Victor Kail,
Executive Director

Nevinnomyssky Azot is the largest producer of nitric fertilizers in Russia and a leading chemical enterprise of the southern federal district.

Nevinnomyssky Azot birthday is considered to be the 2nd of August of 1962 when fisrt batch of ammonia was produced.

In 1965 the enterprise started production of organic synthesis products, first of all, butyl alcohol. Later, urea production was initiated based on ammonia and carbon dioxide gas processing. New facilities were commissioned for production of sebacic acid and acetylene; acetic acid and acetic anhydride; acetaldehyde plant of facility No.9 was opened. In 1970, compound fertilizers production complex was started-up. In 1973 ammonia was obtained in the first Soviet Union large-size plant of facility No. 1-B. Later on ammonium nitrate plant was commissioned using the most advanced technologies.

Every year of Nevinnomyssky Azot history was marked by new product launch and introduction of new technologies.

Experience in the development of production and human resources potential gained by the enterprise in the period of Soviets permitted Nevinnomyssky Azot to adopt to new economic condition with minimal loss. After the production collapse in early 1990s gradual rise of output have taken place.

After Nevinnomyssky Azot joined EuroChem, a large-scale production upgrading started. Strategic development program has been worked out at the enterprise, and is currently being implemented. The program involves ammonia and nitric acid facilities reconstruction. These measures should reduce energy consumption, improve environmental situation, and increase production rate.

The product mix of the enterprise is represented by a wide range of products generally subdivided into two main groups: mineral fertilizers and organic synthesis products. This subdivision is a guarantee of the stable development in the event of market decline for one of the groups.

Nevinnomyssky Azot is a leading producer of nitric fertilizers in Russia and the fourth largest ammonia producer. It produces 95% of urea-ammonia mix in Russia, more than a half of compound NPK-fertilizers. Enterprise products are widely used in the main agricultural areas of the country. Most of nitric products are traditionally exported to over 35 countries, including USA, China, Canada, India, Israel, Italy, UK.

The enterprise is a unique in Russia producer of most products of organic synthesis: acetic acid, methyl acetate, polyvinyl alcohol, acetaldehyde, croton aldehyde, and sebacic acid. In addition, the enterprise has large-scale capacities for methanol production (the sixth largest producer), vinyl acetate (the second Russian producer), butyl acetate (60% of Russian output). In recent years production growth has been recorded for all organic synthesis products, mostly due to the domestic and international demand growth. The main part of organic synthesis products are supplied to the domestic market.

Nevinnomyssky Azot has more than 7,500 employees, and is a local economic mainstay for Nevinnomyssk. The management carries out societally responsible policy involving salary increase, improvement of labor conditions, employees social benefits. The enterprise fully performs its obligation under the wage agreement providing material aid to the distressed, loan extension, health care, recreational vacations. The enterprise provides assistance to the veterans, rendering material aid and organizational support to the Board of Veterans.

Nevinnomyssky Azot closely cooperates with municipal and regional authorities in the area of social support, provides material aid to the sponsored educational facilities and military units deployed in Chechnya, take patronage over the monument dedicated to the Caucuses defenders erected by the enterprise employees in the mountains of Karachaevo-Cherkessia.

Melamine Plant Construction Project

Since 2007, OJSC Nevinnomyssky Azot has been implementing a project to construct a melamine plant with a 50,000 ton per year capacity. The total investment is estimated at over RUR 6 billion.

The world’s annual melamine output is more than one million tons and is forecasted to increase to 1.5 million tons in 2010. European companies account for about half of this figure while other major producers are located in China, the U.S., Japan and Taiwan.

This will be the first plant of its type in Russia, and will begin production of domestic melamine as early as 2011. The plant will be able to satisfy all existing Russian demand for this material. Construction has been underway since August 2009.

Processed melamine is used in a number of consumer goods such as furniture, wall and floor coverings (laminated flooring), molding products (e.g. buttons, ashtrays and windowsills), textiles and paper. It is also used in the production of paints and coatings, glues, fire-resistant materials and concrete.

Melamine manufacturing is a class-3 hazardous operation. Nevinnomyssky Azot has opted for the safest, low-pressure production technology which for the first time, despite the commissioning of additional facilities, will actually reduce total emissions by 40 tons per year instead of increasing them.

The future plant will create new jobs and additional tax payments to all levels of government.