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17.04.2008  
  “Vremja I Dengi” (“Time & Money”), Emilia Khabibullina  
 

Rustam Minnikhanov: "Thank you for the aggressive strategy". "Kazanorgsintez" held its shareholders meeting


 
  Passed year

"Kazanorgsintez" is a large company. According to the 2007 results, the Company produced 40% of all polyethylene produced in Russia while the Company’s total revenue made over RUB 21.5 bln reflecting an increase by 5,8 bln or 37.3% over the previous year, and net income was RUB 2.6 bln. Physical volume of produced goods made 128% to the total volume of 2006.

It should be noted that in 2007 the Company twice increased its previous year export volumes, i.e. up to 27% or RUB 5.8 bln in money terms.

The Company made all tax payments to all-level budgets in due time in the total amount of no less than RUB1.24 bln.

Besides, it was in 2007 when a Bisphenol-A production plant reached planned production figures; the construction of a polycarbonates plant was completed (the start-up is scheduled for the current year); the upgrade of the basic production facility of HDPE of the Plant for Production and Processing of HDPE was completed, and the first-ever in the country industrial production of bimodal high density polyethylene and linear low density polyethylene was carried out on the Plant.

In other words, the year 2007 became a determinative one in terms of realization of the first stage of the OJSC “Kazanorgsintez” development program. Since the launch of this program in 2004, over RUB 32.2 bln has been allocated for the program financing.

All the above-mentioned information was presented to the shareholders by General Director of OJSC “Kazanorgsintez” Leonid Alekhin. Besides, the head of the Company told about the technical, staff, ecological, and social policy of the company giving a special attention to the results obtained in each of these spheres.

Shares

As the year under report was another success for the Company, the shareholders meeting was able to approve the proposal made by the Board of Directors of OJSC “Kazanorgsintez” to distribute 30% of the Company’s net income or RUB 781 mln for dividends. Thus, the Company will pay 25 kopeks (RUB 0.25) per privileged share, 42.07 kopeks (RUB 0.4207) per ordinary share. Usually, the privileged shares bring more dividends but OJSC “Kazanorgsintez” shareholders decided to leave them on the last-year level while the dividends per ordinary shares were increased by 18.7%. One thing should be noted here. Taking into account that the issued share capital of the Company is made by 93.72% of ordinary shares, one can suppose that the structure of OJSC "Kazanorgsintez" owners/beneficiaries could be changed in the nearest future.

Prime Minister

The shareholders meeting was held with the participation of Prime Minister of the Republic of Tatarstan Rustam Minnikhanov. He said that despite of all difficulties the passed year was a successful one for OJSC “Kazanorgsintez” and in his conclusion words expressed thanks to the OJSC “Kazanorgsintez” Board of Directors for the “aggressive strategy”.

Besides, Prime Minister added that 2007 became a success for the whole Republic, as well. Thus, the industrial production growth rate made 8.8%, Gross Regional Product (GRP) exceeded RUB 740 bln. The capital investments were made for about RUB 200 bln (a y-o-y increase of 9%). It wouldn’t be a secret to say that the most attractive companies in terms of capital investments are OJSC “Tatneft", "KAMAZ", "TAIF", OJSC “Nizhnekamskneftekhim” and OJSC “Kazanorgsintez”.

Talking about the infrastructure for small-size and medium-size businesses, the Prime Minister drew attention to the special economic area "labuga" with its 7 already registered residents to be no less than 40 in perspective.

Rustam Minnikhanov said that all mentioned figures allowed the government to realize their plans in economics and all aspects connected with the quality of life of the population".

He said that the growth of the processing industry share in the economy of the Republic of Tatarstan indicates the progress of the diversification and innovative development process correlated with the less dependence of the Republic on oil resources. Nevertheless, Rustam Minnnikhanov says that today the Republic processes only 5% of all feedstock produced in the Tatarstan; this is still not enough as the task is to improve these figures up to 30%.

Integration with Gazprom

After the shareholders meeting was closed, Prime Minister of the Republic of Tatarstan Rustam Minnikhanov, Chairman of OJSC “Kazanorgsintez” Board of Directors and General Director of PSC “TAIF” Albert Shigaboutdinov, and General Director of OJSC “Kazanorgsintez” Leonid Alekhin answered a number of question from journalists with the top-asked question concerning the expected integration of “Kazanorgsintez” with Gazprom.
"We have clear understandable integration program to go through", said Rustam Minnikhanov. He added that for that moment the Republic hadn’t any unsettled matters with OJSC "Gazprom"; the required usual work is carried on to provide OJSC “Kazanorgsintez” with feedstock (i.e. raw materials produced by “Gazprom”) on a stable and long-term basis and redirect the investments made to the Company into its new productions. He said: “The general structure of the future cooperation and the ways to realize it have been determined already. The political decision was made by the President of the Republic of Tatarstan and PSC “TAIF”, the principal shareholder of OJSC “Kazanorgsintez”, as well as the future shareholder of the Company - OJSC "Gazprom" – and its subsidiary structure - "SIBUR". The serious legal work is to be done with all corresponding documents. This is mutually beneficial process for both Tatarstan and the Company’s owners”.

Trusteeship

Shareholders voted for a new eleven-member Board of Directors, consisting of PSC "TAIF" General Director Albert Shigaboutdinov, his First Deputy General Director Rustem Sulteev and Deputy General Director for Refinery & Petrochemicals Vladimir Presnyakov, Head of Department for Corporate Governance, Property & Investments PSC “TAIF” Andrey Sarkin and Head of Department for Finance and Economy PSC “TAIF” Dmitrij Teslenko. The other members of the Board of Directors are General Director of OJSC "azanorgsintez" Leonid Alekhin, Head of the Department of petrochemical complex of the Cabinet of Ministers Office of the Republic of Tatarstan Rinat Sabirov, First Deputy General Director of OJSC "Svyazinvestneftekhim" Sergey Alekseev, State Advisor to the President of the Republic of Tatarstan for Economic Issues Evgenij Grishin, General Director of OJSC “Tatenergo” Ilshat Fardiev. Minister of Economy of the Republic Marat Safiullin was approved at the Board of Directors as the state representative based on the special right (“golden share”).

Albert Shigaboutdinov was re-approved at his status of the OJSC “Kazanorgsintez” Chairman of the Board. The Board of Directors confirmed the current appointment of Leonid Alekhin as the General Director of OJSC "Kazanorgsintez".

CJSC “PricewaterhouseCoopers” was approved to be the auditing company for 2008.
 
 
 

 

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