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  Rossiyskaya Gazeta (Russian Newspaper),  

"Organic Compound”. Nizhnekamskneftekhim Combines Economic Success and Concern for People


Organic Compound”. Nizhnekamskneftekhim Combines Economic Success and Concern for People

A Tatarstan petrochemical giant Nizhnekamskneftekhim has completed successfully a milestone year 2012. The team has marked its 45th anniversary with overfulfillment of the production plan and many record-breaking achievements in production.

To 2013 – with 13th salary

Vladimir Busygin, General Director, Nizhnekamskneftekhim, summarized the results of the past year during the conference dedicated to conclusion of a collective labor contract.

The company entered the year 2013 with a good surplus. It managed to sell products to the amount of RUB 126 billion. Commercial production growth made up 102.7 per cent. Overachievement of the plan made it possible to make a pleasant gift for the New Year – the 13th salary (an annual bonus). By the way, an average salary has grown by 10 per cent during the year and amounted to RUB 33,864.

Nevertheless, the year was not easy, Vladimir Busygin noted. It refers especially to the company’s foreign trade. In the second half of the year, prices reduced in the foreign petrochemical markets and competition increased. Nizhnekamskneftekhim is very sensitive to such changes since half of its product output is exported.

In order to preserve its positions in the foreign market the company had to run as much flexible price policy as possible. As a result, the revenue plan was fulfilled. Total export sales amounted to USD 1.9 billion.

Rubber of various types was sold with a good profit through long-term supply agreements with major tire companies. Its export increased by almost 8 per cent and amounted to 500 thousand tons, while the percentage of shipments to foreign enterprises made up 74 per cent. The portion of aggregate revenue from the export of rubber and plastics is 88 per cent.

Studying ABS

The past year was marked by expansion and modernization of the production facilities. The Company’s Strategic Development Programme scheduled till 2020 makes it impossible to be at a stop.

One of the most significant projects, which the company has managed to accomplish, is the construction of an ABS resin production plant. ABS is an impact-resistant thermoplastic resin, for which there is high demand in the market today. This promising material is used in car manufacturing as well as for manufacturing of electric appliances, sanitary ware, and office stationary, and in many other areas. The first batches of the product were manufactured at the new production facility. Once the design capacity is achieved, the plant will become a country-wide biggest ABS resin production facility.

The work on construction of a new olefin production complex continues. It will be capable of producing up to 1 million tons of ethylene per year. In the course of 2012, the company entered into the first license contracts for all processes and also into a FEED-design engineering contract.

Obviously, successful performance at the end of the year was achieved

by Nizhnekamskneftekhim due to all its subdivisions. Each one made, literally, a material contribution to the amount of dozens of tons.

A record was set by the butyl rubber plant. Its production output exceeded that of 2011 by 16 thousand tons. A number of factors impacted the production growth. These are expansion of sale markets, a balanced price policy and a complex of technical activities.

The synthetic rubber plant expands its capacity. Over 426 thousand tons of products were manufactured here that exceeds the result of 2011 by 27 thousand. And on December 17, the nine millionth ton of isoprene rubber was produced. To make it obvious: if all the briquettes are laid in a chain, it would encircle the globe 5 times.

New reactor blocks were launched at the enterprise that resulted in a significant increase in the isoprene monomer output. This year, modernization of production facilities continues. In particular, the seventh and the eighth reactors will be launched.

Plastic production increased by 4 thousand tons at the polystyrene plant. This material irreplaceable in many areas is in demand both in Russia and abroad. In 2012, the plant produced over 190 thousand tons of products. The share of polystyrene produced in Nizhnekamsk in the total Russian production output made up over 60 per cent.

A record production output was achieved by the ethylene plant. It produced over 605 thousand tons of its core product meeting world standards. The ethane furnaces were revamped at the plant: now, the gas, which used to be flared before, is fully consumed within the technological process.

Healthy Environment

The company has managed not only to earn but also to save a significant amount of money. Just to remind, the company currently implements an energy saving programme for the period 2011-2015 with a long-term view till 2020.

In 2012, Nizhnekamskneftekhim entered a wholesale electric power and energy market. An automated electric power fiscal metering system was developed for the enterprise. A five month presence in this market resulted in a material economic effect – RUB 96 million. In general, the energy saving program will allow saving of over RUB 1 billion.

The company demonstrates the same level of careful attitude towards the nature. The company has all necessary environmental protection facilities and runs an automated air and waste water condition monitoring. In 2012, the facilities were modernized. Activities were carried out to treat effluents and improve waterproofing of the industrial waste disposal site. Over the last 6 years, the company has managed to reduce the total amount of hazardous pollutions by more than 13 thousand tons. The amount of waste water discharged to water reservoirs has been reduced by two million cubic meters.

A healthy job climate is as important as clean air. The conditions created for the employees meet global standards. This was proved once again in 2012 by the specialists of a Czech certification firm “IQNet”.

A special focus is put on the employee’s healthcare, which is based on a good quality catering. There are 32 canteens and 10 snack-bars at the enterprise where one can have delicious yet inexpensive meal. The staff involved in the core production activity receives special dietary meals free of charge.

All the employees as well as the retirees registered with the Veterans’ Council have medical insurance. For this purpose, the company has allocated RUB 190 million that enables people to receive free treatment in the hospital. In addition to that, the company finances medicines. Following therapists’ recommendations, petrochemical workers improve their health in health and recreational camps. There are health centers at each plant and office building.

Non-Labor Achievements

The enterprise would hardly be capable of establishing records in production unless it sets records in sport. Nizhnekamskneftekhim is one of a little number of national petrochemical companies where popularization of mass sport and physical education is approached seriously and not for the sake of appearance only.

There are numerous sport facilities and thousands of employees keep fit using the athletic stadium and skiing lodge. Every year the company organizes sport competition and games for the employees including 60 sport events while about 13 000 people are involved. It has become a tradition to conduct the international rhythmic gymnastics qualifying tournament organized in cooperation with Alina Kabaeva’s Charity Foundation. Young gymnast girls from all over the country – from Kaliningrad to Vladivostok – gather at this competition. Also the company fosters young sportsmen – some 2 thousand children attend sport clubs of Neftekhimik. Every year, 8 hockey rinks are prepared for youngsters from teen clubs. A special source of pride is a hockey team Neftekhimik playing in the Continental Hockey League. The team includes 10 hockey school alumnae.

Its alumnus Nail Yakupov became world-famous. For the last 8 years, he has become the only Russian hockey player who was honored to be a NHL Draft number one pick .

Response to Housing Issue

Successful economic performance allows us to properly address social issues, too. Total payroll in 2012 in accordance with the collective labor agreement amounted to over RUB 500 million. Out of this amount, over RUB 300 million were paid out as retirement benefits, welfare assistance, and payments on the occasion of jubilees. RUB 10 million were paid out as loans to young families. As Vladimir Busygin stressed, 39 per cent of the company’s employees are women.

– Many of them have worked for the company for numerous years. Taking into account a special role of a woman in the society and children upbringing we do our best to create favorable conditions for their labor and recreation. They are given a one-time maternity allowance upon childbirth, and for this purpose, in 2012, RUB 9.1 million was paid out in aggregate. During the period of vacations a health improvement camp “Shipbuilding Timber Grove” and recreational camps function in the mode “Mother and Child”.

And though labor conditions are very near to the at-home environment, housing is still an urgent issue for many employees. Nizhnekamskneftekhim also helps address this issue. First of all, this refers to financing of the State Housing Fund attached to the President of the Republic of Tatarstan for the purpose of construction of mortgage housing. During the year, RUB 305 million were allocated to the State Housing Fund. In consideration for this allocation, 81 apartments were given to people in the 5 residential buildings under construction. 30 loans were issued to the amount of over RUB 8 million.

One residential building was commissioned in the past year. Housewarming was celebrated by 97 petrochemical workers and 11 employees from subsidiaries. Construction of three nine-storied residential buildings is financed from the company’s own funds. In 2013, it is planned to commission 14 thousand square meters of residential area.

To Help the City

The company’s activity extends far beyond its perimeter. This was mentioned during the conference by the Mayor of Nizhnekamsk Aydar Metshin:

– The labor conditions created in the enterprise provide a full guaranty of economic stability and allow the city and the district to develop plans for the future. A key criterion of a municipality’s successful social development is demographic data: in 2012, Nizhnekamsk beat a 25-year old record – its natural increase exceeded 4 thousand people. Many families have got a second and a third child that suggests people are confident of tomorrow and there are traditions, where the major one is to take care of people. We receive support from our major enterprise in everything. For example, together we address the issues of medical service quality improvement. Nizhnekamskneftekhim is the only enterprise helping to maintain transportation of retirees to their countryside houses at reduced prices. Thanks to the company’s efforts a monument to Musa Dzhalil* (*a great Tatar poet) was erected. A lot is done to develop sport. A basis is being developed that will help our sportsmen participate successfully in international contests so that the company finds itself among the world sport elite. The company’s economic potential grows. An ethylene plant will be built soon that will result in new highly paid jobs and attract young people to the industry. Due to a well-elaborated relationship structure, together we will be able to make our city even more prosperous.



80, Pushkina Str.,
420015 Kazan, Republic of Tatarstan, Russia

Tel.: +7 (843) 277-94-02
Fax: +7 (843) 277-94-03