United Chemical Company URALCHEM Open Joint Stock Company (URALCHEM, OJSC) is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS.
URALCHEM is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest nitrogen fertilizer producer and the third by the volume of phosphate fertilizers production in Russia.
Production of ammonium nitrate and its derivatives in Russia in 2008, thousand tonnes of nitrogen
Source: “AzotEkon” research group
Production of nitrogen fertilizers in Russia in 2008, thousand tonnes of nitrogen
Source: “AzotEkon” research group
Production of phosphate fertilizers in Russia in 2008, thousand tonnes of P2O5
Source: “AzotEkon” research group
The company has facilities available for production of 2.7 million tonnes of ammonium nitrate, 2 million tonnes of ammonia, 0.8 million tonnes of complex fertilizers (NPK), 0.8 million tonnes of MAP and DAP and 0.5 million tonnes of urea per year.
In 2008 the URALCHEM produced , 26.3% of Russian ammonium nitrate, 15.4% of ammonia, 9.1% of urea and other fertilizers.
URALCHEM's key assets include:
- Kirovo-Chepetsk Chemical Works, OJSC, Kirovo-Chepetsk, Kirov region (KCCW, OJSC);
- Azot, OJSC, Berezniki, Perm region (Azot, OJSC);
- Voskresensk Mineral Fertilizers, OJSC (Minudobrenya, OJSC), Voskresensk, Moscow region;
- URALCHEM Management Company LLC (URALCHEM MC, LLC);
- URALCHEM Trading House LLC (Trading House URALCHEM), Perm, Perm region;
- Transport and service companies.
The rapid growth of demand for mineral fertilizers in BRIC countries and South-East Asia as well as the rising production of bio fuel assures the long-term development potential for the Company.
URALCHEM'S main competitive advantage is the development and production of new innovate fertilizers tailored to particular countries, markets and segments along with ammonium nitrate and urea – in accordance with the chosen strategy of “market tailored products”. Future implementation of this strategy means gradual reduction in production of standard types of nitrogen and compound fertilizers and a rise in production of specialized products.
Natural gas is the main raw material for production of nitrogen fertilizers. In order to hedge the risk of rising prices for raw materials, in December 2007 URALCHEM signed 5−year exclusive gas supply agreements with Gasprom and NOVATEK for 99% of its gas supply needs until 2012.