kg
bags
57 USD
Sulphuric acid accumulator,
92-94%
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia
6000-13000
RUR
Sulphuric acid contact
improved, 92.5-94%
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia EXW
3500-6000
RUR
Sulphuric acid technical
contact, 92.5%
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia 2000 RUR
Sulphuric acid technical
contact, 92.5%
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia EXW
2900-5000
RUR
Sulphuric acid waste, 72% Khimprom Ltd Kemerovo Russia EXW / Cisterns 50-60 tonnes 60 RUR
Sulphuric acid, grade K, 95-
96.5%
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia 2000 RUR
Sulphuric acid, high purity,
93.5-95.6%
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia
For production of high-tech
products and analytical
materials
23000 RUR

1 EUR = 45.0559-49.5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
1 EUR = 3000.05-3053.73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014
1 EUR = 3.8982-3.9159 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014
1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014

38 Eurasian chemical market 1(85) February 2013
Agrochemistry
www. chemmarket. i nfo
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
NH
4
NO
3
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 produc-
tion 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).
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(NH
2
)
2
output (in physi-
cal 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 pro-
duction of Odessa Port Plant JSC showed a 39.9%
YOY fall, to 49,200 tonnes.
Severodonetsk Azot Association,
Cherkasy-based Azot and Concern Stirol
Summing up Ukrainian Fertilisers
Production in 2013: No Light at
the End of the Tunnel
Table 1. Ammonium nitrate production in Ukraine in 2013, thousand tonnes
Company
December
2013
December
2012
December
2013 to
December
2012, %
2013 2012
2013 to
2012, %
Cherkasy-based
Azot PJSC
80,0 43,1 185,6 953,7 789,3 120,8
Rivneazot JSC 43,2 50,5 85,5 530,7 500,7 106,0
Severodonetsk
Azot Association
PJSC
50,0 52,4 95,4 393,2 587 67,0
Concern Stirol
PJSC
0,0 63,8 - 374,2 599 62,5
Total 173,2 209,8 82,6 2251,8 2476,0 90,9
able 2. Carbamide production in Ukraine in 2013, thousand tonnes
Company
December
2013
December
2012
December
2013 to
December
2012 in %
2013 2012
2013 to
2012, %
DniproAzot
PJSC
69,2 65,1 106,3 699,5 684,1 102,3
Odessa Port
Plant JSC
49,2 81,8 60,1 635,0 930,1 68,3
Cherkasy-
based Azot
PJSC
0,0 72,1 - 548,6 776,5 70,7
Severodonetsk
Azot
Association
PJSC
0,0 38,4 - 314,0 404,7 77,6
Concern Stirol
PJSC
0,0 87,3 - 576,9 891,9 64,7
Total 118,4 344,7 34,3 2774,0 3687,3 75,2
All in all last year proved extremely
unsuccessful for Ukrainian fertilisers
producers. The domestic output of
the following fertilisers displayed a
signifcant reduction in 2013 as com-
pared to 2012:
ammonium nitrate (9.1%);
urea (24.8%), ammophos
(33.8%), NPK (47.7%), am-
monium sulphate (49.5%). Only
CAS production rose 14% in 2013.
Below are given production results
in detail.
39 1(85) February 2013 Eurasian chemical market
Agrochemistry
www. chemmarket. i nfo
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.
Ammophos
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
ammophos dived 87.5% or 1,400 tonnes,
to 0.2 tonnes over December 2012. In par-
ticular, 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 com-
pared to November 2012.
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 3. Ukrainian ammophos production in December, thousand tonnes
Company
December
2013
December
2012
December
2013 to
December
2012, %
2013 2012
2013 to
2012, %
Dniprovsky mineral
fertilizers plant
PJSC
0,2 0,0 - 14,7 19,0 77,4
Crimea Titan PJSC 0,0 1,6 - 25,4 52,4 48,5
Sumykhimprom
PJSC
0,0 0,0 - 0,0 0,0 -
Total 0,2 1,6 12,5 40,1 71,4 56,2
Table 4. NPK production in Ukraine in 2013, thousand tonnes
Company
December
2013
December
2012
December
2013 to
December
2012, %
2013 2012
2013 to
2012, %
Sumykhimprom
PJSC
0,0 11,0 - 180,7 343,2 52,7
Dinprovskiy
mineral
fertilizers plant
PJSC
0,2 0,0 - 0,4 3,3 12,1
Total 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, %
Cherkasy-based
Azot PJSC
0,0 0,0 - 32,0 63,8 50,2
Crimea Titan
PJSC
0,0 0,0 - 0,2 0,0 -
Sumykhimprom
PJSC
0,0 0,0 - 0,0 0,0 -
Total 0,0 0,0 - 32,2 63,8 50,5
Table 6. Production of aqueous solution of urea and ammonium nitrate in 2013,
thousand tonnes
Company
December
2013
December
2012
December
2013 to
2012, %
2013 2012
2013 to
2012, %
Cherkasy-
based Azot
PJSC
0,0 12,7 - 204,6 190,4 107,5
Concern Stirol
PJSC
0,0 0,0 - 97,9 75,0 130,5
Total 0,0 12,7 - 302,5 265,4 114,0
40 Eurasian chemical market 1(85) February 2013
Agrochemistry
www. chemmarket. i nfo
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.
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 (aque-
ous 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 pro-
duce 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.
The article is based upon data provided by the
the Cherkasy State Scientifc Research Institute
of Technical and Economic Information in the
Chemical Industry and by information agency
Ukrainian News.
Table 7. Ukrainian imports and exports in 2013, million dollars

Imports Exports
December 2013 December 2013
Nitrogen fertilisers
Russia 34,33 205,04 - -
Other 0,78 3,45 33,12 627,75
Poland 0,13 1,83 - -
Uzbekistan 0,43 1,49 - -
Turkey - - 20,87 295,41
Italy - - 1,61 103,33
Brazil - - - 107,05
Total 35,68 211,82 55,60 1 133,53
Phosphorus fertilisers
Russia - 0,34 - -
Total - 0,34 - -
Potassium fertilisers
Belarus 2,58 68,16 - -
Russia 0,36 1,95 0,02 0,18
Other 0,01 1,23 - 0,02
Belgium 0,02 1,11 - -
Lithuania - - 0,02 0,59
Turkey - - - 0,04
Total 2,97 72,44 0,04 0,83
Mixed type fertilisers (10 kg bags)
Russia 21,64 393,22 - -
Belarus 3,71 80,30 - -
Other 1,99 48,28 0,38 10,96
Finland 0,30 9,48 - -
Ivory Coast - - - 9,54
Moldova - - - 4,97
Benin - - - 11,26
Total 27,65 531,28 0,38 36,72
Grand total 66,30 815,88 56,02 1 171,08
41 1(85) February 2013 Eurasian chemical market
Agrochemistry Prices
www. chemmarket. i nfo
Prices for mineral fertilisers of Russian, Uzbek, Turkmen, and Ukrainian manufacturers in 1Q, 2014
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Ammonia water, 20.5%
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine In bulk / EXW, Rail-car norms 1350 UAH
Ammonia water, 25% N KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia 4000 RUR
Ammonia water, 25% N Navoiyazot JSC Navoiy Uzbekistan EXW 170 USD
Ammonium nitrate with
magnesium additive, 37.4% N
Mendeleyevskazot Ltd
Mendeleyevsk
(Republic of Tatarstan)
Russia In bulk 10299 RUR
Ammonium nitrate with sulphur
crystalline ammonium sulphate,
grade 6S, N-31%, S-6%
KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia Big bags 950 kg 8228 RUR
Ammonium nitrate with sulphur
with granulated ammonium
sulphate, grade 6S, N-31%,
S-6%
KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia Big bags 950 kg 8394 RUR
Ammonium nitrate, 34.4% N Acron JSC
Veliky Novgorod
(Novgorod region)
Russia
FCA / In bulk / For agricultural
producers
10350 RUR
Ammonium nitrate, 34.4% N
Azot Branch of
Uralchem JSC
Berezniki (Perm
territory)
Russia
FCA / In bulk / For agricultural
producers
10050 RUR
Ammonium nitrate, 34.4% N KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia
In bulk / For agricultural
producers
9800 RUR
Ammonium nitrate, 34.4% N
Maryazot production
association
Mary Turkmenistan Prepayment 360 TMT
Ammonium nitrate, 34.4% N Mineral fertilisers JSC
Rossosh (Voronezh
region)
Russia
FCA / In bulk / For agricultural
producers
9700-10000
RUR
Ammonium nitrate, 34.4% N Minudobreniya JSC Perm Russia
FCA / In bulk / For agricultural
producers
9700-10050
RUR
Ammonium nitrate, 34.4% N Navoiyazot JSC Navoiy Uzbekistan In bulk 230 USD
Ammonium nitrate, 34.4% N
Nevinnomysskiy Azot
JSC
Nevinnomyssk
(Stavropol territory)
Russia In bulk / Bags
10300-10600
RUR
Ammonium nitrate, 34.4% N
Novomoskovskiy Azot
JSC
Novomoskovsk (Tula
region)
Russia In bulk / Bags, big bags
9900-10200
RUR
Ammonium nitrate, 34.4% N
PhosAgro-Cherepovets
JSC
Cherepovets (Vologda
region)
Russia
FCA / In bulk / For agricultural
producers
7095-9195
RUR
Ammonium nitrate, 34.4% N
Voskresensk Mineral
Fertilisers JSC
Voskresensk (Moscow
region)
Russia
FCA / In bulk / For agricultural
producers
10050 RUR
Ammonium nitrate, 34.4% N Dorogobuzh JSC
Verkhnedneprovsky
Settlement (Smolensk
region)
Russia
FCA / In bulk / For agricultural
producers
10350 RUR
Ammonium nitrate, 34.4%N
Mineral fertiliser Plant
of Kirovo-Chepetsk
Chemical Works JSC
Kirovo-Chepetsk
(Kirov region)
Russia
FCA / In bulk / For agricultural
producers
9700 RUR
Ammonium sulphate, 21% N KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia
PP bags 50 kg / Big bags
800 kg
6300-6900
RUR
Ammonium sulphate, 21% N Maxam-chirchiq JSC
Chirchiq (Toshkent
province)
Uzbekistan EXW 225430 UZS
Ammonium sulphate, 21% N Navoiyazot JSC Navoiy Uzbekistan Bags 50 kg 140 USD
Ammonium sulphate, 21% N
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia 8500 RUR
Calcium ammonium nitrate
(CAN), 27% N, 4% CaO
Novomoskovskiy Azot
JSC
Novomoskovsk (Tula
region)
Russia In bulk / Bags
8350-8650
RUR
Calcium dihydrogen phosphate
monohydrate (monocalcium
phosphate), 16% a, 22% P
Balakovo Mineral
Fertilisers Ltd
Balakovo (Saratov
region)
Russia
Enables gain of live weight of
animals and birds by 5-12%
23282 RUR
42 Eurasian chemical market 1(85) February 2013
Agrochemistry Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Complex liquid fertiliser slurry
NP 6-24
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine In bulk / EXW, Railway norms 2667 UAH
Complex liquid fertiliser slurry
NP(S) 8:22(10)
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine In bulk / EXW, Railway norms 2667 UAH
Complex liquid fertiliser,
sulphur-containing nutrient
solution, 7% N, 8% S, 30-40%
ammonium sulphate
KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia
In bulk / Tank container 18-19
tonnes
1542 RUR
Magnesium sulphate technical,
91.7%
Maxam-chirchiq JSC
Chirchiq (Toshkent
province)
Uzbekistan EXW 1090835 UZS
Nitrogen-calcium-magnesium
fertiliser, grade B, 33% N, 4%
CaO
Azot JSC Kemerovo Russia In bulk 9900 RUR
Nitrophosphate 22-28% N;
1-6% P
Navoiyazot JSC Navoiy Uzbekistan 230 USD
NP 10-46 Ammofos-Maxam JSC
Olmaliq (Toshkent
province)
Uzbekistan In bulk 774113 UZS
NP 12-52
EuroChem
Belorechenskie
Minudobrenia JSC
Belorechensk
(Krasnodar territory)
Russia In bulk / Bags, big bags
15600-15900
RUR
NP 12-52
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia
FCA / Big bags 800 kg,
bags50 kg
15380 RUR
NP 12-52
Phosphorit Industrial
Group Ltd
Kingisepp (Leningrad
region)
Russia In bulk / Bags, big bags
15600-15900
RUR
NP 12-52
Voskresensk Mineral
Fertilisers JSC
Voskresensk (Moscow
region)
Russia
FCA / In bulk / For agricultural
producers
14600 RUR
NP 18-46
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia 15400 RUR
NP 18-47
Phosphorit Industrial
Group Ltd
Kingisepp (Leningrad
region)
Russia In bulk / Bags, big bags
15600-15900
RUR
NP(S) 17-17(40)
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine
Rail-car norms / EXW (Bags
50 kg or big bags)
3333-3417
UAH
NP(S) 20-20 (8)
EuroChem
Belorechenskie
Minudobrenia JSC
Belorechensk
(Krasnodar territory)
Russia In bulk / Bags, big bags
12000-12300
RUR
NPK 10-26-26
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia
FCA / In bulk / For agricultural
producers
12414 RUR
NPK 10-26-26
Voskresensk Mineral
Fertilisers JSC
Voskresensk (Moscow
region)
Russia
FCA / In bulk / For agricultural
producers
14000 RUR
NPK 13-19-19
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia
In bulk / Big bags 800 kg,
bags 50 kg
10650 RUR
NPK 15-15-15
PhosAgro-
Cherepovets JSC
Cherepovets (Vologda
region)
Russia
In bulk / Big bags 800 kg,
bags 50 kg
10195 RUR
NPK 16-16-16 Acron JSC
Veliky Novgorod
(Novgorod region)
Russia
FCA / In bulk / For agricultural
producers
12180 RUR
NPK 16-16-16 Mineral fertilisers JSC
Rossosh (Voronezh
region)
Russia
FCA / In bulk / For agricultural
producers
11950 RUR
NPK 16-16-16
Nevinnomysskiy Azot
JSC
Nevinnomyssk
(Stavropol territory)
Russia In bulk / Bags, big bags
11100-11400
RUR
NPK 16-16-16 Dorogobuzh JSC
Verkhnedneprovsky
Settlement (Smolensk
region)
Russia
FCA / In bulk / For agricultural
producers
12180 RUR
43 1(85) February 2013 Eurasian chemical market
Agrochemistry Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
NPK 17-0,1-28
Nevinnomysskiy Azot
JSC
Nevinnomyssk
(Stavropol territory)
Russia
In bulk / PP Bags, big bags
500 kg
10000-10300
RUR
NPK 21-0,1-21
Nevinnomysskiy Azot
JSC
Nevinnomyssk
(Stavropol territory)
Russia
In bulk / PP Bags, big bags
500 kg
8800-9100
RUR
NPKS 5-16-30-10
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine
Rail-car norms / EXW (Bags
50 kg or big bags)
3583-3625
UAH
NPKS 7-21-21-13
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine
Rail-car norms / EXW (Bags
50 kg or big bags)
3583-3625
UAH
Phosphogypsum, 90% CaSO4
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine 45-58 UAH
Potassium chloride powder, 95%
KCL
Uralkali Combined
Company
Berezniki (Perm
territory)
Russia
In bulk / FCA / For agricultural
producers
5927 RUR
Potassium chloride, 58-60% K
2
O
Dehkanabad Potash
Plant Unitary
Enterprise
Dehqonobod
(Qashqadaryo region)
Uzbekistan EXW 757308 UZS
Potassium fertiliser iquid APP
11-37, 11% N, 37% P
PhosAgro-Cherepovets
JSC
Cherepovets (Vologda
region)
Russia
FCA / For agricultural
producers
13013 RUR
Potassium nitrate, 34% P,
12.2% N
Navoiyazot JSC Navoiy Uzbekistan 975-1100 USD
Potassium sulphate, 48% K
2
O Maxam-chirchiq JSC
Chirchiq (Toshkent
province)
Uzbekistan Bags 4436540 UZS
Superphosphate ammoniated
Turkmenabat Chemical
Plant named after S.A.
Niyazov
Trkmenabat (Lebap
province)
Turkmenistan Prepayment 500 TMT
Superphosphate ammoniated
granulated, 13%
Qoqon superfosfat
zavodi JSC
Qoqon (Fargona
province)
Uzbekistan 272430 UZS
Superphosphate double NP 10-
32, (20) CaO-14%
Dneprovskyy Plant of
Chemical Fertilisers
PJSC
Dniprodzerzhynsk
(Dnipropetrovsk
region)
Ukraine
Rail-car norms / EXW (Bags
50 kg or big bags)
3583-3667
UAH
Superphosphate granulated
enriched N-P-Ca-S-Mg 6-26-
(12-17)-(8-10)-0.5
Phosphorit Industrial
Group Ltd
Kingisepp (Leningrad
region)
Russia In bulk / Bags, big bags
11500-11800
RUR
Suprefos-NS, NPCaS 12-24-
14-25
Ammofos-Maxam JSC
Olmaliq (Toshkent
province)
Uzbekistan Bags 443258 UZS
UAN-28, 28% N KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia 8729 RUR
UAN-32, 32% N Maxam-chirchiq JSC
Chirchiq (Toshkent
province)
Uzbekistan In bulk 252500 UZS
UAN-32, 32% N
Nevinnomysskiy Azot
JSC
Nevinnomyssk
(Stavropol territory)
Russia In cisterns 8900 RUR
UAN-32, 32% N
Novomoskovskiy Azot
JSC
Novomoskovsk (Tula
region)
Russia In cisterns 7900 RUR
Urea, 46.2% N Fargonaazot JSC Fargona Uzbekistan In bulk 485807 UZS
Urea, 46.2% N
Gazprom Neftekhim
Salavat JSC
Salavat (Republic of
Bashkortostan)
Russia FCA / In bulk 10576 RUR
Urea, 46.2% N KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia
FCA / In bulk / For agricultural
producers
11510 RUR
Urea, 46.2% N
PhosAgro-Cherepovets
JSC
Cherepovets (Vologda
region)
Russia
FCA / In bulk / For agricultural
producers
10955 RUR
Urea, 46.2% N Tejen Carbamide Plant Tejen (Ahal province) Turkmenistan Prepayment 400 TMT
1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014
1 EUR = 3,8982-3,9159 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014
1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014
44 Eurasian chemical market 1(85) February 2013
Specialty chemicals Prices
www. chemmarket. i nfo
Prices for some specialty chemicals produced in Russia, Belarus, Uzbekistan, Turkmenistan and Ukraine in 1Q, 2014

Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Acrylic emulsion,
polymerisation product of
methyl acrylate ester, 20%
solids
Navoiyazot JSC Navoiy Uzbekistan
For leather finishing and
nonwovens
4800 USD
Acrylonitrile technical,
0,008-0,806 g/cm
3
density
Navoiyazot JSC Navoiy Uzbekistan
For production of butadiene -
nitrile rubber, synthetic fibers,
plastics, ABC, SAN - plastic,
acrylamide, methyl acrylate,
glutamic acid, as insecticide
2400-2600
USD
Additive high-octane motor
/ product of esterification
of olefins with methanol,
5% actual resin
Togliattikauchuk Ltd Togliatti Russia 29237 RUR
Alcaline Adipate
Plastificator (AAP), 18-
30% sodium adipate
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia
Used for the production of
building materials, oil and gas
extraction (upstream processes)
4600-6900
RUR
Aluminum potassium
sulphate, pure for analysis
Promchimperm CJSC Perm Russia
Bag 50 kg / coagulant in pulp and
paper industry
26 RUR / kg
Ammonium alum alumina,
pure
Promchimperm CJSC Perm Russia
Bags 50 kg, big bags 700 kg /
Raw materials For production of
synthetic crystals (corundum)
20 RUR / kg
Ammonium nitrate, grade
A, 98%
KuibyshevAzot OJSC
Togliatti (Samara
region)
Russia
In bulk / PP bags 50 kg / Big
bags 800 kg / Components of
explosive
9530-9800
RUR
Benzene-toluene fraction
(bentol), 20-50% benzene,
50-80% toluene
SIBUR-Khimprom
CJSC
Perm Russia Ovtane booster 27966 RUR
Benzene-toluene fraction
(bentol), 20-50% benzene,
50-80% toluene
Plastic JSC
Uzlovaya (Tula
region)
Russia Ovtane booster 27966 RUR
Bischofite brine, GreenRide Kaustik JSC Volgograd Russia
15000-17000
RUR
Calcium and magnesium
carbonate (dolomite
powder), 40% CaO, 22%
MgO
R&D enterprise
Kaltsyt Ltd
Donetsk Ukraine
As flux, refractories, for
magnesium
792 UAH
Calcium carbonate
dispersed technical MTD-
2, 98%
Volcheyarovsky
Quarry PJSC
Lisichansk (Luhansk
region)
Ukraine 458 UAH
Calcium carbonate milled
MM-3
Volcheyarovsky
Quarry PJSC
Lisichansk (Luhansk
region)
Ukraine For building mixes 350 UAH
Calcium carbonate milled
separated MMS-2, 98%
Volcheyarovsky
Quarry PJSC
Lisichansk (Luhansk
region)
Ukraine
Used inpolymer, paint, rubber
and cable industry
525-558 UAH
Calcium carbonate milled
separated S-1, 98.2%
Volcheyarovsky
Quarry PJSC
Lisichansk (Luhansk
region)
Ukraine
Used in plastic, paint, rubber and
cable industry
550-583 UAH
Calcium carbonate MMK,
powder feed, 98%
Volcheyarovsky
Quarry PJSC
Lisichansk (Luhansk
region)
Ukraine 350-425 UAH
Calcium carbonate
MMZHP, powder
Volcheyarovsky
Quarry PJSC
Lisichansk (Luhansk
region)
Ukraine For feeding animals and birds 392 UAH
45 1(85) February 2013 Eurasian chemical market
Specialty chemicals Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Calcium chloride technical,
inhibited, 80%
Khimprom Ltd Kemerovo Russia
EXW / Big bags 500 kg, bags 25
kg, rail-cars
21000 RUR
Carbon black K-354
Khazar Chemical
Plant
Khazar (Balkan
province)
Turkmenistan 2350 USD
Carboxymethylcellulose,
50-60%
Cellikom JSC
Kazan (Republic of
Tatarstan)
Russia
29661-61017
RUR
Cellulose trinitrate /
Pyroxylin
Tambov Powder Plant
FSE
Kotovsk (Tambov
Region)
Russia
For obtaining smokeless powder,
dynamite, explosives / reusable
packaging 18-22kg
248500 RUR
Chladone R600a
(isobutane)
Promchimperm CJSC Perm Russia Container 400 kg 200 RUR / kg
Colloxylin solution in
organic solvents / Mastic,
22%
Tambov Powder Plant
FSE
Kotovsk (Tambov
Region)
Russia
Formanufacture of binding
materials and artificial leather
82797 RUR
Copper oleate
Tambov Powder Plant
FSE
Kotovsk (Tambov
Region)
Russia
Antiwear additive for internal
combustion engine
327966 RUR
Dibutyl phthalate, density
1.045-1.049 g/cm3
Lakokraska JSC Lida (Grodno region) Belarus Plasticiser
23779000-
25081000
BYR
Diethyleneglycol, 99.5%
SIBUR-Neftekhim
JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia
Plasticiser of film materials,
adhesives
40254 RUR
Dimethylamine, 40%
Scientific and
Industrial Association
Tehnolog JSC
Sterlitamak (Republic
of Bashkortostan)
Russia
For rubber, dimethylformamide,
dimethylacetamide, in organic
synthesis / Barrel 216.5 l
40000 RUR
Dipentene (1-methyl-4-iso
propenyl cyclohexen-1),
0.8411 g/cm
3
density
Delios Ltd
Dzerzhinsk (Nizhny
Novgorod region)
Russia
For obtaining alkyd resins,
terpene resins, carvone,
rubber chemicals, substitute of
chlorinated solvents inprinting
industry
271186 RUR
Filler Carbosil, grade
KS-20, 20% carbon, 70%
silicon dioxide
Ecochemmach JSC
Buy (Kostroma
region)
Russia
For rubber, paint materials / Bags
20 kg
12797 RUR
Flocculant PAA-GS /
Polyacrylamide granulated
50-56%, sulphate
ammonia 34-40%, mixture
Navoiyazot JSC Navoiy Uzbekistan
Flocculant for obtaining
explosives, gels for chemical
analysis, and in gold mining, coal
mining
3680 USD
Gum rosin, non-
crystallisable, modified
Lesohimik JSC
Borisov (Minsk
region)
Belarus
For producing electrical
insulation / For cable
31020000
BYR
Gum rosin, pine, 6%
unsaponifiables
Lesohimik JSC
Borisov (Minsk
region)
Belarus For rubber production / In bulk
28200000
BYR
Gum turpentine, 60%
and -pinenes
Lesohimik JSC
Borisov (Minsk
region)
Belarus
In bulk / Feedstock for organic
synthesis
23970000
BYR
Hexachloroparaxylene
Hepsol-HKP, 53-62% Cl
Kaustik JSC Volgograd Russia
58500-70000
RUR
Inhibitor of sediments
mineral salts IOMS-1
/ 25% sodium salts
aminomethylene
phosphonic acids of
nitrilotrimethylphosphonic
acid
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia For water treatment 50848 RUR
46 Eurasian chemical market 1(85) February 2013
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Inhibitor of sediments
mineral salts IOMS-1M,
25% Na
3
NTF
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia For water treatment 59322 RUR
Inhibitor of sediments
mineral salts Zn-
OEDFK / Oxyethylidene
diphosphonic acid zinc
complex, 20-25%
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia For water treatment 67797 RUR
Inhibitor of sediments
mineral salts, corrosion
and biofouling, grade KISK-
2, KISK-B / sodium salts of
organic phosphonic acid
water solution
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia For water treatment 118644 RUR
Inhibitor of sediments of
mineral salts IOMS-2, 25%
Na3NTF
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia For water treatment 67797 RUR
Inhibitor Zn-IOMS /
mixture of sodium salts
nitrilotrimethylphosphonic
methyliminobismethyl-
phosphonic acids and
complexes of zinc, 25%
organophosphate
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia For water treatment 67797 RUR
Lanthanum nitrate, pure,
98%
Centers of technology
Lantan Ltd
Novosibirsk Russia
For production of highoctane
gasoline and hydrogen batteries
of mobile phones
26 USD
Monoethyleneglycol,
99.5%
SIBUR-Neftekhim
JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 44068 RUR
Monoethyleneglycol,
99.8%
SIBUR-Neftekhim
JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 44068 RUR
Monoethyleneglycol,
99.8%
SIBUR-Neftekhim
JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 27966 RUR
Neutral cake soda
calcinated
Shchekinoazot UCC
JSC
Schyokino (Tula
region)
Russia
Used for the production of
building materials, oil refining
(downstream processes)
9700 RUR
Nickel nitrate, 98%
Centers of technology
Lantan Ltd
Novosibirsk Russia
For production of alkaline
batteries
230 RUR
/ kg
Oligoetheracrylates MGF-9 Armoplast PJSC
Sievierodonetsk
(Luhansk region)
Ukraine
Binder inproduction of reinforced
plastics, protective coatings,
building materials, electrical
insulating compounds, lacquers,
enamels, adhesives
83333 UAH
Oligoetheracrylates MGF-9
CHIMEX Limited
CJSC
St. Petersburg Russia 381356 RUR
Oligoetheracrylates TGM-3 Armoplast PJSC
Sievierodonetsk
(Luhansk region)
Ukraine
Monomers for production of
resins
85000 UAH
Paraffin crude fraction II
Fargona Refinery
unitary subsidiary
Fargona Uzbekistan For production hard paraffin 600 USD
Paraffin in styrene
solution, density 0.901-
0.903 g/cubic meter
Zhylevsky Plastics
Plant OJSC
Sitne-Schelkanovo
(Moscow region)
Russia
Canister 5, 10 kg / Curing
accelerator
123100 RUR
47 1(85) February 2013 Eurasian chemical market
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Paraffin petroleum solid,
grade T1, T2, T3
Fargona Refinery
unitary subsidiary
Fargona Uzbekistan 1358333 UZS
Paraffin hlorinated, grade
CP-250, 24-29% Cl
Kaustik JSC Volgograd Russia
For production of coatings,
component for processing leather
34900-43200
RUR
Paraffin hlorinated, grade
CP-418, 40-43% Cl
Kaustik JSC Volgograd Russia
Plasticiser in polymer
compositions
34900-43200
RUR
Paraffin hlorinated, grade
CP-470, 45-49% Cl
Kaustik JSC Volgograd Russia
Plasticiser in polymer
compositions
34900-43200
RUR
Paraffin hlorinated, grade
CP-52, 50-54% Cl
Kaustik JSC Volgograd Russia
Plasticiser in polymer
compositions
34900-43200
RUR
Paraffin hlorinated, grade
CP-66, 53-54% Cl
Kaustik JSC Volgograd Russia
Flame retardant for paintwork
materials and plastics
50000-65000
RUR
Pentaerythritol technical
filtrate, 20% of sodium
formate
Metafrax JSC
Gubaha (Perm
territory)
Russia EXW / Tank-cars 50-60 tonnes 2000 RUR
a-Pinene, 95% Delios Ltd
Dzerzhinsk (Nizhny
Novgorod region)
Russia
For obtaining camphor, solvents
paints and varnishes, raw
material for pine oil, terpineol and
fragrances
135593 RUR
Pinene natural (of gum
turpentine), 90%
Delios Ltd
Dzerzhinsk (Nizhny
Novgorod region)
Russia Used in cosmetics 118644 RUR
Polyacrylamide-gel
ammoniacal, 6%
Navoiyazot JSC Navoiy Uzbekistan
Flocculant for water purification
and preparation of mineral
fertilisers, for drilling and oil
production, sizing of fabric
3400-3900
USD
Polyacrylamide-gel
ammoniacal, 6%
Zavod imeni
Sverdlova Federal
government
enterprise
Dzerzhinsk (Nizhny
Novgorod region)
Russia
Flocculant for natural and waste
water, to trap heavy metals and
toxic substances / Bag 45 kg
16949 RUR
Polyanionic cellulose,
50-60%
Cellikom JSC
Kazan (Republic of
Tatarstan)
Russia
For petrochemical
industry,addition of detergents,
for sizing of warp yarns, thickener
inks
50848-
127118 RUR
Polyethylene emulsion
Oxalen-30, 25% PE wax
Naftan JSC
Navopolatsk (Vitsebsk
region)
Belarus
Component of finishing agents
intextile industry and inleather
industry
49500 RUR
Polyethylene wax non-
oxidized, grade PV-200
Naftan JSC
Navopolatsk (Vitsebsk
region)
Belarus
Used in electronic equipment,
cables, paper isolation, polishes
and creams, household
chemicals, printing inks,
pigments, masterbatches
70000 RUR
Polyethylene wax non-
oxidized, grade PV-300
Naftan JSC
Navopolatsk (Vitsebsk
region)
Belarus In modeling wax compositions 70000 RUR
Polyethylene wax oxidized,
grade PVO-30
Naftan JSC
Navopolatsk (Vitsebsk
region)
Belarus
For giving fabrics abrasion
resistance and in leather industry
130000 RUR
Polyglycols SIBUR-Neftekhim JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia
Additives to lubricants and cutting
fluids
63559 RUR
Polymer VRP-3
(based onproduct of
alkaline hydrolysis of
polyacrylonitrile fibers,
neutralized by acetic acid),
grade B, 35-55% of dry
substance
Lesohimik JSC
Borisov (Minsk
region)
Belarus
For obtaining adhesives,
hydrogels, paint formulations, as
conditioning additives for mineral
fertilisers
6900000 BYR
48 Eurasian chemical market 1(85) February 2013
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Preparation K-4 (water-
soluble polymer)
Navoiyazot JSC Navoiy Uzbekistan As glue in printing industry 400 USD
Propyleneglycol, 99% Khimprom Ltd Kemerovo Russia EXW / PE canisters, barrels 90000 RUR
Salt OEDFK / 1
oxyethylidendiphosphone
acid trisodium salt, pure,
96%
Chemical company
Niton JSC
Yekaterinburg
(Sverdlovsk region)
Russia Forperfume industry 211864 RUR
Silicon dioxide precipitated
/ silica filler Rosil-175,
grade A, 90%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 54900 RUR
Silicon dioxide precipitated
/ silica filler Rosil-175,
grade B, 90%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 54590 RUR
Silicon dioxide precipitated
/ silica white BS-100
compacted with calcium
chloride, 86%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 48410 RUR
Silicon dioxide precipitated
/ silica white BS-100
compacted, 86%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 48410 RUR
Silicon dioxide precipitated
/ silica white BS-120
compacted, 87%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 50610 RUR
Silicon dioxide precipitated
/ silica white BS-120
uncompacted, 87%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 52920 RUR
Silicon dioxide precipitated
/ silica white BS-50, 76%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 58140 RUR
Silicon dioxide precipitated
/ silica white U-333, 88%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia In bulk / Bags / Big bags 61990 RUR
Silicon dioxide, 30%
solution
Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus
Binder and stabilizing component
of refractory linings in
metallurgical and engineering
industries, carrier for various
catalysts
437200 RUR
Silicone fluid PMS-50,
PMS-100, PMS-200,
PMS-300, PMS-400 /
Polymethylsilicone fluid
(oil)
Penta-91 Ltd Moscow Russia
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
127119 RUR
Silicone fluid PMS-500
Polymethylsilicone fluid
(oil)
Penta-91 Ltd Moscow Russia
Heat transfer medium, hydraulic,
damping and coolant, dielectric
transitions in defoamers
135593 RUR
Sodium alkyl benzene
sulfonate Sulphonol, grade
bleached, 40-45% solution
Zavod imeni
Sverdlova Federal
government
enterprise
Dzerzhinsk (Nizhny
Novgorod region)
Russia
Surfactant inproduction of
detergents
93220 RUR
Sodium alkylbenzene
sulphonate (sulphonol), 25%
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Surfactants in synthetic detergent 22740 RUR
49 1(85) February 2013 Eurasian chemical market
Inorganics Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per
tonne, ex. VAT
Sodium chloride, 96% Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia
Reagent, antiglaze material
technical / Big bags
1318 RUR
Sodium chloride, aqueous
solution (280 g/l), 50 g/l
sodium sulphate, 10 g/l
caustic soda
Khimprom Ltd Kemerovo Russia
For regeneration of ion exchange
resins at water treatment plants
3000 RUR
/ m3
Sodium formiate, 25%
solution
Scientific and
Industrial Association
Tehnolog JSC
Sterlitamak (Republic
of Bashkortostan)
Russia Antifreeze additive in concrete 6780 RUR
Sodium silicate, 19,2-
28,8% silicon dioxide
Soda JSC
Sterlitamak (Republic
of Bashkortostan)
Russia For silicate paints 11815 RUR
Sodium silicate, min 99%
of SiO
2
+ Na
2
O
Zaporozhye Factory
of Welding Fluxes and
Glass Products JSC
Zaporizhzhia Ukraine
PP Big bags 1000 kg / rail-car,
tank-car, tank norms
2115 UAH
Substances textile
auxiliaries Sorbital S-20 /
Product of oxyethylation of
sorbitan S
Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus
Used for finishing fibers and
fabrics
110000 RUR
Substances textile
auxiliaries Sorbitan S /
Product of esterification of
sorbitol and stearic acid
Naftan JSC
Navopolatsk
(Vitsebsk region)
Belarus
Used for finishing fibers and
fabrics
130000 RUR
Tetrabutoxytitanium
technical
Promchimperm CJSC Perm Russia
Drum 200 kg, 40 kg / Catalyst
inproduction of plasticisers,
paints, component in cable
industry
189 RUR / kg
Tetraethoxytitanium, pure Promchimperm CJSC Perm Russia
For illumination optics, deposition
of thin films of titanium dioxide,
catalyst inproduction of
plasticisers, polymers
3980 RUR
/ kg
Thiourea (thiocarbamide),
95%
Navoiyazot JSC Navoiy Uzbekistan
Floated reagent of metals, in
manufacture of mercantans, dyes
synthetic resins
9270345 UZS
Tin tetrachloride 5-water
(crystalline), pure
Promchimperm CJSC Perm Russia
Coating composition of glass /
Packaging 2 kg, 5 kg
750 RUR / kg
Triethanolamin titanat
technical
Promchimperm CJSC Perm Russia 249 RUR / kg
Triethylaluminum Tomskneftekhim Ltd Tomsk Russia
Used for the production
of polypropylene, linear
polyethylene and HDPE
361017 RUR
Urea in demineralised
water, solution of high
purity AUS-32, 32%
Grodno Azot JSC Grodno Belarus
Reductant type NOx for diesel
engines
4169954 BYR

1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014
1 EUR = 3,8982-3,9159 Official exchange rate, according to the Central Bank of Turkmenistan during 1Q 2014
1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014
1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014
50 Eurasian chemical market 1(85) February 2013
Paints and coatings Prices
www. chemmarket. i nfo
Prices for some feedstocks for paintwork production in Russia, Ukraine, Belarus and Uzbekistan as of 1Q, 2014

Product Manufacturer City Country Notes
Price per tonne,
excluding VAT
Acrylic acid, 99.5% Acrylate JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia
68644 71186
RUR
Acrylic acid, 99% Acrylate JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 77119 RUR
Acrylic dispersion Akrilan 121 /
Aqueous dispersion of a co-
polymer of esters of acrylic and
methacrylic acids, 50% solids
Akrilan Ltd Vladimir Russia Without cost of packaging 67373 RUR
Alcohol-ether concentrate, grade A
SIBUR-Khimprom
CJSC
Perm Russia 29661 RUR
Alcohol-ether concentrate, grade B
SIBUR-Khimprom
CJSC
Perm Russia 16525 RUR
Butylacrylate, 99.5% Acrylate JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 77119 RUR
Calcium phosphate lamellar Kronakril Ltd Yaroslavl Russia
Anticorrosive pigment for
paints water
1500 USD
Cellulose dinitrate / Kolloksilin
lacquer, anhydrous, grade PSV
Tambov powder
factory
Kotovsk (Tambov
region)
Russia
For production of lacquers,
enamels, primers, mastics,
celluloid / corrugated boxes
12-18 kg
191000 RUR
Cellulose dinitrate / Kolloksilin
lacquer, dehydrated, grade VV,
VNV
Tambov powder
factory
Kotovsk (Tambov
region)
Russia
For production of lacquers,
enamels, primers, mastics,
celluloid / corrugated boxes
12-18 kg
187000 RUR
Cellulose dinitrate / Kolloksilin
lacquer, not anhydrous, grade NH
Tambov powder
factory
Kotovsk (Tambov
region)
Russia
For the production of
lacquers, enamels, primers,
mastics, fillings, celluloid /
reusable packaging 18-22
kg
223203 RUR
Co-polymer of methacrylic acid
and butyl ester of methacrylic acid
BMK-5
Experimental Plant of
acrylic dispersion Ltd
Dzerzhinsk (Nizhny
Novgorod region)
Russia
Binder in solution with
fillers (chalk, cement), for
manufacture of lacquers,
enamels, adhesives
150000 RUR
Dye cationic black KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 228814 RUR
Dye cationic blue KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 266949 RUR
Dye cationic bright green 4S KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 205932 RUR
Dye cationic bright green Zh KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 213559 RUR
Dye cationic brown 4Zh KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 125424 RUR
Dye cationic brown Zh KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 117797 RUR
Dye cationic cyan 2 3 KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 221186 RUR
Dye cationic golden yellow 2K
200%
KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 282203 RUR
Dye cationic red S KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 282203 RUR
Dye cationic violet 2K KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 198305 RUR
51 1(85) February 2013 Eurasian chemical market
Paints and coatings Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per tonne,
excluding VAT
Dye cationic violet 2S KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 198305 RUR
Dye cationic violet S KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 198305 RUR
Dye cationic violet SN KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia For coloring PAN-fiber 198305 RUR
Dye direct green KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia
For coloring cotton and
viscose
228814 RUR
Dye direct yellow KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia
For coloring cotton and
viscose
152542 RUR
Dye direct yellow 200% KrasS CJSC
Novocheboksarsk
(Chuvash Republic)
Russia
For coloring cotton and
viscose
99153 RUR
Ethylcellosolve technical, 99.5% Khimprom Ltd Kemerovo Russia EXW / Cistern 40-50 tonnes 70000 RUR
Glyptal resin in organic solvents
(Resin 188)
Tambov powder
factory
Kotovsk (Tambov
region)
Russia
In consumers packaging /
Barrels 50 l
41000-44703
RUR
Hardener E-45 / Polyamide resin
solution in xylene, 69-71% solids
Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 35001000 BYR
Hardener 1 /
Hexamethylenediamine, solution in
ethyl or isopropyl alcohol, 50%
Lakokraska OJSC Lida (Grodno region) Belarus
29903000-
30931000 BYR
Hardener 2 / Polyamide resin
solution in a mixture of organic
solvents, 30% solids
Lakokraska OJSC Lida (Grodno region) Belarus
18528000-
22963000 BYR
Hardener 3 / Polyamide resin
solution in a mixture of organic
solvents
Lakokraska OJSC Lida (Grodno region) Belarus
25066000-
31061000 BYR
Hardener 4 / Polyamide resin
solution in a mixture of organic
solvents, 69-71% solids
Lakokraska OJSC Lida (Grodno region) Belarus
18528000-
22963000 BYR
Hardener 5 / Polyamide resin
solution in a mixture of organic
solvents, 48-52% solids
Lakokraska OJSC Lida (Grodno region) Belarus
25066000-
30767000 BYR
Isobutanol technical, 99.3%
Gazprom Neftekhim
Salavat JSC
Salavat (Republic of
Bashkortostan)
Russia 42686 RUR
Isobutanol technical, 99.3%
SIBUR-Khimprom
CJSC
Perm Russia 40254 RUR
Melamine-formaldehyde resin
K-421-02
Lakokraska OJSC Lida (Grodno region) Belarus
36707000-
37379000 BYR
Methylacrylate, 98.5-99.3% Navoiyazot JSC Navoiy Uzbekistan
3700 3710
USD
Methylacrylate, 99.7% Acrylate JSC
Dzerzhinsk (Nizhny
Novgorod region)
Russia 76721 RUR
n-Butanol technical, 99.4%
SIBUR-Khimprom
CJSC
Perm Russia 45339 RUR
n-Butanol technical, 99.4%
Gazprom Neftekhim
Salavat JSC
Salavat (Republic of
Bashkortostan)
Russia 42797 RUR
Pentaerythritol technical, 95% Metafrax JSC
Gubaha (Perm
territory)
Russia
For the amount of up to 1
rail-car
58730 RUR
Pentaerythritol technical, 98% Metafrax JSC
Gubaha (Perm
territory)
Russia
For the amount of up to 1
rail-car
60730 RUR
Pentaphthalic resin PF-053, 54%
nonvolatile substances
Lakokraska OJSC Lida (Grodno region) Belarus
15549000-
20213000 BYR
Pentaphthalic resin PF-060, 52-
55% nonvolatile substances
Lakokraska OJSC Lida (Grodno region) Belarus
12900000-
15245000 BYR
52 Eurasian chemical market 1(85) February 2013
Paints and coatings Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per tonne,
excluding VAT
Phthalic anhydride, 99.9% Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging 11960000 BYR
Pigment on the basis of zinc
phosphate, subgrade AM, 34-
44% Zn, max 30% of calcium
phosphate
Kronakril Ltd Yaroslavl Russia Up to 3 tonnes / Bags 40 kg 2000 USD
PVA dispersion , grade D 50N Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging 9347000 BYR
PVA dispersion , grade DF 16/5N Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 10857000 BYR
PVA dispersion , grade DF 47/50V Lakokraska OJSC Lida (Grodno region) Belarus
11291000-
12305000 BYR
PVA dispersion , grade DF 51/10SL Lakokraska OJSC Lida (Grodno region) Belarus
12108000-
13752000 BYR
PVA dispersion , grade DF 51/15VP Lakokraska OJSC Lida (Grodno region) Belarus
12367000-
14011000 BYR
PVA dispersion, grade D 50S Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
PVA dispersion, grade D 51S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 12349000 BYR
PVA dispersion, grade D 51S Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
PVA dispersion, grade D 51V Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 13128000 BYR
PVA dispersion, grade D 51V Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
39831 RUR
PVA dispersion, grade DD 50/10S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 12843000 BYR
PVA dispersion, grade DD 50/10S Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
PVA dispersion, grade DD 51/15V Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
PVA dispersion, grade DF 51/10S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 13752000 BYR
PVA dispersion, grade DF 51/10S Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
PVA dispersion, grade DF 51/15S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 13442000 BYR
PVA dispersion, grade DF 51/15S Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
PVA dispersion, grade DF 51/15V Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 14011000 BYR
PVA dispersion, grade DF 51/15V Plastpolymer JSC St. Petersburg Russia
With cost of packaging
(Barrels 50l)
38983 RUR
Solvent Nefras 130-210
Fargona oil refiney
Unitary subsidiary
enterprise
Fargona Uzbekistan 1084583 UZS
Solvent Nefras 135-220
Buxoro neftni qayata
ishlash zavodi
Qorovulbozor
(Buxoro province)
Uzbekistan 2351758 UZS
Solvent Nefras S4-150/200 / light
kerosene condensate
Kaustik JSC Volgograd Russia Substitute for white spirit
27000 29000
RUR
Solvent Nefras S4150/200, light
kerosene condensate
Naftan OJSC
Navopolatsk
(Vitsebsk region)
Belarus Substitute for white spirit 5451700 BYR
Solvent R-4 / 62% toluene, 26%
acetone, 12% butyl acetate
Lakokraska OJSC Lida (Grodno region) Belarus
Without cost of packaging /
Barrels 180 kg
12329000-
14169000 BYR
Solvent R-4A / mixture of esters,
ketones, aromatic hydrocarbons
Lakokraska OJSC Lida (Grodno region) Belarus
Without cost of packaging /
Barrels 180 kg
10298000-
11972000 BYR
Solvent R-5 / 30% butyl acetate,
30% acetone, 40% xylene
Lakokraska OJSC Lida (Grodno region) Belarus
Without cost of packaging /
Barrels 180 kg
12483000-
14323000 BYR
53 1(85) February 2013 Eurasian chemical market
Paints and coatings Prices
www. chemmarket. i nfo
Product Manufacturer City Country Notes
Price per tonne,
excluding VAT
Solvent R-5A / 30% of butyl
acetate; acetone, toluene
Lakokraska OJSC Lida (Grodno region) Belarus
Without cost of packaging /
Barrels 180 kg
13385000-
14883000 BYR
Solvent R-646, 50% toluene, 15%
ethanol, 10% butyl acetate, 10%
butanol, 8% ethylcellosolve, 7%
acetone
Lakokraska OJSC Lida (Grodno region) Belarus
Without cost of packaging /
Barrels 180 kg
19756000-
22330000 BYR
Solvent RE-2V / mixture of esters,
ketones, alcohols and aromatic
hydrocarbons
Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging 17988000 BYR
Solvent RE-4V mixture of esters,
ketones, alcohols and aromatic
hydrocarbons
Lakokraska OJSC Lida (Grodno region) Belarus
Without cost of packaging /
Barrels 180 kg
20712000-
22770000 BYR
Styrene-acrylic dispersion Akrilan
101 / Aqueous dispersion co-
polymer butylacrylate and styrene,
50% solids
Akrilan Ltd Vladimir Russia Without cost of packaging 61441 RUR
Styrene-acrylic dispersion Akrilan
101 / Aqueous dispersion co-
polymer butylacrylate and styrene,
50% solids
Akrilan Ltd Vladimir Russia
Iincreased mechanical
stability during freezing /
thawing
62288 RUR
Styrene-acrylic dispersion Akrilan
103 / Aqueous dispersion co-
polymer butylacrylate and styrene,
29-31% solids
Akrilan Ltd Vladimir Russia Without cost of packaging 50424 RUR
Styrene-acrylic dispersion Akrilan
105 / Aqueous dispersion of
2-ethylhexylacrylate and styrene
co-polymer, 50% solids
Akrilan Ltd Vladimir Russia Without cost of packaging 63983 RUR
Styrene-acrylic dispersion Akrilan
106 / Aqueous dispersion of co-
polymer butyl acrylate and styrene
Akrilan Ltd Vladimir Russia 62288 RUR
Styrene-acrylic dispersion Akrilan
107 / Aqueous dispersion co-
polymer butylacrylate and styrene,
50% solids
Akrilan Ltd Vladimir Russia For use in low filled systems 57203 RUR
Varnish semi-finished PE-246
/ solution of the unsaturated
polyester resin in styrene, butyl
acetate and acetone
Zhylevsky Plastics
Plant OJSC
Sitne-Schelkanovo
(Moscow region)
Russia Barrel 240 kg / For furniture 106500 RUR
Zinc borate, 37% ZnO, 47% B
2
O
3
Kronakril Ltd Yaroslavl Russia
Pigment prevent smoking
while burning (added to
plastics, rubber, cable),
flame retardant
2300 USD
Zinc oxide, grade TD, 97-98% GartMet-XXI Ltd Zaporizhzhia Ukraine 4000 UAH
Zinc powder, grade PTS6, lass B
Olmaliq Kon-
Metallurgiya
Kombinati JSC
Olmaliq (Toshkent
province)
Uzbekistan
For production of zinc oxide
and paints
4247790 UZS

1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014
1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014
1 EUR = 3,8982-3,9159 Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014
1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014
54 Eurasian chemical market 1(85) February 2013
Chemistry and economy
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U.S. fnancial system
as a determining factor
in shale gas exports
It is necessary to remind how the American
fnancial system is organised in order to
understand the nature of global hydrocar-
bons fows. It should be mentioned that the
current monetary and fnancial system is
characterised by the domination of U.S. dol-
lar functioning as the main global currency.
The crisis of the monetary system, which is
only worsening now, turn out a direct conse-
quence 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 defcit and the national debt
consequently increases. This process only
continues to accelerate and reminds an ava-
lanche. 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.
Two scenarios of LNG exports
from the USA
Today there are two scenarios of LNG
exports from the USA:
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 secur-
ing the American dollar and debt liabilities
at the expense of a cheap shale gas effect,
which may infuence the entire economy. It
is important for meeting export liabilities and
creating speculative demand (or on the con-
trary - 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
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 frst time over more than ten years tak-
ing the frst place. It is also curious how a
signifcant 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 trans-
national companies began to repatriate their
capital from the traditional regions of com-
modities production in the Southeast Asia
back to the USA. Manufacturing output and
the whole economy have started to gradu-
ally rise. Today America can boast of the
lowest unemployment rate over the recent
fve years. The housing market is recover-
ing. The machine-building sector has created
additional jobs frstly since 1990. As this
takes place, the country is developing its own
A Systemic Analysis of an
Economic Policy of Regulating
Hydrocarbons Flows Worldwide
under the Conditions of the
Shale Gas Revolution
Text by: Zabolotskiy Sergey
(Phd in economics)
Institute of Economics and Industrial En-
gineering, 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
6oteo uth the oemo versoo o|
Io||x Prc PDf 6d|tcr
Jo remove ths ootce, vst:
uuu.ceo.com/oolock.htm
55 1(85) February 2013 Eurasian chemical market
Chemistry and economy
www. chemmarket. i nfo
low-cost power generation and petrochemi-
cal 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 condi-
tions, 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 sce-
nario is advantageous in terms of promoting
an image of prosperity of the U.S. economy,
which has entered global exchange in hydro-
carbons. This may also support the American
fnancial pyramid (Ponzi scheme) confrming
the reality of some part of the U.S. economy,
which is not based upon speculative opera-
tions. In this case, one can expect that tradi-
tional 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 profts 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 proftable gas reserves
with low production costs are pretty small,
as offcial forecasts say. Preserving hydrocar-
bons reserves for future use, given that they
could be bought for uncovered dollars (debt
liabilities), explains why these scenarios are
mutually exclusive.
Introduction
Many global processes have to be
described in terms of hardly formalized and
tangible factors. Today, global economic
players are conventionally denoted as fnan-
cial and industrial groups that cannot always
be related to borders of certain countries.
However, this is a theme for a separate
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 includ-
ing those at the global hydrocarbons market.
Various studies forecasts that additional vol-
umes 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 infuence the worlds economy if
realised.
We should adopt a systemic approach so as
to fully explore the topic of the present arti-
cle. 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 offcial 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 mod-
ern world stands in desperate need of gas, oil,
and other hydrocarbon resources. That is why
we cannot imagine the existence of our civi-
lization without ever growing consumption
of these raw materials. And when diffculties
with extraction of readily available hydro-
carbons appear, this affects the entire global
economy. The most diffcult challenges
mankind faces now are introducing innova-
tive technology for developing problematic
and diffcult 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 hydro-
carbons supply and maintaining a supply /
demand balance are the most effective busi-
ness direction based on technological and
commercial relations, economic and, conse-
quently, political interests. The vast major-
ity 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 fnancial 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 fnan-
cial fows. These are sources of new invest-
ments in fxed assets and the opportunity to
purchase the latest technologies for various
tangible and intangible assets.
In addition, they are a source of fnancial
receipts or cheap money (in case of their
ineffcient use). In order to get a clear idea
of hydrocarbon fow, one should realise
the commercial nature of money, regard-
less of the currency of the country under
consideration.
Under these conditions, the task of eff-
cient 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
effcient investments in the development of
a raw material base and further processing
hydrocarbons into semi-fnished 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
infuencing the world trade. In global condi-
tions, money tends to fow from one system
to another. Money infate 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
56 Eurasian chemical market 1(85) February 2013
Chemistry and economy
www. chemmarket. i nfo
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 signifcant impact
on other players, as the exporters have been
long using a mechanism of tackling such
situations.
In other words, these are one-time transac-
tions, 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
insignifcant volumes of hydrocarbons are
used for domestic consumption, while gas
and oil are processed in the country-producer.
Thus, all fuctuations in hydrocarbons sup-
plies can be easily regulated by the consum-
ing countries. The dependence of the sup-
plying countries on fnancial support is less
than that of the consuming countries upon
hydrocarbons. Continuous fows of hydrocar-
bons 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 sup-
plied to the importers. Otherwise, the export-
ing 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 impor-
tant, but how fast the economy of the sup-
plier 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 technologi-
cal development and a real (not hydrocarbon)
economy decisively infuence the fow of
capital from one country to another. In par-
ticular, 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 fnancial fows from creating high
added value products.
Shale gas revolution
Shale gas revolution is a way to hold fnan-
cial fows 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
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
of cultivation of crops for biofuels in Latin
America and built windmills and solar pan-
els. In the end, they invented what they are
having now. Americans constantly searched
through all possible sources of fuel, conduct-
ing a systematic analysis of their effective-
ness at each time point and analysing their
performance indicators over time. So, it is
not surprising that that country was the frst
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 fnancial fows 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 fnancial fows
between regions and countries*.
Source: BP Statistical Review of World Energy 2013
Figure 1. Financial flows from oil importing countries to the exporters in 2012,
USD billion dollars
57 1(85) February 2013 Eurasian chemical market
Chemistry and economy
www. chemmarket. i nfo
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 eco-
nomic strategy of spreading fnancial fows
across the countries-exporters of hydrocar-
bons 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 tra-
ditional 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 2012-
2013, 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 fnancial fows 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 frst ones. However, problematic geologi-
cal 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 liquefed form keeping shale gas
reserves for future use. The U.S. strategy
is obvious - making hydrocarbons cheaper
worldwide. But this strategy cannot be real-
ised in full since the countries-suppliers of
hydrocarbons could agree on a reduction in
production to support an acceptable level of
proftability. As for the European region, it
will consume natural gas from Russia as an
alternative to LNG supplied from other coun-
tries 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
(insignifcant LNG exports for a short time),
the traditional suppliers of hydrocarbons
can agree on cutting production to maintain
their profts 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 lique-
fed natural gas in recent years, that country
displayed an opposite trend in recent years.
Figure 2 clearly shows convergence of sup-
ply 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.
Figure 2. U.S. natural gas production and consumption in 19702012
Source: BP Statistical Review of World Energy 2013.
58 Eurasian chemical market 1(85) February 2013
Chemistry and economy
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In 2012, the United States were the world
leader in terms of absolute growth of gas
consumption. We can make a cautious con-
clusion: 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 sav-
ing 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 cre-
ate 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 addi-
tional 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 import-
ing 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-Pacifc
region.
In addition, it is expected that total switch-
ing 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 coun-
tries 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 con-
sumption 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 high-
tech products to exchange them for hydro-
carbons 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, state-
of-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,
Japanese and other Asian products as well as
by Middle Eastern countries.
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
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-fnished
product of gas chemical synthesis used for
further conversion to a number of chemical
substances (including methanol-to-olefns
technology) is very promising in this regard.
Supplies of pseudo-gas in the form of nitro-
gen 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 per-
meability coeffcient 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 metha-
nol and fertilisers at the world market.
This requires cheap gas. According to
Russian experts, by 2015 in China a defcit
of methanol can reach 5.0-9.6m tonnes (14-
Table 1. Global exports / imports of methanol, thousand tonnes
Region
Net imports Net exports
2006 2015
Average
growth
rates, %
2006 2015
Average
growth
rates, %
Total 12071 25532 12071 25558
Europe 4967 7983 5,4
North East
Asia
7104 17549 10,6
Russia 1567 5327 14,6
Middle
East
4 979 13465 11,7
Other 5525 6766 2,3
Source: CMAI
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59 1(85) February 2013 Eurasian chemical market
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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 defcit. Its size will probably be
determined by a number of production fac-
tors, 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 fxed at about USD 120 per 1,000 m3 ,
without taking into consideration seasonality
and about a tenfold fuctuation in prices due
to abnormally low temperatures during win-
ter. Today Russia still needs to fnd cheap
natural gas to maintain the competitiveness
of its economy.
A source of cheap gas for Russia
Under the current conditions, these are
not the countries-exporters of hydrocar-
bons that have oil / gas addiction but, on
the contrary, - a group of the countries-
importers. The exporters could use min-
eral resources for developing and keeping
economy afoat, 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 eco-
nomic centres.
Hydrocarbons are the second most impor-
tant factor for any economy after human
capital assets. Today to maintain exports
level, there are no options left except for
deep-hole drilling or developing off-shore
gas. In doing so, the most promising way of
improving effciency of the Russian indus-
trial sector should be replacing obsolete gas
turbines with the new ones, i.e. enhancing the
coeffcient of effciency of heat power plants
. There is no way of refusing from the devel-
opment 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 sub-
stantial benefts from warming. In this regard,
to enhance the effciency 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 replac-
ing 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 profle Greenpeace pro-
test in September). Nevertheless, the idea of
turbines replacement actively promoted by
Greenpeace in 2006 should be paid scrupu-
lous attention to. This idea is unfairly forgot-
ten, 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 pro-
cess 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 devel-
opment should be entirely excluded. Gas
consumption saving will exert a profound
multiplicative effect upon the economy. The
main diffculty 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 own-
ers by a certain term. However, one should
be completely aware of necessity to enforce
modernization. According to the most con-
servative estimates, aggregate capacity of
heat and power stations can increase 1.5-1.7
times at the very least at the cost of increas-
ing their degree of effciency. Therefore,
additional volumes of natural gas could be
used for other purposes. A strong stimulus
Figure 3. A diagram of Russian gas consumption optimisation
Non-
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60 Eurasian chemical market 1(85) February 2013
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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 felds and heat and
power plant modernisation for from using
saved gas.
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 coun-
try contributed to growth of gas consumption
and to increased effciency of the economy.
In 2012, gas production growth rates in the
USA noticeably reduced. In 2013, monthly
production of shale hydrocarbons underwent
signifcant fuctuations. 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 effciency of
the Russian economy, it is necessary to
reduce its power intensity, thus releasing
additional gas volumes (at the cost of mod-
ernisation 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 insignifcant 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 tradi-
onal countries-exporters of hydrocarbons
could agree on reducing production with the
purpose of maintaining their proftability at
a suitable level. This is not critical to Russia,
since the country will direct its hydrocarbon
fows to Asia, of which European countries are
well aware. Europeans need Russia in order to
put pressure on Qatar and the other countries-
suppliers. Pipeline supply is the stability, which
Europeans have no intention to lose.
Table 2. Advantages and disadvantages of replacement with gas
Target area Advantage of replacement with gas
Disadvantage of replacement with gas
(complexity of replacement)
Internal combustion engines in passenger
cars, trucks, public motor transport and sea
transport
Bigger fuel tank capacity, longer mileage with
the same fuel consumption, high performance
engines, low operating costs, lower CO
2

emissions
High permeability of natural gas, hazards
related to high pressure while storing
Out-of-date turbines at HPP
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
Complexity of modernisation process a large
number of HPP owners
* 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)
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& Technologies
UNICEF
Additional insight from
Michitaka Sawada, President
and CEO, Japan
Peder Holk Nielsen, President
and CEO, Denmark
Kasper Rorsted, CEO,
Germany
Kurt Bock, Chairman of the Board
of Executive Directors, Germany
Itsuo Hama, President
and CEO, Japan
H. Fisk Johnson, Chairman
and CEO, USA
Montreux2014-CEORegAd-EurChem.indd 1 3/10/14 3:50 PM
62 Eurasian chemical market 1(85) February 2013
Chemistry and business
www. chemmarket. i nfo
EuroChem Mineral and Chemical
Company (EuroChem) announced consoli-
dated 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 seg-
ments, excluding sales of mining co-products,
increased 788 thousand metric tons (KMT) or
by 8% to 10.6m metric tons (MMT) as com-
pared 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 high-
lighted by our results, our unique asset base
is well positioned to drive and support robust
cash fow 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.
2013 Market Conditions
The fertiliser markets had a rather tumultu-
ous year. While the year started off slowly on
account of adverse weather in some key mar-
kets, conditions had materially improved by
EuroChem Reports IFRS Financial
Information for 2013
EuroChem Antwerpens premises
63 1(85) February 2013 Eurasian chemical market
Chemistry and business
www. chemmarket. i nfo
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
frst quarters inventory build-up limited any
signifcant 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 devalu-
ation coupled with what has been described
as an archaic subsidy system left one of the
worlds largest fertiliser importers incapaci-
tated for the better part of the year.
In a positive for both producers and cus-
tomers, 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 fnished 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 acre-
age 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 mar-
ket to a standstill. Potash prices reacted in a
knee-jerk fashion and went on to shed over
25% by year end. While many potash expan-
sion projects were reassessed in the wake of
this market reshuffing, EuroChem reiterated
its commitment to the third nutrient with
work continuing at both its greenfeld 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 mar-
ket 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 fnished 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.
BUSINESS SEGMENTS
Nitrogen segment
The companys 2013 nitrogen segment
sales volumes continued to beneft 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
for urea and AN trading, the breadth and
fexibility of the companys production and
distribution assets alleviated some of the
pressure. The consolidation of EuroChem
Antwerpen and EuroChem Agro yielded
signifcant 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 rep-
resented an 8% increase on what was a strong
2012 performance. Average prices for nitro-
gen products nevertheless refected the chal-
lenging 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 net-
work and asset base in Western Europe cou-
pled 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
64 Eurasian chemical market 1(85) February 2013
Chemistry and business
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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
by a 2-3% raise from October 1st. No price
increases have been announced for 2014.
Phosphate segment
Total sales volumes for the phosphate seg-
ment, excluding raw material mining opera-
tions, slipped 2% or 50 KMT to 2,405 KMT
in 2013, as compared to last year. MAP/DAP
sales remained practically fat with a mod-
est 13 KMT YOY increase while NP sales
fnished the year 53 KMT below their 2012
levels. Iron ore demand remained resilient
throughout the year. Sales of the companys
apatite-mining co-product fnished 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 com-
panys 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 fnished the year
at RUR 13.9bn, 15% below the RUR 16.2bn
recorded a year earlier.
The companys mining operations miti-
gated the weakness in phosphate-based ferti-
lisers as healthy demand from China carried
average iron ore prices 3% higher YOY.
Iron ore and baddeleyite, which are the co-
products of apatite mining operations at the
companys Kovdorskiy GOK mine, together
generated 38% and 74% of phosphate seg-
ment revenues and EBITDA, respectively, as
compared to 31% and 51% in 2012.
The sales geography of the companys
phosphate segment refected the contribu-
tion of mining co-products to the segments
performance. The share of revenue from Asia
increased three percentage points as com-
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 companyan-
nounced 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, includ-
ing but not limited to excavators, dozers,
haul trucks, crushers, as well as screening,
conveying and loading facilities. First pro-
duction is expected to come on stream in the
fourth quarter of 2014. With its targeted ini-
tial 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.
Potash segment
Eurochem VolgaKaliy (Gremyachinskoe
deposit, Volgograd region)
With the cage shaft bottom cleared of
water and debris, the companyresumed sink-
General view of Fosforit (Kingisepp, Leningrad region), a member
of Eurochem chemical company
65 1(85) February 2013 Eurasian chemical market
Chemistry and business
www. chemmarket. i nfo
ing in the fourth quarter and had progressed
to a depth of -148 meters as of 31 January.
As previously announced, the restart of sink-
ing 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 des-
ignated 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 benefciation building, warehous-
ing facilities, and loading and shipping
facilities. The main electrical substation
is essentially complete and undergoing
rigorous commissioning checks prior to
energising.]
EuroChem Usolskiy Potash (Verkhne-
kamskoe deposit, Perm region)
The companysuccessfully completed
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 oper-
ated by Thyssen Schachtbau is underway,
a program also contracted with the German
mining specialists.
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 foun-
dations for various buildings including the
administration building, mine rescue build-
ing 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 greenfeld
potash developments.
Distribution segment
The companys distribution segment com-
prises the sale of fertilisers and services via
a number of retailers located within the CIS,
specifcally 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 com-
panys 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 vol-
umes helped alleviate the pricing erosion
in phosphates and drive the YOY revenue
expansion. Excluding EuroChem Antwerpen
and EuroChem Agro, consolidated from Q2
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 dis-
played 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 mate-
rials 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 com-
bined 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 pro-
duction volumes, the share of energy costs
within the companys cost structure remained
fat 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 effciency
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, transporta-
tion costs comprised 74% of total distribution
66 Eurasian chemical market 1(85) February 2013
Chemistry and business
www. chemmarket. i nfo
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 develop-
ment 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 companyrecog-
nised other operating expenses of RUR 425m
versus other operating income of RUR 371m
in 2012. The main items behind other operat-
ing 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
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 proft line, the com-
panyrecognised unrealised fnancial foreign
exchange losses of RUR 5.9bn, compared
to an unrealised gain of RUR 4.3bn in 2012.
Changes in these noncash items refect 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 fnan-
cial 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.
Balance sheet
Working capital needs decreased slightly
as lower prices for fnished goods slightly
balanced higher prices for certain raw mate-
rials. 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
a club facility for an amount of USD1.3bn.
Structured as a 5-year unsecured fnance
facility and priced at LIBOR 3M + 1.8%, the
facility includes a 2-year grace period. The pro-
ceeds 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 across-
the-cycle range, the volatility in the fertiliser
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 diversifcation, its partial
vertical integration and its advantageous
position on the industry cost-curve as its core
strengths underpinning its cash fow gen-
eration, Fitch Ratings and Standard & Poors
both affrmed EuroChem at BB / stable out-
look in 2013.
Cash fow
At RUR 36.2bn, operating cash fow 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 allo-
cated to its distribution network and logistics
infrastructure.
2013 corporate developments
In 2013 the Group fnalised the acquisi-
tion of 54,613 ordinary shares of OJSC
Eurochem-Belorechensk Mineral Ferulisers plant produces DAP
and sulphoammophos
67 1(85) February 2013 Eurasian chemical market
Chemistry and business
www. chemmarket. i nfo
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
fnal 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 capac-
ity online by the end of 2014.
Legal proceedings
In October 2012 the group fled 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 profts arising from
the delay in commencing potash produc-
tion, due to the inability of that construction
company to fulfl its contractual obligations.
Further details of the proceedings are avail-
able in note 34 of the Groups 2013 IFRS
accounts.
In March 2013 the Group fled a claim
against International Mineral Resources B.V.
(IMR) which, the Group believes, held a
controlling interest in Shaft Sinkers, claim-
ing IMR is responsible for its subsidiarys
actions. In July 2013, a Dutch Court granted
EuroChem defnitive leave for levying the
requested prejudgment attachments against
IMRs Dutch assets, while fxing the amount
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 wit-
nesses of both sides, following which, the
court notifed that a fnal judgment is to be
rendered on 16 April 2014.
Outlook
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 signifcant rally, nitro-
gen 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 fows 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
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 beneft payments to
the agricultural sector have been distributed
and should provide a positive impact on ferti-
liser 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 com-
panywould expect to see any signifcant
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 mar-
ket presence is likely to remain limited until
after the May elections.
In potash, contract prices have established
a foor price for the upcoming months. Potash
producers have been applying upward pres-
sure 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 eventu-
ally restore joint marketing of product with
Belaruskali, this does not appear to be immi-
nent in the near term and presents a challenge
to signifcant price appreciation.
Nevinnomysskiy Azot is the largest producer of nitrogen fertilisers in Russia
68 Eurasian chemical market 1(85) February 2013
Chemical equipment
www. chemmarket. i nfo
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 com-
petitive 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 deviat-
ing signifcantly from European regulations.
Matters are rendered even more diffcult by
the fact that extended customs formalities or
special local infrastructure features make the
import of products for some sectors of indus-
try even more complicated. Other examples
include more restrictive import regula-
tions and somewhat extensive certifcation
requirements.
Imported industrial equipment is subjected
to in-depth testing in test organisations.
While in the past the certifcation procedure
has been prone to misuse in individual cases,
with certifcates in Moscow sometimes avail-
able within hours after money changing
hands, a separate authority and clear rules
have now been established. There are several
certifcation bodies, testing laboratories and
intermediaries for the new TR certifcates of
the Customs Union (of Russia, Belarus and
Kazakhstan). However, even in existing sup-
plier 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 signifcant
economic area that has established its own
standards to monitor and ensure that products
satisfy minimum safety and quality require-
ments. 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, includ-
ing the CUs Technical Regulation On the
safety of equipment working under excessive
pressure.
Products imported anywhere in the CU
need a CU TR certifcate. Only mandatory
certifcates and mandatory declarations meet
this requirement. As an important rule, many
certifcates require manufacturers to submit
product samples or involve factory inspec-
tions by experts. In addition, the applica-
tion for certifcation can only be fled by a
legal entity located in Russia, such as the
manufacturers subsidiary, a retailer or the
customer. Certifcation can refer to either a
batch of goods or series production. In the
latter case, certifcate validity ranges from
one to fve years. In this context manufactur-
ers must observe the transition from GOST R
and TR to TR CU certifcates. All certifcates
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
certifcates.
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 certif-
cation process. Manufacturers that frequently
deliver components or systems require cer-
tifcates on series production that are valid for
one, three or fve years. These certifcates are
slightly more costly. Manufacturers that need
certifcates for many different equipment
or components may have to expect costs
in the fve-digit range. Some installations
Certifcates 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 certifcations such as the new Technical Regulation on pressure equipment that
came into effect on February 1, 2014. Working with their affliate TV SD RUS, TV Hessen and TV SD
support and assist manufacturers throughout the entire process.
69 1(85) February 2013 Eurasian chemical market
Chemical equipment
www. chemmarket. i nfo
and equipment may fall under the scope of
multiple technical regulations, consequently
requiring several certifcates. In case of a
one-off export or exports at irregular longer
time intervals, a single certifcation which
is available at relatively low costs may be
suffcient.
Companies preparing for certifcation in
accordance with the new standards often
invest
30 to 40 person-days of work, not includ-
ing translation into Russian. Comprehensive
support by a qualifed partner can help to
speed up the process. As the Customs Union
increasingly orients itself to European stand-
ards, 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 docu-
mentation (in Russian, German or English)
as well as product design drawings, material
specifcations and assembly instructions. Test
records and an ISO 9001 certifcate, 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 certifcation can prepare their
quotations on the basis of these documents.
Where appropriate, a checklist that specifes
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 certif-
cate with the client. Clients should normally
receive an acceptance report by email, with
the original certifcates and certifed 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
TV Hessen and TV SD provide
comprehensive consulting services
on GOST and the new TR CU cer-
tifcates issued. Experts with long-
standing experience determine the
certifcates that German manufactur-
ers must submit to export their prod-
ucts and place them into service, and
the criteria their products must meet
to obtain these certifcates. For cer-
tifcation, products have to undergo
desktop/document review plus con-
ventional conformity assessment.
The documentation is in Russian. A
further advantage for German ex-
porters is the direct contact to Rus-
sian authorities they can establish
via the affliate TV SD RUS.
70 Eurasian chemical market 1(85) February 2013
Countries and regions
www. chemmarket. i nfo
Almost eight years have passed since
the frst issues of our magazine containing
articles reviewing the chemical industry of
different countries were published includ-
ing 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 frst
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 frst 15 years of the independence
of the country. Several new chemical plants
together with mining and processing com-
plexes supplying feedstocks to the frst ones
were constructed.
Our journal has dedicated a great deal
of information to diffculties 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 invest-
ment 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 fbres, more than 90,000
tonnes of coatings, over 120,000 tonnes of
plastics and synthetic resins. A consider-
able 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 chemi-
cal products increased: phosphate fertiliser
(+5.1%); complex compound fertiliser by 3
times; sulphuric acid (+6.2%); wet-process
phosphoric acid (+10.5%); ammonium sul-
phate - (+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 %);
carbon dioxide - (+4.8%); technical salt by
2.4 times; polyethylene flm by 5 times.
I. Raw material recourses
Uzbekistan has a strong mineral raw mate-
rial 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 depos-
its: 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 devel-
oped for several decades. Reservoir rock is
sandstones. Gas contains 96-97% of meth-
ane. Sulphur-free gas accounts for the main
share of total production, but more and more
low sulphurous gas and sour gas are pro-
duced. The Shakhpakhty and Kuanish gas
deposits are located in the Ustyurt district.
In 2010, new natural gas felds 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
Review of the Chemical Industry
of Uzbekistan: A Strong Focus
on Modernisation
71 1(85) February 2013 Eurasian chemical market
Countries and regions
www. chemmarket. i nfo
metres. Production of liquefed gases for the
same period amounted to 273.600 tonnes.
Ozbekneftegaz produces 70bn cubic
metres of gas and 8m tonnes of liquid hydro-
carbons 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 felds 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, paraffn, with a high con-
tent of light distillates. Ozokerite (earth wax)
is a by-product of refning the oil from these
deposits. The oil felds Xaudag, Uchkyzyl,
Kokayty, Kashgar and Amudaryo are discov-
ered in the Surxondaryo Province. The oil and
gas deposit Lalmikar is almost completely
depleted. Oils in the region are heavy and sul-
phur. Gas condensate (Adamtash, Gumbulak,
Pachka-mar, Kyzylbayrak and Amanat) and
oil felds 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 conden-
sate 1,6m tonnes.
There are three major coal deposits in
Uzbekistan: Angren (Toshkent province),
Shargun and Boysun (Surxondaryo prov-
ince) 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 riv-
ers valleys and deltas.
The Angren deposit is located in the val-
ley 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 (alti-
tude 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 coun-
try, 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 con-
sidered 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 depos-
its 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 Mining-
Metallurgical Complex) operates on the basis
of porphyry copper deposits.
Lead and zinc deposits are mainly located
in the Middle Tien Shan, in the Chatkal-
Kuraminsky mountains and, in particular,
at the Kurgashinkansky mine (the Olmalig
province) and a number of smaller manifes-
tations (Koshmansay, Miskan). The main ore
minerals are galenite, sphalerite, chalcopyrite
and pyrite. Magnetite and hematite also occur
there. Trace elements are indium, silver, bis-
muth and gold. Rare-metal mineralisation,
including scheelite and molybdenite, are
essentially developed at the Koshmansay
deposit. The Kurgashinkan deposit is cur-
rently 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 sil-
ver minerals.
Carbonate-polymetallic lead-zinc depos-
its (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 feld. 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 pre-
sented 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 devel-
opment Chash-Tepe, Kamangaran, Djam,
Sarykul and Sazagan. Such tungsten deposits
like Sargardon and a group of deposits and
ore occurences of Maydontol - Oygaing dis-
trict (Anaulgan-Karakyz, Oygaing) are the
most important in the Middle Tien Shan and
the Chatkal-Kurama mountains.
Uzbekistan has a number of molyb-
denum ore occurrences of hydrothermal
type: Obizarang in the west of the Hissar
Ridge, Oygaing in Chatkal, quartz-sericite-
scheelite-molybdenite (Chavata, Unkurtash
in Chatkal, Shaugaz in the Kurama Ridge),
skarn-molybdenite (Chimgon in Chatkal),
skarn-scheelite with molybdenite, quartz-
sericite-molybdenite-chalcopyrite (Olmaliq
district). However, molybdenum is recovered
as a by-product of copper porphyry ore min-
ing, which is the 8th deposit in terms of Mo
reserves.
Bismuth deposits are discovered in the
Chatkal-Kurama Mountains. The main
formation is arsenic-bismuth (Urtasaray,
Burchmullo) and copper-bismuth. The
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 sev-
eral 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 signifcant. The Kazgantau deposit,
which is located in the Hissar belt, presum-
ably refers to this type. Skarn-magnetite
deposits mainly occur in the Middle and
South-Western Tien Shan in the Chatkal-
Kurama 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 man-
ganese 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 identifed
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 signifcant 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 alu-
minum production) occurrences are found
in Uzbekistan, but there are no deposits.
Bauxites occur in the Kyzyl Kum, Nurota,
and South Fargona regions. The most signif-
cant 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 commer-
cial 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 depos-
its in the Kurama, Chatkal and Hissar moun-
tains. 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 refrac-
tories. Primary kaolin seams are within the
range of 2-46m.
Uzbekistan has large reserves of dolomite.
The Farkhad rock deposit provides dolo-
mites, 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 promis-
ing one. However, in Uzbekistan big volumes
of sulphur are produced not at natural depos-
its 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 magne-
sium and sodium sulphates. The most signif-
cant 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 Dzheroy-
Sardara 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 phospho-
rus pentoxide. The reserves will cover the
demand of the countrys agricultural sec-
tor 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
benefciation. 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 benefciation of
phosphorites (there are signifcant 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 fve
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 fuorspar, which is used
as a source of fuorine, are located in the
Chatkal-Kurama Mountains, with occur-
rences in the southwestern Hissar, and a few
of them can be found in the boundary belts of
the Southern Tien Shan.
Commercial deposits of fuorite are oper-
ated in the country.
In Uzbekistan, magmatic deposits of feld-
spar are found (Langar, Lolabulak, Karichsay
in the Southern Tien Shan). Sedimentary
deposits - quartz-feldspar sands - are dis-
covered 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 fux; in the glass
industry -as fllers and light abrasives (e.g., in
the manufacture of toothpaste).
Uzbekistan has about 50 occurrences
and deposits of wollastonite. Most wollas-
tonite deposits are located in the Southern
and Middle Tien Shan (Qoytosh, Langar,
Karatube, Ingichka, Yakhton, Akbulak,
Chimgan, Kumyshkan, and Barkrak).
Wollastonite is used as an additive fller 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 fller
for a number of important automotive com-
ponents: 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
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 km
2
.
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 vari-
ous ores and 10 deposits of minerals intended
for chemical production. All in all 38 mineral
felds 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 frst 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.
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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 privatisa-
tion of chemical companies with attracting
foreign and domestic investors.
Ozkimyosanoat includes 14 manufac-
turing plants turning out more than 170
chemical products. 13 regional distribution
organisations marketing fertilisers across
the country are also involved in the struc-
ture of Ozkimyosanoat. Scientifc research
and design institutes, haulage companies
Kimyotrans and Kimyotrans-logistik engaged
in foreign economic activities, as well as bro-
kerage company Hamqor-kimyoservis, are
members of Ozkimyosanoat JSC.
As for the companys production results
of the frst 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, phosphorus-
containing 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 fgure. Within the framework
of investment projects included in the com-
panys 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.
Navoiyazot J SC
Founded in 1961, Navoiyazot JSC
(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) manu-
factured weak nitric acid and ammonium
nitrate, which went into production at the end
of 1964.
Launching a unit for flling cylinders with
technical oxygen in November 1965 was a
signifcant event for the company. In 1965-
1967 the plant started production of ammonia
and ammonia water. In 1968-1970, work-
shops for carbon dioxide, sodium cyanide,
hydrocyanic and acetic acids, acetylene,
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
frst batch of acrylonitrile was produced, and
commercial production of Nitron synthetic
fbres 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 fbres Nitron.
In 1988, a thiourea and hydrochloric acid
plant came on stream. In 1990-1991, produc-
tion of consumer goods started up. In the fol-
lowing 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, ammo-
nium 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, hydrochlo-
ric 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 struc-
ture 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
phosphorite meal), ammonium sulphate,
Outdoor production unit at Navoiyazot
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liquid chlorine, hydrochloric acid of various
grades, ammonium chloride, sodium chlo-
ride, sodium chloride of pharmacopeia grade,
sodium hypochlorite, sodium cyanide, nitric
acid, carbon dioxide, argon gas, oxygen gas,
pyrolysis acetylene, acrylonitrile, acetalde-
hyde, acetic acid of different concentrations,
methanol of various grades, polyacrylamide
gel, formalin, thiourea, methyl acrylate and
acetone.
Polyacrylic fbre and yarn made under the
trade name Nitron is one of the major prod-
ucts of the company, which is used in the pro-
duction 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 con-
sumers of fbres from Navoiy.
Thiourea solutions manufactured in
Navoiy are used to dissolve gold from refrac-
tory ores and concentrates, while a cyanide
process does not yield good results (thiourea
dissolves gold in acidic solutions in the pres-
ence of an oxidant with forming a cation type
complex. Water-soluble polymeric agent
Unifok (hydrolysed polyacrylonitrile) pro-
duced by the company is used for strength-
ening wellbore walls, reducing fuid losses
while drilling and stabilising drilling muds,
enhancing oil & gas reservoir performance,
for sedimenting suspended particles in sedi-
mentation tanks and water tanks, fltering and
precipitating different pulps in domestic and
industrial water supply.
Another water-soluble polymer - agent
K-4 - is used to reduce fuid loss and stabi-
lise drilling muds. It also fnds application in
agriculture as a gelling agent; for sediment-
ing suspended particles in sedimentation
tanks and water tanks; as an adhesive in the
printing industry; for dust control in the met-
allurgical industry; as a focculant for fghting
sand movement.
Another water-soluble polymer agent
K-9 is intended for well drilling opera-
tions. Granulated polyacrylamide (a
mixture of polyacrylamide with ammo-
nium sulphate), manufactured under the
trade name Flocculant PAA-GS, is used
in the form of diluted aqueous solution
for suspension focculation 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,
which is applied for production of mineral-
cotton materials as a binder.
There are production facilities for pentae-
rythritol and zinc nitrate as well.
Today Navoiyazot JSC is dozens of work-
shops, which make up a single industrial
mechanism for accomplishment of produc-
tion tasks (Table 1).
The main raw materials purchased by the
company are: natural gas, soda ash, indus-
trial salt, ferrous sulphate, sulphur, catalysts,
monoethanolamine, isopropanol, cationic
dyes, hydroquinone, diisopropyl ether, ita-
conic 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 JSC (Navoiy Mining and
Metallurgical Plant), Samarqandkimyo
JSC, Olmalik Kon-Metallurgiya Kombinati
JSC (Olmaliq Mining and Metallurgical
Combine), Muborak Gazni Qayta shlash
t Production structure of Navoiyazot
Production workshops Start-up Capacity, thousand tonnes / year
Ammonia-I,II 1964 370
Ammonia-III 1971 180
Production of nitric acid second (II)
stage
1965 351
Production of nitric acid second (III)
stage
1971 400
Production of ammonium nitrate first
and second (I-II) stages
1964 350
Production of ammonium nitrate
third (III) stage
1971 600
Production of N-P fertiliser 2010 180
Production of caustic soda and low-
tonnage chemical products
1976
Including: 1) NaOH, chlorine, 26,000
tpy chlorine-based production; 2)
NH
4
Cl; 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
Organic chemicals 1969
Including: 1) acetylene; 2) hydrocyanic
acid and sodium cyanide; 3) acetic
acid; 4) acrylic acid nitrile; 5) ammonia
liquefying workshop
Production Nitron fibres 1983 In addition to fibre, K-9 preparation
Production of technical thiourea 1987 1,4
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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 impor-
tant role in ensuring the fnancial stability of
the company. One of the main income items
of the company is nitrogen fertilisers sup-
plied 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 manu-
facture in the coming years?
Currently Ozkimyosanoat is consider-
ing 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 fol-
lowed by its agreeing with an authorized
expert group. The latter gave its positive
verdict after giving recommendations and
eliminating defciencies. 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.
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 invest-
ment 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 suf-
fcient 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 fght gas blocks. In the
future, the bulk of methanol will be directed
to a methanol-to-olefns complex planned to
be built in years to come.
After putting the integrated plant into
operation, about 900 new jobs will be cre-
ated. Products worth USD 234.5mn will be
manufactured annually, including exports -
more than USD 68.5m.
The plant is due on stream in 2016.
Navoiyazot JSC actively implements
other investment projects aimed at develop-
ing 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 J SC
Fargonaazot JSC (Fargona) is one of
the leading manufacturers of ammonia,
ammonium
nitrate and urea in the country. It was com-
missioned in 1956. The companys produc-
tion facilities have been repeatedly upgraded
and increased over the last ten years. Now it
can turn out up to 400,000 tonnes of ammo-
nia, 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 bleach-
ing pulp and fabrics, water disinfection, and
weed killing (herbicide). Another important
product of the company is liquid defoliant
- 36% aqueous solution of magnesium chlo-
rate. It is used in agriculture for preharvesting
elimination of leaves and for drying plants
(cotton plants, soybeans, sunfowers and
potatoes). Universal complex action defoli-
ants 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 manufac-
turing acetate flament and acetate silk
as well as cigarette flters. The former
Table 2. Projects of Navoiyazot
Project Start-up Capacity
Construction of an ammonia and
carbamide complex
2014
660,000 tpy of ammonia, 1,000,000 tpy
of carbamide
Expansion of thiourea production 2014 Capacity expansion up 3,000 tpy
Construction of potassium nitrate
production
2015 3,000 tpy
Construction of unit for bleaching
agents for textile manufacture
2015 10,000 tpy
Construction of monochloroacetic
acid production
2015 5,000 tpy
77 1(85) February 2013 Eurasian chemical market
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Fargona chemical fbre plant, a subsidiary
of Fargonaazot became a production site
for cellulose acetate fbre 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 foating 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 prod-
ucts 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 modernisa-
tion 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 deter-
mined 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 per-
formance of equipment at AM-76 unit and
its operational safety, reduce energy con-
sumption 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
3
, the
total consumption of gas - by 81.2m Nm
3
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 procure-
ment 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 fnanced 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 J SC
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 fertilis-
ers 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 con-
sumer goods and a number of auxiliary facili-
ties. Installed capacity of Ammofos-Maxam
for phosphate fertilisers is 217,500 tonnes
(100% P
2
O
5
per year) and for sulphuric acid
(monohydrate) 500,000 tonnes.
The main products of the company are:
ammophos containing monoammonium
phosphate NH
4
H
2
PO
4
with an admixture
of diammonium phosphate (NH
4
)
2
HPO
4
),
ammonium-phosphate-sulfate containing
monoammonium phosphate (NH
4
H
2
PO
4
) and
ammonium sulphate (NH
4
)SO
4
, NP 15:23),
suprephos -NS (a mixture of CaHPO
4
,
(NH
4
)
2
SO
4
, NN
4
N
2
RO
4
, (NH
4
)
2
N
2
RO
4
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; frst
and second grades), sulphuric electrolyte for
batteries (32-35% H
2
SO
4
), orthophosphoric
acid (four grades - from 18% to 31% P
2
O
5
),
phosphogypsum for soil improvement (three
grades a with CaSO
4
2H
2
O content of from
80% to 90%, and hygroscopic moisture
15-25%), feed ammonium phosphates of A
and B grades (monoammonium NN
4
N
2
RO
4

with low and controlled content of As, Pb
and F), ground sulphur (for agricultural use),
sodium biphosphate (NaH
2
PO
4
with moisture
content of 20.5%, application areas - refning
of metals, water treatment, an auxiliary agent
in the dyeing of textiles, a buffer in solutions
for electroplating); mono disodium phos-
phate, a mixture of NaH
2
PO
4
and Na
2
HPO
4

with a moisture content up to 23%), disodium
phosphate (Na
2
HPO
4
with a moisture content
of up to 25%; application felds - boiler water
treatment, production of glazes for pottery
and porcelain, enamel manufacture, tin plat-
ing, tanning, a reagent for electroforming
(galvanoplastic processes, production of
pigments in the textile industry); trisodium
phosphate (Na
3
PO
4
, 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 pro-
duces fberboards from cotton stalks and
plant fbres. Its products are in great demand
both in the domestic and foreign markets.
The fertilisers are used in different climatic
78 Eurasian chemical market 1(85) February 2013
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zones and for various soil types for all kinds
of crops, thanks to the balanced composition
of nutrients. The company is certifed 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 phospho-
rus 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.
Maxam-Chirchiq
This company was the frst one in Central
Asia to produce nitrogen fertilisers. In 1932
it was decided to build Chirchiq nitrogen fer-
tiliser 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
fxation 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 pipe-
lines to Chirchiq.
Using natural gas doubled the output and
signifcantly reduced products costs. In 1975
the company was renamed Elektrokhimprom
Production Association. In 2002, in accord-
ance with a state programme for denation-
alisation and privatisation Elektrokhimprom
was transformed into Elektrkimyosanoat
JSC.
In 2007, Spanish company Maxam pur-
chased 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.
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 nitrogen-
phosphorus 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 environmen-
tal factors (drought and frost), and increases
the resistance of plants to diseases, promotes
the accumulation of sugars in root vegetables
and fruit. UAN is a new type of nitrogen
fertilisers produced by the company contain-
ing carbamide (30%) and ammonium nitrate
(40%).
All-in-one nutrient solutions based on
ammonium nitrate solution - is a liquid com-
plex 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 mix-
ture manufactured by Maxam-Chirchiq is
used for pre-sowing application, pre-sowing
seed treatment and foliar feeding of plants
by spraying them in greenhouses and on the
open ground.
Technical magnesium sulphate improves
crop yields due to the formation of car-
bohydrates and promotes fruit formation.
Phosphourea is a mixed fertiliser produced
by mechanical mixing of urea and
ammophos. It is particularly useful for neu-
tral and acidic soils. Another type of ferti-
liser, 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 con-
taining 16% of nitrogen. It is meant for soils
of all types potatoes, beet-root, other vari-
ous vegetables, fruit and decorative plants.
Lime-sulphur spray is a product designed for
crops affected by powdery mildew, red spi-
der, anthracnose and other fungal diseases.
Lime-sulphur spray can also be used for other
industrial purposes. It is produced from tech-
nical 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 ammo-
nium nitrate of agricultural application three
varieties of NH
4
NO
3
are produced in Chirchiq.
Ammonium nitrate of low density is used
for commercial purposes; ammonium nitrate
Panorama of Maxam-Chirchiq
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without conditioners for technical applica-
tion is produced exclusively for the needs of
foreign customers. And ammonium nitrate
solution is purchased by companies manu-
facturing industrial explosives.
The company produces 4 types of HNO
3
:
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 ammo-
nium 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 produc-
tion of chemical reagents, for dissolving
chemicals impurities, in processes of nitra-
tion 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 ammo-
nium 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 fer-
rous 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 liquefed carbon dioxide is used
to create protective environment for welding
of metals; for food processing in manufac-
ture of carbonated drinks, dry ice, for cool-
ing, freezing and storing food in direct and
indirect contact with them; for drying casting
moulds; for fre 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 low-
temperature rectifcation. It is applied after
gasifcation for fame treatment of metals and
other industrial purposes.
Gaseous nitrogen is intended to create an
inert atmosphere during production of easily
oxidizable products, high-temperature pro-
cessing 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 refrig-
erant. 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 syn-
thesis catalysts CA-C (oxidized) and CA-CB
(reduced) are designed to operate at tempera-
tures 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 carbon-
dioxide 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 natu-
ral 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 conver-
sion with water vapour in ammonia produc-
tion. 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 com-
pounds from hydrocarbons in production of
ammonia.
Sulphur absorbent NPV-03 is manufac-
tured at the existing equipment for produc-
tion 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, chemi-
cal 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 ferti-
lisers. 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 superphos-
phate plant started using the equipment
delivered from Nevsky (St. Petersburg) and
Voskresensky (Moscow region) chemical
fertiliser plants. The frst stage of the plant
started up in 1946. Apatite and imported
sulphuric acid were raw materials for super-
phosphate production. At the same time the
construction of a sulphuric acid plant started
and it was completed in 1947.
After discovering the Karatau phospho-
rite basin, the plant mastered a technology
for production of superphosphate from the
80 Eurasian chemical market 1(85) February 2013
Countries and regions
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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 fow
sheet was introduced ammonation - dry-
ing - 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 fow 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) estab-
lished ammoniated superphosphate capacity
at 178,000 tonnes per year in physical terms
during the transition to phosphate raw mate-
rial from the central Kyzyl Kum.
In 2004, the frst stage of reconstruction
including drying, grading and packaging of
fertilisers was completed at Qoqon superfos-
fat zavodi JSC.
In 2008, Russian company Monolith LLC
(Moscow) became the owner of 85.2% of the
companys shares, paying for them approxi-
mately 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 imple-
mented 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 fer-
tiliser 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 super-
phosphate 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 fer-
tiliser is in demand in the neighboring coun-
tries, 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 pig-
ment 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 min-
eral 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 appara-
tus located out of specialised industrial prem-
ises was built in the USSR at the Samarqand
superphosphate factory. The experience
of the Samarqand plant showed that under
conditions of careful development of manu-
facturing processes and maintenance, equip-
ment of sulphuric acid plants can be used in
the open area, which signifcantly 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 diffcult. 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 bat-
tery acid and selenite sludge was installed. In
1962 the plant started production of ammoni-
ated 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 opera-
tion. 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 ammo-
nium sulphate.
Since 1994, a new technology for produc-
tion 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
developed 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 unproftable. 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 fnancial crisis and
actual bankruptcy of some industrial compa-
nies in a three-month period.
Now the product range of the plant includes
N-P-Ca (nitrofos), N-P-K (nitrophoska) and
suspended liquid phosphorus-containing
nitre.
Complex fertiliser N-P-Ca (nitrofos) con-
tains 6% of nitrogen, 16% of phosphorus
and 11% of calcium. Nitrogen regulates the
growth of vegetative mass and determines
the level of productivity. Phosphorus acti-
vates root growth, accelerates the develop-
ment of all processes and increases winter
hardiness. Calcium stimulates plant growth
and root development, increases metabolism,
activates enzymes and strengthens the cell
walls.
The effciency 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 aver-
age. 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 - nitro-
gen, phosphorus, potassium and calcium
(N - 5%, P
2
O
5
- 14%, K
2
O - 14% and CaO
- 12%) in the available form. The tech-
nology 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 mix-
ing 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 phospho-
rus-containing nitrate) contains nitrogen (7%
N), phosphorus (7% P
2
O
5
) 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 recommenda-
tions 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 appli-
Production facilities at Samarqandkimyo plant
82 Eurasian chemical market 1(85) February 2013
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cation stimulate growth and development
of crops, and also serve as means of protec-
tion 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 produc-
tion are phosphorite meal and nitric acid.
Dehqonobod Kaliyli Ogitlar
Zavodi Unitary Enterprise
The 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 Pacifc 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 frst 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
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 pro-
cessing complex at the cost of USD 110m. The
construction started in late 2011 and in the mid-
2014 production should be put into operation.
USD 110.5m from Export and Import Bank
of China, Ozkimyosanoats own fnances
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 begin-
ning 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 min-
eral fertilisers, as well as abroad - Sri Lanka,
UAE, Iran, Kazakhstan, Georgia, Vietnam,
Malaysia and China.
J V Elektrokimyozavod
JV Elektrokimyozavod CJSC (Navoiy)
electrochemical plant was founded in 1971
for production of chemical crop protec-
tion products: insectoacaricides, herbi-
cides 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 com-
pany, it took a course on production of chem-
ical crop protection agents from imported
active ingredients and components from
local raw materials. Economic expediency of
the plant, which would allow the country to
save up to one third of the currency for pur-
chasing fnished crop protection agents, was
taken into consideration. To expand the range
of products and to improve their quality, a
reconstruction of basic workshops was car-
ried 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 require-
ments of the licensors. For using at house-
hold 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 materi-
als. Manufacture of some products such as
chemical crop protection agents and simple
superphosphate is included in the Republican
Dehqonobod potash fertiliser plant
83 1(85) February 2013 Eurasian chemical market
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programme of localisation of fnished prod-
ucts, components and materials on the basis
of local raw materials. In the new economic
environment, the company confdently took
a leading position in production of chemi-
cal plant protection products not only in
Uzbekistan, but in all Central Asia.
Lets review the company products in detail.
The herbicidal group includes Estamp (emul-
sion 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 fowable suspension, con-
taining 750 g/kg of the active ingredient
tribenuron methyl (methyl-2-[4-methoxy-
6-methyl-1,3,5.triazin-2-yl(methyl) carbo-
moylsulfomoyl] benzoate); it is used in small
doses as a highly effective postemergence
herbicide for fghting broadleaf weeds in
winter and spring grain crops) and Dalzlak
Extra (emulsion concentrate, containing
104 g/l of active substance haloxyfop-(P-
methyl - methyl (R)-2-{4-[3-chloride-5-(tri
fuoromethyl)-2-pyridyloxy]phenoxy}propi-
onate; 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-cyano-
3-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, contain-
ing 50% of malathion - organophosphorus
compound, which has contact partly fumi-
gant 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]-imideazolidine-
2-ilene-amine; it is intended for cotton and
wheat against sucking insects).
The group of protectants includes Tebu
(microemulsion containing 60 g/l of tebucon-
azole - (RS)-1-chlorophenyl-4,4-dimethyl-
3-(1H-1,2,4-triazole-1-il-methyl)pental-3-il;
it is used for pre-sowing treatment of grain),
Daltebu (water soluble suspension, contain-
ing 6% of tebuconazole; it is applied for
pre-sowing treatment of grain); Dalucho
(wettable powder, containing 70% of imida-
cloprid; 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 con-
centrate 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) cou-
marin; 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-chloroethylphos-
phonic 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-Tiadiazolin-
5)-1-phenyl-urea and 180 g/l of diuron - 3
- (3,4-dichlorophenyl) -1,1-dimethylurea) -
the only defoliant for cotton, which is manu-
factured by the company and applied before
harvesting.
In 2003, after development work, the
construction of simple superphosphate pro-
duction was started, and in 2004 the frst
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 sul-
phuric acid of the Uchkuduk deposit as raw
materials allows manufacturing mineral fer-
tilisers 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 capac-
ity. 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 through-
out the country. Each month, 500 tonnes of
edible salt are shipped to consumers. Quality
management system of the company was cer-
tifed in 2007 according to the international
standard ISO 9001:2000.
Maxam-Uzbekistan J V
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-
84 Eurasian chemical market 1(85) February 2013
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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 diffcult task to build a modern
chemical company in the desert. It was nec-
essary 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, calcina-
tion, lime burning and slaking, purifcation 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 con-
crete products, mechanical repair shops, a
compressor station, an administrative and
amenity building and a fre 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 com-
pany CITIC Pacifc Ltd and Ozkimyosanoat
SJC.
Total project cost was USD 100m. The
company CITIC Pacifc 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 car-
ried 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 produc-
tion are sodium chloride and calcium carbon-
ate (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, Maxam-Chirchiq and
Navoiyazot supply ammonia another raw
material.
In 2006, the factory produced 12,810
tonnes of soda ash, and in 2011 this fgure
increased sevenfold. In 2012 more than
92,000 tonnes of soda ash were produced,
and in 2013 - about 102,000 tonnes.
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 cus-
tomers. 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 fvefold. By the results
of 2013, 22,000 tonnes of soda ash were
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 con-
structing 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.
J izzax plastmassa
Jizzax plastmassa JSC (Jizzax) is the largest
producer of flms, 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 capac-
ity of polymer producers in Uzbekistan. Jizzax
plastmassa manufactured 18,200 tonnes of PE
flm per year, 10,800 tonnes of polyethylene
pipes 315-630 mm in diameter, and 1,370
tonnes of consumer goods (fttings).
Qongirot Soda Plant
85 1(85) February 2013 Eurasian chemical market
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Pipes produced in Jizzax are used for utili-
ties, installation of hot and cold water supply
networks and gasifcation, and that is why
these products are practically not affected by
seasonal decline in consumption.
The company has a modern unit for PE
flms and pipes, injection moulding equip-
ment, and equipment for packaging manu-
facture, 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, sup-
plies raw materials to Jizzax.
The main local consumers are: the agri-
cultural sector, farms, private frms and con-
struction companies. The main importers of
products are Kazakhstan and Tajikistan.
Unfortunately, over the years, the company
has been in a fnancial 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 plast-
massa still belong to the state).
III. Other chemical companies
Petrochemical companies
Ozneftgazqazibchiqarish (Uzneftegazdo-
bycha) includes the largest companies of
Uzbekistan for oil production, natural gas and
condensate recovery and natural gas process-
ing: 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 (sup-
plied via trunk pipelines), liquefed hydrocar-
bon gas for municipal consumption, liquefed
hydrocarbon gas for automobile transport,
stable gas condensate, commercial liquid
and lump sulphur, commercial granulated
sulphur, granulated polyethylene of vari-
ous grades, polyethylene pipes and fttings,
polyethylene flm, parts for drip irrigation
systems. Below we will describe only two
companies that use chemical technology
processes.
Muborak Gazni Qayta
shlash Zavodi USE
Muborak Gazni Qayta shlash Zavodi
(Muborak Gas Processing Plant, Muborak,
Qashqadaryo region) is a pioneer in the feld
of processing of natural gas on the territory
of Uzbekistan. Here, natural gas is converted
into liquefed 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 m
3
of
gas.
The main processes of Muborak plant
are absorption purifcation of natural gas,
followed by low-temperature drying, com-
mercial sulphur gas production by the Claus
method and condensate stabilisation to obtain
liquefed gas. In 2012, 27,65bn m
3
of natural
gas were processed. Production of liquefed
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 certifed
in 2007 according to the international qual-
ity management system. For six months of
2013 the volume of liquefed gas production
increased by almost 6.4 times, and gas con-
densate by almost 4.4 times, compared to
the same period last year.
We mentioned the course for modernisa-
tion 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 imple-
mentation of an important investment project
Construction of a propane-butane mixture
processing unit to increase production of liq-
uefed 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
Jizzax plastmassa is equipped mainly with Chinese is mainly equipped
with Chinese machinery
86 Eurasian chemical market 1(85) February 2013
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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 coopera-
tion 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 special-
ists of Ozbekkimyomash Zavodi JSC and
Namanganmash JSC. The new unit, which
is designed to strengthen the exports poten-
tial of the industry, can process 12bn m
3
of
natural gas and produce up to 258,000 tonnes
of liquefed gas and 125,000 tonnes of gas
condensate per year.
In addition, taking into account decom-
missioning of outdated installations, the
construction of the seventh stage of des-
ulfurisation consisting of three universal
units with a total capacity of 6bn m
3
of gas
per year was completed. All the three units
were put into operation in the period from
August 2012 to March 2013. The absorp-
tion 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
OzLITIneftgaz, construction and instal-
lation works were carried out by local
contractors, most of manufacturing
equipment is produced in workshops of
Ozbekkimyomash Zavodi. The advan-
tage of the new equipment is the ability
to process not 250,000 m
3
but 300,000 m
3

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 purifcation of natural gas from
hydrogen sulphide and acid gas in the long-
term prospect.
Blocks of the new stages also allow solv-
ing 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 m
3
of gas per
year. The implementation of the project will
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 polyeth-
ylene, 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 fnanced by funds raised by Indorama,
a loan of the Fund for Reconstruction and
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 devel-
opment 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 suf-
fciently 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 poly-
ethylene, and consumers were completely
dependent on imports from Russia, China
and South Korea, and that required sig-
nifcant investments and increased plastic
goods production costs.
However, a feedstock for manufacture of
polyethylene - natural gas with a high con-
87 1(85) February 2013 Eurasian chemical market
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tent of light hydrocarbons (ethane, propane,
butane and a relatively small amount of sul-
phur) was found in the Shortan gas deposit
(30% of all Uzbek gas) and in the South
Tandyrcha, Adamtash and Gumbulak depos-
its. In addition, the local gas condensate
contains a signifcant 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 pro-
cessing of 3.5bn m
3
of gas per year by etha-
nolamine method for production of 125,000
tonnes of polyethylene UzClear

in granules,
100,000 tonnes of liquefed 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 fnancing, design,
construction, training of staff, in addition to
Ozbekneftgaz.
In 1998, Ozbekneftgaz signed a turnkey
contract for design, equipment supply, con-
struction, and commissioning on the basis of
fxed price with an international consortium
consisting of globally renowned companies
(ABB Lummus Global, Shell, Nissho Iwai,
Mitsui, Toyo Engineering, Nova Chemicals).
The project was fnanced by export-import
banks of the USA and Japan, Germany-
based 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 certifed under
ISO 9001:2000 QMS requirements.
We will briefy describe the production
technology. Natural gas from the Shortan
feld is fed to a separation unit after amine
treatment and its deep processing with frac-
tionation 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 purifcation
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. Purifed 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 ethyl-
ene is derived used in the further production
of polyethylene.
It should be noted that liquefed natural gas
produced at the company is extremely pure,
since in the course of the manufacturing pro-
cess each fraction (propane, butane) is sepa-
rated to 99.99% purity and a part of propane
is used as a refrigerant. Then these two com-
ponents are mixed in the required proportions
according to the existing standards. Propane-
butane fraction, just like liquefed gas, is sold
to consumers in tanks. Heavier fractions C5
+, which are derived while converting natural
gas, are sent to refneries for further process-
ing as gas condensates.
The main volume of ethylene is applied
for production of polymers and the rest
is converted at a dimerization unit into
Panorama of Shortan Gas Chemical Complex
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Table 3. Polyethylene grades by Shortan Gaz Kimyo Majmuasi
Grade and type of PE
Density, g/cm3 , g/10 min
Processing
type
Recommended applications
Value
Injection moulding grades
I-0754 HDPE 0,952 0,956 5,0 8,0
Injection moulding Household goods
I-0760 HDPE 0,958 0,962 5,5 8,5 General purpose
I-1561 HDPE 0,958 0,962 13,0 18,0
For producing receptacles,
containers, boxes
I-2560 HDPE 0,958 0,962 20,0 30,0
General purpose, receptacles,
containers
I-1625 LLDPE 0,922 0.928 12,0 20,0 Garbage containers
I-0525 LLDPE 0,923 0.927 4,0 6,0
For low-capacity articles (caps,
artificial flowers)
Film grades
F-Y720 LLDPE 0,918 0,922 0,60 0,90 Extrusion Industrial packaging (thick film)
F-0120 LLDPE 0,918 0,922 0,80 1,50 General purpose film
F-0220 LLDPE 0,918 0,922 1,5 2,5 Ultrathin film (for mulching)
F-0320 LLDPE 0,918 0,922 2,5 3,5 Thin film (basic layer of stretch film)
F-Y336 MDPE 0,934 0,938 0,24 0,30 For films and bags
F-Y240 HDPE 0,936 0,942 0,19 0,31 For films and bags
F-Y346 HDPE 0,942 0,948 0,19 0,31 Rustling film and bags
Cable grades
WC-Y434 MDPE 0,932 0,936 0,30 0,46 Extrusion For cable and wire insulation
WC-Y734 MDPE 0,932 0,936 0,60 0,85
For insulation of cables and rigid
hoses
Pipe grades
P-Y337 MDPE 0,936 0,940 0,21 0,33 Extrusion Basic grade for gas pipes
P-Y342 HDPE 0,940 0,944 0,24 0,36
Piping, basic grade for high-pressure
pipelines
-Y456 HDPE 0,952 0,958 0,31 0,51 Large diameter pipes (drainage)
Blow moulding grades
B-Y250 HDPE 0,948 0,952 0,19 0,30 Blow moulding Cans
B-Y456 HDPE 0,954 0,958 0,33 0,43
Blow moulding goods for general
purposes
B-Y460 HDPE 0,958 0,962 0,33 0,43
Bottles for packaging and storing
liquids
Rotational grades
R-0333 MDPE 0,931 0,935 2,5 3,3
Rotational
moulding
For large-size articles (tanks,
containers for agrochemicals, fuel)
R-0338 MDPE 0,935 0,940 2,0 3,0
R-0448 HDPE 0,946 0,950 3,1 4,1
Oriented grades
-Y446 HDPE 0,944 0,948 0,33 0,43 Extrusion
For tapes, monofilament for
industrial bags, oriented films
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butene-1 co-monomer for subsequent co-
polymerisation for production of polyethyl-
ene of medium and low density. Using the co-
monomer allows one to change polyethylene
density from 0.918 g/cm
3
to 0.962 g/cm
3
.
The production process of the main prod-
uct, polyethylene, takes place in a solution by
liquid-phase technology Sclairtech (it ena-
bles the company to quickly adjust the engi-
neering 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 pos-
sibility 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 com-
pletely separated from the solvent, residual
catalysts, purifed from harmful substances
and in the molten state, with the least con-
tent 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 homog-
enization. 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 ship-
ment 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 installa-
tion of extrusion equipment manufactured by
Ermafa (Germany), gas - and water pipes and
fttings 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 pro-
duction 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 fnished 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), liquefed gas (sup-
plied 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 certif-
cates 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 liquefed gas and polyethyl-
ene 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 flm
accounted for basic sales of polyethylene
at the domestic market, whereas today this
amount is less than one ffth of the total con-
sumption of polyethylene at the internal mar-
ket. Pipe, blown, cable, rotational and flm
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 develop-
ing 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 purifed methane at Shortan Gaz
Kimyo Majmuasi, also known as Oltin Yol
GTL. It is expected that the frst synthetic
premium fuel will be produced in Uzbekistan
in 2017. This will allow Uzbekistan to pro-
vide fuel for its growing economy and simul-
taneously reduce energy carriers imports.
Fargona neftni qayta
ishlash zavodi
Unitary Daughter Company Fargona
neftni qayta ishlash zavodi (Fargona
refnery), subsidiary of Ozneftmahsulot
(Uznefteproduct), includes 35 process
units for production of almost all range of oil
products. The plant is one of the leading com-
panies 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 frst attempts to pro-
duce oil in the Fargona Valley, but it was
stopped for various reasons.
Oil wells with a fow rate suffcient for
launching commercial oil refning were dis-
covered only in 1904. The former Vannovskiy
oil refnery (presently the Alty-Aryk refn-
ery a subsidiary of Fargona neftni qayta
Unitary Daughter Enterprise) was put into
operation in 1906. Presently, the Alty-Aryk
refnery with a 3.2m tpy feed capacity spe-
cialises 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 refnery in Fargona. The refnery also
allowed for solving a task of bringing indus-
try nearer to the sources of raw materials
90 Eurasian chemical market 1(85) February 2013
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and to consuming regions. Its trouble-free
operations satisfed demand of Central Asia
including Kazakhstan for oil products previ-
ously delivered from faraway regions and
excluded long-distant haulage and related
excessive operating and capital expenditures.
The date 27 January, 1959, when an atmos-
pheric vacuum distillation plant AVT-1 the
frst processing unit of the refnery became
operational, is regarded as a birthday of the
Fargona refnery. Later, to increase oil con-
version ratio, the following processing units
were put into operation: 1) Primary oil and
gas condensate processing plants of ELOU-
AVT 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 fnal oil treatment
plant in 1961; 8) An oil hydrofning 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 master-
ing up-to-date technologies in order to manu-
facture globally competitive commodities.
In this regard, the Cabinet of Ministers of
Uzbekistan within the frames of an invest-
ment programme together with European
Bank for Reconstruction and Development
and Export-Import Bank of Japan gave its
approval for reconstructing the refnery 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 hydrodes-
ulphurisation unit in 1999, there was solved
an issue of a harmful emissions reduction
an elemental sulphur plant was built.
Simultaneously, the refnery began produc-
ing 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 refnery 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 felds and switching oil supplies of
the Kumkol deposit to the Pavlodar Refnery
in Kazakhstan.
Today, the Fargona refnery 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
petrol belong to a group of light oil products
produced at the refnery. 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 univer-
sal 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, trans-
mission, compressor and spindle oils; trans-
former oil of selective purifcation; 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
The frst stage of Unitary Daughter
Enterprise Buxoro neftni qayta ishlash
zavodi (Buxoro refnery), a subsidiary of
Ozneftmahsulot JSC, was commissioned
in August 1997. The refnery built under a
turnkey project by a consortium consisting
of Technip (France) and MarubeniJGC
Production facilities of Fargona refnery
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(Japan) was partially fnanced by the govern-
ment 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 refnery was upgraded and proceeded to
manufacturing jet-propulsion fuel (180,000
tpy capacity).
The Buxoro refnery with a 2.5m tpy feed
capacity is focused on processing gas con-
densate 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 liquefed
hydrocarbon gas, black oil, illuminating
kerosene, hydrocarbon solvent 4-13 5/220
and technical sulphur.
The development programme of the coun-
trys oil & gas industry envisages the con-
struction of the second stage of the Buxoro
refnery 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 isomerisa-
tion unit for the frst stage of the refnery 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 fol-
lowed by doing a preliminary feasibility
study. Ozneftgaz will make its own invest-
ment in the project and also attract foreign
credits.
JV Jarqorgon neftni
qayta ishlash
Russian-Uzbek joint venture Jarqorgon
neftni qayta ishlash set up a USD 7m new
refnery 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 refnery 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
refning expansion. Till the end of the year, the
JV will carry out a tender for procuring equip-
ment for processing heavy crude at a license
production site of the joint venture at a starting
cost of USD 39m as well as solve an issue of
fnancing 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 refning capacity.
J V Igilik-gaz
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.
Outdoor installations at Buxoro refnery
Production facilities of Igilik-gaz
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A mini-plant for processing gas conden-
sate and hydrocarbons raw stock of Igilik-
gaz 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, sol-
vent Nefras. The frst stage of the mini-
plant 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
Sovplastital
Soviet-Italian joint venture Sovplastital
JSC was established on the basis of Scientifc
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 indus-
trial purposes including decorative elements
of interior and furniture: artifcial fowers,
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 spe-
cialising in manufacturing artifcial spruces,
various souvenirs and New Years decora-
tions; 2) Uzbek-Italian JV Sovplastital & Fiori
(artifcial fowers, trees and fower arrange-
ments); 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
categories including trademark certifcates,
patents of the Republic of Uzbekistan and the
Russian Federation on different manufactur-
ing processes and product designs.
Its net earnings, and net income have
reduced signifcantly over recent years
although assets have increased in value (in
particular, they amounted to UZS 14.85bn
(EUR 5m) in 2011).

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 tool-
bars for cars produced at GM-Uzbekistan JSC).
Six injection moulding machines by Japan and
Korea are installed in the companys work-
shops capable of producing 270,000 automo-
tive 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).
Uzbarrelproduction
Toshkent-based Uzbarrelproduction LLC
registered as an Uzbek-English joint venture
manufactured the frst products in May 2005.
The main activity of the company is pro-
duction 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 con-
form with European production and trans-
portation standards having high safety factor
and low weight. At frst, these drums, which
have no analogues in Central Asia, were in
great demand in Azerbajan, Kazakhstan,
Kyrgyzstan and even competed with similar
Russian products on price. However, the
fnancial 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 J V
Located in Andijon, Uzbek-American
Andijon Polietileni JV turns out PE flm
for cotton cultivation. PE bags by Andijon
Polietileni are in high demand both in the
local and foreign markets.
J V 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 pro-
ducers of press moulds. Retal Pet began its
own production of press moulds in Toshkent
in 2006. Since late 2007, it has been the big-
gest player on the Uzbek market in press
mould for PET processing.
Other enterprises of the sector
Among domestic enterprises plastic pro-
cessors we should also single out Nukus
Polipropilen LLC (Nukus) producing PE
bags (including infatable bags), PP packages
and bags and Uzbek-Turkish joint venture
Nur-Plastik LLC (Andijon) manufacturing
PE flms of different kinds and for various
purposes (sleeved flms, greenhouse flms,
co-extrusion three- and fve-layer flms).
Production of inorganic chemicals
Navoiy kon-metallurgiya
kombinati
The construction of Navoiy kon-met-
allurgiya kombinati (Navoiy Mining and
93 1(85) February 2013 Eurasian chemical market
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Metallurgical Combine, NMMC) started in
the late 50s of the past century. This diversi-
fed enterprise manufactures various indus-
trial products. The facilities of NMMC are
located in most part of fatlands of Uzbekistan
in the interfuves 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 pentoxide-
uranium trioxide.
The foundation of its raw materials source
is twenty deposits and ten promising felds
of uranium. The uranium industry is rapidly
developing owing to rising production at the
operating enterprises and putting into opera-
tion new manufacturing facilities.
NMMC has been mining all its uranium
by underground leaching over the past
ffteen years. This technology has enabled
the company to radically change and sig-
nifcantly 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 expedi-
ent due to high prices in the global market.
Since achieving independence, techni-
cal upgrading of the uranium enterprises
have begun and two underground leaching
mines have been built and commissioned
at the Kendyktube and Lyavlyakan depos-
its. Moreover, pilot development of the
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 pro-
duced at the mines undergoes fnal process-
ing at GMZ-1 (Hydrometallurgical plant),
after which it is marketed as a fnished
product (diuranium pentoxide-uranium
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 jour-
ney 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
ores of the Uchkuduk deposit was tested. In
1963, the Severnoye mining administration
adopted the underground leaching technol-
ogy. 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 frst
commercial batch of uranium ore three years
later.
Also, in 1969, GMZ-1 switched to pro-
ducing fnished products in the form of
diuranium pentoxide-uranium trioxide,
while GMZ-2 made its frst gold ingot.
In 1971, Mining administration #5 was
established (Leninabad mining and chemi-
cal combine). A year later the Yuzhnoye
mining administration started pilot produc-
tion of uranium by underground leaching,
while GMZ-2 mastered the manufacture of
Mining facilities of Navoiy Mining and Metallurgical Combine
94 Eurasian chemical market 1(85) February 2013
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affned silver. The second stage of GMZ-2
went into service in 1973 and the third
one in 1975. The frst batch of uranium
from the Beshkak deposit was mined in
1978. The advancement of the under-
ground leaching technologies in the 80s
predetermined the construction of H
2
SO
4

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 pro-
duction became operational. In 1995 there
were brought into service the frst stage of
GMZ-3 and a gold heap leaching complex
(presently CGHL of the Central mining
administration). In 1996, mining opera-
tions began at the block Tashkura of the
Dzheroy-Sardaryo phosphorites feld, and
the Yuzhnoye mining administration con-
structed and launched a PVC pipe plant.
In 1997, a uranium mine using under-
ground 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 devel-
oped by NMMC together with specialised
organisations from Russia and Uzbekistan
was brought into service. To be precise, the
frst stage of the complex with a capacity
300,000 tpy of ground phosphate rock came
on stream. The Yuzhnoye mining administra-
tion started up a polyethylene pipe workshop
in 2000.
In addition to raw ground phosphate rock,
the Kyzyl Kum phosphorite complex began
manufacturing calcined phosphorite concen-
trate supplying it to Samarqand and Olmaliq,
where phosphorus fertiliser production
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 affliates of NMMC
have entirely switched to up-to-date innova-
tive technologies, whereas dangerous, not
effcient labour has been eliminated and the
effciency of ore mining operations has sig-
nifcantly improved. With growing output of
packaged emulsion explosives (nobelit and
nobelan), the enterprise provides with explo-
sives 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 explo-
sives plant are of local origin, which saves
the country about USD 8-10m yearly.
In 2003, Mining administration #5 com-
menced the development of the Tokhumbet
deposit. In 2005, workshop #1 started work-
ing 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 phos-
phorites feld, improve quality and phos-
phorite products output, in 2006, there was
introduced an integrated engineering process
for benefciating phosphorite ores. The inte-
grated manufacturing process allows for
producing 400,000 tonnes of washed and cal-
cined phosphorite concentrate and 200,000
tonnes of the washed and dried concentrate.
In 2007, the Kyzyl phosphorite complex
put into operation a unit for separating phos-
phorite ore from chlorine.
In 2008, after upgrading, GMZ-2 reached
its designed feed capacity of 32m tpy of gold-
containing ores. Since its start-up, GMZ-2
had processed 700m tonnes of gold-contain-
ing ores by that time. In 2008, the Severnoye
mining administration introduced a technol-
ogy 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 ore-
picking complex for benefciating gold-con-
taining 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 administra-
tion (Zarafshon): hydrometallurgical plant
#2 (GMZ-2) for processing gold-containing
ores; a mine and a workshop for heap leach-
ing of gold ores; the Kyzyl Kum phosphorite
complex; the packaged emulsion explosives
plant; 3) Severnoye mining administra-
tion (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): hydrometallurgi-
cal 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 com-
pany planned to begin it in 2012, but the pro-
95 1(85) February 2013 Eurasian chemical market
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ject was declared economically inadvisable
at that moment and postponed. The project
preliminary estimated at USD 125m envis-
ages 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 fnance 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 benefciation produc-
tion 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 kon-
metallurgiya 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.
Ozbekiston Respublikasi qattiq
qotishmalar va otga chidamli
metallar kombinati
Ozbekiston Respublikasi qattiq qotish-
malar va otga chidamli metallar Kombinati
JSC (Uzbek integrated works of refractory
and heat-resistant metals; Chirchiq, Toshkent
province) is a diversifed company having
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, pro-
gressive advance of the chemical sector and
fuel and energy complex and the develop-
ment 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 frst molybdenum bar
was obtained laying the foundation of the
companys development. In 1957, there was
approved a planned task for design and con-
struction of a wire workshop and a unit for
rolling products for vacuum tube production.
In spring 1958, the company started manu-
facturing new types of products necessary
for the metalworking and mining industries
hard-alloy components.
In 1962, workshop #1 mastered produc-
tion of Mo square bars for further processing.
They were used for turning out round bars
and fat-rolled products. Starting with 1965
the workshop began manufacturing molyb-
denum rods of MC grade, of which one was
able to produce wires with increased recrys-
tallisation temperatures.
In 1963, the company was the frst in the
former Soviet Union to set up pilot produc-
tion of single crystals from molybdenum and
tungsten and products thereof including bars,
wires, fat-rolled products and strips. At dif-
ferent 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 crys-
tallographic orientation of OChM OM
grade (10-20mm) as well as wire for com-
ponents 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 sup-
pliers for six years after its launch and Mo
feedstocks from outside producers - over
seven years. In April 1962, hydrometallurgi-
cal workshop #4 went into service. This ena-
bled the company to largely satisfy demand
of its metallurgical workshops for raw mate-
Products of Uzbek integrated works of refractory and heat-resistant metals
96 Eurasian chemical market 1(85) February 2013
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rials. The workshop used a classic technol-
ogy of autoclave and soda decomposition of
artifcial scheelites at the beginning of the
process and acid decomposition of artifcial
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
artifcial scheelite decomposition and wash-
ing of wolframic acid in column equipment
signifcantly enhanced the production capac-
ity of the workshop and simplifed work of
maintenance personnel. Unlike acid treat-
ment with the help of hydrochloric acid used
at similar plants at that time, the integrated
works adopted a technology for processing
artifcial scheelites by nitric acid decomposi-
tion. In the course of the nitric acid method
of Mo concentrates processing, molybdenum
and accompanying rhenium entirely go into
solution. The company introduced a sorp-
tion technology for extracting molybdenum
and rhenium from solutions, which had been
a diffcult task due to their complex salt
composition.
As a result, the company had the possibil-
ity to use equipment and pipelines made of
acid-resistant stainless steel, improve equip-
ment 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 sorp-
tion 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 inte-
grated works not only to improve production
effciency but also to cut primary and aux-
iliary raw materials consumption as well as
to reduce manufacturing costs and manual
labour. In the early 70s, the company devel-
oped and introduced automatic production
processes for continuous purifcation of tung-
sten solutions from molybdenum, silicium,
fuoride, arsenic and permanent sedimenta-
tion of artifcial scheelite.
A technology for ammonium paramolyb-
date was improved as well. In 1978, a melt-
ing 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 prod-
ucts 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 con-
sumer 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 foat-
ing 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 prod-
uct in the global market.
Today, re-starting spare capacity, attracting
investments in projects for reconstructing the
benefciation plants and maintaining unique
tungsten and molybdenum manufacture is
of urgency proceeding from rising global
demand for tungsten and molybdenum prod-
ucts 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
fnancial and technical reasons. Now raw
materials for manufacturing Mo-containing
products are supplied from Olmaliq min-
ing and metallurgical combine (Olmaliq,
Toshkent province), while a tungsten feed-
stock 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 frst 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 hydro-
metallurgical 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 prod-
ucts and Mo-containing wastes by nitric acid
decomposition with producing ammonium
molybdate; 2) production of metallic powders
and Mo workpiece blanks by powder metal-
lurgy via reduction of molybdenum trioxide
in the hydrogen environment (ammonium
molybdate serves as a feedstock for MoO3);
97 1(85) February 2013 Eurasian chemical market
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3) manufacture of molybdenum rolled prod-
ucts 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, fat-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 tung-
sten, molybdenum wire and component parts.
Tungsten manufacture includes the follow-
ing stages: 1) hydrometallurgical processing
of tungsten concentrates and tungsten-
containing wastes with producing tungsten
anhydride (up to 3,900 tonnes / year); 2)
production of metallic powders and compact
tungsten workpiece blanks via powder met-
allurgy (1750 tonnes/year), where tungsten
anhydride serves as a feedstock; 3) produc-
tion 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-temper-
ature 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 molyb-
denum single crystals, Ti-W and Ti-Ta-W
compounds, Ti-W and Ti-Ta-W compounds,
ferromolybdenum and ferrotungsten, W-Cu
alloy ingots, Y-W rods, powdered tungsten
carbide and aluminium sulphate for water
treatment (coagulant).
Olmalik Kon-Metallurgiya
Kombinati
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, fve ore dressing
plants, two metallurgical works, sulphuric
acid units, an explosives plant and a lime-
stone plant.
The governmental decision to construct a
lead-zinc mine Altyn-Topkan became fun-
damental for the Olmalik mining and metal-
lurgical combine and the date of signing that
document became a birthday of the OKK. The
frst products rolled off its production lines in
1954. Altyn-Topkan lead and zinc combine
was renamed Olmalik Kon-Metallurgiya
Kombinati in 1967. This name corresponded
with both the profle and the geographical
location of the enterprise, which was justly
called a fagship 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 benefcia-
tion plant and a copper smelting works were
established on its basis. In 1959, an act of
acceptance of the frst 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 benefciation plant is the larg-
est 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
98 Eurasian chemical market 1(85) February 2013
Countries and regions
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The frst stage of copper benefciation
plant came on stream and the frst 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 molyb-
denite, 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 benefciation
plant (CBP) for further processing. The ores
from Sary-Chequ are benefciated at the ben-
efciation 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, refned lead and
sulphuric acid on the basis of tolling agree-
ments. The Qauldy mine, the Angren mining
administration, the Chadaq mining admin-
istration, 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 sup-
plied from the Saukbulak lime deposit.
The combines raw materials base is nota-
ble not only for mineral reserves but also for
some other useful resources including mine
dumps, mill tailings, and metallurgical pro-
duction wastes. Raw material reserves accu-
mulated 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 refned 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 produc-
tion 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
for making mineral fertilisers. Companies
from Tajikistan, Kyrgyzstan and Kazakhstan
are also among the consumers of the combine.
Copper, fne gold and silver occupy a
signifcant share in sales. Like other manu-
facturing enterprises of the country, Olmalik
Kon-Metallurgiya Kombinati has developed
and is currently successfully implementing
a programme for technical and technologi-
cal 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 produc-
tion of portland and white cements in the
Jizzax province and reconstruct grinding and
fne grinding units at the copper benefciation
plant.
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, fre 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 benefciation
plant on the basis of the deposit. The project
was fnanced by a DM 57m loan of Berliner
Bank under the guarantee of the Uzbek gov-
ernment and refnanced 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
Table 4. Properties of copper sulphate produced by Olmalik Kon-Metallurgiya
Kombinati JSC
Brand Grade
% of total
uSO4
output
uSO4x
5H2O, %
Cu, % Fe, %
H2SO4,
%
Insoluble
residue,
%
A
Top grade 40,60 % 99,50 25,32 0,017 0,025 0,03
1 48,20 % 98,76 25,14 0,017 0,025 0,032
B 1 11,20 % 97,50 24,83 0,020 0,025 0,033
99 1(85) February 2013 Eurasian chemical market
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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 deci-
sion of the court was made because the JV
had not performed its liabilities for repaying
foreign loans attracted under the governmen-
tal guarantee.
In spring 2009 the government of the coun-
try 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 com-
pany restored manufacturing facilities and
resumed production of the defcit 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
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 export-
oriented 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 near-
est 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 ffth of
those of the foreign analogues.
Qongirot natriy sulfat has bright devel-
opment prospects due to availability of
plentiful natural resources for producing
this chemical product. To realise the pro-
ject, the above-indicated reserves of mira-
bilite 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.
Boston Talk
Boston Talk LLC specialises in ver-
miculite 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, vermicu-
lite is useful over a wide range of applica-
tions in a number of manufacturing indus-
tries, the construction sector and agriculture.
Application felds 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 purifcation and industrial
wastewater treatment and separation of
required components including oil products.
Researches and pilot production confrm the
possibility of their use for purifying indus-
trial wastewaters from copper, nickel and
cobalt cations. The main consumers of prod-
ucts 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.
Paints and coatings
Today, about 400 various paints and coat-
ings 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 can-
not meet domestic demand, import deliveries
accounting for 50-52% of market volume.
Despite low production volumes, small com-
panies manufacture nearly 20% of total out-
put. They are basically focused on enamels
and semi-fnished 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 con-
sumers. 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 suppli-
ers. 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 par-
ticular, foreign paints and varnishes on the
basis of synthetic polymers, modifed 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 mar-
ket over the past years, this industry is
100 Eurasian chemical market 1(85) February 2013
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regarded as investment-attractive. Foreign
majors wish to set up their own production
facilities in the republic. Demand for coat-
ings has been lately displaying a stable,
upward trend not only in construction but
also in furniture production and mechani-
cal 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 signifcant 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 manufac-
turers to take all measures aimed at main-
taining and developing domestic coatings
production.
J V Toshkent lok boyok zavodi
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 frst facilities
began in 1946, and the frst 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 work-
shop 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
(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 fve
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 work-
shop. 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 (differ-
ent colours), PF-266, PF-115, PF-191, water-
based paints VD--112, VD--116,
VD--229, textured paint Khoper, var-
nishes PF-283 and BT-51, primers AK-011,
GF-0164 and GF-0163, red and yellow iron
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 signifcantly
improved.
The company has plans to produce electric
insulation, furniture and foor varnishes, auto-
motive enamels and mastics for underbody.
J V Lok Kolor Sintez
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-fnished varnish) and
20,000 tpy of paints, decorative and protec-
tion coatings with maximum resistance to
atmospheric conditions for mechanical engi-
neering, construction, aircraft and military
industries, railway transport as well as for
households.
Central offce of Lok Kolor Sintez
101 1(85) February 2013 Eurasian chemical market
Countries and regions
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Import-substituting products with no ana-
logues 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 technolo-
gies. At present, the company has more than
25 unique, proprietary developments. These
enable Lok Kolor Sintez to enter the interna-
tional market. In 2000 enamel Alur passed suc-
cessful tests of Marubeni Corporation and was
recommended for painting railway passenger
cars. The State Standard of Russia issued a
conformance certifcate for serial production of
primer and enamel Alur and a metal primer. The
primer and enamel Alur also passed accelerated
climatic tests at the Scientifc and Production
Association Paint Coating (NPO LKP;
Moscow) under moderate and cold conditions.
Lok Kolor Sintez has developed and put
into production fame resistant compound
Defam 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 (antisep-
tic) 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 fnish, 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 felds (analogue of
PF-115) and polyacrylic gloss paint Sharq
went into mass production.
J V 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.
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 frst
batches of the products being shipped to
Uz-Daewoo Auto CJSC in 1998.
The year 1999 was marked by the com-
mencement 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
certifed 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 cus-
tomers 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 var-
nishes, alkyde, acrylic melamine and acrylic
urethane resins; primers based on alkyde
melamine, chlorinated polyolefn, 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.
J V 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 spe-
cial protective coatings. Product quality is
tested by a certifed laboratory ftted out with
modern equipment and located at its produc-
tion 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 water-
based 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-fnished var-
nish 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
102 Eurasian chemical market 1(85) February 2013
Countries and regions
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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.
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 rectifed 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 com-
pany 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-
Darmon JSC a pharmaceutical supplier.
Till 2016, the company is expected to boost
ethanol production. The holding company
has already announced a tender for equip-
ment procurement.
Qoqonspirt
Established under the name
Novokokandskiy khimzavod (Novoqoqon
Chemical Plant) in Qoqon (Fargona pov-
ince) in 1983, Qoqonspirt initially produced
sulphuric acid and ammophos. In 1989, ferti-
liser manufacture closed down on account of
environmental problems, and the enterprise
retroftted its equipment in order to produce
ethyl alcohol from local wheat grain. The
capacity of the frst 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.
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 decali-
tres of technical alcohol was put into oper-
ation. The main feedstock was plant-based
raw materials sawdust and rice hulls. At
present, technical alcohol is obtained by re-
distillation of ether-aldehyde fraction a
by-product of grain-based ethanol manu-
facture. In 1996, there was commissioned
a complex for rectifed 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
rectifed ethyl alcohol (technical grade)
170,000 decalitres. Food ethanol manu-
facture was certifed for ISO 9001:2000
Quality Management Standards.
Biokimyo continuously works on quality
improvement. In particular, under a recom-
mendation of the companys engineers, an
additional column for fnal purifcation was
installed at a brew-purifcation department,
which allows for signifcant enhancement
of organoleptic and physical and chemi-
cal properties of the end product. There
were also carried out serious work aimed
at introducing new, more effcient 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 fnds application
in the cable industry, perfumery, scientifc
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.
Bektemir-spirt eksperimental
zavodi J SC
The construction of a 300,000 decali-
tres 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 rectifed food grade
alcohol production from grain was com-
missioned. 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 pro-
duction processes are made in Russia. The
shareholding of the state amounts to 51%.
103 1(85) February 2013 Eurasian chemical market
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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 com-
pany 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 dif-
ferent 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 gen-
eration disinfectants: ABK-Extra, BK-
Khloraktiv, 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 effcient
environmentally friendly disinfectants
by Akzo Nobel, Lonza, BASF including
coconut benzine dimethylammonium chlo-
ride, 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 possess-
ing antiviral (including HIV and hepatitis
viruses), antibacterial and fungicide prop-
erties. Disinfectant ABK-Khloraktiv in the
form of solutions made from tablets and
pellets is meant for disinfecting surfaces in
various premises, furniture, sanitary equip-
ment, clothing, dishware, toys, patient care
items, products for medical purposes and
cleaning utensils. Antiseptin is a ready-
to-use transparent chemical of a light blue
colour with a characteristic odour of methyl
alcohol. It possesses antimicrobial activ-
ity (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 specifc
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 prop-
erties. Antimicrobial agent DS-1 is a trans-
parent liquid of from colourless to light
yellow colours with a weak specifc odour
possessing antibacterial action (including
that against tuberculosis mycobacteria,
germs of especially dangerous infections
Manufacturing facilities and ready-to-use products of My lovely Asia
104 Eurasian chemical market 1(85) February 2013
Countries and regions
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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, cloth-
ing, 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 possess-
ing antiseptic, disinfectant, antifungal and
antiprotozoal actions. It is meant for dis-
infecting hands and antiseptical treatment
of mucous membranes. Skin antiseptic
Antiseptin-OP is a transparent light green
liquid possessing antimicrobial action
having antimicrobial activity against
gram-positive and gram-negative bacteria
(including against tuberculosis mycobacte-
ria), parenteral hepatites, viruses of paren-
teral hepatites and HIV, fungi, candidiasis
germs and dermatomycosis. Preparations
ABK-Insecticide and Tsimavet are trans-
parent light yellow or colourless liquids
containing cypermethrin and malathion as
active substances. They are distinguished
with sharp insecticide action against cock-
roaches, fies, feas, bed bugs, mosquitoes
and their larvae as well as ticks.
Private Enterpise Ablaqulov Y.N.
Private Enterprise Y.N. founded in
Chirchiq (Toshkent province) in 1998, con-
centrate its activities on manufacturing prod-
ucts for improving fre fghting effciency.
Over the past time, the company has devel-
oped on its own together with specialists of
Fire and technical laboratory of the Head
Administration of Fire Safety of Uzbekistan
process regulations, formulations and techni-
cal conditions of manufacturing products for
industrial enterprises from different indus-
tries including products for ensuring fre
safety.
Currently, the frm is the only in
Uzbekistan to make chemical products
for fre extinguishing foaming agents
produced depending upon application and
storage conditions under the brands Sitora,
Sitora-1, TFM-50. These are biodegradable,
hydrocarbonic, fuorosynthetic, cold resistant
foaming agents for general and special pur-
poses intended for extinguishing class A and
B fres 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 technol-
ogy 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 up-
to-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 foatation reagents and wetting
agents in various industries as well as liquid
coolants for metal processing and produc-
ing concrete and foam concrete products for
treatment of mould surfaces.
Chemical machine building
Ozbekkimyomash zavodi
Ozbekkimyomash zavodi JSC was
formed under the name of Uzbekkhimash
in1941 on the basis of evacuated Sumy
machine building plant. The plant laid the
foundation of developing chemical engineer-
ing in Uzbekistan. Initially, it manufactured
military goods but as far as 1942 began turn-
ing 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
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 affliate of National Holding Company
Ozbekneftgaz in 1999.
Ozbekkimyomash is a leading producer
of pressure vessels and equipment for chemi-
cal, 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 work-
shop, 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 includ-
ing Shortanneftgaz, Muborak Gazni Qayta
shlash Zavodi, Navoiyazot JSC, Maxam-
Chirchiq JV, Olmalik kon-metallurgiya
kombinati JSC and Navoiy kon-metallurgiya
kombinati. Ozbekkimyomash has also
supplied its produce on orders of foreign
companies: ABB-Lummus Global In
(USA), Metal Technology (Israel), Krebs-
Speichim (France), Achema JSC (Lithuania),
Khimprom (Volgograd, Russia), Severstal
(Russia), etc.
The company specialises in designing,
producing and servicing diverse equipment
including that for the oil and gas industry,
processing blocks, heat exchangers, col-
umn equipment, evaporating apparatuses,
pressure vessels, complete process units,
separation equipment, flters, air coolers,
centrifuging machines and pumps includ-
ing 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.
105 1(85) February 2013 Eurasian chemical market
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R & D base
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 scientifc and practical bases of com-
plex processing of mineral raw materials in
Uzbekistan. The laboratories of the institute
carry out fundamental and applied researches
into defning interrelations between compo-
sition, and properties of new compounds.
Scientifc researches are targeted at develop-
ing effcient technologies for deep processing
of oils from new deposits of Uzbekistan,
sustainable use of by-products of oil extrac-
tion, 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 fre-resistant materi-
als. One of the priority scientifc directions of
the institute is to develop bases of synthesis
and technologies for obtaining mineral and
organomineral fertilisers, promising defoli-
ants accelerating reapening of agricultural
plants, effcient polyfunctional stimulators
for growth of cotton and cereals.
The institute has obtained results of a fun-
damental character, which allowed it to cre-
ate a new subdivision of science adsorp-
tion-energetic stoichiometry. Researches into
scientifc foundation of controlling properties
of disperse systems, obtaining materials with
tailor-made properties, regulating colloid-
chemical processes, directed synthesis of
polyelectrolytes and surfactants, focculants
and sorbents enable the R & D establish-
ment to establish regularities of interrela-
tions between colloid-chemical properties of
disperse systems with their compositions and
structure.
There have been developed bases of cre-
ating effcient mineral and organomineral
fertilisers, defoliants and stimulators.
The distinctive feature of the researches con-
ducted is their link with problems and require-
ments 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 technol-
ogy for manufacturing solvents from gas con-
densate used for paints and coatings as well as a
solvent for extracting plant oils and press cakes;
3) energy-saving technologies for producing
innovative, effcient water-based and weakly-
soluble surfactants, emulsifers, cold bitumen
emulsions, high viscosity bitumens, emulsion
lubricants and adhesives from local feedstocks
and industrial wastes; 4) effcient ways of mix-
ing high viscosity oils as well as technologies
for producing and applying multipurpose cata-
lysts on the basis of nickel and molybdenum
compounds for manufacturing motor fuels,
lubricants and solvents directly from oil , its
residues and by-products; 5) scientifc bases
of processing polymetallic raw materials and
wastes of metallurgical production; the institute
has defned 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 produc-
tion of cement and exfoliated vermiculate for
manufacturing heat insulation materials as well
as enriching talc-magnesite ore for manufactur-
ing magnesite concentrate used for obtaining
high fame-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 sta-
bilisers, focculants 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 phospho-
rites; 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
effcient defoliants Sikhat and Mezon and
universal defoliants Nazhot, Sardor and
SuperKhMD-Zh have been developed; 15)
the institute has developed a highly effcient
technology for producing a nitrogen-calcium-
phosphate fertiliser from phosphorites of the
Central Kyzylkum.
Science intensive technologies devel-
oped 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 scientifc 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
Usturt Gaz Kimyo Majmuasi
in Qaraqalpaqstan
In 2008, National holding company
Ozbekneftgaz and a Korean consortium con-
sisting 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 match-
ing contribution for implementing a project for
construction of a gas chemical synthesis com-
plex (Usturt Gaz Kimyo Majmuasi; Usturt).
The raw materials base of the project
are gas and gas condensate deposits Surgil,
106 Eurasian chemical market 1(85) February 2013
Countries and regions
www. chemmarket. i nfo
Vostochniy Berdakh-Uchsay and Severniy
Bedrakh. Surgil the largest of these depos-
its 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 fnanced by
Ozbekneftgazs own fnancial 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
fnancial 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 m
3

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 m
3

of natural gas and turn out 4bn m
3
of com-
mercial gas, 400,000 tonnes of polyethylene
of various density, 100,000 tpy of polypro-
pylene 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 frst 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 produc-
tion and provide equipment and construction
services. The HDPE unit will manufacture
the following grades of the polymer: 1) injec-
tion moulding grades; 2) flm 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 pol-
ymers and impact-resistant copolymer. Europe,
Eastern and South-Eastern Asia are expected to
be the main sales markets.
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 ten-
der for a licensor of a shales processing tech-
nology. Its results will be known in February-
March and the construction of the plant may
begin by summer of 2014. In the frst half
of the current year, a feasibility study of the
project should be prepared and negotiations
on its fnancing be completed.
At the frst 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 con-
struction of the shale processing plant
was made by Russia-based Institute
Atomenergopeoject federal Unitary
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 fnancial resources a loan of the Fund
of reconstruction and development of
Uzbekistan and foreign credits.
J V 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 invest-
ments 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-
pleting the construction of the main building,
warehouses, a feedstock reception area, lay-
ing external and internal power supply lines,
a sewage system, and water supply, foreign
specialists proceeded to installation of up-to-
date 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 run-
ning 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 fnanced through
credits of the Export-Import Bank of China
(USD 190m), Ozkimyosanoats fnancial
assets and raised funds.
In 2011 Chinese CITIC Ltd signed
a contract with Ozkimyosanoat on turnkey
basic and detailed engineering and equip-
ment 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.
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
107 1(85) February 2013 Eurasian chemical market
Countries and regions
www. chemmarket. i nfo
wastes on the basis of hydrofning in the city
of Angren as well. The USD 15m project will
be realised on the production site of liquidated
Rezinotexnika JSC and fnanced 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 invest-
ment 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 under-
gone 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 prevail-
ing, 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, produc-
tion shutdown has occurred and processing
equipment has been dismantled either com-
pletely 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 diffculties.
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 chem-
ical industry. There is also a serious problem
that cannot be solved even by successful man-
agement decisions relating to the geographi-
cal location of Uzbekistan. Both the country
proper and all its neighbors has no access to
global sea trade and, therefore, to the cheap-
est cargo delivery by sea transport. Due to
insatiable needs of agriculture, river naviga-
tion is also unavailable de facto. As a result,
most fnished goods shipments and feedstock
supply chains are based on railway trans-
port. Whereas a rail network in the country
has substantially improved for the years of
independence and a number of its sections
have been electrifed, it is obvious that Uzbek
chemical producers cannot increase railway
tonnage capacity and improve infrastruc-
ture facilities in the neighboring countries.
Relatively cheap fertilisers of the domestic
producers are consumed within the limits of
Uzbekistan and border areas of the neigh-
bors, i.e. transportation costs account for an
insignifcant 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 encourag-
ing import-substitution seems to be quite
reasonable. Programmes for localisation of
manufacturing fnished goods, spare parts
and materials on the basis of industrial co-
operation 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) cus-
toms duties (except for customs formalities
charges) on imported processing equipment
and spare parts as well as on components
utilised in engineering processes for mak-
ing import-substituting products and not
manufactured in the country; 2) income tax,
single tax (for entities using a simplifed
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, authori-
ties of Uzbekistan retain effcient control
under the chemical sector, and not merely
administrative but also fnancial one.
Most chemical enterprises are under the
auspices of state-owned Ozkimyosanoat,
and manufacturing plants that are not its
affliates 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 fnancing 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 compa-
nies. The latter may be either general con-
tractors (subcontractors) or investors. At
the same time, tactical issues are decided
by the management of the daughter com-
panies 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 diffcult occupa-
tion because of a complex and contradic-
tory system of regulating foreign economic
activities, the inconvertible currency, obli-
gations to fulfll a number of plan fgures
traced through monthly statistical report-
ing, obligations to sell many types of prod-
ucts only via a state commodity exchange,
etc., Uzbek chemical companies and their
foreign partners in most cases look for-
ward with optimism. Uzbekistan pursues a
course of modernisation and is unlikely to
turn off this way.
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* Number of editions
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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