NIZHNEKAMSKNEFTEKHIM

OAO "Nizhnekamskneftekhim"

OAO Nizhnekamskneftekhim is a dynamically developing high-tech petrochemical company of the Russian Federation within TAIF Group. The Company’s production complex embodies  10 Major Plants, 7 Centers (including Research & Development and Design Centers), as well as Auxiliary Facilities and Departments, located in two production areas and having centralized transport, electric and telecommunication infrastructure.

The range of products output comprises more than one hundred items. Major commodities are:
- general purpose and specialty synthetic rubber;
- plastics: polystyrene, polypropylene, polyethylene;
- monomers being a feedstock to produce rubbers and plastics;
- other petrochemical produce (ethylene oxide, propylene oxide, alpha-olefins, surfactants, etc).
OAO Nizhnekamskneftekhim’s birthday is 31 July, 1967. That day, the first produce of the Central Gas Fractionation Plant, the first-born production facility of OAO Nizhnekamskneftekhim, was shipped to consumers.

Over 45 years of its production activities, the Company turned into the largest petrochemical complex in Eastern Europe. The Company products are exported to more than 59 countries of Europe, America and South-East Asia. About 50% of entire products is export-marketed. The most large-scale products sold for export include synthetic rubbers, plastics, styrene and neonol.
From year to year, OAO Nizhnekamskneftekhim is improving technical and economic indices of its activities. Over 2010, the marketable products output of OAO “Nizhnekamskneftekhim” amounted to 94.4 bln. rubles, which is 1.5 times higher compared to the previous year. Profit on sales exceeded 12 bln. rubles, that is 4 times more then the level of 2009. It was for the first time when net profit surmounted 7 bln. rubles. Export deliveries reached 47 bln. rubles. or 50% of the total sale volume. The Company capitalization increased 1.7 times and amounted to 39.3 bln. rubles.
OAO Nizhnekamskneftekhim is implementing a large-scale investment program conditioned by the Company's strategy which consists in the following:
- strengthening the Company's position as a producer of a wide range of rubber grades, in domestic and worldwide markets;
- confirming the status of a major player in producing and selling a wide range of plastics;
- developing new and improving existing external and internal sales markets;
- setting up large-scale plants for production of basic monomers and a wide range of deeper processing produce.

Within the Complex Strategic Development Program till 2016, the Company is deliberately implementing activities in order to extend the capacities for production of basic monomers, rubbers and plastics; diversification of produce grade slate.

Currently the Company occupies the leading position among domestic producers of synthetic rubbers. Their aggregate output in 2010 became maximum for the whole Company’s history: more than 500 thousand tons of seven rubber types.

The Company is successful in accomplishing the task on extension of the level of hydrocarbon processing in order to manufacture higher value added products, such as plastics. All rubber types produced in 2010 amounted to 544 thousand tons. Within the near-term outlook, plastics output will grow due to commissioning the ABS Plant.
Within retrofit of the Ethylene Complex, acetylene hydrogenation and commodity ethylene purification units were commissioned at the Ethylene Plant. It allowed to produce in 2010 the record 593 thousand tons of ethylene, and 13 mln. tons since the Plant start-up. 
The Company Strategic Development Program was elaborated in the context of principal trends of the Presidents’ Development Program of Gas-Petrochemical Complex of the Republic of Tatarstan and in full compliance with its goals and objectives. It also corresponds to the Strategy of development of Russian chemical and petrochemical industry up to 2015, being implemented by the RF Ministry of Industry and Commerce.

With the purpose of mutually-beneficial industrial cooperation, within the framework of contribution in small business development, and in order to establish the area of steady consumption of polymer produce, Nizhnekamsk Industrial Zone was set up on the basis of OAO Nizhnekamskneftekhim. Currently, the companies being the members of said Zone successfully operate in Nizhnekamsk District, Mendeleevsk and Yelabuga. They manufacture a wide range of polymer and rubber moulded articles, car components, extrusion-grade polystyrene, as well as different polymer films and threads. In 2010, processing of Nizhnekamsk plastics was launched within the Industrial Park Kamskiye Polyany, where polypropylene multifilament threads and stretch film production lines were commissioned. In 2010, within the companies of Nizhnekamsk Industrial Zone, products were manufactured for the amount of about 5 bln. rubles and 10%  of OAO Nizhnekamskneftekhim’s plastics processed. In total across the Zone, establishment of new processing capacities gave rise to creating 500 working places.

In order to finance the program of capital investments, OAO Nizhnekamskneftekhim utilizes both own revenue and borrowed funds. The Company attracts funds from global financial institutions, including long-term loans against security of Western Export Credit Agencies.

OAO Nizhnekamskneftekhim’s team is successful in the field of energy saving. For the previous four years, within the Energy Saving Program, the Company introduced 457 activities with the economic effect of 2.7 bln. rubles. Currently, the Company has approved the new Energy Saving Program, tailored for the outlook until 2020. Within said Program, 231 activities have been scheduled, which will ensure saving of 360 mln. kW/h of electrical energy, 1.9 mln. Gcal of heat energy, 47 thousand tons of fuel equivalent.

Besides focusing its main efforts on operating activities, the Company pays advanced attention to environmental protection. Since 2004, the Environment Management System has been in place in full compliance with the International Standards ISO 14001 and in line with the perspective Ecological Program till 2015, within which 115 activities have been implemented (17 of which – in 2010). The aggregate costs on this program make up 1.6 bln. rubles.
The development strategy of the Company which occupies the leading position in the gas-petrochemical complex of the Republic of Tatarstan, availability of highly qualified staff and powerful production base are the guaranties of OAO Nizhnekamskneftekhim’s further successful operation. The selected route will ensure strong positions of the Company in the developed segments of Russian and overseas commodity markets, enhancement of competitiveness of the produce, and, accordingly, income level of the Company’s employees and shareholders, growth of tax deductions to the budgets of all levels, followed by the Company’s increased contribution in the development of the City of Nizhnekamsk, economy of the Republic of Tatarstan and the Russian Federation.