Today, the annual general meeting of shareholders of the petrochemical flagship is held in Nizhnekamsk. DAILY’s editor reports the detail.
The function to mark the start-up of the ABC-plastics unit was timed to coincide with today’s annual general meeting of shareholders held in Nizhnekamskneftekhim OJSC.
This unit as well as a new synthetic rubber production line launched at the plant was attended by the delegation headed by Rustam Minnikhanov, the President of Tatarstan.
These plants may be called the children of the President of Tatarstan since they are a living manifestation of the task set to NKNK’s top management – to abandon the production of monomers and switch to polymers, which, in this case, must be also import-substituting. The President made no bones about his satisfaction. Usually giving modest appraisals, this time he was generous with expressions in the superlative degree. Thus, Minnikhanov said that during the 45 years of the existence of NKNK the highest ever performance was achieved in the last year. Now, the quantity of synthetic rubbers and plastics (the ultimate processing stage in the industry) accounts for 70% of the total production volume. There are 8 products now, and two innovative types of rubber (butadiene rubber PBR-Li and diene-styrene synthetic rubber) have been developed and implemented by own resources of the enterprise. The products, which were imported earlier, now are manufactured on site and, in fact, cost twice cheaper than their import equivalents. From the global market point of view, the company looks well-established, too: its share in the isoprene rubber market is 44%, 16% — for butyl rubber, and 6% — for butadiene rubber.
Mr. Minnikhanov noted that Nizhnekamskneftekhim alone paid taxes to the budget of the republic in the amount of over RUB 6 billion that equals to the income of some regions. “We are awaiting dividends”, he said jokingly.
This issue concerned also ordinary shareholders of the petrochemical giant. The voting results announced were not disappointing: 30% of NKNK’ net profit, i.e. over RUB 5 billion, will be allocated to dividend distribution. Thus, RUB 2.78 will fall on each RUB1 par value ordinary and preferred share that exceeds the last year figure by 42 kopeks. As far as the top management concerned, it received remuneration in the amount of RUB 51 million (after all, quite a moderate amount for the flagship of the national petrochemical industry).
Maximum revenue earned
Vladimir Busygin, General Director, Nizhnekamskneftekhim OJSC, reported to the shareholders about the results of the year. According to him, the production plan was overfulfilled and the maximum yield of rubbers and plastics was achieved. Sales revenue in 2012 exceeded RUB 125 billion, while almost half the entire sales fell on export.
Vladimir Busygin said the research and technological base created at the enterprise enabled it to develop and implement a number of advanced know-hows. These are such in-house products as a one-stage isoprene synthesis process, the only halobutyl rubber production facility in Russia, and a pilot production process test line for the new grades of synthetic rubber, developed under a government contract.
General Director of Nizhnekamskneftekhim OJSC noted that in 2012 a large scale work on the implementation of the president’s programs aimed at the development of the petrochemical industry was completed. Over RUB 70 billion have been allocated for this purpose from the company’s own sources thus having enabled the company to carry out a comprehensive modernization and expansion of the capacity, increase of the conversion depth, and broadening the product slate.
Today, 30% of NKNK’s production output is consumed by the local market, however, as Mr. Busygin mentioned, the amount supplied to Tatarstan enterprises must be brought to, at least, 70% of polymer products. Therefore, the issue of developing of a plastic processing hub in the republic and granting some favorable conditions to polymer processing enterprises is arising.
At the time being, Nizhnekamskneftekhim focuses its efforts on the implementation of a large scale project aimed at the construction of an olefin production facility with a 1 mln tpa capacity for ethylene with an integrated 699 thousand tpa capacity polyethylene plant and a 400 thousand tpa polypropylene plant. License agreements have been concluded for the whole range of the technologies necessary, and the project documentation is being prepared actively. The start of the construction is scheduled for 2013, the site preparation is carried out now.
The construction of the 4th stage of a 50 thousand tpa polystyrene production facility and modernization of the alpha-olefin production unit continue. Over RUB 10 billion will be invested in this program.