- About company
- Investor and shareholders
- Financial Information
As part of the import substitution program, the coagulating agent GOHA-8 produced by OOO Khimprodmarket (Naberezhnye Chelny) was successfully introduced in the process of filtered water production by the Water Supply, Sewage and Waste Water Treatment Department of OAO Nizhnekamskneftekhim.
On former occasions, aluminum polychloride (PAC-04) produced in PRC was used for water treatment on the water pump station. Laboratory and pilot-scale tests that have been carried out by the personnel of R&D Center and the Water Supply Department have shown high efficiency of the domestic coagulant: filtered water quality complies with the plan of analytical control.
Specialists of the Department for Chemical and HC Feed Supply estimate that the economic effect will be about 7 million rubles.
On August 14, 2014, the millionth ton of polyethylene was produced at the polyolefins plant of OAO Nizhnekamskneftekhim since its commissioning.
The first polyethylene was produced at this plant on February 3, 2009. Spherilene cascade gas phase technology of LyondellBasell (Italy) is used in Nizhnekamsk that is unique in the domestic practice and is intended for designed for production of granular polyethylene both black and natural colors.
Out of 55 grades of polyethylene as per the License Agreement, production of 34 grades has been organized at the plant to date, two of them are of pigmented type. The following grades are of the highest demand: РЕ 6148С, РЕ 6948С and РЕ 6949С that are used for production of film and pipes, and РЕ5118QM, PE5118Q and РР5122РМ - for production of stretch film.
Polyethylene of OAO Nizhnekamskneftekhim is of a long-term thermal stability and is resistant to thermal-oxidative degradation both in the course of the production process and in its subsequent processing, and when using the manufactured articles.
97 % of Nizhnekamsk polyethylene is sold in the domestic market, the rest is exported.
In August OAO Nizhnekamskneftekhim intends to produce the maximum amount of propylene block copolymers (over 10,000 tons) as compared to other months of the year. The increase is attributable to higher demand for unique grades and regular activities of the company towards reduction of homopolymers production.
The following grades are among propylene block copolymers produced by the company:
- РР8348SM – used for production of rigid packing by high speed injection molding;
- РР9240К, РР9240М, РР9240N, РР9240Р – block copolymers with increased impact strength and frost resistance;
- РР8332М, РР8300N, РР8400N – for production of injection articles at high plant capacity;
- РР8300G, РР8400G – used for compounding and production of extrusion parts with high quality requirements;
- РР7445LM – for production of lids and caps with high degree of resilience, and the sophisticated and multicomponent structure.
In July 2014 representatives of Bridgestone and Pirelli conducted the second party audit at OAO Nizhnekamskneftekhim. The auditors visited butyl and synthetic rubber plants, research and technology center, quality control department and chemical raw materials department, they familiarized themselves with the state of affairs in the sales department and in the quality management system subdivision of the technical department.
In the course of the meetings with specialists and the company management, the prospects of cooperation and commercial terms of supply were also discussed. It was noted that many consumers of our products rely on the supplier’s passport without any incoming control, trusting the quality of rubber produced by OAO Nizhnekamskneftehim.
By results of the audit, the quality management system was highly appreciated whose main objectives are fulfillment of the customers requirements, increase of sales and the company’s profile raising.
We remind that the main strategic consumers of Nizhnekamsk rubber are the leaders of the global tire market such as Michelin, Goodyear, Bridgestone, Continental.
Early July, within the framework of the import substitution program and in order to raise its product competitiveness, OAO Nizhnekamskneftekhim organized production of the next new polypropylene grade РР4445T.
РР4445T is a random ethylene propylene copolymer with a target melt flow index of 60 g/10 min. The new grade is of high transparency (enhanced optical properties). Application of the product is high-speed thin-walled molding of food and technical packing.
As is known, for a long period of time OAO Nizhnekamskneftekhim has been producing a well-proven grade РР4445S with a target melt flow index of 40 g/10 min that substituted many imported equivalent products of famous companies, such as LyondellBasell, Borealis, Sabic, Braskem, Ineos, Honam Petrochemical etc.
Since recently, the processors have been requesting to explore the possibility of increasing the target melt flow index of ethylene-containing polypropylene grades to ensure reduction of the processing cycle time and increase of capacity.
Therefore, it was necessary to organize production of a new product grade similar to the imported grade PP QR 675K produced by Sabic with effective name Qrystal, i.e. “high transparent” that is favorably compared with products of other competitors.
OAO Nizhnekamskneftekhim was successful in developing the product that is equivalent to PP QR 675K. Investigations showed that PP 4445T polypropylene has improved optical, organoleptical and physical mechanical properties equal to those of imported equivalent products.
On June 23, 2014, NKNK FINANCE PLC paid out the coupon yield in the amount of USD527.1 thou. to NKNK-2015 Eurobond holders and paid back 1/10 of the issue in the amount of USD3,100.6 thou. in line with the repayment schedule.
OAO Nizhnekamskneftekhim’s Eurobonds (NKNK-2015), with the debut issue that occurred at the end of 2005, were listed and are traded at the Irish Stock Exchange (Dublin). The Issuer of Eurobonds is SPV NKNK Finance plc (Ireland). NKNK-2015 Eurobond issue amounted to USD200 mln, the interest rate is 8.5% per annum over the total circulation period, with yield payment every half a year. Eurobond circulation period till final repayment is 10 years.
The amount of NKNK-2015 Eurobonds being circulated as of June 23, 2014, with due account for voluntary exchange of part of NKNK-2015 Eurobonds for new securities “NKNK-2012”, initiated by OAO Nizhnekamskneftekhim on November 3, 2009, and repayment of part of Eurobond issue, is USD9.3 mln.
The principal debt under NKNK-2015 Eurobonds is repaid by equal instalments - 1/10 of the issue in circulation – every half a year together with Eurobond yield starting from June 22, 2011, up to December 22, 2015.
During the term of the Company’s activity, it has never had any default events, duly paid out coupon yields and the amount of the principal debt under all obligations.
Within the import-substituting program, OAO Nizhnekamskneftekhim introduced 4 new polypropylene grades in the first half of Year 2014:
- high-flow block copolymers РР8348Р (melt flow index =15-25) and РР8348R (melt flow index =25-35), being analogues of such known brands as Braskem C706-21NA, Borealis BH381MO. Large quantities of these grades are used for production of articles at rigid packaging market;
- block copolymers with high content of ethylene chains (melt flow index 12-15%) , grades РР9240N (melt flow index =10-15) and РР9240Р (melt flow index=15-20), for production of high impact value and cold-resistance articles.
At present the above mentioned polymers undergo performance tests at sites of molded articles manufacturers , particularly –rigid packing , large-size containers and automotive components.
Within the first 5 months of the year as compared to the same period of year 2013 , specialists of OAO Nizhnekamskneftekhim managed to increase production of ethylene containing copolymers by 4,8% due to production decrease of homopolymers and transient lots.
In 2014 it is expected to introduce high-flow block copolymers of РР8440Т grade and random copolymer of РР4445Т grade with melt flow index of =60 g/10 min.
OAO Nizhnekamskneftekhim is the largest petrochemical company, taking up the leading position in the production of synthetic rubbers and plastics in the Russian Federation. The Company is part of TAIF Group. The Company was founded in 1967, the main production facilities are located in the city of Nizhnekamsk, Republic of Tatarstan.The product slate includes more than 120 items. The Company products are exported to 50 countries of Europe, America and South-East Asia. Export share in the total amount of products makes about 50%.
Unscheduled session of OAO Nizhnekamskneftekhim Board of Directors presided by Mr.V.M. Busygin , the Board Chairman, was held in Kazan on June 16, 2014.
The Board of Directors of OAO Nizhnekamskneftekhim announced the decision to accept the voluntary resignation of Mr. O. Nesterov from his position as General Director of OAO Nizhnekamskneftekhim.
Members of the Board of Directors have elected Mr. Azat Shaukatovich Bikmurzin for the position of General Director of OAO Nizhnekamskneftekhim , who previously held the position of Deputy General Director for Industrial Construction and Revamp.
OAO Nizhnekamskneftekhim is the largest petrochemical company, taking up the leading position in the production of synthetic rubbers and plastics in the Russian Federation. The Company is part of TAIF Group. The Company was founded in 1967, the main production facilities are located in the city of Nizhnekamsk, Republic of Tatarstan.
The product slate includes more than 120 items. The Company products are exported to 50 countries of Europe, America and South-East Asia. Export share in the total amount of products makes about 50%.
On April 14, 2014 general meeting of shareholders of OAO Nizhnekamskneftekhim took place and results of the Company activity in 2013 were summed up. Rustam Minnikhanov, the President of the Republic of Tatarstan, participated in the work of the assembly.
The General Director of OAO Nizhnekamskneftekhim Oleg Nesterov has delivered a report on financial and economic activity.
To achieve its objectives under the unstable market conditions, the Company had to compensate for the overall price decline by increasing the volumes of production and sales of rubber and plastics, which has resulted in the sales revenue of 119.8 billion rubles. Commodity output relative to 2012 in comparable prices was 103.9 percent. Additional volume of 60 thousand tons was produced. Last year maximum production volumes were achieved for products such as ethylene, propylene, styrene, butyl rubber and SKD-N rubber.
Last year, one of the priority areas of OAO Nizhnekamskneftekhim activity was environmental protection. 88 measures were undertaken in 2013 in the context of the long-term ecological program. The Company has fulfilled all its obligations for resettlement of residents of Alan and Martysh villages.
Arrangements have been made on a regular basis in order to reduce the energy intensity of individual facilities and the production complex as a whole. “Energy passport of industrial consumer of fuel and power resources” was worked out in the Company which expires in 2016, certain actions were taken for bringing Nizhnekamskneftekhim to the wholesale market of electric power and capacities. Since 2012, the Company operates the automated information system of fiscal metering of electric power.
Stable operation of the Company promoted conducting the efficient social policy. The average salary reached 34.5 thousand rubles. Activities covered by the bargaining agreement were financed in full measure, and social payments have been made.
7.4 billion rubles of taxes and dues was transferred to the consolidated budget of the Republic of Tatarstan in 2013, inclusive of 786 million rubles – to Nizhnekamsk city budget.
Today, the Company elaborated a plan for transition to the next stage of development based on the implementation of the strategic program until 2020. The basis of this program is implementation of the large-scale project for construction of the Olefins complex with a capacity of 1 million tons of ethylene and polyolefins.
The shareholders have approved the annual report, the annual accounts, including the financial results of 2013.
Following the results of financial and economic activity of the Company in 2013, 1.83 billion rubles will be allocated for dividends payment that is 1 ruble per every ordinary and preferred share.
The annual General meeting of shareholders of OAO Nizhnekamskneftekhim has elected the Board of Directors consisting of the following members:
Sergey V. Alekseev - First Deputy of the General Director, OAO Sviazinvestneftekhim;
Vladimir M. Busygin – Deputy General Director of PSC TAIF for management and strategic development of OAO Nizhnekamskneftekhim;
Radik R. Gaizatullin – Finance Minister of the Tatarstan Republic;
Ravil Kh. Zaripov – Deputy Prime Minister of the Tatarstan Republic – Minister of Industry and Trade of the Tatarstan Republic;
Nahil U. Maganov – General Director of V. Shashin OAO Tatneft;
Jelko Milich – Executive Director of IPCO - TRADING S.A.;
Oleg N. Nesterov – General Director of OAO Nizhnekamskneftekhim;
Vladimir V. Presnyakov – Deputy General Director for Petrochemistry and Oil Refining, PSC TAIF;
Alexander L. Rappoport – Managing Partner of Law Office “Rappoport & Parnters”;
Rinat K. Sabirov – Assistant to the President of the Republic of Tatarstan (agent of the State);
Guzelya M. Safina – Deputy General Director for Economics and Finance, PSC TAIF.
The audit commission was elected consisting of:
Rustam M. Akhmetov – Deputy General Director for Economics, OAO Nizhnekamskneftekhim;
Fanis G. Gabdulkhakov – Head of Economic Analysis Department of the Finance Ministry, the Tatarstan Republic (agent of the State);
Dmitry A. Evdokimov – Head of Department of PSC TAIF for Management and Strategic Development of Nizhnekamskneftekhim Group;
Olga V. Ignatovskaya – Chief Accountant of PSC TAIF;
Liliya F. Sulteyeva – First Rank Economist of Finance-and-Economy Department, PSC TAIF.
Shareholders have approved ZAO PricewaterhouseCoopers Audit to be the auditor of the Company for the year 2014.
In line with changes of the federal legislation the shareholders have approved changes and additions introduced into the Charter of OAO Nizhnekamskneftekhim and regulations on the General meeting of shareholders of OAO Nizhnekamskneftekhim and approved the redrafted versions.
After completion of the annual general meeting of shareholders of OAO Nizhnekamskneftekhim, the first meeting of the Board of Directors traditionally took place in a new composition. The new Board of Directors welcomed a suggestion of the RT President, R. Minnikhanov, and again elected Vladimir Busygin as the Chairman of the Board of Directors and also confirmed authorities of Oleg Nesterov as the General Director of OAO Nizhnekamskneftekhim.