page54 A systemic analysis of an economic policy of regulating hydrocarbons flows worldwide under the conditions of the 'shale gas revolution' and liquefied natural gas market development in USA 2014
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№2 (85) l March l 2014 Nunquam petrorsum, semper ingrediendum Review of the Global Polyimide Market CIS Market in Salicylic Acid and its Derivatives Interplastica 2014: Good Prospects for Russia’s Plastics Industry Chemical Industry of Uzbekistan `ˆÌi`Ê܈̅Ê̅iÊ`i“œÊÛiÀȜ�ʜvÊ �vˆÝÊ*ÀœÊ*Ê`ˆÌœÀÊ /œÊÀi“œÛiÊ̅ˆÃÊ�œÌˆVi]ÊۈÈÌ\Ê ÜÜܰˆVi�ˆ°Vœ“ÉÕ�œVް…Ì“ Add the previous issues to your collection 03/2013 Chloromethanes in CIS: Production and Market Russian and Ukrainian Market for Benzoic Acid and Benzoates Revolution at the Global Helium Market on the Agenda CIS Production and Market of Talc Slip Additives for Production of WoodPlastic Composites 04/2013 International Conference ''Oil and Gas Chemistry 2013'' Styrene Production and Market in Russia/CIS Russian Phenol Production in 2012 Russian Market of Selenium in 2012 Production and Market of Complexones in CIS 05/2013 Russian Epoxy Resins Production and Market The Russian Polypropylene Market: Waiting for Revolution Chinese Phenol and Acetone Market: Review and Outlooks Russia's Market for Fuel Additives 06/2013 Plastics Recycling: Profitable and Versatile Production and Market of Propylene in Russia/CIS Ukrainian Manufacture of Nitrogen Fertilisers in April, 2013 CIS Silicon Dioxide Market Heading into H2: Key Russian Chemical Players Announced Q1, 2013 Results 07/2013 Overview of Russian Market for Unconventional Cable Compounds Russian Tyres Market: Current State and Outlooks Sodium Sulphate Production in Russia Ukrainian Output of Mineral Fertilisers in May, 2013 Tracking Corrosion with Ultrasound 08/2013 Bioplastics: an Alternative with a Future? Russian Production of Ureafuran Resins Ukrainian Production of Basic Inorganics and Mineral Fertilisers in H1, 2013 Review of the Russian Vulcanisation Accelerators Market Tall Oil Production and Market in Russia 09/2013 Plastics in Electronics Production of Formalin in Russian Federation Russian Production of Benzene in 2011H1, 2013 Production and Market for Soda Ash in CIS Russian Market for Demulsifiers for Oil Extraction 10/2013 Trends in the Global and Russian PPS Market Production and Market for Urea in CIS Russian Market for PVC Thermostabilisers Kazakhstan Petrochemical Industry Waiting for Sweeping Changes 11/2013 Market for Aramid Fibres in CIS Ethylene Oxide Market in Russia Phosphorus Market in the CIS Ukrainian Output of Basic Inorganics in September, 2013 Kazakhstan Defines Top Priority Chemical Commodities for Future Production 1/2014 Review of Global Polyimide Market CIS Market in Salicylic Acid and its Derivatives nterplastica 2014 : Good Perspectives for Russia's Plastic IndustryChemical Industry of Uzbekistan Add to your map collection: Uzbek Chemical Industry Russian Pigment Producers Estonian Chemical Industry Belarusian Chemical Industry Kazakh Chemical Industry Su of bsc w ou rib w rm e w t .c ag o th he az e m ine on m lin ar e ed ke iti t.i on nf o For further information on subscription and advertising, please contact: Subscription department Tel: +38 0652 54 75 28 e-mail: [email protected] Advertising department Tel: + +38 0652 54 75 29 e-mail: [email protected] www.chemmarket.info #1(85) March 2013 Polymers 2 A Review of the Global Polyimide Market 8 Interplastica 2014 : Solid Business and Good Prospects for Russia’s Plastics and Rubber Industry 11 Prices 19 Rubbers & tyres 2 Organics Market in Salicylic Acid and its 22 CIS Derivatives 30 Prices 34 Inorganics 22 Agrochemistry Summing up Ukrainian Fertilisers in 2013: No Light at the End 38 Production of the Tunnel In Ukraine Transformatornaja St, 7, Simferopol, 95040 Tel.: + 380 (652) 25–12–93, 27–49–42. Fax: + 380 (652) 24–80–74, Shepeleva St, 2, Kyiv. In Russia Molodogvardejskaja St, 59, Moscow, 121351. Tel.: +7 (495) 416–58–97, tel./fax: +7 (495) 950–51–47 In Belarus Pinskaja St, 18, office 8, Minsk, 220073. Tel.: +375 (17) 252–25–01, 282–25–95, 204–26–88 Registration Certificate № КВ 945 in effect since 11.09.2009 Placed online 6.04.14 41 Prices 44 Specialty chemicals 50 Paints & coatings Chemistry and business 54 A systemic analysis of an economic policy of regulating hydrocarbons ows worldwide under the conditions of the 'shale gas revolution' Reports IFRS Financial 62 EuroChem Information for 2013 Chemical equipment Certicates for Industrial Equipment and Needed to Access Market of 68 Installations Customs Union Countries and regions 70 Chemical Industry of Uzbekistan 62 Polymers w w w. chemm a r ke t . in fo A Review of the Global Polyimide Market Polyimides (PIs) is a group of high performance polymers with excellent thermal, mechanical, and physical properties. Owing to their outstanding characteristics, they are useful over a wide range of applications including the production of printed circuit boards, fasteners, and chemically resistant products. Polyimides take an especial position in the development of innovative technologies, where light-weight materials with high strength, flexibility, inertness, and a broad range of working temperatures are required. 2 Eurasian chemical market № 1(85) February 2013 Polymers w w w. chem mar ket. info DuPont’s baby The first information about the synthesis of aromatic polyimides dates back to 1908. A big contribution to the development and introduction of polyimides was made by DuPont, which brought to market Kapton H films, Vespel moulded parts, and Pyre-ML insulating varnish. To obtain its first Kapton polyimides, the company employed pyromellitic anhydride (PMDA) and 4,4’-oxydianiline (ODA). Figure 1 shows a diagram of the condensation of these chemical products. The process developed by DuPont includes two stages: firstly, polyamic acid is synthesised and secondly, the acid undergoes imidization. Dianhydride and diamine are used as mother substances (Table 1). The condensation is Figure 1. Obtaining polyimide from PMDA and ODA Table 1. Basic dianhydrides and diamines used for polyimide production Dianhydride Formula Diamine Abbreviation Name PMDA Formula Abbreviation Name Pyromellitic anhydride pDA p-phenylenediamine BPDA Diphenyl dianhydride mDA m-phenylenediamine BTDA Benzophenone dianhydride DAB Benzidine DSDA Diphenyl sulfone dianhydride DABP Diamine-benzophenone ODPA Oxydiphthalic anhydride DDS Diaminodiphenyl sulphone HQDA Oxydiphthalic anhydride ODA Oxydianiline BPADA Bisphenol-A-diphthalic anhydride BisDA Bisphenol-A-diamine № 1(85) February 2013 Eurasian chemical market 3 Polymers w w w. chemm a r ke t . in fo Table 2. Comparison of chemical and thermal polyimide films Polyimide film Property resins are obtained by adding low molecular maleimide, acetylene, benzene dicarbinol Chemical Thermal Physical properties (strength and relative elongation) Isotropic Anisotropic (difference — up to 40%) Shrinkage (at 200 °C during two hours) Less than 0,05% Up to 1% Dielectric breakdown, кW/mm Around 7 Around 5,5 Moisture absorption (during 24 hours) Less than 2,8% Around 4% Width, мм (max.) 1570 1000 Length, м (max.) 4000 1500 Source: Saint-Gobain HPM (benzocyclobutene) groups. These resins find application in the impregnation of textile fibres and in composites production. A polymer basis of electronics To synthesise polyimides, a broad set of monomers are employed as well as various methods. Therefore, properties of polymers may vary within a wide range. Polyimidies possess exclusively high thermal resistance. They begin decomposing only at temperatures higher than 450 °C. At the same time, polyimides are resistant to oxida- carried out at low and medium tem- reaction, thus allowing for obtaining polyim- tion, moisture, acids, alkalies, solutions of peratures in a polar, aprotic solvent, for ides with higher and more stable mechanical salts, organic solvents and specialised liquids instance, N,N-dimethylformamide, properties (Table 2). However, due to the even at increased temperatures. However, N,N-dimethylacetmide or in N-methyl- usage of additional reagents, the final product polyimides that contain fragments of PMDA pyrrolidone. is more expensive. Leading global producers and monoaromatic amines, e.g. pDA, have lower resistance to hydrolysis. in The process involving the obtaining of the of polyimide films use namely this chemical soluble prepolymer has been for more than process of imidization, whereas the Chinese Good dielectric properties of polyim- fifty years the main technology of polyimide producers - the thermal route. As a result, the ides determine their wide application in production. The point is that most polyimides products of the first have an integral proce- the electronic industry as dielectrics, flex- are insoluble and high melting due to their dural decomposition temperature of 200–240 ible substrates and wire insulation. Fluoride- flat aromatic and heteroatomic structure. °C and polyimides of the second – only about containing polyimides possess the best Therefore, their processing into some articles 130 °C. dielectric properties. can only be possible provided that they are Apart from the two-stage method there Outstanding properties are conditioned by solved in polyamic acid. The use of the solv- is also a one-stage route for producing a structure of a polymer chain and intermo- ing route allowed for commercial production polyimide used for polyimides soluble in lecular interactions. Molecules of polyimide of polyimides. organic solvents at a polymerisation tem- have rigid aromatic chains. There are two The intermediate polyamic acid is con- perature of (180–220 °C). Nitrobenzene, types of interactions between polyimide verted to polyimide by thermal or chemical m-cresol, and high-boiling polar aprotonic chains: firstly, between aromatic rings of imidization. Thermal imidization is con- amide solvents are used as solvents. The fragments of dianhydride and diamine form- ducted at 100–350 °C basically for manufac- high temperature solving polymerisation ing a complex with charge transfer and sec- turing PI films, while chemical imidization is occurred in the presence of such catalysts ondly, between dipoles of carbonyl groups used for producing moulded goods as well as as quinoline, tertiary amines and carboxy- of the dianhydride fragment (in this case the films and fibres. At that point, aliphatic car- lates of alkali metals or zinc. This method polymer is nonpolar as a whole). boxylic acid anhydride and tertiary amine are is especially efficient for polymerising Most polyimides are produced in the form added to polyamic acid. The typical auxilliary dianhydrides and diamines with low reac- of films. Polyimide films have high mechani- chemical reagents for this process are acetic tivity and enables one to produce high cal properties. Their relative elongation at anhydride, pyridine and triethylamine. At the crystallinity polyimides. break amounts to 30–120%, tensile strength final stage of the chemical imidization, the Using bis-ester anhydride as a dianhydride – 170–270 MPа, and modulus of elasticity polymer is shortly heated up to around 300 component, polyesterimides - amorphous – no more than 3 GPa. Breakdown voltage °C so as to reach a higher conversion degree thermoplastic polymers — are produced, of polyimide film with a thickness of 1mcm and to remove the remains of the solvent. which can further be processed by injection is no more than 200 V. Besides, these films The chemical imidization excludes a counter moulding methods. Shrinking polyimide possess high radiation resistance. Polyimide 4 Eurasian chemical market № 1(85) February 2013 Polymers w w w. chem mar ket. info films are coated with acrylic and organosilicon compounds for manufacturing self-adhesive tapes. Also, an adhesive layer is applied to them in order to glue copper foil (on one or two sides). Such films are further supplied to manufacturers of printed circuit boards for producing flexible circuits and cable connections. When an extremely thin layer of copper (less than 12 mcm) is required or the presence of adhesives is undesirable, the Space flight of polyimides copper is applied to polyimide film either by Owing to their properties, polyimides evaporation deposition or by coating copper are ideal materials for creating different foil with polyimide varnish followed by its elements of spacecraft. Foam polyimides hardening. The films with reflective coatings found application in the Space Shuttle are obtained by adding organic silver salts, programme as heat insulation and sound e.g., complex acetates, to a polyamic acid solution. While imidizing, it occurs silver reduction. Silver further migrates to the surface of the film forming a reflective coating. For many years, poyimides have been used Figure 2. Breakdown of global polyimide film capacity by company as of early 2014 Films insulation. They were used for protecting propelling and steering control engines of Mars rovers. Moreover, flexible printed circuits and plate heaters in the Mars rovers were made of polyimide films. In May in electrical engineering and the aerospace 2010, the JAXA (Japan Aerospace Explo- industry for insulating special purpose wires. Currently, the production of flexible ration Agency) launched IKAROS — the In the aerospace industry, they are used as printed circuits accounts for 70% of PI con- world’s first spacecraft propelled by solar protective coating for solar cells and other sumption worldwide. Due to specific require- power sails made on the basis of square important equipment. ments of the final market and their properties, polyimide film with a 7.5 mcm thickness Also, microporous membranes, thin wall polyimides are mostly produced in the form and a 200 m2 total area. tubes, fibres, foam materials are made from of films. At present, global polyimide film them. Polyimide tubes are manufactured capacity totals 13,000 tonnes. Top three pro- operated by the company’s fully-owned by layer-by-layer application to the surface ducers have at their disposal about two thirds subsidiary — Kaneka Apical Malaysia. The of a metal mandrel, which is subsequently of world’s capacity including Kaneka – 24%, launch of the Malaysian facility increased retracted. DuPont-Toray – 22% and SKC Kolon PI – Kaneka’s total capacity for polyimide films 21% (Figure 2). by 600 tonnes, to 3,200 tpy. By 2016, Kaneka Such tubes find aplication gas chromotography as chromatographic columns as well Kaneka produces polyimide films under as in medicine in the capacity of catheters. the brand Apical at three production plants in Polyimide fibres production is notable for a Japan, the USA, and Malaysia. The company US-based DuPont became a pioneer number of technical complexities. Therefore, has been present in the market since 1984, in the polyimide market setting industry not many companies make these products. when it put into operation its first manufac- standards for a long period of time. It Having excellent properties including a high turing line for Apical films in Shiga prefec- started commercial production of Kapton stretch degree, PI fibres, nevertheless, cannot ture (Japan). Today it operates seven lines films in 1966. Since 1985, DuPont-Toray, compete with aramid and other hi-tech fibres with a total capacity of 2,400 tpy. In North a JV between DuPont and Toray, has been due to high manufacturing costs. These fibres America, Kaneka began manufacturing poly- responsible for polyimide business. The are mainly used for producing industrial filter imide films at a 200 tpy production line in JV is completely owned by the American bags and protective clothing. the industrial park of Bayport (TX, USA) chemical giant. will invest USD 100m in further capacity expansion. DuPont-Toray expanded PI membranes are widely used for sepa- within the frames of a JV with Allied in 1990. the plant in Tokai City (Aichi prefecture) rating gases. «Pure» polyimide membranes Kaneka Texas Corporation, a daughter com- by 720 tpy in 2007 and that in Circleville have, as a rule, low gas permeability. For this pany of Kaneka, operates the line. Last year (OH, USA) by 400 tpy in late 2012. As a reason, they are modified with various alkyl the company completed the construction of result, the company boosted its total capac- and fluoroalkyl substitutes. its third plant in Gebeng (Pakhang, Malaysia) ity up to 2,920 tonnes. № 1(85) February 2013 Eurasian chemical market 5 Polymers w w w. chemm a r ke t . in fo Table 3. Basic polyimide producers in China Company Location Capacity, tpy Ningpo, Zhejiang province 240 Changshu, Jiangsu province 160 Hipolyking Polyimide Materials Co. Ltd Jilin City, Jilin province 300 Jiangsu Yabao Insulation Material Inc. Yangzhou, Jiangsu province 300 Jiangyin Tianhua Technology Co. Ltd Jiangyin, Jiangsu province 100 Liang, Jiangsu province 230 Tianjin 200 Shanghai N/A Shenzhen Ruihuatai Film Technology Shenzhen, Guandong province 350 Tecnidd Enterprises Co. Ltd Hangzhou, Zhejiang province 1000 Tianjin Jiayi Insulation Material Co. Ltd Tianjin 100 Wuxi Di’Ao Insulating Material Co. Ltd Wuxi, Jiangsu province 60 Wuxi Goto Polymer Materials Co. Ltd Wuxi, Jiangsu province N/A CEN Electronic Material Co. Ltd Changshu Zhongxun Space Flight Insulating Material Co. Ltd Liyang Huajing Electronic Material Co. Ltd New Century (Tianjin) Polyimide Films Insulating Materials Co. Ltd Shanghai Research Institute of Synthetic Resins SKC Kolon PI is a JV established in 2008 on the basis of polyimide assets of Korea- duction capacity, from 1,500 tonnes to 2,700 unit. At the second stage, there will come on tonnes. stream a 40,000 tpy polyimide monomer and based companies SK Chemical и Kolon China is home to one fourth of world’s pol- fine organic chemicals plant, a 35,000 tpy Industries. SK Chemical was the first in yimide film capacity. There are ten producers polyimide and multilayer coextrusion film Korea to manufacture polyimides. In 2004, with 3,000 tpy overall capacity in the country unit, and 5,000 tpy polyimide fibres produc- it launched a 40 tpy pilot production line at (Table 3). Moreover, the moment when China tion. The second stage will be completed in its manufacturing site in Suvon. The com- will become the main player on the polyimide 2017. mercial production of polyimide films began market is not too far away. In late 2012, Amer Other polyimide manufacturers account for at a 300 tpy unit in Chinchkhon. In 2008, the International Group and Genhwa proceeded 9% or 1,000 tpy of total global capacity. This second 600 tpy line became operational in to building a large-scale polyimide complex group includes Saint-Gobain Performance Chinchkhon. Kolon Industries started poly- in Yingkou (Liaoning province). The first Plastics producing Norton films in Xinzhu imide production in 2005. By the moment of stage of the project envisages the construc- (Taiwan); IST Corporation, which puchased the merger, it operates two production lines tion of a 11,000 polyimide monomer unit, a polyimide in Kumi with a total capacity of 600 tpy. In 30,000 tpy polyimide and multilayer coextru- DuPont 2012, SKC Kolon PI almost doubled its pro- sion film plant, and a 30,000 tpy composites Monsanto (Indian Ochard, Springfield, MA); businesses Pyre-ML® from (Parlin, NJ) and Skybond® from Japanese companies Ube Industries (Ube, Yamaguchi prefecture and Sakai, Osaka prefecture) and Mitsubishi Gas Chemical (Hiratsuka, Kanagawa) producing Upilex and Neopulim films respectively. Fibres In the early 80s of the 20th century, Lenzing, a leading producer of viscose fibre, began developing a new kind of fibre for protective clothing. Polyimide was selected as a polymer base. The company obtained a licence for a polycondensation process from Upjohn (Dow Flexible circuits — the main application of polyimide films 6 Eurasian chemical market № 1(85) February 2013 Polymers w w w. chem mar ket. info Chemical), whereas a thread drawing technol- space programmes. The latter required non- Inspec Fibres, Qinyang Tianyi Chemical, ogy was developed by Lenzing on its own. combustible, light-weight foam material for Hipolyking As a result, new polyimide product P84® was heat and sound insulation of Space Shuttles. Shuangma New Materials Tech Polyimide launched onto the market. Later polyimide foam was utilised in space- are producers of polyimide powder. Polyimide Materials, and In 1996, Lenzing AG sold its business to crafts of other countries, in the International In addition, polyimides are processed into Inspec Fibres GmbH (Evonik Fibres GmbH, Space Station, Mars rovers, and cryogenic round bars, slabs, sheets, tubes, and other part of Evonik). Today, Inspec Fibres is vir- vessels. Polyimide foam remains its elasticity ready-to-use, customizsed products. We tually the only large producer of polyimide even at extremely low temperatures, which is should mention the following companies fibres. In small quantities, however, polyim- of paramount importance for operations on in this market niche: DuPont-Toray, IST ide fibres are manufactured by Hipolyking the surface of Mars. Corporation, Saint-Gobain Performance Polyimide Materials (Yilun fibre, China), and In addition to spacecraft, polyimide foam is Plastics, Hipolyking Polyimide Materials, Russia-based Lirsot Ltd (Arimid, Pion, and used in military and civil shipbuilding and the and Shanghai Research Institute of Synthetic Tvim brands). aircraft industry. Owing to this foam, the weight Resins. Polyimides varnishes – solvents of Because of increased demand for its prod- of some U.S. Navy cruisers was decreased by polyamic acid - are also available on the mar- ucts, Inspec Fibres expanded its capacity 50 tonnes, and that of Boeing 747 — by 160 ket. They are used for producing composites by 35% in 2006 and by 40%, to 1,400 tpy in kg. Reducing weight even by several dozen and adhesives. The most popular and wide- 2009. Except for the fibres, the company pro- kilograms of such massive and heavy objects spread brands among them are Pyralin (HD duces powdered polyimides for manufacturing as airplanes seem to be insignificant at first MicroSystems), U-Varnish (Ube Industries), moulded goods and actively develop a poly- glance. However, this allows for transporting Pyre-ML and Skybond (IST Corporation). imide film production technology. Polyimide more cargo and substantially improves fuel fibres are predominantly used in the produc- economy, which is especially important tak- tion of high temperature filter systems for ing into account a long service period. Due to metallurgical works, cement plants, and other high prices, polyimides find application only in Polyimides are quite widely used products industrial facilities. These fibres have irregular demanding environments. The main producer owing to their outstanding properties. They cross-sectional shapes consequently possess- is Evonic Foams manufacturing polyimide can meet strictest requirements of customers. ing twice as much surface area as compared to foam under the trade mark Solimide at its plant Flexible circuits are the biggest and most fast- traditional fibres with round or elliptical cross- in Magnolia (AK, USA). Its product range growing application field of polyimide films. sections. Therefore, polyimide fibres display includes four polyimide grades: According to Kaneka, annual growth rates Prospects the best filtering capacity. This advantage is – TA-301 (for industrial applications in this market make up 20-30%. Demand complemented with high thermal and chemical including insulation of rail cars, ships, and for special purpose products made of poly- resistance over a wide рН range. These fibres mining equipment; imide films including bar code labels, voice are used as an additive enhancing filtering – AC-550 and AC-530 (for aircraft and coils, helically coiled tubes, gaskets, and capacity and increasing service life of filter fab- spacecraft industries and cryogenic materials diaphragms, thermal blankets, insulation of ric in industrial filters both on their own or in production); particle accelerators, conveyor belts, sensors, combination with various polyester fibres and glass fibres. The second most significant application – HT-340 (for using in heat resistant mate- etc., increases 10% yearly. Polyimide con- rials including insulation of pipes, air ducts, sumption in the production of self-adhesive furnaces, and water heaters; tapes grow 5% and in mechanical engineer- of polyimide fibres is the manufacture of Apart from Evonik Foams, polyimide foam ing, and the cable and automotive industries protective clothing for racing drivers, fire is manufactured by DuPont (Vespel), Ube — by 2% per year. SMP Corporation (a pro- brigades and military units. It is to be noted Industries (Upilex Foam) и IST Corporation ducer of polyimide films, in particular, SKC that usually polyimide fibres are not used in (Skybond). Kolon PI films) forecasts that the capacity of a pure form but are mixed with aramid and fire-resistant viscose fibres. Foam polyimides the global polyimide film market will go up Resins and other products from 7,000 tpy in 2010 to 10,000 tpy in 2015, with the biggest growth rates in electronics Polyimide resins are made in small vol- engineering and display production. In geo- umes because of processing complexities. graphical terms, China and Korea will be Polyimide foam was first synthesised in Powdered polyimide is one of the main the most rapid-growing polyimide markets the 1970s by Evonik Foams for NASA’s forms of polyimide products. Ube Industries, expanding by more than 15% annually. № 1(85) February 2013 Eurasian chemical market 7 Polymers w w w. chemm a r ke t . in fo Interplastica 2014: Solid Business and Good Prospects for Russia’s Plastics and Rubber Industry Victor Nemera, Atlant CJSC, Baranovichi/Belarus: �We participate regularly in Interplastica, know what we want and usually get it. It satisfies our expectations. It’s important to note that this year there are more professional visitors than in previous years. It’s obviously very good.’ Maxim Grishin, Country Representative A/O Bayer Polycarbonates, Moscow/Russia: �At Interplastica 2014 we basically met with our old, established partners. This exhibition is well known in the plastic and rubber industry and every year we meet with lots of customers and get in contact with new customers.’ The CIS market for plastic and rubber plastics and rubber. They reported a keen products stands for solid business and posi- interest among specialist visitors, promis- tive prospects. Despite the dampening effect ing customer contacts and several signed of political vagaries and the current weak- contracts. Between 28 and 31 January 2014, ness of the rouble on the demand for plastic 20,000 visitors from all members of the CIS and rubber products, the country still has a attended Interplastica and the packaging fair significant need for investment. Production Upakovka/Upak Italia, both of which took capacities and place at the same time in Moscow. This result expanded, particularly in the packaging and ties in with the one achieved by both trade medical technology segment. The consumer fairs in the previous year. are being modernised Alexei Stolyarov, Chief Expert, Department of Advertising, Exhibition Activities and Branding, LLC Sibur/ Sibur Holding OJSJ, Moscow/Russia: �We have long and fruitful cooperation and ties with Messe Düsseldorf Moscow. We are always satisfied by the attentive attitude and professionalism of the organisers’ team.. Next year we plan to expand our stand area and to occupy the central goods and automotive segments are growing Erhard Wienkamp, Division Director of steadily, and the infrastructure of the largest Messe Düsseldorf, was delighted with this posi- European country with a population of 143m tive result: “Thanks to its representative inter- is facing major challenges. In this situation, national portfolio, Interplastica is perceived and innovative solutions for all areas of the plas- valued as an outstanding platform for techno- tics and rubber processing industry are very logical innovation in Russia. This positive feed- times, they rely on Interplastica to present much in demand, particularly because issues back and the fact that there was even a slight their innovations to customers from the CIS such as energy efficiency and recycling are increase in the demand for exhibition space market, to maintain their customer contacts becoming increasingly important. - only a few weeks after the flagship fair and to initiate new relations. Introducing part of the first pavilion. We had active and large work with our clients during Interplastica and it’s time to expand and reveal.’ Accordingly, exhibitors at Interplastica K 2013 - underlines the importance of this a clearer structure to the fair, the new hall 2014 gave a predominantly positive feedback event. The companies know how important distribution elicited predominantly positive on the four-day international trade fair for their market presence is. Even in turbulent feedback from visitors and exhibitors.“ 8 Eurasian chemical market № 1(85) February 2013 Polymers w w w. chem mar ket. info Sebastian Schneider, Key-Account- in the CIS states along with the inter- Europe GmbH, Moscow/Russia: �Dow Manager PM Rezyklate, DKR –Deutsche est in high-quality recycled products. At took part with an own booth in Inter- Gesellschaft für Kreislaufwirtschaft und Interplastica, we had some interesting plastica 2014 for the first time ever. We Rohstoffe mbH, Cologne/Germany: �As new contacts, and the prospects for consider that the exhibition is very suc- we are new to the Russian market, it long-term business cooperations seem cessful. The customers appreciated our presents some challenges, one of which positive. However, we are well aware desire to participate in the exhibition is the language barrier. Also, recycled that this market requires a lot of pa- highly. Our approach is to work in co- products do not have a good reputation tience.’ operation with distributors. In the previ- in Russia, mainly because very few such Dragan Visekruna, Director of the ous years we joined the booths of our products are available in high quality. Plastics Sales Units in Central and East- partners and this year we invited them But appreciation for regrinds is growing ern Europe, Greece and Turkey, Dow to work on our own booth.’ from China, Germany, France, Italy, Austria exporting a total of 32.2 % to this segment, exports from plastics and rubber machinery and Portugal. The largest contingencies of followed by Italy (15.5 %) and China (13.9 manufacturers to Russia increased by 7.5%, exhibitors came from Russia, Germany and %). In the first eleven months of 2013, corresponding to an overall value of about China. German exports in this segment amounted EUR 640m. Organised by Messe Düsseldorf and its subsidiary Messe Düsseldorf Moskau Ltd, the 17th Interplastica was again hosted at Moscow’s trade fair grounds of Krasnya Presnya. A total of 687 exhibitors from 28 countries presented their products and services on 13,500 sq.m net exhibition area, the “Forum” as well as exhibition halls 1 and 8 and, for the first time, hall 3 were fully booked, the latter by a cluster of extrusion and injection moulding machinery manufacturers. Official national participations came Germany remains to be number one among to EUR 204 million, up 10,2 % on the result the most important suppliers to the Russian posted for the same period during the previ- Association plastics and rubber processing industry, ous year. Between 2011 and 2012, global Machinery within the VDMA (Verband For Bernd Nötel from the German for Plastics and Rubber Robert F. Binder, Area Sales Manager, of our business relations with the CIS this segment. We expect to continue EREMA, Ansfelden/Austria : �Our equip- states, because we have consolidated our business in Russia successfully. ment has met with a keen interest. As our position and won the trust of our The Russian economy will continue a supplier of recycling systems for all customers in that market – not only be- to grow, the Olympic Games and thermoplastic materials, we have been cause of our training programmes and the World Cup 2018 will trigger fur- active in Russia for sixteen years. So far, cooperation with research institutes but ther growth. There is a lot to do and our core business focused on in-house also because of our tenacity.’ enough money for investment, par- recycling of waste scrap directly at the Rauf Rustamov, Sales & Marketing ticularly in window construction, in the processing company’s site. Recently Director, Gebze-Kocaeli/ infrastructure of this vast country and however, the post-consumer market Turkey: �We have been exporting in centralised heating. These projects seems to have become more active as pipe and profile extrusion machinery are supported by state funding. We the population demands recycling regu- and pelletisers to Russia since 1991. participate in Interplastica because lations. This development could open With more than 1,000 machines in- we want to promote our good repu- up a major market for us! We are op- stalled in that country, we have be- tation, maintain our existing customer timistic about the future development come established as a major player in contacts and make new ones.’ Mikrosan, № 1(85) February 2013 Eurasian chemical market 9 Polymers w w w. chemm a r ke t . in fo Ulrich Reifenhäuser, Managing Di- ability and comprehensive service are ties in that region, initially with one rector Reifenhäuser GmbH & Co. KG, the key to success! For me, the current sales agency. Only recently, we set Troisdorf/Germany : �’The CIS market weakness of the rouble does not con- up our own subsidiary there, so as to continues to have a lot of potential for stitute a major problem, but an oppor- provide a localised services and spare the plastics processing industry. The ex- tunity: the export of finished products parts supply and support for our sales hibition was livelier and the visitors even such as packaging has become more team. As a leading global plant engi- more professional than expected. But expensive, hence domestic products will neering company for the handling of the currency problem is a real dampen- be in demand. Arburg customers from high-quality bulk materials and liquids er, particularly as the Russian mentality the packaging segment are enjoying full we work in a wide variety of industry seems to have a bias towards pessimism order books. The Russian automotive sectors, i.e. polymer producers and when confronted with such problems. and medical technology segments are processors, the rubber and tire indus- Therefore, some projects will likely be also experiencing an upturn, and they try and plastic cable sheathing. We delayed. �’ are now investing in modern, efficient also operate a separate division with a machinery. �’ special focus on the food segment. We Antonio Cappadono, General Director Transtechnika-Vostok – Representa- Dr. Semen Chlesberg, Senior Sales provide our customers, mainly major tion of Arburg, Moscow/Russia : �’While Manager, Frie- corporations, with a complete service the Russian market is characterised by drichshafen/Germany : �’Moving into package from the delivery of complete steady ups and downs, it offers excel- the CIS market requires money and lines right through to training. This lent long-term prospects. We have been patience. In the long-term however, will consolidate our long-term success active in this market for a long time and this commitment will bear fruit. Twelve even if this market is prone to ups and have become well established – reli- years ago, Zeppelin started its activi- downs.’’ Deutscher Maschinen- und Anlagenbau injection moulding and thermoforming Dr. Rüdiger Baunemann, Director General - German Engineering Federation), the segments, and rubber processing machines PlasticsEurope Deutschland e.V., recognises Russian market remains promising, despite are in high demand. Thanks to state fund- a lot of potential in the raw material segment, the dampening effect of political vagaries ing, investments into plastic pipe produc- both for polymer producers as well as for and the current weakness of the rouble on tion and into the production of insulation suppliers of additives such as stabilisers and the demand for plastic and rubber machin- material are rising. The emergence of flame retardants. At Interplastica’s “Meeting ery: “Negotiations drag on, some projects recycling as an important issue in Russia is Point Raw Materials”, Dr. Baunemann’s are postponed. In other areas however, rated as a positive development. So far, this presentations on resource and energy effi- there is still a great willingness to invest, development is still in its infancy, but there ciency as a driving force for innovation and contracts that were prepared at K 2013 in is a growing awareness that even countries sustainability attracted a lot of attention and Düsseldorf for example, are now being with an abundance of natural resources met with keen interest. For the second time at signed. Business is going strong in the must economise.“ Interplastica, open seminars for exhibitors on Zeppelin Systems, new developments in raw material production and application were again conducted in cooperation with the Russian plastics portal Plastinfo.ru. The exhibitors were impressed with the high level of professionalism among Interplastica’s visitors, who appeared to be well prepared and approached the exhibitors with practical inquiries. In turn, visitors were delighted with the wide range of international exhibits presented at Interplastica. The next Interplastica will take place in Moscow from 27 until 30 January, 2015, as usual in tandem with Upakovka/Upak Italia. 10 Eurasian chemical market № 1(85) February 2013 Polymers w w w. chem mar ket. info Prices Prices for polymers and polymer compounds of Russian, Uzbek, Turkmenistan, Belarus, Ukraine manufacturers in 1Q, 2014 Product Company City Country Notes Price per tonnes, ex. VAT 83333 UAH Oligoester acrylates MGF-9 Armoplast PJSC Severodonetsk (Luhansk region) Ukraine For reinforced plastics, coatings, building materials, electrical insulating compounds, lacquers, enamels, adhesives Oligoester acrylates TGM-3 Armoplast PJSC Severodonetsk (Luhansk region) Ukraine For production of resins 85000 UAH Phenol-formaldehyde resin solution in ethyl alcohol (lacquer bakelite) LBS-20, 71-78% Armoplast PJSC Severodonetsk (Luhansk region) Ukraine For production of reinforced plastic 22000 UAH Polyamide PA 6 210/310 Anid Ltd Yekaterinburg (Sverdlovsk region) Russia For manufacturing of technical products used in mechanical engineering 101695 RUR Polyamide PA 6 210/311 Anid Ltd Yekaterinburg (Sverdlovsk region) Russia Polyamide PA 6 66-3 Anid Ltd Yekaterinburg (Sverdlovsk region) Russia Moulding grade 355932 RUR Polyamide PA 6 66-4 Anid Ltd Yekaterinburg (Sverdlovsk region) Russia Moulding grade 355932 RUR Polyamide PA 6 66/610 Anid Ltd Yekaterinburg (Sverdlovsk region) Russia Moulding grade 355932 RUR Polyamide PA 610L Anid Ltd Yekaterinburg (Sverdlovsk region) Russia Moulding grade 432203457627 RUR Polyester mixed EDA-50 Kazan Synthetic Rubber Plant JSC Kazan (Republic of Tatarstan) Russia Up to 100 kg / For noncrystallizable urethane rubber and polyurethane foam for bottom of shoes 78814 RUR Polyester mixed PV Kazan Synthetic Rubber Plant JSC Kazan (Republic of Tatarstan) Russia Up to 100 kg / For manufacturing inking rollers, polyurethane compositions 78814 RUR Polyester P 9A Kazan Synthetic Rubber Plant JSC Kazan (Republic of Tatarstan) Russia Up to 100 kg / To obtain optically sensitive polymers as components of adhesive compositions 78814 RUR Polyester P-9-14 Kazan Synthetic Rubber Plant JSC Kazan (Republic of Tatarstan) Russia Up to 100 kg / manufacturing products for special purposes 78814 RUR Russia Barrel 240 kg / For production of thickwalled, large-sized and complex-shaped goods / For RTM-technologies 101900 RUR Russia Barrel 240 kg / Binding agent for fibreglass products / For use in mechanised processes 101900 RUR Polyester resin PN-1KT-A, unsaturated, thixotropic, pre-accelerated, 30-33% styrene Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Polyester resin PN-1KT-M, unsaturated, thixotropic, pre-accelerated, 30-33% styrene Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) 101695 RUR № 1(85) February 2013 Eurasian chemical market 11 Polymers Prices w w w. chemm a r ke t . in fo Country Notes Price per tonnes, ex. VAT Sitne-Schelkanovo (Moscow region) Russia Barrel 240 kg / For production of thickwalled,large-sized and complex-shaped goods 101900 RUR Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia Barrel 240 kg /For fibreglass products and RTM-technology 118500 RUR Polyester resin PN-60921M, unsaturated Granat Synthetic Material Plant CJSC St. Petersburg Russia Manufacturing fiberglass products 186440 RUR Polyester resin PN-82K, unsaturated Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia Barrel 240 kg / For polymer concrete and artificial marble 109600 RUR 99000 RUR Product Company City Polyester resin PN-1KT-NR, unsaturated, thixotropic, pre-accelerated, 31-34% styrene Zhylevsky Plastics Plant JSC Polyester resin PN-54KTA, unsaturated, thixotropic, pre-accelerated, 36-42% styrene Polyester resin PN-85, unsaturated Polyester resin unsaturated PN-1 Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia Barrel 240 kg / For water- and acid-resistant polymer concrete and sanitary ware products, and artificial marble Armoplast PJSC Severodonetsk (Luhansk region) Ukraine For production of glass fiber, polymer concrete and artificial marble 30000 UAH 55000 UAH Polyester resin unsaturated PN-15, chemically resistant Armoplast PJSC Severodonetsk (Luhansk region) Ukraine For manufacturing of chemically resistant pipes, containers, boat hulls, boats, yachts, pressed materials, varnishes, adhesives, putties, coatings Polyester resin unsaturated PN-1КТ Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia Barrel 240 kg 100750 RUR Ukraine Binder for fiberglass and as impregnating and casting resins inautomotive, electrical industry 55000 UAH Russia Up to 100 kg / to manufacture of polyurethane compositions 78814 RUR 90000 RUR Polyester resin unsaturated PN-609-21М Armoplast PJSC Severodonetsk (Luhansk region) Polyesters PEFD Kazan Synthetic Rubber Plant JSC Kazan (Republic of Tatarstan) Polyether Laprol 373 Khimprom Ltd Kemerovo Russia EXW / Cisterns 31-36 tonnes, metal barrels / For producing rigid polyurethane foams Polyether Laprol 5003-2B10 Khimprom Ltd Kemerovo Russia For producing resilient polyurethane foams 90000 RUR Russia EXW / Cisterns 31-36 tonnes, metal barrels / For producing rigid polyurethane foams and brake fluids 90000 RUR Russia EXW / Cisterns 31-36 tonnes, metal barrels / For producing rigid polyurethane foams 90000 RUR Polyether Laprol 502 Polyether Laprol 503B Khimprom Ltd Khimprom Ltd 12 Eurasian chemical market № 1(85) February 2013 Kemerovo Kemerovo Polymers w w w. chem mar ket. info Product Polyether Laprol 6003-DE Prices Company City Country Notes Price per tonnes, ex. VAT Khimprom Ltd Kemerovo Russia EXW / Cisterns 31-36 tonnes, metal barrels / For producing oil demulsifiers 90000 RUR 90000 RUR Khimprom Ltd Kemerovo Russia EXW / Cisterns 31-36 tonnes, metal barrels / For producing filling, rigid polyurethane foams Polyethylene LDPE 153-01К, top grade Tomskneftekhim Ltd Tomsk Russia Cable grade 58051 RUR Polyethylene LDPE 153-10К, top grade Tomskneftekhim Ltd Tomsk Russia Cable grade 57627 RUR Polyethylene LDPE 15303003, top grade Tomskneftekhim Ltd Tomsk Russia Film grade 56780 RUR Polyethylene LDPE 15303003, top grade Tomskneftekhim Ltd Tomsk Russia Moulding grade 55932 RUR Polyethylene LDPE 15803020, top grade Tomskneftekhim Ltd Tomsk Russia Film grade 53814 RUR Polyethylene LDPE 15803020, top grade Tomskneftekhim Ltd Tomsk Russia Moulding grade 52966 RUR Polyethylene LDPE 15803020, 2 grade Tomskneftekhim Ltd Tomsk Russia Moulding grade 45508 RUR Polyethylene LDPE 17603006, 2 grade Tomskneftekhim Ltd Tomsk Russia Film grade 46271 RUR Polyethylene LDPE 17803015, 1 grade Tomskneftekhim Ltd Tomsk Russia Moulding grade 46780 RUR Polyethylene LDPE 18003030, top grade Tomskneftekhim Ltd Tomsk Russia 47881 RUR Polyethylene LDPE 18103035 Tomskneftekhim Ltd Tomsk Russia 47881 RUR Polyethylene LDPE B-Y456 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Blow-moulding grade 3696003 UZS Polyethylene LDPE B-Y460 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Blow-moulding grade 4776594 UZS Polyethylene LDPE F-Y346 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Film grade 4026118 UZS Polyethylene LDPE I-0760 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Moulding grade 3080195 UZS Polyethylene LDPE I-1561 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Moulding grade 1400 USD Polyethylene LDPE P-Y342 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Pipe grade 4629629 UZS Polyethylene LDPE R-0448 Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan Rotational grade 3186762 UZS Polyether Laprol ES-564 № 1(85) February 2013 Eurasian chemical market 13 Polymers Prices Product w w w. chemm a r ke t . in fo Company City Country Notes Price per tonnes, ex. VAT Polyethylene LDPE О-Y750 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Film grade 3035072 UZS Polyethylene LDPE Р-Y456 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Pipe grade 3902756 UZS Polyethylene LDPE, grade A, off grade Tomskneftekhim Ltd Tomsk Russia For manufacturing of technical products, packaging materials 48051 RUR Polyethylene LDPE, grade B, off grade Tomskneftekhim Ltd Tomsk Russia For manufacturing of technical products, packaging materials 48051 RUR Polyethylene LLDPE F-0120 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Film grade 1500 USD Polyethylene LLDPE F-0220 S Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Film grade 1450 USD Polyethylene LLDPE F-0320 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Film grade 5174166 UZS Polyethylene LLDPE F-Y 957 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Polyethylene LLDPE I-0525 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Moulding grade 1400 USD Polyethylene LLDPE I-1625 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Moulding grade 3406728 UZS Polyethylene MDPE R-0333 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Rotational grade 3589187 UZS Polyethylene MDPE R-0338 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Rotational grade 3073018 UZS Polyethylene MDPE WCY734 Shurtan Gaz Chemical Shurtan (Qashqadaryo Complex Unitary province) Branch Establishment Uzbekistan Cable grade 3156433 UZS 3859671 UZS Tomskneftekhim Ltd Tomsk Russia Used inrubber industry, in construction, for greases and mastics 26949 RUR SIBUR-PETF JSC Tver Russia Packaging for food 55085 RUR Polypropylene Tolen PP H031 BF /3 Tomskneftekhim Ltd Tomsk Russia Polypropylene Tolen PP H270 FF /3 Tomskneftekhim Ltd Tomsk Russia Polypropylene Tolen PP H450 GP/2 Tomskneftekhim Ltd Tomsk Russia 55085 RUR Polypropylene Tolen PP R003 EX/1 Tomskneftekhim Ltd Tomsk Russia 66102 RUR Polyethylene NMPE-2 Polyethylene terephthalate TverPET, granulated 14 Eurasian chemical market № 1(85) February 2013 50847 RUR Manufacture of nonwovens 54237 RUR Polymers w w w. chem mar ket. info Prices Company City Country Notes Price per tonnes, ex. VAT Polypropylene Tolen PP H007 EX/1 Tomskneftekhim Ltd Tomsk Russia Pipe grade 56356 RUR Polypropylene Tolen PP H022 CM /1 Tomskneftekhim Ltd Tomsk Russia Production of caps for PET bottles 58051 RUR Polypropylene Tolen PP H030 GP Poliom Ltd, Omsk Polypropylene Plant Company Omsk Russia General purpose 53390 RUR Polypropylene Tolen PP H030 GP/1 Tomskneftekhim Ltd Tomsk Russia General purpose 53390 RUR Polypropylene Tolen PP H030 GP/2 Tomskneftekhim Ltd Tomsk Russia 53390 RUR Polypropylene Tolen PP H030 GP/3 Tomskneftekhim Ltd Tomsk Russia 53390 RUR Polypropylene Tolen PP H031 BF /2 Tomskneftekhim Ltd Tomsk Russia 53390 RUR Polypropylene Tolen PP H031 BF /3 Tomskneftekhim Ltd Tomsk Russia 52542 RUR Polypropylene Tolen PP H032 TF/1 Tomskneftekhim Ltd Tomsk Russia Thermoforming 54237 RUR Polypropylene Tolen PP H032 TF/2 Tomskneftekhim Ltd Tomsk Russia Thermoforming 54237 RUR Polypropylene Tolen PP H033 FF /1 Tomskneftekhim Ltd Tomsk Russia Polypropylene Tolen PP H040 GP/1 Tomskneftekhim Ltd Tomsk Russia General purpose 53390 RUR Polypropylene Tolen PP H060 GP/1 Tomskneftekhim Ltd Tomsk Russia General purpose 53390 RUR Polypropylene Tolen PP H080 GP/1 Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR Polypropylene Tolen PP H080 GP/3 Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR Polypropylene Tolen PP H085 CF/1 Tomskneftekhim Ltd Tomsk Russia 57203 RUR Polypropylene Tolen PP H085 CF/2 Tomskneftekhim Ltd Tomsk Russia 55508 RUR Polypropylene Tolen PP H120 GP Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR Polypropylene Tolen PP H120 GP/1 Tomskneftekhim Ltd Tomsk Russia General purpose 55932 RUR Polypropylene Tolen PP H120 GP/3 Tomskneftekhim Ltd Tomsk Russia 55932 RUR Polypropylene Tolen PP H250 GP/2 Tomskneftekhim Ltd Tomsk Russia 56356 RUR Polypropylene Tolen PP H252 IM /2 Tomskneftekhim Ltd Tomsk Russia Moulding grade 57203 RUR Polypropylene Tolen PP H270 FF /1 Tomskneftekhim Ltd Tomsk Russia Manufacture of nonwovens 57203 RUR Polypropylene Tolen PP H270 FF /3 Tomskneftekhim Ltd Tomsk Russia Manufacture of nonwovens 56356 RUR Polypropylene Tolen PP H273 FF /1 Tomskneftekhim Ltd Tomsk Russia Manufacture of nonwovens 58051 RUR Product 53390 RUR № 1(85) February 2013 Eurasian chemical market 15 Polymers Prices Product w w w. chemm a r ke t . in fo City Country Polypropylene Tolen PP H352 IM/2 Tomskneftekhim Ltd Tomsk Russia 57203 RUR Polypropylene Tolen PP H450 GP/2 Tomskneftekhim Ltd Tomsk Russia 56356 RUR Polypropylene Tolen PP H451 IM/2 Tomskneftekhim Ltd Tomsk Russia 59746 RUR Polypropylene Tolen PP H452 IM/1 Tomskneftekhim Ltd Tomsk Russia Polypropylene Tolen PP R003 EX Tomskneftekhim Ltd Tomsk Russia 66102 RUR Polypropylene Tolen PP R003 EX/1 Tomskneftekhim Ltd Tomsk Russia 59492 RUR Polypropylene TPP D 30 S Turkmenbashi Complex of Oil Refineries Turkmenbashi (Balkan province) Turkmenistan Extrusion grade 1350 USD Polypropylene ТРРF 79 FB Turkmenbashi Complex of Oil Refineries Turkmenbashi (Balkan province) Turkmenistan For production nonwovens for hygiene and medical spheres 3278 TMT Polystyrene expandable EPS ALPHAPOR 101 SIBUR-Khimprom CJSC Russia Manufacturing foam plastic for noise and heat insulation and drainage board 61864 RUR Polystyrene expandable EPS ALPHAPOR 201 SIBUR-Khimprom CJSC Perm Russia Manufacturing foam plastic for noise and heat insulation and drainage board 70339 RUR Polystyrene expandable EPS ALPHAPOR 301 SIBUR-Khimprom CJSC Perm Russia Manufacturing foam for thermal insulation of external walls 72034 RUR Polystyrene expandable EPS ALPHAPOR 401 SIBUR-Khimprom CJSC Perm Russia Manufacturing foam for thermal insulation of external walls under load 72034 RUR Polystyrene expandable EPS ALPHAPOR 501 SIBUR-Khimprom CJSC Perm Russia For manufacturing of blocks with waterproof protective coating 70339 RUR Polystyrene expandable EPS ALPHAPOR 90 SIBUR-Khimprom CJSC Perm Russia Polystyrene expandable EPS-FВ-НМ 15, 20, 1 grade, unsaturated Polystyrene expandable EPS-FВ-НМ-Р0,2-1,25, 1 grade, saturated Angarsk polymer plant JSC Angarsk polymer plant JSC 16 Eurasian chemical market № 1(85) February 2013 Perm Angarsk (Irkutsk region) Angarsk (Irkutsk region) Notes Price per tonnes, ex. VAT Company Moulding grade 58051 RUR 38983 RUR Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars 56949 RUR Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars 61017 RUR Polymers w w w. chem mar ket. info Product Polystyrene expandable EPS-FВ-НМ-Р0,2-1,25, 2 grade Polystyrene expandable EPS-FВ-НМ-Р0,4-0,3, 1 grade Polystyrene expandable EPS-FВ-НМ-Р0,4-0,3, 2 grade Polystyrene expandable EPS-FВ-НМ-Р0,6-0,8, 1 grade Company Angarsk polymer plant JSC Angarsk polymer plant JSC Angarsk polymer plant JSC Angarsk polymer plant JSC City Angarsk (Irkutsk region) Angarsk (Irkutsk region) Angarsk (Irkutsk region) Angarsk (Irkutsk region) Prices Country Notes Price per tonnes, ex. VAT Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars 61017 RUR Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars 52542 RUR Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars 52542 RUR Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars 57627 RUR 57627 RUR Polystyrene expandable EPS-FВ-НМ-Р0,6-0,8, 2 grade Angarsk polymer plant JSC Angarsk (Irkutsk region) Russia For manufacturing insulating blocks, packaging, disposable tableware / 3, 5, 20 tonnes of containers, covered rail-cars Polystyrene expandable EPS-С, grade 1 Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 66949 RUR Polystyrene expandable EPS-С, grade 2 Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 68644 RUR Polystyrene expandable EPS-С, grade 3 Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 68644 RUR Polystyrene expandable EPS-С, grade 4 Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 66949 RUR Polystyrene expandable EPS-С, grade 5 Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 59322 RUR Polystyrene expandable EPS-С, grade 5m Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 56780 RUR Polystyrene expandable EPS-С, grade 6 Plastic JSC Uzlovaya (Tula region) Russia Self-extinguishing 31356 RUR Polyvinyl alcohol, 10% solution Lakokraska JSC Lida (Grodno region) Belarus Without cost of packaging 6820000 BYR Polyvinylchloride PVC-C 5868PZh Kaustik JSC Volgograd Russia Film grade 40000 RUR Polyvinylchloride PVC-C 6149U Kaustik JSC Volgograd Russia Cable, pipe grade / Molding, extrusion methods 40000 RUR Polyvinylchloride PVC-C 6358М Kaustik JSC Volgograd Russia General purpose 40000 RUR № 1(85) February 2013 Eurasian chemical market 17 Polymers Prices w w w. chemm a r ke t . in fo Company City Country Notes Price per tonnes, ex. VAT Polyvinylchloride PVC-C 6669ZhS Kaustik JSC Volgograd Russia Profile windows 40000 RUR Polyvinylchloride PVC-C 6768М Kaustik JSC Volgograd Russia Profile windows 40000 RUR Polyvinylchloride PVC-C 7059М Kaustik JSC Volgograd Russia Cable, pipe, film grade 50000 RUR Polyvinylchloride PVC-C 8059U Kaustik JSC Volgograd Russia Extrusion, calendering and moulding 50000-52000 RUR UCC Shchekinoazot Schekino (Tula region) Russia Urea-formaldehyde concentrate UFC-85, 58% formaldehyde, 23% carbamide Metafrax JSC Gubaha (Perm territory) Russia Up to one cistern 65 tonnes / For plywood, chipboard 15000 RUR Urea-formaldehyde resin KF-NU Lakokraska JSC Lida (Grodno region) Belarus Without cost of packaging 12458000 BYR Urea-formaldehyde resin KFZh grade L,F,М Lakokraska JSC Lida (Grodno region) Belarus With cost of packaging 14385000 BYR Urea-formaldehyde resin KFZh, 67-69% dry residue Navoiyazot JSC Navoiy Uzbekistan Urea-formaldehyde resin KFZh, 67% dry residue Lakokraska JSC Lida (Grodno region) Belarus Without cost of packaging 12458000 BYR Urea-formaldehyde resin KFBZh, 65–69% dry residue Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia EXW / Tank trucks, drums / For plywood 29330 RUR Urea-formaldehyde resin PКМ Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia EXW / Barrels / For making paper- resin films 21500 RUR Urea-formaldehyde resin КFBМ-ТК, 65% dry residue Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia EXW / Tank trucks, drums / For cladding furniture made of chipboard 29330 RUR Urea-formaldehyde resin КF-МТ-15 Lesohimik JSC Borisov (Minsk region) Belarus 4955000 BYR Urea-formaldehyde resin КF-МТ-15 Navoiyazot JSC Navoiy Uzbekistan 550-600 USD Urea-formaldehyde resin КFМТ-15, 64-68% dry residue Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia Barrels / For chipboard 26160 RUR Urea-formaldehyde resin КF-МТ-20PS Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia For production of heat and sound insulating foam 26560 RUR Urea-formaldehyde resin КFZh Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia EXW / Tankers, barrels 29330 RUR Navoiyazot JSC Navoiy Uzbekistan Product Urea-formaldehyde concentrate UFC-85 Urea-formaldehyde resin КS11, 60-64% dry residue Vinyl ester resin RP-14S, unsaturated, 38-45% styrene Zhylevsky Plastics Plant JSC Sitne-Schelkanovo (Moscow region) Russia 15000-18000 RUR 980 USD 1000 USD Barrel 240 kg / Binding agent for water and chemically resistant polymer concrete and fibreglass products, anticorrosion coatings 258700 RUR 1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 1 EUR = 3,8982-3,9159 ТМТ Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014 1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014 18 Eurasian chemical market № 1(85) February 2013 Rubbers and tyres w w w. chem mar ket. info Prices Prices for some synthetic rubbers and latexes in Q1, 2014 Manufacturer City Country Notes Price per 1 tonne, ex.VAT Butadiene rubber SKD-ND, grade B Voronezhsintezkauchuk JSC Voronezh Russia EXW 66949 RUR Butadiene rubber SKD, grade B Voronezhsintezkauchuk JSC Voronezh Russia EXW 69492 RUR Butyl rubber BК-1675N Togliattikauchuk Ltd Togliatti (Samara region) Russia EXW 101695 RUR Butyl rubber BК-1675М Togliattikauchuk Ltd Togliatti (Samara region) Russia EXW 101695 RUR Isoprene rubber SKI-3 Togliattikauchuk Ltd Togliatti (Samara region) Russia EXW 94915 RUR Latex butadiene BSМ-65, grade B Voronezhsintezkauchuk JSC Voronezh Russia EXW 96610 RUR Latex butadiene SКD-1S Voronezhsintezkauchuk JSC Voronezh Russia EXW 101780 RUR Latex styrene-butadiene BS-50 Voronezhsintezkauchuk JSC Voronezh Russia EXW 93559 RUR Latex styrene-butadiene BS65, grade А Voronezhsintezkauchuk JSC Voronezh Russia EXW 96610 RUR Latex styrene-butadiene BS-85 Voronezhsintezkauchuk JSC Voronezh Russia EXW 100000 RUR Latex styrene-butadiene BSК-1 Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR Latex styrene-butadiene BSК-2 Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR Latex styrene-butadiene BSК-70/2 Voronezhsintezkauchuk JSC Voronezh Russia EXW 104322 RUR Latex styrene-butadiene SKS-30UК Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR Latex styrene-butadiene SKS50GPS Voronezhsintezkauchuk JSC Voronezh Russia EXW 102542 RUR Latex styrene-butadiene SKS50КGP Voronezhsintezkauchuk JSC Voronezh Russia EXW 110000 RUR Latex styrene-butadiene SKS-65GP Voronezhsintezkauchuk JSC Voronezh Russia EXW 93559 RUR Latex styrene-butadiene SKS65GP (B) Voronezhsintezkauchuk JSC Voronezh Russia EXW 89068 RUR Rubber fluorosiloxane SKTF Kazan Synthetic Rubber Plant JSC Kazan Russia 254237847458 RUR Silicone rubber SКТ Kazan Synthetic Rubber Plant JSC Kazan Russia 254237847458 RUR Product Silicone rubber SКТE Kazan Synthetic Rubber Plant JSC Kazan Russia For manufacturing mechanical rubber goods preserving dielectric properties and elastic at temperatures ranging from -70 to +200 C Silicone rubber SКТN Kazan Synthetic Rubber Plant JSC Kazan Russia For manufacture of compounds, sealants 254237847458 RUR Silicone rubber SКТNF Kazan Synthetic Rubber Plant JSC Kazan Russia For the manufacture of compounds, sealants 254237847458 RUR 254237847458 RUR № 1(85) February 2013 Eurasian chemical market 19 Rubbers and tyres Prices Product w w w. chemm a r ke t . in fo Manufacturer City Country Notes Price per 1 tonne, ex.VAT 254237847458 RUR Silicone rubber SКТV Kazan Synthetic Rubber Plant JSC Kazan Russia Intended for manufacture of rubber goods, preserving elastic and dielectric properties in the temperature range of from -50 to +250 °C Sodium-butadiene rubber BNKS-18AMN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-18АN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-28AMN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-28AMNP Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-28АN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-33AMN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-40AMN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber BNKS-40АN Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 83475 RUR Sodium-butadiene rubber PBNK-33 (PVC) Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 110169 RUR Sodium-butadiene rubber SKN-26PVC-30 Krasnoyarsk Synthetic Rubber Plant JSC Krasnoyarsk Russia EXW 108475 RUR Sodium-butadiene rubber SКN-18SNТ Voronezhsintezkauchuk JSC Voronezh Russia EXW 83475 RUR Sodium-butadiene rubber SКN-26SNТ Voronezhsintezkauchuk JSC Voronezh Russia EXW 83475 RUR Styrene-butadiene rubber BSК-1502 Togliattikauchuk Ltd Togliatti (Samara region) Russia EXW 66949 RUR Styrene-butadiene rubber DSSК-2560-М27, grade А Voronezhsintezkauchuk JSC Voronezh Russia EXW 80085 RUR Styrene-butadiene rubber SKS-30 ARKM-15, grade В, SBR-1706 HI-AR Voronezhsintezkauchuk JSC Voronezh Russia EXW 60169 RUR Styrene-butadiene rubber SKS-30 ARKM-27, grade A Voronezhsintezkauchuk JSC Voronezh Russia EXW 67373 RUR Styrene-butadiene rubber SKS-30 ARKM-27, grade В Voronezhsintezkauchuk JSC Voronezh Russia EXW 63983 RUR Styrene-butadiene rubber SKS-30 АRК, grade В, С Voronezhsintezkauchuk JSC Voronezh Russia EXW 66949 RUR Styrene-butadiene rubber SKS-30 АRКМ-15, grade В, SBR-1706 TDAE Voronezhsintezkauchuk JSC Voronezh Russia EXW 63983 RUR Togliattikauchuk Ltd Togliatti (Samara region) Russia EXW 60169 RUR Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR Styrene-butadiene rubber SКМS-30АRКМ-15 Styrene-butadiene thermoplastic elastomer DST30-01, group 1, granules 20 Eurasian chemical market № 1(85) February 2013 Rubbers and tyres w w w. chem mar ket. info Price per 1 tonne, ex.VAT Product Manufacturer City Country Styrene-butadiene thermoplastic elastomer DST30-01, group 1, powder Voronezhsintezkauchuk JSC Voronezh Russia Styrene-butadiene thermoplastic elastomer DST30-01, group 2, granules Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR Styrene-butadiene thermoplastic elastomer DST30R-01, group 1, granules Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR Styrene-butadiene thermoplastic elastomer DST30R-01, group 3, granules Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR Styrene-butadiene thermoplastic elastomer DST30R-01, group 3, powder Voronezhsintezkauchuk JSC Voronezh Russia Styrene-butadiene thermoplastic elastomer SBS R30-00А, granules Voronezhsintezkauchuk JSC Voronezh Russia Big bags 103390 RUR Styrene-butadiene thermoplastic elastomer SBS R30-00А, powder Voronezhsintezkauchuk JSC Voronezh Russia Bags 107627 RUR Thermoplastic dynamic Kvartopren, grade А (50,60, 70, 80,90), black Kvart CJSC Kazan Russia Moulding 98000 RUR Thermoplastic dynamic Kvartopren, grade А (50,60, 70, 80,90), black Kvart CJSC Kazan Russia Extrusion 117000 RUR Thermoplastic dynamic Kvartopren, grade А (90) E, gray Kvart CJSC Kazan Russia Extrusion 117000 RUR Thermoplastic dynamic Kvartopren, grade А (90), gray Kvart CJSC Kazan Russia Moulding 98000 RUR Urethane rubber (polyurethane elastomer) SKU-8А Kazan Synthetic Rubber Plant JSC Kazan Russia For manufacturing shoes 169492296610 RUR Urethane rubber (polyurethane elastomer) SKU-8М Kazan Synthetic Rubber Plant JSC Kazan Russia In the production of magnetic lacquers 169492296610 RUR Urethane rubber (polyurethane elastomer) SKU-8ТB Kazan Synthetic Rubber Plant JSC Kazan Russia For manufacture of products with improved resistance to frost and to abrasion 169492296610 RUR Urethane rubber (polyurethane elastomer) SKU-PEF-3А Kazan Synthetic Rubber Plant JSC Kazan Russia For preparation of casting and impregnating compositions as elastic epoxy resin 169492296610 RUR Kazan Russia For manufacture of machinery components working in the range of from -60 to +120 C, sheet-metal production, as anti-corrosion coatings 169492296610 RUR Kazan Russia Urethane rubber (polyurethane elastomer) SKU-PFL-100 Kazan Synthetic Rubber Plant JSC Urethane rubber Kazan Synthetic Rubber (polyurethane elastomer) Plant JSC SKU-PFL-74 1 EUR = 45.0559-49.5839 RUR Notes Prices 107627 RUR 107627 RUR 169492296610 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 № 1(85) February 2013 Eurasian chemical market 21 Organics w w w. chemm a r ke t . in fo CIS Market in Salicylic Acid and its Derivatives Salicylic acid belongs to aromatic hydroxy acids. Its anti-inflammatory properties, as a component of the bark of the willow tree, have been known for more than 2,500 years. Currently, more than half of the produced salicylic acid is used for pharmaceutical manufacture. For example, one of its derivatives is acetylsalicylic acid or aspirin - one of the most important drug of the twentieth century. Salicylic acid (C6H4 (OH) COOH, ortho- glycoside salicin (from Latin salix - �wil- Adolph Hermann Kolbe proposed a method 2-hydroxybenzoic low’) from a willow bark extract. In 1838, of synthesising salicylic acid from phenol in acid, phenol acid) - white needle-shaped Raffaele Piria, an Italian chemist, hydrolysed 1860, which has been used to the present day. crystals with a bitterish taste, soluble in hot salicin with further oxidation. This is how Salicylic acid acts as an antiseptic. The acid water, freely soluble in ethanol, diethyl ether salicylic acid was obtained. It was found that is used as a keratolytic agent when present in and other polar organic solvents. the acid had been previously obtained from high concentrations, substance when present in low concentrations. hydroxybenzoic acid, and as a keratoplastic Leaves and flowers of some plants are flowers of meadowsweet, or Spiraea (spirea natural sources of salicylic acid. It is known ulmaria) by a German chemist Carl Löwig, The keratolytic agent breaks down the that ancient doctors used an infusion of the who called it spiraea acid and later the sub- outer layer of skin (keratin). A keratoplastic willow bark as antipyretic and analgesic stance became known as “salicylic acid”. effect is when the drug does not generate a medicines. In 1829, Henri Leroux, a French The analysis showed that it was a derivative quick destruction and sloughing, thereby pharmacist, isolated physiologically active of phenol. Subsequently, a German chemist loosening keratin. 22 Eurasian chemical market № 1(85) February 2013 Organics w w w. chem mar ket. info Salicylic acid is used to treat various skin An ester formed by acetic and salicylic microorganisms. However, due to relatively diseases, in particular, hyperkeratosis and acids or acetylsalicylic acid was first synthe- low efficiency, PAS finds application only in excessive sweating. Taken orally, salicylic sised by Charles Gerhardt, a French chemist, case of intolerance to other anti-TB drugs or acid may cause severe irritation of the mucous in 1853. Soon, it became known as “aspirin”, mycobacterial drug resistance. The drug has membrane lining of the stomach. That is why from the name of meadowsweet (spirea a bacteriostatic action only against tubercle a sodium salt of salicylic acid instead of the ulmaria). This was the first synthetic drug in bacillus. It is not an antifebrile medicine, pure acid is often used. Salicylic acid is well the history of medicine. In 1874, aspirin was although it relates to derivatives of salicylic absorbed from the gastrointestinal tract exert- applied to treat acute articular rheumatism. In acid. ing antipyretic, analgesic and anti-inflamma- 1899, aspirin was patented by Bayer and has Some derivatives of para-aminosalicylic tory actions. The drug is rapidly excreted been produced on an industrial scale since acid, for example, its phenyl ester or para- from the body. that time. For this reason, pharmaceutical benzoylaminosalicylic acid, have the same therapeutic activity as PAS proper. Salicylic acid and salicylates are low-toxic companies in most countries has no right to and fairly well tolerated. Since salicylates apply the trademark “aspirin” to their prod- Calcium benzoyl-p-aminosalicylate gives are used in large doses for rheumatism treat- ucts and use basically the chemical name significantly fewer side effects when taken ment they can cause poisoning, which easily “acetylsalicylic acid”. Bayer has been own- orally than PAS, and is used instead of the ceases as soon as one stops taking the drugs. ing the exclusive right to the brand aspirin in latter. Until the 50s of the 20th century, salicylic Russia since 1992. However, the term “aspi- Methyl salicylate (salicylic acid methyl acid was one of the most popular food pre- rin” became a common word in the former ester) is a colorless or yellowish liquid servatives. It was used for preserving egg Soviet Union. with a strong, aromatic odour. It is slightly melange, fish marinades, salted and pick- John Vane was awarded the Nobel Prize soluble in water, and is miscible with alco- led cucumbers as well as olives and fruit. for his discovery of how acetylsalicylic acid hol and ester in any proportions. Its density Salicylic acid is no longer used as a food produces pain-relief and anti-inflammatory is 1,176-1,184 g/cm3. Methyl salicylate is preservative. Food applications of the acid effects in 1982. He found out that aspirin one of the well-known aromatic substances. are banned in America, Europe and Russia. blocked the synthesis of hormone-like sub- It was first isolated as the main ingredient However, salicylic acid with a concentration stances - prostaglandins - which are intensely of some natural essential oils (wintergreen of up to 0.5% can be used for preserving cos- formed by microbial intoxication causing an and cherry birch oils). As the component metic products. The acid with a concentration inflammatory reaction. Besides antipyretic of these oils, one began to widely use it in of up to 10% is used for keratosis (dandruff) and analgesic actions aspirin prevents the medicine. Methyl salicylate is also an ingre- treatment. The manufacture of azo dyes and formation of blood clots and also has a vas- dient of some ointments, balms and liniments odoriferous compounds (salicylic acid esters) orelaxant action. At the same time, it irritates often used in combination with chloroform, is one of its applications as well. the mucous membrane of the gastrointestinal turpentine and fatty oils. Pharmaceuticals tract, and its overdose can cause bleeding. on the basis of methyl salicylate are meant Salicylic acid is capable of forming derivatives in each functional group. The most Sodium salicylate (sodium 2-hydroxyben- only for external use as antiinflammatory and important of them are methyl salicylate and zoate) is a sodium salt of salicylic acid. It is a analgesic agents to treat neuralgia, migraine phenyl salicylate (esters of the carboxyl white crystalline powder or small, odourless and rheumatism. group) and acetylsalicylic acid (esters of the flakes with a sweet and salty taste. Sodium Phenyl salicylate (salol) is a white, crys- hydroxyl group). P-aminosalicylic acid and salicylate is easily soluble in water (1:1) and talline powder or small colourless crystals salicylamide are ne more significant deriva- alcohol (1:6). Sodium salicylate has analge- with a faint odour. It is virtually insoluble in tives of salicylic acid. sic, antipyretic and anti-inflammatory effects. water but soluble in alcohol (1:10) and alka- Acetylsalicylic acid (2-acetoxybenzoic It is used in medicine as antirheumatic and line solution, easily soluble in chloroform, acid; aspirin) is one of the most widely used antigout agents as well as for the treatment of and extremely easily soluble in esters. Phenyl drugs in the world. The pure substance is a febrile diseases and migraine. salicylate was first synthesised by Wilhelm white crystalline powder, almost odourless. Para-aminosalicylic acid (PAS, 2-oxy- Marceli Nencki in 1886. He aspired to find The odour of acetic acid indicates that the 4-aminobenzoic acid) has been used to treat a drug that preserving antiseptic properties substance started to hydrolyse in the air. tuberculosis (TB) in the form of sodium of phenol would not cause irritation like sali- Acetylsalicylic acid is sparingly soluble in or calcium salts since the 40s of the 20th cylic acid. For this purpose, he blocked the water, soluble in ether and chloroform, and century. PAS is an antagonist of p-amino carboxyl group of salicylic acid and obtained freely soluble in 96% ethanol. benzoic acid needed for normal activity of its ester with phenol. № 1(85) February 2013 Eurasian chemical market 23 Organics w w w. chemm a r ke t . in fo In some cases, salicylamide is better tolerated than other salicylates rarely causing some side effects. Thiosalicylic acid is used as an anthelmintic agent. It possesses bactericidal and fungicidal properties. Figure 1. Preparation of salicylic acid A lot of esters of salicylic acid are used in perfumery as perfume compounds and This principle of using substances with conducted at underpressure with simultane- fixing agents. Ethyl salicylate (salethyl) an irritating action in the form of their esters ous distilling disengaged methyl alcohol. has the same though much weaker odour became known as the “salol nencki princi- The yield of benzyl salicylate is about 70% as methyl salicylate. Isobutyl salicylate has ple”. It was further used for synthesising a lot of the theoretical one calculated in terms floral fragrance reminding blooming clover. of medicines. methyl salicylate. Benzyl salicylate can be Ethyl salicylate is produced by the method Hydrolysing in the alkaline environment also obtained through the interaction between described for methyl salicylate being used of the gastrointestinal tract, phenyl salicylate salicylates and benzyl chloride under heating. in perfumery as a substitution for the latter. releases salicylic acid and phenol - denaturing The reaction noticeably accelerates in the Isopropyl and isoamyl esters of salicylic acid protein molecules. Salol does not decompose presence of small amount of diethylamine. are liquids with the fragrance of orchids. A in the acidic environment of the stomach and The yield in this case is about 85% of the technology for isopropyl ether production is does not irritate gastric mucosa as well as theoretically possible. similar to that of methyl salicylate. Isoamyl oral and esophageal mucosae. Saligenin (salicyl alcohol) is another deriv- salicylate is not found in natural essential Phenol, which forms in the small bowel, ative of salicylic acid to be mentioned here. It oils. It is obtained by heating isoamyl alcohol suppresses pathogenic intestinal microflora, occurs in compound with glucose as glyco- with salicylic acid in the presence of con- and sodium salt of salicylic acid has anti- side salicin in roots and bark of different spe- centrated sulfuric acid. Allyl salicylate with inflammatory and antipyretic actions. Partly cies of willow and some other plants. For the a specific fruity floral odour, phenylethyl excreting from the body by the kidneys, both first time it was synthesised exactly from this salicylate with a rose fragrance transforming compounds disinfect the urinary tract. Phenyl glycoside. Saligenin is a solid substance, eas- into a heliotropin odour and isobutyl salicy- salicylate is far less active in comparison ily soluble in alcohol, ester and in hot water. late with a floral odour of blooming clover with modern antimicrobials, but it is low In case of cooling or evaporating, it occurs are also applied. toxic provoking no dysbacteriosis and other precipitation of saligenin from the solution complications. It is often used in outpatient in the form of white leaves with pearly lus- practice. Phenyl salicylate is often used for ter. Saligenin has a pharmacological effect coating tableted drug dosage forms, when similar to that of salicylic acid. Although Currently the Kolbe-Schmitt method is it is necessary for them to pass through the this medication apparently does not cause used for salicylic acid synthesis (Figure 1). stomach unchanged and to release the active side effects attributable to salicylic acid, in Sodium phenoxide is obtained via a reaction pharmaceutical ingredient substances in the medical practice, it is hardly used, partly due between phenol and a solution of sodium intestine. to high cost, partly due to its significantly hydroxide. Then sodium phenoxide is dried weaker effect compared to salicylic acid. and saturated with carbon dioxide under pres- Benzyl salicylate (salicylic acid benzyl Preparation ester) is a liquid crystallising at 18 °C. The Salicylamide (salicylic acid amide, sala- sure and heated up to 125 °C. The resulted boiling point of the liquid is 208°C and den- mide) is a medicine as well. The medical substance is dissolved in water and the solu- sity is 1,785-1,180 g/cm3. Salicylic acid ben- application of salicylamide is the same as tion is acidified, to form salicylic acid. zyl ester is odorless and is used in perfumery that of acetylsalicylic acid. It is mainly used Salicylic acid is a feedstock for the pro- as a preservative and a solvent of aromatic as an analgesic and an antipyretic. Salamide duction of sodium salicylate, acetylsalicylic substances in perfume compositions. is more stable compared to acetylsalicylic acid, methyl salicylate and phenyl salicylate. The technique of producing benzyl salicy- acid. While acetylsalicylic acid is easily Methyl salicylate, in its turn, is a raw material late is based on the transesterification of hydrolysed in the human body with releasing for the synthesis of salicylamide. Moreover, methyl ester of salicylic acid by benzyl alco- salicylic acid, salicylamide hardly undergoes methyl salicylate can be prepared from wastes hol in the presence of sodium salt of salicylic hydrolysis and is excreted from the body in of acetylsalicylic acid manufacture. Thus, acid methyl ester. The transesterification is an unchangeable state in significant volumes. there are strong interdependent relationships 24 Eurasian chemical market № 1(85) February 2013 Organics w w w. chem mar ket. info between these chemical substances, and the advantages of integrated manufacture of salicylates at a single production complex are quite obvious. This allows solving the problems of recycling and regeneration of several waste products, in particular, mother liquors, Figure 2. Sodium salicylate production process which contain acetyloxide and acetic acid as well as unreacted salicylic acid. Sodium salicylate is prepared by a reaction between equimolar amounts of purified salicylic acid (by sublimation) and sodium bicarbonate in Figure 3. Acetylsalicylic acid production process ethanol (Figure 2). Acetylsalicylic acid is manufactured by acetylation of technical salicylic acid and isopropyl alcohol with coal treatment. Coal technique is characterised by by-products acetyloxide in the presence of chlorobenzene is filtered and disposed or incinerated. The formation, a complex process of acetous or chlorobenzene and acetic acid with utilis- product is crystallised, centrifuged and mother liquor utilisation and high con- ing recycled mother liquors; Figure 3). washed off with cold water and IPA. The sumption of acetic anhydride. However, The process route starts with loading flushing water is discharged, and the mother the significant advantage of this method chlorobenzene or recycled mother liquor, liquor and flushing IPA are sent for aqueous is the absence of problems related to the salicylic acid or “distillation residues” from IPA regeneration by distillation. The distil- use of large amounts of an organic solvent mother liquors taken from the manufacture lation residue of the wet salicylic acid (after - chlorobenzene. of the pharmaceutical grade product. It is isopropyl distillation) is dried down to a Methyl salicylate (salicylic acid methyl followed by mixing and heating up to 34-36 residual moisture content of max. 0.3% and ester) is prepared by esterification of sali- °C. Then acetylating is carried out by adding then returned for acetylation. The washed cylic acid with methanol in the presence of acetyl oxide at temperatures of up to 78-82 pharma grade product is dried. The yield of concentrated sulphuric acid (a catalyst and °C during two hours. The obtained product the product is 90% in terms of salicylic acid. a “dehydrating” agent), i.e., virtually with is crystallised by cooling down to 15-20 °C There is also a method of acetylation of wet methyl sulphuric acid (Figure 4). followed by centrifuging the crude prod- “distillation residues” (containing 10-20% According to the applied method, a uct and washing off by cold water and by water ) by existing technologies at 55-60 °C prepared reactor is loaded with methanol, isopropyl alcohol (IPA). The mother liquor in the presence of pyridine. The resulting and sulphuric acid is gradually added at a containing chlorobenzene, acetic acid, acetyl active complex - acetic anhydride pyridin maximum temperature of 30 °C followed by oxide, acetylsalicylic acid (up to 15-20%), - accelerates the process of acetylation by a hold up period of 30 minutes at 25-30 °C salicylic acid (up to 1% ), water (up to 1.5%) four times. That is why the water present (the temperature is maintained by cooling and resins (up to 4-5%) is returned to the in the substance has no time to hydrolyse with water through the reactor jacket). The acetylation stage (up to 10-15 times). After acetic anhydride (the latter was an obstacle resulting solution of methyl-sulphuric acid that the mother liquor is removed from the for using wet “distillation residues” due to in methanol, is fed into an esterifier with cycle and supplied to a wastes treatment unit increased consumption of acetic anhydride). loaded technical salicylic acid at an initial or sent for regeneration. The flushing water There is also an old method of prepara- temperature of 70 °C followed by heating up is discharged into sewage facilities and the tion of acetylsalicylic acid by acetylisation to 70-74 °C till salicylic acid is dissolved and flushing isopropyl alcohol is sent for alcohol of salicylic acid with acetic anhydride and the substance is dilluted. After that the sub- regeneration. its compounds with acetic acid using recy- stance is cooled down till its sedimentation The product of pharmaceutical grade is cled mother liquors at 65-70 °C. The yield and the lower layer of aqueous sulhuric acid prepared by recrystallisation from 40-60% of the product in this case is 80-82%. The is separated. Figure 4. Methyl salicylate production process № 1(85) February 2013 Eurasian chemical market 25 Organics w w w. chemm a r ke t . in fo Figure 5. Salicylamide production process The resulted commercial methyl salicylate is washed with hot water (70-80 °C) till the aqueous ammonia in a leakproof reactor for 51.3% of thios amount or 48,700 tonnes (Figure 5). (Figure 6). The sector of skin care products aqueous layer has a 2.5-3pH level. The sul- The flow chart includes stages of crude consumed 24,200 tonnes or 25.5% followed phuric acid residue is neutralised by washing salicylamide and pharmacopeia salicylamide by shampoos and hair care products 14,300 with a 10% sodium carbonate solution at 40 production. At first, aqueous ammonia and tonnes (15,1%). °C till 7-7.5pH followed by one more wash- methyl salicylate are loaded into a prepared Global output is expected to rise 6.4% ing with hot water (70-80 °C). As a result of leak proof reactor, in which amidation occurs on average between 2013 and 2019. North the purification of the technical product by at temperatures of 40-47 °C during six hours. America is the biggest consumer of sali- high-vacuum fractional distillation, the yield Then aqueous methanol with ammonia are cylic acid having a 35% share globally. amounts to 87% in terms of salicylic acid. In distilled under vacuum. Distillation residues Nevertheless, the Asia-Pacific region will case of utilising recycled salicylic acid, the of salicylamide ammonium salt are dissolved soon display higher growth rates. Salicylic yield is 86.5-86.8% of the theoretical one. in water and clarified with a solution of acid is more and more widely used in cos- Salicylamide is prepared by a reaction of sodium dithionite (Na2S2O4) at 60-65 °C. metics, in particular, hair care products. This amidation of methyl salicylate with 22-25% Later the product is acidified at 60-65 °C niche will be possibly the main growth driver with a 10% sulfuric acid solution to 3-4pH. of the entire salicylic acid market. Aspirin The resulted salicylamide is crystallised at demand will still go up exerting a paramount 15-20 °C, centrifuged and washed off with influence upon salicylic acid production. cold water. The yield of the crude product is Governmental health protection initiatives 87-92% in terms of methyl salicylate. aimed at wider use of aspirin by elderly per- Crude salicylamide is purified by its recrys- sons to prevent cardiovascular deseases make tallisation from distilled water with clarify- a significant contribution to this process. On ing by coal and sodium dithionite at pH=5 the other hand, growing consumer concerns (salicylamide – an amphoteric compound; over aspirin side affects will to some extent at pH <3, salicylamide starts to melt partially hinder the development of the salicylic acid due to protonation of the amide group). After market at the cost of aspirin. sedimentation, the mother liquor is sucked out with vacuum and the residue is filtered by CIS market centrifuging. The product is washed off with Aspirin was first commercially produced by Bayer in 1899. Initially, it was sold in a powdered form and in tabbletts since 1904. Aspirin usage in Russia dates back its history to 1901. The country’s own production of this medicine began after WW1, when German supplies halted. In the former Soviet Union, commercial production of aspirin started at powerful new plants during the first five-year plans. cold distilled water. The mother liquors and the At present, salicylic acid is not synthesised washing waters are used 3-4 times instead of in the former Soviet states. This also pertains to water for dissolving during the recrystallisa- its most important derivative — acetylsalicylic tion of the following batches, and then they are acid — despite stable demand. At the same removed from the cycle and discharged. The time, numerous pharma companies in Russia, yield of of the pharmaceutical grade product Ukraine and Belarus use foreign acetylsalicylic reaches 82-86% in terms of methyl salicylate. acid for their own manufacturing of medicines under various trade marks. The companies Global market that used to produce aspirin in large volumes removed from operation their manufacturing According Market facilities long time ago. In particular, aspirin Research, the capacity of the global salicylic production at Organica OJSC (Novokuznetsk, acid market in 2012 totalled 95,000 tonnes Kemerovo region) launched as far as 1971 is with the pharmaceutical sector accounting no longer operational. Earlier before, there 26 Eurasian chemical market № 1(85) February 2013 to Transparency Organics w w w. chem mar ket. info Figure 6. Breakdown of salicylic acid applications worlwide in 2012 was large-scale acetylsalicylic acid production there. Among pharmaceutical enterprises, only Irbit Pharmaceutical Chemistry produc- Figure 8. Geographical breakdown of Russian salicylic acid imports in 2012 Figure 7. Russian imports of salicylates in 2010-12, tonnes tion plant (Irbit, Sverdlovsk region) has at its increase (Figure 7). Next year the import disposal chemical synthesis of such pharma- supplies virtually remained at the same level ceutical active ingredients as salicylic and equalling 191,8 tonnes (-0,36%). About 87% acetylsalicylic acids. But the company is not of this figure fell on salicylic acid proper. synthesising the above-mentioned chemicals The rest 13% were imported in the form of currently processing (re-crystallising) techni- sodium salicylate mainly used as a preserving cal foreign salicylic acid into a purified active antiseptic for shampoos and other cosmetics. ingredient fit for pharmaceutical production at Chinese suppliers dominated the Russian its existing production facilities. Usolye-Sibirskiy market in salicylic acid and sodium salicy- khimiko-farmatsevtich- late with a 45% share in 2012 (Figure 8). eskiy zavod (Usolye-Sibirskoye chemical Among the producers from China, we can and pharmaceutical plant; Usolye-Sibirskoye, single out the following ones: Hebei Haihua Irkutsk region) has developed its own methyl- Energy Development Group (45.8 tonnes) salicylate synthesis technology, but its produc- and JQS (Huayin) Pharmaceutical (28 tion volumes are rather small and sporadic. tonnes). Romania, namely, Romfarmachim Thus, CIS countries meet their salicylates (54 tonnes) is in second place. About 20% demand via import deliveries. Besides, ace- or 37.8 tonnes were delivered from France tylsalicylic acid is imported both as an active represented ingredient for pharmaceutical production Operations’s products. predominantly by Rhodia Figure 9. Basic Russian importers of salycilic acid and its salts in 2012 Eurohim-1 CJSC (Moscow) occupied 15% shares each in total Russian imports. Altair (API) and as finished dosage forms. Our In 2012, Kontur LLC located in St. imported 29.3 tonnes of salicylic acid and analysis of export-import operations will Petersburg imported 54 tonnes of salicylic sodium salicylate by Hebei Haihua Energy cover only API forms. acid becoming the biggest its Russian Development Group Co. Ltd in 2012. All importer with a 28% share (Figure 9). In this volume was meant for paints and coat- addition, this enterprise was the only one to ings applications. Eurohim-1 purchased 28 Russia buy salicylic acid made by Romfarmachim. tonnes of salicylic acid from JQS (Huayin) Russian imports of salicylates for 2011 The product was used for cosmetics manu- Pharmaceutical Co. Ltd. Uralchimplast JSC amounted to 192,47 tonnes, a 28,5% YOY facture. Altair LLC (St. Petersburg) and (Nizhny Tagil) imported 21 tonnes for intra- № 1(85) February 2013 Eurasian chemical market 27 Organics w w w. chemm a r ke t . in fo bouhgt 16 tonnes of technical salicylic acid bought 40 tonnes each accounting for 3.4% from Hebei Haihua Energy Development each. Group Co. Ltd (China) further used in aniline dyes manufacture. The rest acid was Ukraine basically imported for the needs of the cosmetics industry. For pharmaceutical pur- Salicylic acid and its derivatives are exported poses, salycilic acid was purchased from to Ukraine in relatively low volumes. For abroad by Russopharm LLC (10 tonnes) example, their annual imports were no greater and Khimiko-farmatsevticheskiy kombinat than 26 tonnes for the 2009–12 period (Figure Akrikhin JSC (Chemical and pharmaceuti- 11). Between January and July of the last year, cal integrated works Akrikhin; 0.7 tonnes). only 15.4 tonnes were delivered to the country It is Rhodia that exports to Russia salycilic from abroad. Of this amount, 60% (9.3 tonnes) acid for pharmaceutical purposes. of the Chinese products were purchased by Salicylates were not supplied to Russia Figure 10. Basic Russian importers of acetylsalycilic acid in 2012 Figure 11. Ukrainian imports of salicylic acid and its derivatives in 2009–13, tonnes Macrochem PJSC. in 2010–11. In 2012, 7.5 tonnes of them Supplies of esters of salicylic acid to were imported. The country’s imports of Ukraine over the last three years were a little acetylsalicylic acid in 2011 equalled 1,348.9 bit higher. In 2012, the imports of these prod- tonnes, which is 5.7% higher than in 2010 ucts saw an impressive 87% YOY hike, to (1,430.4 tonnes). A year later foreign deliv- 27,17 tonnes. From January to July of 2013, eries continued declining totalling 1,175.6 Ukraine imported 18 tonnes of esters of saly- tonnes (-12,8%). Chinese suppliers com- cilic acid, and the share of methyl salicylate pletely monopolised the Russian market among them was 72% (13 tonnes). The main in acetylsalicylic acid, namely, Shandong buyer of methyl salicylate in Ukraine was Xinhua Pharmaceutical (580,65 tonnes) and also Macrochem, which imported 12 tonnes Hebei Jingye Chemical Engineering (580 of the Chinese products. tonnes) with a 49% combined market share. Acetylsalicylic acid accounts for the JQC (Huayin) Pharmaceuticals (15 tonnes; lion’s share of total Ukrainian imports of all 1,3%) should also be mentioned. Among derivatives of salicylic acid. For instance, Russian importers, the leader was Moscow- the country imported 468,76 tonnes of this based Indukern-Rus LLC. The latter pur- product in 2010, which is 10% more as com- chased 540 tonnes of acetylsalicylic acid pared to 2009 (426,43 tonnes). A year later, a from Hebei Jingye Chemical Engineering 5% YOY reduction in supplies occurred, to Co. Ltd. Indukern-Rus had a 46% share in 444,73 tonnes. The year 2012 was the only total imports (Figure 10). Pharmstandard one when imports fell below 400 tonnes over LLC (Moscow) bought 368 tonnes (31%) the past five years. To be precise, foreign sup- of the products from Shandong Xinhua plies showed a 18% YOY decline, to 360,89 Pharmaceutical Co. Ltd, which also made tonnes in 2012. However, the imports of supplies to Protek-SVM LLC (Moscow; salicylic acid rose to 422,8 tonnes for the 102,65 tonnes). In addition, Protek-SVM first seven months of the past year. Like the purchased 15 tonnes of the chemical from Russian market, the Ukrainian one is domi- JQC (Huayin) Pharmaceuticals Co. Ltd. Irbit nated by Chinese suppliers with a 90% share. Pharmaceutical Chemistry production plant The largest Ukrainian importer of acetyl- (Irbit, Sverdlovsk region) imported 60 tonnes salicylic acid accounting for 51% of overall of acetylsalicylic acid by Shandong Xinhua purchases from abroad is Farmatcevtichna plant consumption, which makes up 11% of Pharmaceutical Co. Ltd., occupying a 5.1% firma Darnitsa PJSC (Kyiv) – one of the total imports. This company utilises saly- share in total imports. Finally, Uralbiopharm leaders of the Ukrainian pharmaceutical cilic acid as a catalyst for furan resins syn- JSC (Yekaterinburg) and Asfarma LLC market. Darnitsa imported 216,55 tonnes thesis. Moscow-based ChemPartners CJSC (Anzhero-Sunzhensk, of acetylsalicylic acid of Chinese origin for 28 Eurasian chemical market № 1(85) February 2013 Kemerovo region) Organics w w w. chem mar ket. info the first seven months of 2013. Lubnyfarm JSC (Lubny, Poltava region) with 15% purchased 65 tonnes over the same period. Stiroloptfarmtorg LLC established on the basis of Kyiv’s representative office of Stirolbiofarm (Horlivka, Donetsk region) bought 49 tonnes (12%) of foreign acetylsalicylic acid followed by Kievmedpreparat JSC (Kyiv) — 39 tonnes (9%). Belarus The only big producer of aspirin in Belarus is Borisovskiy Zavod Medicinskikh Preparatov OJSC (Borisov, Minsk region) using imported salicylic acid for making its for 96–98,5% of total Belarusian imports Figure 12. Basic Ukrainian importers of acetylsalicylic acid in 2013 of salicylic acid and its derivatives in 2009- Russia, Ukraine and Belarus. Kazakhstan and 2012. In 2010, the imports of this substance other former Soviet states mainly purchase enjoyed a staggering 70% YOY rise, to 345.3 prepackaged, finished pharma products pro- tonnes. Further, supplies reduced to 250 duced from the acid. own drugs. Acetylsalicylic acid accounted tonnes (-27,6%) in 2011 and hit a bottom of 218,2 tonnes (-12,7%) in 2012. Salicylic acid Figure 13. Belarusian imports of salicylic acid and its derivatives in 2009–2012, tonnes Сonclusion and other its derivatives are imported into Belarus in small amounts. For instance, over- In CIS countries, salicylic acid, aspirin and all supplies of these products did not exceed other related derivatives are not synthesised, 3,5 tonnes in 2012 (Figure 13). while existing production plants are idled or used for processing technical salicylic acid Kazakhstan and aspirin into the products fit for pharmaceutical production. The market in salicylic Against the background of the above-men- acid in the form of the substance for pharma- tioned countries, Kazakhstan is distinguished ceutical manufacture is virtually completely with insignificant consumption volumes of monopolised by suppliers from China. CIS salicylic acid and its derivatives in primary pharmaceutical companies are only engaged forms. Most likely, this can be explained by in processing the active substance of Chinese predominant imports of prepackaged, fin- origin into medicines under their own brands. ished pharmaceutical products. The annual Consumers from the former Soviet Union are imports of salicylic acid and its salts during unlikely to see in pharmacies aspirin made of the 2011-2012 period did not exceed 4 tonnes domestically-made salicylic acid. However, (Figure 14). The situation with consumption demand for both salicylic acid and aspirin of salicylic acid derivatives in the form esters will probably grow in accord with global and their salts is similar. In 2010-2012, ace- trends. This, in turn, will stimulate imports of tylsalicylic acid supplies did not go beyond salicylicand acetylsalicylic acids. As for ace- 9 tonnes. tylsalicylic acid, there is an obvious increase Thus, acetylsalicylic acid in the form of in its imports as both a substance for phar- a substance for pharmaceutical production maceutical production and a finished pharma is imported in large quantities only into product. Figure 14. Kazakh imports of salicylic acid and its derivatives in 2009-2012, tonnes № 1(85) February 2013 Eurasian chemical market 29 Organics Prices w w w. chemm a r ke t . in fo Prices for some organic chemicals produced in Russia, Turkmenistan, Uzbekistan, Belarus in 1Q, 2014 Manufacturer City Country Notes Price per tonne, ex. VAT Acetic acid synthetic, 70% Navoiyazot JSC Navoiy Uzbekistan In bulk 1100 USD Acetic acid synthetic, 99.6% Navoiyazot JSC Navoiy Uzbekistan In bulk 1100 USD Acetic aldehyde, 0.788 g/cm³ density Navoiyazot JSC Navoiy Uzbekistan 1300-1675 USD Acetone technical, 99-99.75% Navoiyazot JSC Navoiy Uzbekistan 6486665 UZS Acetylene, 98.8% Chelyabtehgaz Ltd Chelyabinsk Russia Acetylene, 99.1% Navoiyazot JSC Navoiy Uzbekistan 33 USD / gascylinder Benzene petroleum purified, 99.8% Uralorgsintez JSC Chaykovsky (Perm territory) Russia 27966 RUR Benzene petroleum purified, 99.8% SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia 27966 RUR Benzene petroleum refined, 99.8% Mozyr Refinery JSC Mozyr (Homiel region) Belarus 6677400 BYR Benzene petroleum refined, 99.8% Naftan JSC Navopolatsk (Vitsebsk region) Belarus SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia Benzene petroleum, highest purification, 99.9% Mozyr Refinery JSC Mozyr (Homiel region) Belarus EXW 6677400 BYR 1-Bromonaphthalene, pure, 97% Chemical line Ltd St. Petersburg Russia Packing 1.5 kg 1864 RUR / kg Butane or a mixture of butane, 85% butane and 15% butylene Sterlitamak Petrochemical Plant JSC Sterlitamak (Republic of Bashkortostan) Russia Cisterns / Automotive fuel component 11600-11900 RUR Butane technical, 60% of butane and butylene Mozyr Refinery JSC Mozyr (Homiel region) Belarus Butane, 85% butane, 15% butylene Sterlitamak Petrochemical Plant JSC Sterlitamak (Republic of Bashkortostan) Russia Component of petrol 10800 RUR Butylene-butadiene fraction not hydrogenated, grade A, 98% of C4 and 40% of butadiene-1.3 SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia Raw material for rubber production 36017 RUR Butylene-butadiene fraction, not hydrogenated, grade B, 98% of C4 and 30% of butadiene-1.3 SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia Raw material for rubber production 30127 RUR Cyclohexane technical, 99.899.9% Shchekinoazot UCC JSC Schekino (Tula region) Russia KuibyshevAzot OJSC Togliatti (Samara region) Product Benzene petroleum, for synthesis, 99.7% Cyclohexane technical, 99.9% Ethylbenzene technical, 99.8% SIBUR-Khimprom CJSC 30 Eurasian chemical market № 1(85) February 2013 Perm 5 liter balloon, 1 kg EXW 260 RUR / kg 6677400 BYR 33475 RUR 1868260 BYR 85000 RUR Russia EXW / Tank cars (50 tonnes), boiler trucks/ For chemical fibres and solvent 75000 RUR Russia Raw material for styrene, component of motor fuels, solvent 34746 RUR Organics w w w. chem mar ket. info Prices Manufacturer City Country Notes Price per tonne, ex. VAT Ethylbenzene technical, 99.8% SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia Raw for production of styrene, a component of motor fuel, solvent 34746 RUR 2-Ethylhexanoic acid, synthetic oily C8 SIBUR-Khimprom CJSC Perm Russia Product 76721 RUR SIBUR-Khimprom CJSC Perm Russia For synthesis of plasticisers, stabilisers, additives for lubricating oils, solvents Ethylene oxide purified, 99.9% SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia For obtaining highpurity ethylene glycol Formalin, 36.9-37.5% Navoiyazot JSC Navoiy Uzbekistan 2-Ethylhexanol technical, 99% Hexamethylenetetramine stabilized technical, 98% of amines Hexamethylenetetramine technical, 98-99.5% of amines Metafrax JSC Gubakha (Perm territory) 54237 RUR 46610 RUR 315 USD Russia EXW / PP bags 25 kg, rail-cars 50-60 tonnes For production of phenol-formaldehyde resins 38500 RUR EXW / PP bags 25 kg, rail-cars 50-60 tonnes For production of phenol-formaldehyde resins 38500-40500 RUR Metafrax JSC Gubakha (Perm territory) Russia Navoiyazot JSC Navoiy Uzbekistan 2400 USD Isobutane fraction, 97% Kinef Ltd Kirishi (Leningrad region) Russia 16697-18054 RUR Isobutane fraction, 98% SIBUR-Khimprom CJSC Perm Russia Isobutane fraction, 98% Tobolsk-Neftekhim Ltd Tobolsk (Tyumen Region) Russia 17797 RUR Isobutane fraction, 98% Uralorgsintez JSC Chaykovsky (Perm territory) Russia 17797 RUR Navoiyazot JSC Navoiy Uzbekistan 350 USD Shchekinoazot UCC JSC Schekino (Tula region) Russia 19000-23000 RUR Kaustic JSC Volgograd Russia 47000-70000 RUR Methyl-tert-butyl ether, 98% SIBUR-Khimprom CJSC Perm Russia 44068 RUR Methyl-tert-butyl ether, 98% Uralorgsintez JSC Chaykovsky (Perm territory) Russia 44068 RUR Methyl-tert-butyl ether, 98% Tobolsk-Neftekhim Ltd Tobolsk (Tyumen Region) Russia 44068 RUR Methyl-tert-butyl ether, 98% Togliattikauchuk Ltd Togliatti Russia 44068 RUR Naftan JSC Navopolatsk (Vitsebsk region) Belarus Hexamethylenetetramine technical, tableted, 98-99.5% of amines Methanol technical, 99.95% Methanol, 99.95%, Methyl chloride technical, 90% Methylacetylene-allene fraction In production of rubber, polyethylenes, polypropylenes, polystyrenes Welding gas 17797 RUR 900 EUR № 1(85) February 2013 Eurasian chemical market 31 Organics Prices w w w. chemm a r ke t . in fo Manufacturer City Country Notes Price per tonne, ex. VAT Krauft Ltd St Petersburg Russia Extractant, chemical raw material 13559 RUR / kg N, N-dimethyl-pphenylenediamine, analytical grade, 1.09 g/cm3 Chemical line Ltd St. Petersburg Russia 13559 RUR / kg Propane technical, max 75% propane and propylene Surgutneftegas JSC Surgut (Khanty-Mansi Autonomous District) Russia 15340 RUR Propane-butane mixture, max 60% of butane and butylene Mozyr Refinery JSC Mozyr (Homiel region) Belarus 1868260 BYR Propane-butane mixture, max 60% of butane and butylene Turkmenbashi complex of refinery Turkmenbashi (Balkan province) Turkmenistan 419 USD Propane-butane mixture, max 60% of butane and butylene Shurtan Gaz Chemical Complex Unitary Branch Establishment Shurtan (Qashqadaryo province) Uzbekistan 899093 UZS Propane-butane, 20% propane, 80% butane Turkmenbashi complex of refinery Turkmenbashi (Balkan province) Turkmenistan 567-725 USD Propane-butane, 60% butanes and butylenes Surgutneftegaz JSC Surgut (Khanty-Mansi Autonomous District) Russia 12213-12390 RUR Propylene fraction, 90-98.8% SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia 32203 RUR Propylene, 99.8% SIBUR-Kstovo Ltd Kstovo (Nizhny Novgorod region) Russia 34746 RUR Styrene, grade SDEB, 99.8% SIBUR-Khimprom CJSC Perm Russia 55932 RUR Styrene, grade SDEB, 99.8% Plastic JSC Uzlovaya (Tula region) Russia 55932 RUR Styrene, grade SDEB, for processing, 99.8% Plastic JSC Uzlovaya (Tula region) Russia 44915 RUR Styrene, grade SDEB, for processing, 99.8% SIBUR-Khimprom CJSC Perm Russia 44915 RUR Toluene, 99.6-99.75% Naftan JSC Navopolatsk (Vitsebsk region) Belarus 5951100 BYR Vinylidene chloride technical, 99.9% Kaustic JSC Volgograd Russia 120000-130000 RUR o-Xylene petroleum, 99.2% Naftan JSC Navopolatsk (Vitsebsk region) Belarus 6644200 BYR Navopolatsk (Vitsebsk region) Belarus 432500 BYR Product N, N-dimethyl-pphenylenediamine, 98% p-Xylene petroleum, highest Naftan JSC purification, 99.2% 1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 1 EUR = 3,8982-3,9159 ТМТ Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014 32 Eurasian chemical market № 1(85) February 2013 Ingredients Finished Formulation BioPharma Contract Service Technology Packaging Access the Russian, CIS and CEE pharma markets Book your stand Russia is positioned at the forefront of the pharmerging markets. With the government’s ambitious 2020 plan, the industry is set for double-digit growth over the coming years. Since doing business in Russia is all about who you know, secure your stand now to benefit from various educational and networking opportunities with government officials and other movers and shakers in the industry. Contact Us Email: [email protected] Call: +31 (0)20 40 99 529 16-17 April 2014 • Lenexpo Exhibition Complex • St. Petersburg, Russia. www.cphi.com/russia Organised by: Inorganics Prices w w w. chemm a r ke t . in fo Prices of Russian, Belarusian, Uzbek and Turkmen chemical producers for inorganic materials and industrial gases in 1Q, 2014 Product Argon liquid, top grade, 99.993% Manufacturer City Country Evraz NTMK JSC Nizhny Tagil (Sverdlovsk region) Russia Notes Price for 1 tonne, ex. VAT 16900 RUR Timosha Ltd Smolevichi (Minsk region) Belarus For producing components of microchips, high-power transistors, absorbents, heat-conducting pastes and compounds Khimprom Ltd Kemerovo Russia EXW 20000 RUR Timosha Ltd Smolevichi (Minsk region) Belarus For producing heatconducting pastes and compounds 10 USD Ammonia liquid, 99.6% Shchekinoazot UCC JSC Schyokino (Tula region) Russia Ammonia liquid, 99.6% Navoiyazot JSC Navoiy Uzbekistan Ammonium chloride, 99% Argon gaseous, top grade, 99.993% Navoiyazot JSC Navoiy Nizhny Tagil (Sverdlovsk region) Togliatti (Samara region) Uzbekistan Khimprom Ltd Kemerovo Russia Navoiyazot JSC Navoiy Uzbekistan Khimprom Ltd Navoiyazot JSC Kemerovo Navoiy Russia Uzbekistan EXW Chlorine liquid, 99.6% Kaustik JSC Volgograd Russia Сontainers 900-980 kg Chlorine liquid, 99.6% Kaustik JSC Volgograd Russia Cylinders 55-60 kg Chlorine liquid, 99.6% Chlorine liquid, 99.6% Kaustik JSC Kaustik JSC Volgograd Volgograd Russia Russia In bulk Cisterns 50-55 tonnes Chlorine liquid, 99.6% Khimprom Ltd Kemerovo Russia EXW / In containers Chlorine liquid, 99.6%-99.8% Ferric trichloride, water solution, 30% Navoiyazot JSC Navoiy Uzbekistan In cisterns Kaustik JSC Volgograd Russia Evraz ZSMK JSC Novokuznetsk (Kemerovo region) Russia Navoiyazot JSC Navoiy Uzbekistan 145 USD Kaustik JSC Volgograd Russia 6500-8500 RUR Hydrochloric acid inhibited, 22-24% Khimprom Ltd Kemerovo Russia Hydrochloric acid reactive chemically pure, 35-38% Kaustik JSC Volgograd Russia Aluminum nitride hexagonal, 98.5% Aluminum oxychloride, 1722% Al2O3 Aluminum oxynitride powder, 70% aluminum nitride, 30% aluminum oxide Argon liquid, 99.98% Calcium chloride calcined granulated, 90% Calcium chloride granulated, 90-96.5% Calcium chloride liquid, 32% Calcium chloride liquid, 35% Ferrum oxide (III) granulated, 95% Hydrochloric acid inhibited, 20-23% Hydrochloric acid inhibited, 21-23% Evraz NTMK JSC KuibyshevAzot JSC 34 Eurasian chemical market № 1(85) February 2013 25000-30000 RUR More than 2 tonnes / refrigerant (R717) Mordant in dyeing / Bags Russia Russia 10 USD 270 USD 330 USD 95 RUR / m3 Tankers 2.5; 7.5 tonnes / Railway tanks 36 tonnes EXW / Containers, 500 kg big bag, 25 kg bags, rail cars 16000 RUR 4500 RUR 845000 UZS Catalyst in production of ammonia, component of ceramics, cements and minerals paints EXW / For treatment of oil wells, etching iron, cleaning of boilers 4500 RUR 300 USD 30000-34000 RUR 30000-40000 RUR 4500 RUR 10500 RUR 42500-70000 RUR 140 USD 16000-18000 RUR 2650 RUR 12000 RUR 8000 RUR Inorganics w w w. chem mar ket. info Product Price for 1 tonne, ex. VAT Manufacturer City Country Hydrochloric acid synthetic technical, 31.5-36% Navoiyazot JSC Navoiy Uzbekistan 120 USD Hydrochloric acid synthetic technical, 31.5% Kaustik JSC Volgograd Russia 5500-7500 RUR Hydrochloric acid synthetic technical, 31.5%-38% Khimprom Ltd Kemerovo Russia Kaustik JSC Volgograd Russia Hydrochloric acid, reactive, chemically pure, 35-38% Khimprom Ltd Kemerovo Russia EXW / PE canisters 20, 30,50 l 23000 RUR Hydrochloric acid, reactive, pure, 35-38% Khimprom Ltd Kemerovo Russia Cisterns 50 tonnes 20000 RUR Iodine technical, 99% Balkanabat Iodine Plant Balkanabat ( Balkan Province) Turkmenistan Prepayment / EXW 36000 USD Iodine technical, 99% Bereket Iodine Plant Bereket (Akhal province) Turkmenistan Prepayment / EXW 36000 USD Iodine technical, 99% Khazar Chemical Plant Khazar (Balkan province) Turkmenistan Prepayment / EXW 36000 USD Magnesium chloride (bishofit) technical, grade B, solution 250-400 g/l Kaustik JSC Volgograd Russia 3000-4000 RUR Magnesium chloride flake, 97% Kaustik JSC Volgograd Russia 9000-11000 RUR Magnesium chloride granulated, 97% Kaustik JSC Volgograd Russia 14000-16000 RUR Nitric acid weak, 56-58%, in terms of 100% Mendeleyevskazot Ltd Mendeleevsk (Republic of Tatarstan) Russia Oleum improved, 24% SO3 PhosAgroCherepovets JSC Cherepovets (Vologda region) Russia 2000 RUR Oleum improved, 24% SO3 Balakovo Mineral Fertilisers Ltd Balakovo (Saratov region) Russia 2000 RUR Oleum improved, 24% SO3 Shchekinoazot UCC JSC Schyokino (Tula region) Russia Phosphoric acid extraction, water solution, 40% PhosAgroCherepovets JSC Cherepovets (Vologda region) Russia 15500 RUR Phosphoric acid extraction, water solution, 40% Balakovo Mineral Fertilisers Ltd Balakovo (Saratov region) Russia 15500 RUR Khazar Chemical Plant Khazar (Balkan province) Turkmenistan 60000 USD Sodium bicarbonate, 99.5% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 11100 RUR Sodium bicarbonate, 99% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 10870 RUR Sodium carbonate (soda ash), grade A, 98.2% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Big bags 800 kg 10472-10547 RUR Sodium carbonate (soda ash), grade A, 98.2% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Bags 50 kg 10911-10986 RUR Sodium carbonate (soda ash), grade A, 98.2% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk 9592-9668 RUR Sodium carbonate (soda ash), grade B, 97.5% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia In bulk 9170 RUR Sodium carbonate (soda ash), grade B, 97.5% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Big bags 650 kg 10070 RUR Hydrochloric acid waste, 27.5% Potassium iodide, 99% Notes Prices Cisterns 60-70 tonnes, PE canisters 20, 30,50 l 16000-17000 RUR 4000-7500 RUR In customer’s packaging EXW 17808 RUR 3600-5500 RUR № 1(85) February 2013 Eurasian chemical market 35 Inorganics Prices w w w. chemm a r ke t . in fo Product Manufacturer City Country Notes Price for 1 tonne, ex. VAT Sodium carbonate (soda ash), grade B, 97.5% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Bags 40 kg 10470 RUR Sodium carbonate (soda ash), grade B, 97.5% Qo’ng’irot soda zavodi unitary enterprise Qo’ng’irot (Karakalpakstan province) Uzbekistan EXW / In bulk / PP bags 35 kg 280 USD Sodium carbonate (soda ash), grade B, 98.2% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Bags 40 kg 9270 RUR Sodium carbonate (soda ash), grade B, 98.2% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Big bags 650 kg 10170 RUR Sodium carbonate (soda ash), grade B, 98.2% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia In bulk 10570 RUR Sodium carbonate (soda ash), grade B, 98.2% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Bags 50 kg 10564 RUR Sodium carbonate (soda ash), grade B, 98.2% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Big bags 500 kg 10124 RUR Sodium carbonate (soda ash), grade B, 98.2% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk 9246 RUR Sodium carbonate (soda ash), grade B, 98.9% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia In bulk 9370 RUR Sodium carbonate (soda ash), grade B, 98.9% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Big bags 650 kg 10270 RUR Sodium carbonate (soda ash), grade B, 98.9% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Bags 40 kg 10670 RUR Sodium carbonate (soda ash), grade B, 98.9% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Bags 50 kg 10621 RUR Sodium carbonate (soda ash), grade B, 98.9% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Big bags 500 kg 10183 RUR Sodium carbonate (soda ash), grade B, 98.9% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk 9303 RUR Sodium carbonate (soda ash), grade А, 97.5% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia In bulk 9470 RUR Sodium carbonate (soda ash), grade А, 97.5% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Big bags 1000 kg 10370 RUR Sodium carbonate (soda ash), grade А, 97.5% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Bags 40 kg 10770 RUR Sodium carbonate (soda ash), grade А, 98.2% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia In bulk 9570 RUR Sodium carbonate (soda ash), grade А, 98.2% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Big bags 1000 kg 10470 RUR Sodium carbonate (soda ash), grade А, 98.2% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Bags 40 kg 10870 RUR Sodium carbonate (soda ash), grade А, 98.7% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia In bulk 10570 RUR Sodium carbonate (soda ash), grade А, 98.7% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Bags 40 kg 9670 RUR Sodium carbonate (soda ash), grade А, 98.7% Berezniki Soda Plant JSC Berezniki (Perm territory) Russia Big bags 1000 kg 10970 RUR Sodium carbonate (soda ash), grade А, 98.7% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / For production electron-tube glass 9668 RUR Sodium carbonate (soda ash), grade К, 85% KuibyshevAzot JSC Togliatti (Samara region) Russia In bulk / Big bags 800 kg 6500-7500 RUR Sodium chloride, 97.5% Guvlyduz Combine Guvlymayak (Balkan province) Turkmenistan Prepayment / For industrial applications 40 USD 36 Eurasian chemical market № 1(85) February 2013 Inorganics w w w. chem mar ket. info Product Price for 1 tonne, ex. VAT Manufacturer City Country Sodium chloride, technical, purified, 99.5% Navoiyazot JSC Navoiy Uzbekistan Sodium cyanide, 20-30% Navoiyazot JSC Navoiy Uzbekistan Sodium hydroxide reactive, analytical grade, 98% Kaustik JSC Volgograd Russia Sodium hydroxide tablet, 98% Kaustik JSC Volgograd Russia Kaustik JSC Volgograd Russia 22000-30000 RUR SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia 17797 RUR Kaustik JSC Volgograd Russia 13400-23000 RUR Khimprom Ltd Kemerovo Russia Kaustik JSC Volgograd Russia 10000-20000 RUR Navoiyazot JSC Navoiy Uzbekistan 190 USD Khimprom Ltd Kemerovo Russia Sodium hydroxide technical granulated, 99% Sodium hydroxide, RD grade, 44% Sodium hydroxide, RD grade, 46% Sodium hydroxide, RD grade, 46% Sodium hypochlorite, 10-20 g /l NaOH Sodium hypochlorite, 10-20 g/l NaOH Sodium hypochlorite, 40 g/l NaOH, 120 g/l Cl Sulphur gaseous granulated, 99.98% Sulphur gaseous lumps, 99.98% Sulphur liquid, 99.2% Sulphur liquid, 99.98% Sulphur lump, 99.2% Sulphur lump, 99.9% Sulphuric acid accumulator, 92-94% Sulphuric acid contact improved, 92.5-94% Sulphuric acid technical contact, 92.5% Sulphuric acid technical contact, 92.5% Sulphuric acid waste, 72% Sulphuric acid, grade K, 9596.5% Sulphuric acid, high purity, 93.5-95.6% Kirishi (Leningrad region) Buxoro neftni qayata Qorovulbozor (Buxoro ishlash zavodi province) Mozyr Oil Refinery JSC Mozyr (Homiel region) Mozyr Oil Refinery JSC Mozyr (Homiel region) Kremenchug (Poltava Ukrtatnafta PJSC region) Turkmenbashi Turkmenbashi (Balkan Complex of Oil province) Refineries Shchekinoazot UCC Schyokino (Tula JSC region) Shchekinoazot UCC Schyokino (Tula JSC region) PhosAgroCherepovets (Vologda Cherepovets JSC region) Shchekinoazot UCC Schyokino (Tula JSC region) Khimprom Ltd Kemerovo PhosAgroCherepovets (Vologda Cherepovets JSC region) Kinef Ltd Shchekinoazot UCC JSC Schyokino (Tula region) Notes Prices 600 USD Galvanising and gilding metal products 2822350 UZS 30000 RUR In production of vinyl chloride as a neutralising agent EXW / Cisterns 55-60 tonnes (in bulk), tanks 25-27 tonnes EXW / Cisterns 60-70 tonnes; PE canisters 60000 RUR 26500 RUR 26500 RUR Russia 649-826 RUR Uzbekistan 55089 UZS Belarus Belarus 437200 BYR 437200 BYR Ukraine Rail, road transport 842-917 UAH Turkmenistan Prepayment / FCA / 50 kg bags 57 USD Russia Russia EXW Russia 2000 RUR Russia EXW Russia EXW / Cisterns 50-60 tonnes Russia Russia 6000-13000 RUR 3500-6000 RUR 2900-5000 RUR 60 RUR 2000 RUR For production of high-tech products and analytical materials 23000 RUR 1 EUR = 45.0559-49.5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1 EUR = 3000.05-3053.73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 1 EUR = 3.8982-3.9159 ТМТ Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014 № 1(85) February 2013 Eurasian chemical market 37 Agrochemistry w w w. chemm a r ke t . in fo Summing up Ukrainian Fertilisers Production in 2013: No Light at the End of the Tunnel All in all last year proved extremely unsuccessful for Ukrainian fertilisers producers. The domestic output of the following fertilisers displayed a significant reduction in 2013 as compared to 2012: ammonium nitrate – (–9.1%); urea – (–24.8%), ammophos – (–33.8%), NPK – (–47.7%), ammonium sulphate – (–49.5%). Only CAS production rose 14% in 2013. Below are given production results in detail. Ammonium nitrate Table 1. Ammonium nitrate production in Ukraine in 2013, thousand tonnes December 2013 December 2012 December 2013 to December 2012, % 2013 2012 2013 to 2012, % Cherkasy-based Azot PJSC 80,0 43,1 185,6 953,7 789,3 120,8 Rivneazot JSC 43,2 50,5 85,5 530,7 500,7 106,0 Severodonetsk Azot Association PJSC 50,0 52,4 95,4 393,2 587 67,0 Concern Stirol PJSC 0,0 63,8 - 374,2 599 62,5 173,2 209,8 82,6 2251,8 2476,0 90,9 Company Total Тable 2. Carbamide production in Ukraine in 2013, thousand tonnes In 2013, the Ukrainian enterprises turned out 2,251,800 tonnes of ammonium nitrate December 2013 December 2012 December 2013 to December 2012 in % 2013 2012 2013 to 2012, % DniproAzot PJSC 69,2 65,1 106,3 699,5 684,1 102,3 Odessa Port Plant JSC 49,2 81,8 60,1 635,0 930,1 68,3 Cherkasybased Azot PJSC 0,0 72,1 - 548,6 776,5 70,7 Severodonetsk Azot Association PJSC 0,0 38,4 - 314,0 404,7 77,6 Concern Stirol PJSC 0,0 87,3 - 576,9 891,9 64,7 118,4 344,7 34,3 2774,0 3687,3 75,2 (see Table 1). Company In December 2012 total production of NH4NO3 amounted to 173,200 tonnes (in physical terms). In December Cherkasy-based Azot PJSC raised its ammonium nitrate output by 85.6%, to 80,000 tpy against December 2012. Rivneazot decreased output of this product by 14.5%, to 43,200 tonnes, and production at Severodonetsk Azot Association fell 4.6%, to 50,000 tonnes. Concern Stirol PJSC (Horlivka, Donetsk region) was not engaged in ammonium nitrate manufacture at all. In November 2013 the country’s enterprises produced 158,100 tonnes of ammonium nitrate (in physical terms). Carbamide Total In December 2013 chemical enterprises in output by 6.3%, to 69,200 tonnes in December the country cut CO(NH2)2 output (in physi- 2013 against December 2012, whereas the pro- In 2013 Ukrainian companies reduced cal terms) by 65.7% or 226,300 tonnes, to duction of Odessa Port Plant JSC showed a 39.9% carbamide production by 24.8% or 913,300 118,400 tonnes as compared to the same YOY fall, to 49,200 tonnes. tonnes, to 2,774,000 tonnes over 2012 (Table period of 2012. 2). In particular, DniproAzot PJSC increased urea 38 Eurasian chemical market № 1(85) February 2013 Severodonetsk Azot Association, Cherkasy-based Azot and Concern Stirol Agrochemistry w w w. chem mar ket. info did not produce urea in December of the Table 3. Ukrainian ammophos production in December, thousand tonnes December December December 2013 to 2013 2012 December 2012, % past year. According to more precise Company data, Ukrainian CO(NH 2) 2 production in 2012 decreased 3.5% or 135,000 tonnes, to 3,678,200 tonnes against 2011. In 2013 2012 2013 to 2012, % Dniprovsky mineral fertilizers plant PJSC 0,2 0,0 - 14,7 19,0 77,4 64.6% or 204,400 tonnes, to 111,900 Crimea Titan PJSC 0,0 1,6 - 25,4 52,4 48,5 tonnes in comparison with November Sumykhimprom PJSC 0,0 0,0 - 0,0 0,0 - Total 0,2 1,6 12,5 40,1 71,4 56,2 November 2013 the enterprises reduced urea production (in physical terms) by 2012. Ammophos Table 4. NPK production in Ukraine in 2013, thousand tonnes In 2013, ammophos production in the country plunged 43.8% or 31,300 tonnes, to 40,100 tonnes against 2012 (Table 3). In December 2013 the output to 0.2 tonnes over December 2012. In parDinprovskiy mineral December 2012 December 2013 to December 2012, % 2013 2012 2013 to 2012, % Sumykhimprom PJSC 0,0 11,0 - 180,7 343,2 52,7 Dinprovskiy mineral fertilizers plant PJSC 0,2 0,0 - 0,4 3,3 12,1 Total 0,2 11,0 1,8 181,1 346,5 52,3 of ammophos dived 87.5% or 1,400 tonnes, ticular, Company December 2013 fertilizers plant PJSC (Dniprodzerzhinsk) produced a total of 200 tonnes of ammophos, whereas Sumykhimprom PJSC (Sumy) and Crimea Titan PJSC did not manufacture this product in December at all. According to more precise data, Ukrainian ammophos production in 2012 amounted to Table 5. Ukrainian ammonium sulphate production in 2013, thousand tonnes December 2013 December 2012 December 2013 to 2012, % 2013 2012 2013 to 2012, % Cherkasy-based Azot PJSC 0,0 0,0 - 32,0 63,8 50,2 NPK Crimea Titan PJSC 0,0 0,0 - 0,2 0,0 - Ukrainian chemical companies reduced NPK production by 47.7% or 165,400 tonnes, Sumykhimprom PJSC 0,0 0,0 - 0,0 0,0 - to 181,100 tonnes in 2013 as compared to a Total 0,0 0,0 - 32,2 63,8 50,5 71,400 tonnes. In November 2013 it slumped Producers 97.6% or 8,000 tonnes, to 0.2 tonnes as compared to November 2012. year earlier (see Table 4). In December 2013 NPK output plummeted 98.2% or 10,800 tonnes, to 200 tonnes against 2012. Dnirpovskiy mineral fertilizers plant turned out 0.2 tonnes of the product in 2013, while Sumykhimprom was not engaged in NPK production at all. According to more precise data, the Ukrainian production of NPK in 2012 totalled 346,500 tonnes. In November 2013, NPK output rose 26.3% or 3,500 tonnes, to 16,800 tonnes against November 2012. Table 6. Production of aqueous solution of urea and ammonium nitrate in 2013, thousand tonnes December 2013 December 2012 December 2013 to 2012, % 2013 2012 2013 to 2012, % Cherkasybased Azot PJSC 0,0 12,7 - 204,6 190,4 107,5 Concern Stirol PJSC 0,0 0,0 - 97,9 75,0 130,5 Total 0,0 12,7 - 302,5 265,4 114,0 Company № 1(85) February 2013 Eurasian chemical market 39 Agrochemistry w w w. chemm a r ke t . in fo Table 7. Ukrainian imports and exports in 2013, million dollars Страна Imports December Ammonium sulphate Exports 2013 December 2013 Nitrogen fertilisers In 2013 Ukraine’s output of ammonium sulphate lunged 49.5% or 31,600 tonnes to 32,200 tonnes in comparison with 2012 Russia 34,33 205,04 - - Other 0,78 3,45 33,12 627,75 Poland 0,13 1,83 - - Uzbekistan 0,43 1,49 - - of 2012. According to more accurate data Turkey - - 20,87 295,41 (NH4)2SO4 output in 2012 equalled 63,800 Italy - - 1,61 103,33 Brazil - - - 107,05 Total 35,68 211,82 55,60 1 133,53 Phosphorus fertilisers (Table 5). Ukrainian enterprises did not produce ammonium sulphate in November and December 2013 and the same months tonnes. Water solution of urea and ammonium nitrate Russia - 0,34 - - In 2013 UAN production in Ukraine (aque- Total - 0,34 - - ous solution of urea and ammonium nitrate) increased 14% or 37,100 tonnes, to 302,500 Potassium fertilisers tonnes as compared to 2012 (see Table 6). Belarus 2,58 68,16 - - Russia 0,36 1,95 0,02 0,18 did not produce UAN. Over the same period Other 0,01 1,23 - 0,02 of 2012 they manufactured 13,200 tonnes. Belgium 0,02 1,11 - - Lithuania - - 0,02 0,59 Turkey - - - 0,04 2,97 72,44 0,04 0,83 Total Mixed type fertilisers (10 kg bags) Russia 21,64 393,22 - - Belarus 3,71 80,30 - - In December 2013 Ukrainian companies According to more accurate data, the production of UAN 265,400 tonnes. In November 2013 the companies did not produce UAN. Ukrainian fertiliser exports and imports in 2013 In 2013 Ukrainian exported fertilisers worth USD 1.17bn, while the country’s Other 1,99 48,28 0,38 10,96 Finland 0,30 9,48 - - Ivory Coast - - - 9,54 fertilisers at the amount of USD 56m, and Moldova - - - 4,97 imports totalled USD 66.3m. Nitrogen Benin - - - 11,26 Total 27,65 531,28 0,38 36,72 Grand total 66,30 815,88 56,02 1 171,08 Superphosphate imports amounted to USD 815.8m (Table 7). In December the country exported fertilisers were in the highest demand in December. Their exports amounted to 55.6m. In November Ukraine exports of mineral fertilisers were worth USD 70.5m, the imports – USD 38.5m. and December 2013 and in December 2012. According to more precise data, The article is based upon data provided by the In 2013 Ukrainian enterprises produced superphosphate production in the country the Cherkasy State Scientific Research Institute a total of 10,000 tonnes of superphosphate. in 2012 amounted to 100 tonnes. The only of Technical and Economic Information in the At the same time, the companies did not Ukrainian producer of superphosphates is Chemical Industry and by information agency manufacture superphosphate in November Sumykhimprom PJSC. Ukrainian News. 40 Eurasian chemical market № 1(85) February 2013 Agrochemistry w w w. chem mar ket. info Prices Prices for mineral fertilisers of Russian, Uzbek, Turkmen, and Ukrainian manufacturers in 1Q, 2014 Product Ammonia water, 20.5% Ammonia water, 25% N Ammonia water, 25% N Ammonium nitrate with magnesium additive, 37.4% N Ammonium nitrate with sulphur crystalline ammonium sulphate, grade 6S, N-31%, S-6% Ammonium nitrate with sulphur with granulated ammonium sulphate, grade 6S, N-31%, S-6% Manufacturer City Dneprovskyy Plant of Chemical Fertilisers PJSC Dniprodzerzhynsk (Dnipropetrovsk region) Togliatti (Samara KuibyshevAzot OJSC region) Navoiyazot JSC Navoiy Mendeleyevsk Mendeleyevskazot Ltd (Republic of Tatarstan) Country Notes Price per tonne, ex. VAT Ukraine In bulk / EXW, Rail-car norms 1350 UAH Russia Uzbekistan EXW 170 USD Russia In bulk 10299 RUR KuibyshevAzot OJSC Togliatti (Samara region) Russia Big bags 950 kg 8228 RUR KuibyshevAzot OJSC Togliatti (Samara region) Russia Big bags 950 kg 8394 RUR Veliky Novgorod (Novgorod region) Berezniki (Perm territory) Togliatti (Samara region) Russia Maryazot production association Mary Turkmenistan Ammonium nitrate, 34.4% N Mineral fertilisers JSC Rossosh (Voronezh region) Russia Ammonium nitrate, 34.4% N Minudobreniya JSC Perm Russia Ammonium nitrate, 34.4% N Acron JSC Ammonium nitrate, 34.4% N Azot Branch of Uralchem JSC Ammonium nitrate, 34.4% N KuibyshevAzot OJSC Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4% N Ammonium nitrate, 34.4%N Ammonium sulphate, 21% N Ammonium sulphate, 21% N Ammonium sulphate, 21% N Ammonium sulphate, 21% N Calcium ammonium nitrate (CAN), 27% N, 4% CaO Calcium dihydrogen phosphate monohydrate (monocalcium phosphate), 16% Сa, 22% P 4000 RUR Navoiyazot JSC Navoiy Nevinnomysskiy Azot Nevinnomyssk JSC (Stavropol territory) Novomoskovskiy Azot Novomoskovsk (Tula JSC region) PhosAgro-Cherepovets Cherepovets (Vologda JSC region) Voskresensk Mineral Voskresensk (Moscow Fertilisers JSC region) Verkhnedneprovsky Dorogobuzh JSC Settlement (Smolensk region) Mineral fertiliser Plant Kirovo-Chepetsk of Kirovo-Chepetsk (Kirov region) Chemical Works JSC Togliatti (Samara KuibyshevAzot OJSC region) Chirchiq (Toshkent Maxam-chirchiq JSC province) Navoiyazot JSC Navoiy Shchekinoazot UCC Schyokino (Tula JSC region) Novomoskovskiy Azot Novomoskovsk (Tula JSC region) Balakovo Mineral Fertilisers Ltd Balakovo (Saratov region) Russia Russia Uzbekistan Russia Russia Russia Russia FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk / For agricultural producers 10050 RUR Prepayment 360 TMT 10350 RUR 9800 RUR FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk 9700-10000 RUR 9700-10050 RUR 230 USD 10300-10600 In bulk / Bags RUR 9900-10200 In bulk / Bags, big bags RUR FCA / In bulk / For agricultural 7095-9195 producers RUR FCA / In bulk / For agricultural 10050 RUR producers Russia FCA / In bulk / For agricultural producers 10350 RUR Russia FCA / In bulk / For agricultural producers 9700 RUR Russia PP bags 50 kg / Big bags 800 kg 6300-6900 RUR Uzbekistan EXW 225430 UZS Uzbekistan Bags 50 kg 140 USD Russia 8500 RUR Russia In bulk / Bags 8350-8650 RUR Russia Enables gain of live weight of animals and birds by 5-12% 23282 RUR № 1(85) February 2013 Eurasian chemical market 41 Agrochemistry Prices Product Complex liquid fertiliser slurry NP 6-24 Complex liquid fertiliser slurry NP(S) 8:22(10) Complex liquid fertiliser, sulphur-containing nutrient solution, 7% N, 8% S, 30-40% ammonium sulphate Magnesium sulphate technical, 91.7% Nitrogen-calcium-magnesium fertiliser, grade B, 33% N, 4% CaO Nitrophosphate 22-28% N; 1-6% P NP 10-46 NP 12-52 NP 12-52 NP 12-52 NP 12-52 NP 18-46 NP 18-47 NP(S) 17-17(40) NP(S) 20-20 (8) NPK 10-26-26 NPK 10-26-26 NPK 13-19-19 NPK 15-15-15 NPK 16-16-16 NPK 16-16-16 NPK 16-16-16 NPK 16-16-16 w w w. chemm a r ke t . in fo Country Notes Price per tonne, ex. VAT Ukraine In bulk / EXW, Railway norms 2667 UAH Ukraine In bulk / EXW, Railway norms 2667 UAH Togliatti (Samara region) Russia In bulk / Tank container 18-19 tonnes 1542 RUR Maxam-chirchiq JSC Chirchiq (Toshkent province) Uzbekistan EXW 1090835 UZS Azot JSC Kemerovo Russia In bulk 9900 RUR Navoiyazot JSC Navoiy Uzbekistan Ammofos-Maxam JSC Olmaliq (Toshkent province) Uzbekistan In bulk 774113 UZS Belorechensk (Krasnodar territory) Russia In bulk / Bags, big bags 15600-15900 RUR Russia FCA / Big bags 800 kg, bags50 kg 15380 RUR Russia In bulk / Bags, big bags 15600-15900 RUR Russia FCA / In bulk / For agricultural producers 14600 RUR Manufacturer City Dneprovskyy Plant of Chemical Fertilisers PJSC Dneprovskyy Plant of Chemical Fertilisers PJSC Dniprodzerzhynsk (Dnipropetrovsk region) Dniprodzerzhynsk (Dnipropetrovsk region) KuibyshevAzot OJSC EuroChem – Belorechenskie Minudobrenia JSC PhosAgroCherepovets JSC Phosphorit Industrial Group Ltd Voskresensk Mineral Fertilisers JSC PhosAgroCherepovets JSC Phosphorit Industrial Group Ltd Dneprovskyy Plant of Chemical Fertilisers PJSC EuroChem – Belorechenskie Minudobrenia JSC PhosAgroCherepovets JSC Voskresensk Mineral Fertilisers JSC PhosAgroCherepovets JSC PhosAgroCherepovets JSC Cherepovets (Vologda region) Kingisepp (Leningrad region) Voskresensk (Moscow region) Cherepovets (Vologda region) Kingisepp (Leningrad region) Dniprodzerzhynsk (Dnipropetrovsk region) Belorechensk (Krasnodar territory) Cherepovets (Vologda region) Voskresensk (Moscow region) Cherepovets (Vologda region) Cherepovets (Vologda region) Veliky Novgorod Acron JSC (Novgorod region) Rossosh (Voronezh Mineral fertilisers JSC region) Nevinnomysskiy Azot Nevinnomyssk JSC (Stavropol territory) Verkhnedneprovsky Dorogobuzh JSC Settlement (Smolensk region) 42 Eurasian chemical market № 1(85) February 2013 230 USD Russia 15400 RUR Russia In bulk / Bags, big bags 15600-15900 RUR Ukraine Rail-car norms / EXW (Bags 50 kg or big bags) 3333-3417 UAH Russia In bulk / Bags, big bags 12000-12300 RUR Russia Russia Russia Russia Russia Russia FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers In bulk / Big bags 800 kg, bags 50 kg In bulk / Big bags 800 kg, bags 50 kg FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural producers 12414 RUR 14000 RUR 10650 RUR 10195 RUR 12180 RUR 11950 RUR Russia In bulk / Bags, big bags 11100-11400 RUR Russia FCA / In bulk / For agricultural producers 12180 RUR Agrochemistry w w w. chem mar ket. info Product Manufacturer City Nevinnomysskiy Azot Nevinnomyssk JSC (Stavropol territory) Nevinnomysskiy Azot Nevinnomyssk NPK 21-0,1-21 JSC (Stavropol territory) Dneprovskyy Plant of Dniprodzerzhynsk NPKS 5-16-30-10 Chemical Fertilisers (Dnipropetrovsk PJSC region) Dneprovskyy Plant of Dniprodzerzhynsk (Dnipropetrovsk NPKS 7-21-21-13 Chemical Fertilisers PJSC region) Dneprovskyy Plant of Dniprodzerzhynsk Phosphogypsum, 90% CaSO4 Chemical Fertilisers (Dnipropetrovsk PJSC region) Potassium chloride powder, 95% Uralkali Combined Berezniki (Perm KCL Company territory) Dehkanabad Potash Dehqonobod Plant Unitary Potassium chloride, 58-60% K2O (Qashqadaryo region) Enterprise Potassium fertiliser iquid APP PhosAgro-Cherepovets Cherepovets (Vologda 11-37, 11% N, 37% P JSC region) Potassium nitrate, 34% P, Navoiyazot JSC Navoiy 12.2% N Chirchiq (Toshkent Maxam-chirchiq JSC Potassium sulphate, 48% K2O province) Turkmenabat Chemical Türkmenabat (Lebap Superphosphate ammoniated Plant named after S.A. province) Niyazov Superphosphate ammoniated Qo’qon superfosfat Qo’qon (Farg’ona granulated, 13% zavodi JSC province) Dneprovskyy Plant of Dniprodzerzhynsk Superphosphate double NP 10Chemical Fertilisers (Dnipropetrovsk 32, (20) CaO-14% PJSC region) Superphosphate granulated Phosphorit Industrial Kingisepp (Leningrad enriched N-P-Ca-S-Mg 6-26Group Ltd region) (12-17)-(8-10)-0.5 Suprefos-NS, NPCaS 12-24Olmaliq (Toshkent Ammofos-Maxam JSC 14-25 province) Togliatti (Samara UAN-28, 28% N KuibyshevAzot OJSC region) Chirchiq (Toshkent UAN-32, 32% N Maxam-chirchiq JSC province) Nevinnomysskiy Azot Nevinnomyssk UAN-32, 32% N JSC (Stavropol territory) Novomoskovskiy Azot Novomoskovsk (Tula UAN-32, 32% N JSC region) Urea, 46.2% N Farg’onaazot JSC Farg’ona Gazprom Neftekhim Salavat (Republic of Urea, 46.2% N Salavat JSC Bashkortostan) Togliatti (Samara Urea, 46.2% N KuibyshevAzot OJSC region) PhosAgro-Cherepovets Cherepovets (Vologda Urea, 46.2% N JSC region) Urea, 46.2% N Tejen Carbamide Plant Tejen (Ahal province) NPK 17-0,1-28 Prices In bulk / PP Bags, big bags 500 kg In bulk / PP Bags, big bags 500 kg Price per tonne, ex. VAT 10000-10300 RUR 8800-9100 RUR Ukraine Rail-car norms / EXW (Bags 50 kg or big bags) 3583-3625 UAH Ukraine Rail-car norms / EXW (Bags 50 kg or big bags) 3583-3625 UAH Country Russia Russia Notes Ukraine 45-58 UAH Russia In bulk / FCA / For agricultural producers 5927 RUR Uzbekistan EXW 757308 UZS Russia FCA / For agricultural producers 13013 RUR Uzbekistan 975-1100 USD Uzbekistan Bags 4436540 UZS Turkmenistan Prepayment 500 TMT Uzbekistan 272430 UZS Ukraine Rail-car norms / EXW (Bags 50 kg or big bags) 3583-3667 UAH Russia In bulk / Bags, big bags 11500-11800 RUR Uzbekistan Bags 443258 UZS Russia 8729 RUR Uzbekistan In bulk 252500 UZS Russia In cisterns 8900 RUR Russia In cisterns 7900 RUR Uzbekistan In bulk 485807 UZS Russia FCA / In bulk 10576 RUR FCA / In bulk / For agricultural producers FCA / In bulk / For agricultural Russia producers Turkmenistan Prepayment Russia 11510 RUR 10955 RUR 400 TMT 1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 1 EUR = 3,8982-3,9159 ТМТ Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014 № 1(85) February 2013 Eurasian chemical market 43 Specialty chemicals Prices w w w. chemm a r ke t . in fo Prices for some specialty chemicals produced in Russia, Belarus, Uzbekistan, Turkmenistan and Ukraine in 1Q, 2014 Product Manufacturer City Country Notes Price per tonne, ex. VAT Acrylic emulsion, polymerisation product of methyl acrylate ester, 20% solids Navoiyazot JSC Navoiy Uzbekistan For leather finishing and nonwovens 4800 USD For production of butadiene nitrile rubber, synthetic fibers, plastics, ABC, SAN - plastic, acrylamide, methyl acrylate, glutamic acid, as insecticide 2400-2600 USD Acrylonitrile technical, 0,008-0,806 g/cm3 density Navoiyazot JSC Navoiy Uzbekistan Additive high-octane motor / product of esterification of olefins with methanol, 5% actual resin Togliattikauchuk Ltd Togliatti Russia Alcaline Adipate Plastificator (AAP), 1830% sodium adipate Shchekinoazot UCC JSC Schyokino (Tula region) Russia Used for the production of building materials, oil and gas extraction (upstream processes) 4600-6900 RUR Aluminum potassium sulphate, pure for analysis Promchimperm CJSC Perm Russia Bag 50 kg / coagulant in pulp and paper industry 26 RUR / kg Ammonium alum alumina, pure Promchimperm CJSC Perm Russia Bags 50 kg, big bags 700 kg / Raw materials For production of synthetic crystals (corundum) 20 RUR / kg Ammonium nitrate, grade A, 98% KuibyshevAzot OJSC Togliatti (Samara region) Russia In bulk / PP bags 50 kg / Big bags 800 kg / Components of explosive 9530-9800 RUR Benzene-toluene fraction (bentol), 20-50% benzene, 50-80% toluene SIBUR-Khimprom CJSC Perm Russia Ovtane booster 27966 RUR Benzene-toluene fraction (bentol), 20-50% benzene, 50-80% toluene Plastic JSC Uzlovaya (Tula region) Russia Ovtane booster 27966 RUR Bischofite brine, GreenRide Kaustik JSC Volgograd Russia Calcium and magnesium carbonate (dolomite powder), 40% CaO, 22% MgO R&D enterprise Kaltsyt Ltd Donetsk Ukraine Calcium carbonate dispersed technical MTD2, 98% Volcheyarovsky Quarry PJSC Lisichansk (Luhansk region) Ukraine Calcium carbonate milled MM-3 Volcheyarovsky Quarry PJSC Lisichansk (Luhansk region) Ukraine For building mixes 350 UAH Calcium carbonate milled separated MMS-2, 98% Volcheyarovsky Quarry PJSC Lisichansk (Luhansk region) Ukraine Used inpolymer, paint, rubber and cable industry 525-558 UAH Calcium carbonate milled separated ММS-1, 98.2% Volcheyarovsky Quarry PJSC Lisichansk (Luhansk region) Ukraine Used in plastic, paint, rubber and cable industry 550-583 UAH Calcium carbonate MMK, powder feed, 98% Volcheyarovsky Quarry PJSC Lisichansk (Luhansk region) Ukraine Calcium carbonate MMZHP, powder Volcheyarovsky Quarry PJSC Lisichansk (Luhansk region) Ukraine 44 Eurasian chemical market № 1(85) February 2013 29237 RUR 15000-17000 RUR As flux, refractories, for magnesium 792 UAH 458 UAH 350-425 UAH For feeding animals and birds 392 UAH Specialty chemicals w w w. chem mar ket. info Prices Product Manufacturer City Country Notes Price per tonne, ex. VAT Calcium chloride technical, inhibited, 80% Khimprom Ltd Kemerovo Russia EXW / Big bags 500 kg, bags 25 kg, rail-cars 21000 RUR Khazar Chemical Plant Khazar (Balkan province) Turkmenistan 2350 USD Cellikom JSC Kazan (Republic of Tatarstan) Russia 29661-61017 RUR Cellulose trinitrate / Pyroxylin Tambov Powder Plant FSE Kotovsk (Tambov Region) Russia For obtaining smokeless powder, dynamite, explosives / reusable packaging 18-22kg 248500 RUR Chladone R600a (isobutane) Promchimperm CJSC Perm Russia Container 400 kg 200 RUR / kg Colloxylin solution in organic solvents / Mastic, 22% Tambov Powder Plant FSE Kotovsk (Tambov Region) Russia Formanufacture of binding materials and artificial leather 82797 RUR Copper oleate Tambov Powder Plant FSE Kotovsk (Tambov Region) Russia Antiwear additive for internal combustion engine 327966 RUR Dibutyl phthalate, density 1.045-1.049 g/cm3 Lakokraska JSC Lida (Grodno region) Belarus Plasticiser 2377900025081000 BYR Diethyleneglycol, 99.5% SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia Plasticiser of film materials, adhesives 40254 RUR Scientific and Industrial Association Tehnolog JSC Sterlitamak (Republic of Bashkortostan) Russia For rubber, dimethylformamide, dimethylacetamide, in organic synthesis / Barrel 216.5 l 40000 RUR 271186 RUR Carbon black K-354 Carboxymethylcellulose, 50-60% Dimethylamine, 40% Dipentene (1-methyl-4-iso propenyl cyclohexen-1), 0.8411 g/cm3 density Delios Ltd Dzerzhinsk (Nizhny Novgorod region) Russia For obtaining alkyd resins, terpene resins, carvone, rubber chemicals, substitute of chlorinated solvents inprinting industry Filler Carbosil, grade KS-20, 20% carbon, 70% silicon dioxide Ecochemmach JSC Buy (Kostroma region) Russia For rubber, paint materials / Bags 20 kg 12797 RUR 3680 USD Flocculant PAA-GS / Polyacrylamide granulated 50-56%, sulphate ammonia 34-40%, mixture Navoiyazot JSC Navoiy Uzbekistan Flocculant for obtaining explosives, gels for chemical analysis, and in gold mining, coal mining Gum rosin, noncrystallisable, modified Lesohimik JSC Borisov (Minsk region) Belarus For producing electrical insulation / For cable 31020000 BYR Gum rosin, pine, 6% unsaponifiables Lesohimik JSC Borisov (Minsk region) Belarus For rubber production / In bulk 28200000 BYR Gum turpentine, 60% α and β-pinenes Lesohimik JSC Borisov (Minsk region) Belarus In bulk / Feedstock for organic synthesis 23970000 BYR Hexachloroparaxylene Hepsol-HKP, 53-62% Cl Kaustik JSC Volgograd Russia Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia Inhibitor of sediments mineral salts IOMS-1 / 25% sodium salts aminomethylene phosphonic acids of nitrilotrimethylphosphonic acid 58500-70000 RUR For water treatment 50848 RUR № 1(85) February 2013 Eurasian chemical market 45 Inorganics Prices w w w. chemm a r ke t . in fo Manufacturer City Country Notes Price per tonne, ex. VAT Inhibitor of sediments mineral salts IOMS-1M, 25% Na3NTF Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia For water treatment 59322 RUR Inhibitor of sediments mineral salts ZnOEDFK / Oxyethylidene diphosphonic acid zinc complex, 20-25% Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia For water treatment 67797 RUR Inhibitor of sediments mineral salts, corrosion and biofouling, grade KISK2, KISK-B / sodium salts of organic phosphonic acid water solution Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia For water treatment 118644 RUR Inhibitor of sediments of mineral salts IOMS-2, 25% Na3NTF Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia For water treatment 67797 RUR Inhibitor Zn-IOMS / mixture of sodium salts nitrilotrimethylphosphonic methyliminobismethylphosphonic acids and complexes of zinc, 25% organophosphate Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia For water treatment 67797 RUR Centers of technology Lantan Ltd Novosibirsk Russia For production of highoctane gasoline and hydrogen batteries of mobile phones 26 USD Monoethyleneglycol, 99.5% SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia 44068 RUR Monoethyleneglycol, 99.8% SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia 44068 RUR Monoethyleneglycol, 99.8% SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia 27966 RUR Neutral cake soda calcinated Shchekinoazot UCC JSC Schyokino (Tula region) Russia Used for the production of building materials, oil refining (downstream processes) 9700 RUR Nickel nitrate, 98% Centers of technology Lantan Ltd Novosibirsk Russia For production of alkaline batteries 230 RUR / kg Binder inproduction of reinforced plastics, protective coatings, building materials, electrical insulating compounds, lacquers, enamels, adhesives 83333 UAH Product Lanthanum nitrate, pure, 98% Oligoetheracrylates MGF-9 Armoplast PJSC Sievierodonetsk (Luhansk region) Ukraine Oligoetheracrylates MGF-9 CHIMEX Limited CJSC St. Petersburg Russia Oligoetheracrylates TGM-3 Armoplast PJSC Sievierodonetsk (Luhansk region) Ukraine Monomers for production of resins 85000 UAH Paraffin crude fraction II Farg’ona Refinery unitary subsidiary Farg’ona Uzbekistan For production hard paraffin 600 USD Paraffin in styrene solution, density 0.9010.903 g/cubic meter Zhylevsky Plastics Plant OJSC Sitne-Schelkanovo (Moscow region) Russia Canister 5, 10 kg / Curing accelerator 123100 RUR 46 Eurasian chemical market № 1(85) February 2013 381356 RUR Inorganics w w w. chem mar ket. info Product Price per tonne, ex. VAT Manufacturer City Country Farg’ona Refinery unitary subsidiary Farg’ona Uzbekistan Paraffin сhlorinated, grade CP-250, 24-29% Cl Kaustik JSC Volgograd Russia For production of coatings, component for processing leather 34900-43200 RUR Paraffin сhlorinated, grade CP-418, 40-43% Cl Kaustik JSC Volgograd Russia Plasticiser in polymer compositions 34900-43200 RUR Paraffin сhlorinated, grade CP-470А, 45-49% Cl Kaustik JSC Volgograd Russia Plasticiser in polymer compositions 34900-43200 RUR Paraffin сhlorinated, grade CP-52, 50-54% Cl Kaustik JSC Volgograd Russia Plasticiser in polymer compositions 34900-43200 RUR Paraffin сhlorinated, grade CP-66Т, 53-54% Cl Kaustik JSC Volgograd Russia Flame retardant for paintwork materials and plastics 50000-65000 RUR Pentaerythritol technical filtrate, 20% of sodium formate Metafrax JSC Gubaha (Perm territory) Russia EXW / Tank-cars 50-60 tonnes 2000 RUR a-Pinene, 95% Delios Ltd Dzerzhinsk (Nizhny Novgorod region) Russia For obtaining camphor, solvents paints and varnishes, raw material for pine oil, terpineol and fragrances 135593 RUR Pinene natural (of gum turpentine), 90% Delios Ltd Dzerzhinsk (Nizhny Novgorod region) Russia Used in cosmetics 118644 RUR 3400-3900 USD Paraffin petroleum solid, grade T1, T2, T3 Notes Prices 1358333 UZS Polyacrylamide-gel ammoniacal, 6% Navoiyazot JSC Navoiy Uzbekistan Flocculant for water purification and preparation of mineral fertilisers, for drilling and oil production, sizing of fabric Polyacrylamide-gel ammoniacal, 6% Zavod imeni Sverdlova Federal government enterprise Dzerzhinsk (Nizhny Novgorod region) Russia Flocculant for natural and waste water, to trap heavy metals and toxic substances / Bag 45 kg 16949 RUR Cellikom JSC Kazan (Republic of Tatarstan) Russia For petrochemical industry,addition of detergents, for sizing of warp yarns, thickener inks 50848127118 RUR Naftan JSC Navopolatsk (Vitsebsk region) Belarus Component of finishing agents intextile industry and inleather industry 49500 RUR 70000 RUR Polyanionic cellulose, 50-60% Polyethylene emulsion Oxalen-30, 25% PE wax Polyethylene wax nonoxidized, grade PV-200 Naftan JSC Navopolatsk (Vitsebsk region) Belarus Used in electronic equipment, cables, paper isolation, polishes and creams, household chemicals, printing inks, pigments, masterbatches Polyethylene wax nonoxidized, grade PV-300 Naftan JSC Navopolatsk (Vitsebsk region) Belarus In modeling wax compositions 70000 RUR Polyethylene wax oxidized, grade PVO-30 Naftan JSC Navopolatsk (Vitsebsk region) Belarus For giving fabrics abrasion resistance and in leather industry 130000 RUR SIBUR-Neftekhim JSC Dzerzhinsk (Nizhny Novgorod region) Russia Additives to lubricants and cutting fluids 63559 RUR Lesohimik JSC Borisov (Minsk region) Belarus For obtaining adhesives, hydrogels, paint formulations, as conditioning additives for mineral fertilisers 6900000 BYR Polyglycols Polymer VRP-3 (based onproduct of alkaline hydrolysis of polyacrylonitrile fibers, neutralized by acetic acid), grade B, 35-55% of dry substance № 1(85) February 2013 Eurasian chemical market 47 Inorganics Prices w w w. chemm a r ke t . in fo Manufacturer City Country Notes Price per tonne, ex. VAT Preparation K-4 (watersoluble polymer) Navoiyazot JSC Navoiy Uzbekistan As glue in printing industry 400 USD Propyleneglycol, 99% Khimprom Ltd Kemerovo Russia EXW / PE canisters, barrels 90000 RUR Salt OEDFK / 1 oxyethylidendiphosphone acid trisodium salt, pure, 96% Chemical company Niton JSC Yekaterinburg (Sverdlovsk region) Russia Forperfume industry 211864 RUR Silicon dioxide precipitated / silica filler Rosil-175, grade A, 90% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 54900 RUR Silicon dioxide precipitated / silica filler Rosil-175, grade B, 90% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 54590 RUR Silicon dioxide precipitated / silica white BS-100 compacted with calcium chloride, 86% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 48410 RUR Silicon dioxide precipitated / silica white BS-100 compacted, 86% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 48410 RUR Silicon dioxide precipitated / silica white BS-120 compacted, 87% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 50610 RUR Silicon dioxide precipitated / silica white BS-120 uncompacted, 87% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 52920 RUR Silicon dioxide precipitated / silica white BS-50, 76% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 58140 RUR Silicon dioxide precipitated / silica white U-333, 88% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia In bulk / Bags / Big bags 61990 RUR Belarus Binder and stabilizing component of refractory linings in metallurgical and engineering industries, carrier for various catalysts 437200 RUR 127119 RUR Product Silicon dioxide, 30% solution Naftan JSC Navopolatsk (Vitsebsk region) Silicone fluid PMS-50, PMS-100, PMS-200, PMS-300, PMS-400 / Polymethylsilicone fluid (oil) Penta-91 Ltd Moscow Russia Plasticiser for elastomers reagent treatment of fabrics and leathers, to reduce foaming, without prejudice to the lubricating properties of engine oil, in the production of household chemicals and cosmetics Silicone fluid PMS-500 Polymethylsilicone fluid (oil) Penta-91 Ltd Moscow Russia Heat transfer medium, hydraulic, damping and coolant, dielectric transitions in defoamers 135593 RUR Sodium alkyl benzene sulfonate Sulphonol, grade bleached, 40-45% solution Zavod imeni Sverdlova Federal government enterprise Dzerzhinsk (Nizhny Novgorod region) Russia Surfactant inproduction of detergents 93220 RUR Sodium alkylbenzene sulphonate (sulphonol), 25% Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Surfactants in synthetic detergent 22740 RUR 48 Eurasian chemical market № 1(85) February 2013 Inorganics w w w. chem mar ket. info Prices Manufacturer City Country Notes Price per tonne, ex. VAT Soda JSC Sterlitamak (Republic of Bashkortostan) Russia Reagent, antiglaze material technical / Big bags 1318 RUR Khimprom Ltd Kemerovo Russia For regeneration of ion exchange resins at water treatment plants 3000 RUR / m3 Sodium formiate, 25% solution Scientific and Industrial Association Tehnolog JSC Sterlitamak (Republic of Bashkortostan) Russia Antifreeze additive in concrete 6780 RUR Sodium silicate, 19,228,8% silicon dioxide Soda JSC Sterlitamak (Republic of Bashkortostan) Russia For silicate paints 11815 RUR Sodium silicate, min 99% of SiO2 + Na2O Zaporozhye Factory of Welding Fluxes and Glass Products JSC Zaporizhzhia Ukraine PP Big bags 1000 kg / rail-car, tank-car, tank norms 2115 UAH Substances textile auxiliaries Sorbital S-20 / Product of oxyethylation of sorbitan S Naftan JSC Navopolatsk (Vitsebsk region) Belarus Used for finishing fibers and fabrics 110000 RUR Substances textile auxiliaries Sorbitan S / Product of esterification of sorbitol and stearic acid Naftan JSC Navopolatsk (Vitsebsk region) Belarus Used for finishing fibers and fabrics 130000 RUR Russia Drum 200 kg, 40 kg / Catalyst inproduction of plasticisers, paints, component in cable industry 189 RUR / kg 3980 RUR / kg Product Sodium chloride, 96% Sodium chloride, aqueous solution (280 g/l), 50 g/l sodium sulphate, 10 g/l caustic soda Tetrabutoxytitanium technical Promchimperm CJSC Perm Tetraethoxytitanium, pure Promchimperm CJSC Perm Russia For illumination optics, deposition of thin films of titanium dioxide, catalyst inproduction of plasticisers, polymers Thiourea (thiocarbamide), 95% Navoiyazot JSC Navoiy Uzbekistan Floated reagent of metals, in manufacture of mercantans, dyes synthetic resins 9270345 UZS Tin tetrachloride 5-water (crystalline), pure Promchimperm CJSC Perm Russia Coating composition of glass / Packaging 2 kg, 5 kg 750 RUR / kg Triethanolamin titanat technical Promchimperm CJSC Perm Russia Triethylaluminum Tomskneftekhim Ltd Tomsk Russia Used for the production of polypropylene, linear polyethylene and HDPE 361017 RUR Belarus Reductant type NOx for diesel engines 4169954 BYR Urea in demineralised water, solution of high Grodno Azot JSC Grodno purity AUS-32, 32% 249 RUR / kg 1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 1 EUR = 3,8982-3,9159 ТМТ Official exchange rate, according to the Central Bank of Turkmenistan during 1Q 2014 1 EUR = 12650-13400 BYR Official exchange rate, according to the National Bank of the Republic of Belarus during 1Q 2014 1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014 № 1(85) February 2013 Eurasian chemical market 49 Paints and coatings Prices w w w. chemm a r ke t . in fo Prices for some feedstocks for paintwork production in Russia, Ukraine, Belarus and Uzbekistan as of 1Q, 2014 Product City Country Acrylic acid, 99.5% Acrylate JSC Dzerzhinsk (Nizhny Novgorod region) Russia 68644 – 71186 RUR Acrylic acid, 99% Acrylate JSC Dzerzhinsk (Nizhny Novgorod region) Russia 77119 RUR Akrilan Ltd Vladimir Russia Alcohol-ether concentrate, grade A SIBUR-Khimprom CJSC Perm Russia 29661 RUR Alcohol-ether concentrate, grade B SIBUR-Khimprom CJSC Perm Russia 16525 RUR Butylacrylate, 99.5% Acrylate JSC Dzerzhinsk (Nizhny Novgorod region) Russia 77119 RUR Calcium phosphate lamellar Kronakril Ltd Yaroslavl Russia Anticorrosive pigment for paints water 1500 USD Cellulose dinitrate / Kolloksilin lacquer, anhydrous, grade PSV Tambov powder factory Kotovsk (Tambov region) Russia For production of lacquers, enamels, primers, mastics, celluloid / corrugated boxes 12-18 kg 191000 RUR Cellulose dinitrate / Kolloksilin lacquer, dehydrated, grade VV, VNV Tambov powder factory Kotovsk (Tambov region) Russia For production of lacquers, enamels, primers, mastics, celluloid / corrugated boxes 12-18 kg 187000 RUR Russia For the production of lacquers, enamels, primers, mastics, fillings, celluloid / reusable packaging 18-22 kg 223203 RUR 150000 RUR Acrylic dispersion Akrilan 121 / Aqueous dispersion of a copolymer of esters of acrylic and methacrylic acids, 50% solids Notes Price per tonne, excluding VAT Manufacturer Without cost of packaging 67373 RUR Cellulose dinitrate / Kolloksilin lacquer, not anhydrous, grade NH Tambov powder factory Kotovsk (Tambov region) Co-polymer of methacrylic acid and butyl ester of methacrylic acid BMK-5 Experimental Plant of acrylic dispersion Ltd Dzerzhinsk (Nizhny Novgorod region) Russia Binder in solution with fillers (chalk, cement), for manufacture of lacquers, enamels, adhesives Dye cationic black О KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 228814 RUR Dye cationic blue О KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 266949 RUR Dye cationic bright green 4S KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 205932 RUR Dye cationic bright green Zh KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 213559 RUR Dye cationic brown 4Zh KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 125424 RUR Dye cationic brown Zh KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 117797 RUR Dye cationic cyan 2 «3» KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 221186 RUR Dye cationic golden yellow 2K 200% KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 282203 RUR Dye cationic red S KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 282203 RUR Dye cationic violet 2K KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 198305 RUR 50 Eurasian chemical market № 1(85) February 2013 Paints and coatings w w w. chem mar ket. info Prices Manufacturer City Country Notes Price per tonne, excluding VAT Dye cationic violet 2S KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 198305 RUR Dye cationic violet S KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 198305 RUR Dye cationic violet SN KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring PAN-fiber 198305 RUR Dye direct green KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring cotton and viscose 228814 RUR Dye direct yellow К KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring cotton and viscose 152542 RUR Dye direct yellow К 200% KrasS CJSC Novocheboksarsk (Chuvash Republic) Russia For coloring cotton and viscose 99153 RUR Product Ethylcellosolve technical, 99.5% Khimprom Ltd Kemerovo Russia EXW / Cistern 40-50 tonnes 70000 RUR Glyptal resin in organic solvents (Resin 188) Tambov powder factory Kotovsk (Tambov region) Russia In consumer’s packaging / Barrels 50 l 41000-44703 RUR Hardener E-45 / Polyamide resin solution in xylene, 69-71% solids Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 35001000 BYR Hardener № 1 / Hexamethylenediamine, solution in ethyl or isopropyl alcohol, 50% Lakokraska OJSC Lida (Grodno region) Belarus 2990300030931000 BYR Hardener №2 / Polyamide resin solution in a mixture of organic solvents, 30% solids Lakokraska OJSC Lida (Grodno region) Belarus 1852800022963000 BYR Hardener №3 / Polyamide resin solution in a mixture of organic solvents Lakokraska OJSC Lida (Grodno region) Belarus 2506600031061000 BYR Hardener №4 / Polyamide resin solution in a mixture of organic solvents, 69-71% solids Lakokraska OJSC Lida (Grodno region) Belarus 1852800022963000 BYR Hardener №5 / Polyamide resin solution in a mixture of organic solvents, 48-52% solids Lakokraska OJSC Lida (Grodno region) Belarus 2506600030767000 BYR Isobutanol technical, 99.3% Gazprom Neftekhim Salavat JSC Salavat (Republic of Bashkortostan) Russia 42686 RUR Isobutanol technical, 99.3% SIBUR-Khimprom CJSC Perm Russia 40254 RUR Melamine-formaldehyde resin K-421-02 Lakokraska OJSC Lida (Grodno region) Belarus 3670700037379000 BYR Navoiyazot JSC Navoiy Uzbekistan 3700 – 3710 USD Acrylate JSC Dzerzhinsk (Nizhny Novgorod region) Russia 76721 RUR n-Butanol technical, 99.4% SIBUR-Khimprom CJSC Perm Russia 45339 RUR n-Butanol technical, 99.4% Gazprom Neftekhim Salavat JSC Salavat (Republic of Bashkortostan) Russia 42797 RUR Pentaerythritol technical, 95% Metafrax JSC Gubaha (Perm territory) Russia For the amount of up to 1 rail-car 58730 RUR Pentaerythritol technical, 98% Metafrax JSC Gubaha (Perm territory) Russia For the amount of up to 1 rail-car 60730 RUR Pentaphthalic resin PF-053, 54% nonvolatile substances Lakokraska OJSC Lida (Grodno region) Belarus 1554900020213000 BYR Pentaphthalic resin PF-060, 5255% nonvolatile substances Lakokraska OJSC Lida (Grodno region) Belarus 1290000015245000 BYR Methylacrylate, 98.5-99.3% Methylacrylate, 99.7% № 1(85) February 2013 Eurasian chemical market 51 Paints and coatings Prices w w w. chemm a r ke t . in fo Manufacturer City Country Notes Price per tonne, excluding VAT Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging 11960000 BYR Pigment on the basis of zinc phosphate, subgrade AM, 3444% Zn, max 30% of calcium phosphate Kronakril Ltd Yaroslavl Russia Up to 3 tonnes / Bags 40 kg 2000 USD PVA dispersion , grade D 50N Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging 9347000 BYR PVA dispersion , grade DF 16/5N Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 10857000 BYR PVA dispersion , grade DF 47/50V Lakokraska OJSC Lida (Grodno region) Belarus 1129100012305000 BYR PVA dispersion , grade DF 51/10SL Lakokraska OJSC Lida (Grodno region) Belarus 1210800013752000 BYR PVA dispersion , grade DF 51/15VP Lakokraska OJSC Lida (Grodno region) Belarus 1236700014011000 BYR PVA dispersion, grade D 50S Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR PVA dispersion, grade D 51S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 12349000 BYR PVA dispersion, grade D 51S Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR PVA dispersion, grade D 51V Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 13128000 BYR PVA dispersion, grade D 51V Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 39831 RUR PVA dispersion, grade DD 50/10S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 12843000 BYR PVA dispersion, grade DD 50/10S Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR PVA dispersion, grade DD 51/15V Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR PVA dispersion, grade DF 51/10S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 13752000 BYR PVA dispersion, grade DF 51/10S Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR PVA dispersion, grade DF 51/15S Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 13442000 BYR PVA dispersion, grade DF 51/15S Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR PVA dispersion, grade DF 51/15V Lakokraska OJSC Lida (Grodno region) Belarus With cost of packaging 14011000 BYR PVA dispersion, grade DF 51/15V Plastpolymer JSC St. Petersburg Russia With cost of packaging (Barrels 50l) 38983 RUR Solvent Nefras 130-210 Farg’ona oil refiney Unitary subsidiary enterprise Farg’ona Uzbekistan 1084583 UZS Solvent Nefras 135-220 Buxoro neftni qayata ishlash zavodi Qorovulbozor (Buxoro province) Uzbekistan 2351758 UZS Solvent Nefras S4-150/200 / light kerosene condensate Kaustik JSC Volgograd Russia Substitute for white spirit 27000 – 29000 RUR Solvent Nefras S4–150/200, light kerosene condensate Naftan OJSC Navopolatsk (Vitsebsk region) Belarus Substitute for white spirit 5451700 BYR Solvent R-4 / 62% toluene, 26% acetone, 12% butyl acetate Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging / Barrels 180 kg 1232900014169000 BYR Solvent R-4A / mixture of esters, ketones, aromatic hydrocarbons Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging / Barrels 180 kg 1029800011972000 BYR Solvent R-5 / 30% butyl acetate, 30% acetone, 40% xylene Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging / Barrels 180 kg 1248300014323000 BYR Product Phthalic anhydride, 99.9% 52 Eurasian chemical market № 1(85) February 2013 Paints and coatings w w w. chem mar ket. info Prices Manufacturer City Country Notes Price per tonne, excluding VAT Solvent R-5A / 30% of butyl acetate; acetone, toluene Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging / Barrels 180 kg 1338500014883000 BYR Solvent R-646, 50% toluene, 15% ethanol, 10% butyl acetate, 10% butanol, 8% ethylcellosolve, 7% acetone Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging / Barrels 180 kg 1975600022330000 BYR Solvent RE-2V / mixture of esters, ketones, alcohols and aromatic hydrocarbons Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging 17988000 BYR Solvent RE-4V mixture of esters, ketones, alcohols and aromatic hydrocarbons Lakokraska OJSC Lida (Grodno region) Belarus Without cost of packaging / Barrels 180 kg 2071200022770000 BYR Styrene-acrylic dispersion Akrilan 101 / Aqueous dispersion copolymer butylacrylate and styrene, 50% solids Akrilan Ltd Vladimir Russia Without cost of packaging 61441 RUR Styrene-acrylic dispersion Akrilan 101М / Aqueous dispersion copolymer butylacrylate and styrene, 50% solids Akrilan Ltd Vladimir Russia Iincreased mechanical stability during freezing / thawing 62288 RUR Styrene-acrylic dispersion Akrilan 103 / Aqueous dispersion copolymer butylacrylate and styrene, 29-31% solids Akrilan Ltd Vladimir Russia Without cost of packaging 50424 RUR Styrene-acrylic dispersion Akrilan 105 / Aqueous dispersion of 2-ethylhexylacrylate and styrene co-polymer, 50% solids Akrilan Ltd Vladimir Russia Without cost of packaging 63983 RUR Styrene-acrylic dispersion Akrilan 106 / Aqueous dispersion of copolymer butyl acrylate and styrene Akrilan Ltd Vladimir Russia Styrene-acrylic dispersion Akrilan 107 / Aqueous dispersion copolymer butylacrylate and styrene, 50% solids Akrilan Ltd Vladimir Russia For use in low filled systems 57203 RUR Zhylevsky Plastics Plant OJSC Sitne-Schelkanovo (Moscow region) Russia Barrel 240 kg / For furniture 106500 RUR Pigment prevent smoking while burning (added to plastics, rubber, cable), flame retardant 2300 USD Product Varnish semi-finished PE-246 / solution of the unsaturated polyester resin in styrene, butyl acetate and acetone Zinc borate, 37% ZnO, 47% B2O3 Zinc oxide, grade TD, 97-98% Kronakril Ltd Yaroslavl Russia GartMet-XXI Ltd Zaporizhzhia Ukraine Olmaliq (Toshkent province) Uzbekistan Olmaliq KonZinc powder, grade PTS6, сlass B Metallurgiya Kombinati JSC 62288 RUR 4000 UAH For production of zinc oxide and paints 1 EUR = 45,0559-49,5839 RUR Official exchange rate, according to the Central Bank of Russia during 1Q 2014 1 EUR = 3000,05-3053,73 UZS Official exchange rate, according to the Central Bank of the Republic of Uzbekistan during 1Q 2014 1 EUR = 3,8982-3,9159 ТМТ Official exchange rate, according to the Central Bank of Turkmenistanduring 1Q 2014 1 EUR = 10,8496-13,6372 UAH Official exchange rate, according to the National Bank of Ukraine during 1Q 2014 4247790 UZS № 1(85) February 2013 Eurasian chemical market 53 Chemistry and economy w w w. chemm a r ke t . in fo A Systemic Analysis of an Economic Policy of Regulating Hydrocarbons Flows Worldwide under the Conditions of the �Shale Gas Revolution’ U.S. financial system as a determining factor in shale gas exports It is necessary to remind how the American Text by: Zabolotskiy Sergey (Phd in economics) Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences financial system is organised in order to 17 Lavrentyev Ave., understand the nature of global hydrocar- Novosibirsk, Akademgorodok, 630090 bons flows. It should be mentioned that the Tel:+7 (383) 330-10-59. current monetary and financial system is characterised by the domination of U.S. dollar functioning as the main global currency. Fax:+7 (383) 330-25-80. E-mail: [email protected] The crisis of the monetary system, which is only worsening now, turn out a direct conse- 1) LNG is exported on a small scale. The the petrochemical industry). Simply put, this quence of the money issuing mechanism of main advantage of this scenario will be is the mentioned multiplicative effect. Owing the USA. The Federal Reserve issues money, achieved not only through a multiplicative to it, America has dethroned China in terms and the American government amasses more effect, but also via creating an image of secur- of investment attractiveness worldwide for and more debts. The U.S. government takes ing the American dollar and debt liabilities the first time over more than ten years tak- a decision on debt servicing and discharge at the expense of a �cheap’ shale gas effect, ing the first place. It is also curious how a of liabilities. State expenditures in the USA which may influence the entire economy. It significant reduction in gas prices (due to grow much faster than revenues, the budget is important for meeting export liabilities and the shale gas revolution) in the United States has a chronicle deficit and the national debt creating speculative demand (or on the con- has led to a decrease in manufacturing costs consequently increases. This process only trary - panic) on the market. in America. It came to the point that trans- continues to accelerate and reminds an ava- If the USA borrows to pay its debts and national companies began to repatriate their lanche. Countries less and less trust in the create an image of solvent before creditor capital from the traditional regions of com- stability of the U.S. economy and dollar. countries, why it cannot do the same with modities production in the Southeast Asia Now shale gas appears on the scene to come LNG - let’s create an image of an exporter back to the USA. Manufacturing output and to the rescue. sending two-three tankers to Europe, while the whole economy have started to gradu- using shale gas for our own needs as a source ally rise. Today America can boast of the of economic prosperity. One should also lowest unemployment rate over the recent understand that according to various expert five years. The housing market is recover- estimates, low-cost gas increases the market ing. The machine-building sector has created added value of U.S. economy by 2-6 times additional jobs firstly since 1990. As this via related consuming industries (especially takes place, the country is developing its own Two scenarios of LNG exports from the USA Today there are two scenarios of LNG exports from the USA: 54 Eurasian chemical market № 1(85) February 2013 `ˆÌi`Ê܈̅Ê̅iÊ`i“œÊÛiÀȜ�ʜvÊ �vˆÝÊ*ÀœÊ*Ê`ˆÌœÀÊ /œÊÀi“œÛiÊ̅ˆÃÊ�œÌˆVi]ÊۈÈÌ\Ê ÜÜܰˆVi�ˆ°Vœ“ÉÕ�œVް…Ì“ Chemistry and economy w w w. chem mar ket. info low-cost power generation and petrochemi- article. That is why the given article uses commercial relations, economic and, conse- cal industry. conventional terms for world’s economic quently, political interests. The vast major- centres: the USA, the EU, Russia, etc. ity of technological systems in the modern 2) Theoretically, we can assume that America will export LNG on a large scale. The U.S. shale gas (and oil) production industry as well as energetics and transport This contradicts sound economic logic but has led to a number of consequences includ- are based on using hydrocarbons. Amidst still can take place in exceptional condi- ing those at the global hydrocarbons market. the absence of reliable and stable suppliers tions, if, for instance, U.S. gas exports leads Various studies forecasts that additional vol- of raw materials, ways of their shipments to to rapid depletion of shale gas resources umes of gas produced from shale rock can consumers, there may occur serious failures followed by a regular military intervention be exported from the USA approximately in global financial and economic processes. against a hydrocarbons producing country in starting with 2016 competing with traditional Until hydrocarbon resources and reserves the Middle East or South America. This sce- gas suppliers. This article shows why this are not developed, their actual value increases nario is advantageous in terms of promoting scenario will be either scarcely probable in a long-term prospect (due to awareness of an image of prosperity of the U.S. economy, or hardly influence the world’s economy if limits of their us). But as soon as they have which has entered global exchange in hydro- realised. been produced and sold, they turn into finan- carbons. This may also support the American We should adopt a systemic approach so as cial flows. These are sources of new invest- financial pyramid (Ponzi scheme) confirming to fully explore the topic of the present arti- ments in fixed assets and the opportunity to the �reality’ of some part of the U.S. economy, cle. It is to be also mentioned that no material purchase the latest technologies for various which is not based upon speculative opera- in some or other way relating to conspiracy tangible and intangible assets. tions. In this case, one can expect that �tradi- theories is used to prove basic principles of In addition, they are a source of financial tional’ suppliers of hydrocarbons, i.e. OPEC the present article. All the materials used are receipts or cheap money (in case of their countries and other gas suppliers (Norway, taken from official sources. One of theories inefficient use). In order to get a clear idea Algeria, Nigeria, Qatar, etc.) will mount stiff that subsequently became a legislative act of hydrocarbon flow, one should realise resistance. Thus, the USA could certainly envisaging temporary replacement of more the commercial nature of money, regard- raise up business rivals among the traditional than 75% of oil imports from the Middle East less of the currency of the country under exporters. In other words, this scenario is not by 2025 is assumed as a basis for the article . consideration. about profits from gas exports, which will be It should be noted once again that the mod- Under these conditions, the task of effi- negligible owing to �eating away’ added value ern world stands in desperate need of gas, oil, cient development of one of the key sectors during gas liquefaction, transportation and and other hydrocarbon resources. That is why of Russia’s economy - oil and gas sector – is dilution but rather about creating a positive we cannot imagine the existence of our civi- not increasing exports of raw materials at image. In doing so, America will inevitably lization without ever growing consumption any price but transforming money income lose the main driver of its economy in years of these raw materials. And when difficulties into capital, i. e. self-expanding value, due to to come, because �profitable’ gas reserves with extraction of readily available hydro- efficient investments in the development of with low production costs are pretty small, carbons appear, this affects the entire global a raw material base and further processing as official forecasts say. Preserving hydrocar- economy. The most difficult challenges hydrocarbons into semi-finished products, bons reserves for future use, given that they mankind faces now are introducing innova- gradual creation of assets and products, could be bought for uncovered dollars (debt tive technology for developing problematic for example, materials with relatively high liabilities), explains why these scenarios are and difficult reserves, striking a balance added value. mutually exclusive. between hydrocarbons producing countries It is to be stressed that money is the most and consuming nations and optimizing gas universal but not the best mechanism of consumption. exchange and one of the main instruments for Introduction Harry Oppenheimer* noted in his day: influencing the world trade. In global condi- Many global processes have to be “People buy diamonds out of vanity. They tions, money tends to �flow’ from one system described in terms of hardly formalized and buy gold because they are too stupid to think to another. Money �inflate’ the economy and tangible factors. Today, global economic of any other monetary system which will makes it grow. Levels and rates of economic players are conventionally denoted as finan- work”. The international system of hydro- development depend on how money is used cial and industrial groups that cannot always carbons supply and maintaining a supply / by recipients. be related to borders of certain countries. demand balance are the most effective busi- In this regard, it is important to understand However, this is a theme for a separate ness direction based on technological and that this is not a group of hydrocarbons № 1(85) February 2013 Eurasian chemical market 55 Chemistry and economy w w w. chemm a r ke t . in fo Figure 1. Financial flows from oil importing countries to the exporters in 2012, USD billion dollars of the above-mentioned region at the expense of its own gas production. Gas is proposed to be used as a substitute for oil products. If we make a brief historical insight, we can see that the United States faced the same problems in 2013 as earlier before. The country faced the same energy issues and the difference was only in other fuel sources. At one time, Americans used whale oil, but were always looking for a cheaper fuel. Coal became an alternative to whale oil followed by crude oil, and eventually – shale gas. In the mid-70s, more than 50% of oil consumed by Americans at the domestic market was imported from the Middle East. But the United States were searching for a cleaner and better fuel, which was to be Source: BP Statistical Review of World Energy 2013 produced locally. First, they pursued a policy exporters have got hooked on oil and gas stop buying hydrocarbons, as exporters will of cultivation of crops for biofuels in Latin needle but a group of countries-importers. still be able to sell hydrocarbons in the future. America and built windmills and solar pan- Such economic methods as an “infusion” of At the same time, they could be bought for els. In the end, they invented what they are excessive amounts of hydrocarbons into the �mottled slips of paper’ – dollars, euros, yens having now. Americans constantly searched market may not have a significant impact or their electronic variant. The question is through all possible sources of fuel, conduct- on other players, as the exporters have been not how much supplying countries will get ing a systematic analysis of their effective- long using a mechanism of tackling such for their hydrocarbons, although it is impor- ness at each time point and analysing their situations. tant, but how fast the economy of the sup- performance indicators over time. So, it is In other words, these are one-time transac- plier and that of the consumer will grow and not surprising that that country was the first tions, which may be resisted by hydrocarbons who will faster create more high-tech assets, to produce shale gas. supplying countries via reducing of excessive which will utilise these hydrocarbons more Going over to the crux of the matter, it amounts of gas supplying to the market. In effectively. These are questions of systemic should be stressed that many American case of a negative scenario, �releasing’ some dynamics, in which the speed of technologi- experts believe that low cost shale gas could insignificant volumes of hydrocarbons are cal development and a real (not hydrocarbon) be a temporary substitute for oil products used for domestic consumption, while gas economy decisively influence the flow of for motor, railway and sea transport, and and oil are processed in the country-producer. capital from one country to another. In par- could be also used as a raw material for the Thus, all fluctuations in hydrocarbons sup- ticular, oil price is high enough for Russia, petrochemical industry and as an instrument plies can be easily regulated by the consum- so it is not about meeting the basic demand for reducing financial flows from the U.S. to ing countries. The dependence of the sup- of any economic system, but rather about the Middle East. The USA transferred USD 1 plying countries on financial support is less rationality of investments and controlling trillion to the Middle East from 2001 to 2010 than that of the consuming countries upon additional financial flows from creating high and a total of as much as USD 7 trillion from hydrocarbons. Continuous flows of hydrocar- added value products. 1976 to 2010 provided that expenditures on bons from the suppliers to the consumers will guarantee that in future hydrocarbons will �Shale gas revolution’ not be used only for domestic consumption in military purposes in the region are also taken account. This is the biggest re-distribution of wealth from one group to another over the the exporting countries but will still be sup- Shale gas revolution is a way to hold finan- whole history of mankind. Over the next 10 plied to the importers. Otherwise, the export- cial flows to the Middle East and other oil and years it was planned to transfer USD 2.2-2.6 ing countries can prepare for consuming the gas producing regions of the world. Not long trillion additionally if shale gas is excluded. released volumes of hydrocarbons meant for ago, America developed a theory of limiting Figure 1 shows the main financial flows export. In other words, it is not reasonable to purchasing hydrocarbons (oil) from countries between regions and countries*. 56 Eurasian chemical market № 1(85) February 2013 Chemistry and economy w w w. chem mar ket. info Figure 2. U.S. natural gas production and consumption in 1970–2012 Source: BP Statistical Review of World Energy 2013. The United States consumes about 11m degree of certainty, we can assume that fears Still, America is most likely to export LNG barrels daily, which makes up 19.1% of of increasing financial flows to Russia from on a modest scale and not for long. But if global consumption. In this connection, we China and Europe, to the Middle East from the United States decides to make this step can emphasise that demand for hydrocarbons the U.S., Europe and China turned out greater (insignificant LNG exports for a short time), will double only from 2020 to 2040. About due to increased hydrocarbons exports from the �traditional’ suppliers of hydrocarbons 70% is used for transport purposes. the first ones. However, problematic geologi- can agree on cutting production to maintain their profits at an acceptable level. Thus, America is implementing an eco- cal conditions of occurrences of gas in the nomic strategy of �spreading’ financial flows main hydrocarbons consuming regions and across the countries-exporters of hydrocar- less extravagant ways of purchasing natural bons so as not to strengthen some particular gas from other countries testify to the fact nation or economic centre / region. The recent that there will be no breakthrough in shale Shale gas is an important driver of the cancellation of economic sanctions against gas production in China and Europe in the U.S. economy. Despite a global slowdown Iran and its involving in global economic ties nearest future. It is more reasonable for these in growth of demand for pipeline and lique- only proves this fact. Save for isolated cases regions to acquire natural gas via pipelines fied natural gas in recent years, that country of transferring shale gas technologies to tra- and in a liquefied form keeping shale gas displayed an opposite trend in recent years. ditional oil and gas producing regions, the reserves for future use. The U.S. strategy Figure 2 clearly shows convergence of sup- said technologies have been transferred only is obvious - making hydrocarbons cheaper ply and demand curves. to the consuming regions in order to weaken worldwide. But this strategy cannot be real- In 2009-2012 (post-crisis period), there their dependence from the suppliers. In 2012- ised in full since the countries-suppliers of was a slowdown in growth rates of natural 2013, shale gas production technologies were hydrocarbons could agree on a reduction in gas consumption in all the regions of the licensed and tested in China and European production to support an acceptable level of world except for the United States. Partly, it countries, despite the fact that China became profitability. As for the European region, it could be related to increasing production of a powerful economic center competing with will consume natural gas from Russia as an cheap shale gas, which pushed an increase the United States and getting stronger and alternative to LNG supplied from other coun- in industrial production including in power stronger year in year out. Thus, with a higher tries including those from the Middle East. generation. An important economic driver № 1(85) February 2013 Eurasian chemical market 57 Chemistry and economy w w w. chemm a r ke t . in fo Table 1. Global exports / imports of methanol, thousand tonnes Net imports Japanese and other Asian products as well as Net exports by Middle Eastern countries. 2006 2015 Average growth rates, % Total 12071 25532 – Europe 4967 7983 5,4 – – – North East Asia 7104 17549 10,6 – – – Region 2006 2015 Average growth rates, % 12071 25558 – Russia – – – 1567 5327 14,6 Middle East – – – 4 979 13465 11,7 Other – – – 5525 6766 2,3 Source: CMAI Prospects for optimising a resource base for gas chemical synthesis in Russia The power intensity of the Russian economy is twice as much as that of Japan and leading Western European countries. Simultaneously, Russia is lagging behind the mentioned regions in terms of GDP per capita. High electric intensity of the Russian economy is associated with its structure. The manufacturing industry prevails in terms In 2012, the United States were the world an obvious chance for Russia to occupy its of power consumption - its share is 44,5% leader in terms of absolute growth of gas niche in the LNG market in the Asia-Pacific (without power generation), and in recent consumption. We can make a cautious con- region. years it has been growing. In other words, in clusion: low prices for natural gas pushed In addition, it is expected that total switch- the USSR we used to sell products with high the country’s economy and gas consumption ing of boiler stations from coal to natural added value, and low production costs were proper. This is one of the oblique proofs gas in China by 2018 and the accident at the based on �cheap’ natural gas. So why should that the USA will not probably export LPG nuclear power plant in Japan (leader in terms we go away from such an economy? It is far from shale deposits. Certainly, there have of LNG consumption) will make these coun- more reasonable to develop it. been sporadic cases of exporting small LPG tries key drivers of natural gas consumption in Supplying methanol, a basic semi-finished volumes from one of the oldest plants of its the nearest future. In these conditions, taking product of gas chemical synthesis used for kind Kenai LNG (Alaska) to Japan starting into consideration opinions of experts that up further conversion to a number of chemical in 1969. to 85% of Russian reserves of hydrocarbons substances (including methanol-to-olefins However, the capacity of the plant is only are off-shore reserves, Russia will be able to technology) is very promising in this regard. 1,4m tonnes, and it still remains operational provide the importing countries with gas for Supplies of �pseudo-gas’ in the form of nitro- only in order to avoid staying idle and sav- many years to come. It would be much more gen fertilisers should be developed as well. ing jobs. Certainly, America has invested a reasonable for the USA to increase the con- Methanol can be processed into dimethyl lot of money in LNG terminals. Therefore sumption of gas by resuming purchases from ester and used in energetics. And it can their lying idle may create another �rust belt’. Qatar followed by growing production of become a major factor in the development But using these production facilities to cre- high-tech products and an increase in exports of the fuel market in the future (lower per- ate a temporary glut of hydrocarbons at some of value added products, while maintaining meability coefficient and safety). In China, world markets so as to reduce prices may its reserves of shale gas for the future when dimethyl ether is widely used as a fuel. In have a short-term effect and, consequently, other countries will run out of them. America the future, we should expect that countries will not succeed and be implemented in the would rather concentrate on producing high- with poor environment will start purchasing maximum volume claimed. tech products to “exchange” them for hydro- cleaner fuels (such as dimethyl ether). But carbons at international markets instead of do not forget that production of cleaner fuels buying them in debt. is also harmful to the environment. So, it is Hydrocarbons can be purchased via additional issuing of USD dollars, but using domestic reserves of hydrocarbons produced While China is developing fast, Americans from hard-to-reach oil and gas formations for should further exploit a niche for high-quality economic expansion appears illogical. On products. Heavy-duty cars and trucks, state- Russia may take a larger share of metha- the opposite, in the nearest future we should of-the-art electronics, high-tech aircraft and nol and fertilisers at the world market. expect for the United States to start import- spacecraft and weapons are those directions This requires �cheap gas’. According to ing LNG from Qatar and other countries, as that can be developed without competing in Russian experts, by 2015 in China a deficit a result of consumption growth. This may be low-range segments occupied by Chinese, of methanol can reach 5.0-9.6m tonnes (14- rational to move it to remote and sparsely populated areas. `ˆÌi`Ê܈̅Ê̅iÊ`i“œÊÛiÀȜ�ʜvÊ �vˆÝÊ*ÀœÊ*Ê`ˆÌœÀÊ 58 Eurasian chemical market № 1(85) February 2013 /œÊÀi“œÛiÊ̅ˆÃÊ�œÌˆVi]ÊۈÈÌ\Ê ÜÜܰˆVi�ˆ°Vœ“ÉÕ�œVް…Ì“ Chemistry and economy w w w. chem mar ket. info 20 % of domestic demand). In the coming Figure 3. A diagram of Russian gas consumption optimisation years, China will commission several major production units for methanol, which may Non- reduce the deficit. Its size will probably be determined by a number of production factors, primarily, by feedstock provision of the Chinese methanol sector. As regards outlooks for methanol sales, it is of interest to look at data on the global methanol market presented by CMAI (Table 1). Any process of re-industrialization and increasing competitiveness of the national economy can be achieved by using the �Soviet model’, which was oriented towards low-cost natural gas. Any production plant based upon cheaper gas will get an advantage at the international markets. In 2013 domestic gas prices in Russia caught up with the U.S. ones fixed at about USD 120 per 1,000 m3 , without taking into consideration seasonality deep-hole drilling or developing off-shore turbines replacement actively promoted by and about a tenfold fluctuation in prices due gas. In doing so, the most promising way of �Greenpeace’ in 2006 should be paid scrupu- to abnormally low temperatures during win- improving efficiency of the Russian indus- lous attention to. This idea is unfairly forgot- ter. Today Russia still needs to find �cheap’ trial sector should be replacing obsolete gas ten, though it is becoming of urgency under natural gas to maintain the competitiveness turbines with the new ones, i.e. enhancing the the current conditions owing to the success of its economy. coefficient of efficiency of heat power plants of the �Prirazlomnaya’, the �shale revolution’ . There is no way of refusing from the devel- and the necessity to keep domestic gas pro- opment of the Arctic shelf, since it is not clear cess at an acceptable level. At the same time, whether warming in the north is temporary or an option of replacing gas turbines at heat A source of cheap gas for Russia Under the current conditions, these are whether there will be climatic cooling again. power plants to the detritment of investments not the countries-exporters of hydrocar- At the moment, climatic conditions are quite that could be made in the Arctic shelf devel- bons that �have oil / gas addiction’ but, on favourable for developing the Arctic shelf. opment should be entirely excluded. Gas the contrary, - a group of the countries- Therefore this period of climatic changes consumption saving will exert a profound importers. The exporters could use min- should be used to the utmost to derive sub- multiplicative effect upon the economy. The eral resources for developing and keeping stantial benefits from warming. In this regard, main difficulty consists in simply making economy afloat, but the importers have to to enhance the efficiency of the economy at private owners modernise heat and power �squeeze’ the last drops of oil and gas out the expense of saving additional volumes of plants. This may be some legislative measure of the earth, which still remain in shales �cheap’ gas, technologically obsolete turbines such as upgrading heat and power plants via (save for such exotic hydrocarbons sources at heat power plants should be replaced much a partnership between state and private own- as the Arctic shelf and hydrates). They more intensively, because more than half of ers by a certain term. However, one should do it in order to maintain the competitive gas is just burned in vain by reason of low be completely aware of necessity to enforce strength of their economies against the technology. The proposed variant of replac- modernization. According to the most con- background of the fast-growing global eco- ing the turbines, however, is not regarded servative estimates, aggregate capacity of nomic centres. seriously due to the well-known incident at heat and power stations can increase 1.5-1.7 Hydrocarbons are the second most impor- the platform �Prirazlomnaya’ in 2013 (the times at the very least at the cost of increas- tant factor for any economy after human Prirazlomnaya platform in the Arctic was ing their degree of efficiency. Therefore, capital assets. Today to maintain exports the focus of a high profile Greenpeace pro- additional volumes of natural gas could be level, there are no options left except for test in September). Nevertheless, the idea of used for other purposes. A strong stimulus `ˆÌi`Ê܈̅Ê̅iÊ`i“œÊÛiÀȜ�ʜvÊ �vˆÝÊ*ÀœÊ*Ê`ˆÌœÀÊ /œÊÀi“œÛiÊ̅ˆÃÊ�œÌˆVi]ÊۈÈÌ\Ê № 1(85) February 2013 Eurasian chemical market 59 ÜÜܰˆVi�ˆ°Vœ“ÉÕ�œVް…Ì“ Chemistry and economy w w w. chemm a r ke t . in fo Table 2. Advantages and disadvantages of replacement with gas Advantage of replacement with gas Disadvantage of replacement with gas (complexity of replacement) Internal combustion engines in passenger cars, trucks, public motor transport and sea transport Bigger fuel tank capacity, longer mileage with the same fuel consumption, high performance engines, low operating costs, lower CO2 emissions High permeability of natural gas, hazards related to high pressure while storing Out-of-date turbines at HPP Saving gas (smaller consumption of gas in current time – direct effect from gas sales by large Russian companies) or releasing �cheap’ gas at the expense of high-tech turbines Complexity of modernisation process – a large number of HPP owners for the development of the new economy in significant fluctuations. In years to come, task is to facilitate HPP modernisation at Russia can be provided by optimizing gas All in all, shale gas production is forecast to the level of legislation to release �cheap’ consumption in accord with a diagram shown decline, according to EIA . gas for providing a new stimulus for the Target area in Figure 3. Thirdly, the accident and subsequent economy. It is necessary to upgrade heat Simultaneously, it is of big interest to failures at nuclear power stations in Japan, and power stations in Russia at a growing consider the key advantages and shortages of which takes the lead in LPG consumption, as rate using a mechanism of state and private using natural gas a fuel (Table 2). well as total switching of coal boiler rooms partnership along with the development of It is to be noted that Siberian scientists are to natural gas in China by 2018 make the industry on the basis of business clusters. carrying out research into mechanisms and mentioned countries the key drivers of global There should be created an all-Russian a system of optimizing investments in the gas demand in the nearest future. Large-scale information and analytical system on the development of new gas fields and heat and LPG exports from the USA should not be basis of systemic-dynamic modelling so power plant modernisation for from using expected; on the contrary, that country may as to optimise investments in the shelf and saved gas. be a potential destination for gas streams in HPP modernisation. Conclusions the long-term prospect. LNG exports from the USA will probably Finally, to improve the efficiency of be insignificant and short-term. The opposite, the Russian economy, it is necessary to hardly probable scenario, if the USA did take Thus, comparatively recently, a theory reduce its power intensity, thus releasing a step in that direction (large LNG exports for of restricting hydrocarbons purchases from additional gas volumes (at the cost of mod- a short period of time), means that the �tradi- the Middle East at the expense of its own ernisation and replacement of turbines) of onal’ countries-exporters of hydrocarbons production of gas and replacement of oil heat and power stations for the sake of gas could agree on reducing production with the products with gas in sea, railway and motorа chemical synthesis and / or generation of purpose of maintaining their profitability at transport evolved in America. Secondly, �cheap’ power. At the same time, to develop a suitable level. This is not critical to Russia, growth of shale gas production in that coun- hard-to-get-to resources at the Arctic shelf since the country will direct its hydrocarbon try contributed to growth of gas consumption is also a basis for Russia’s economic flows to Asia, of which European countries are and to increased efficiency of the economy. advancement. The Arctic shelf accounts well aware. Europeans need Russia in order to In 2012, gas production growth rates in the for nearly 80% of hydrocarbons reserves put pressure on Qatar and the other countries- USA noticeably reduced. In 2013, monthly in the country. Therefore, developing them suppliers. Pipeline supply is the stability, which production of shale hydrocarbons underwent is an inevitable process. Also, the main Europeans have no intention to lose. * Average oil price is taken for calculation. Aggregated calculation is made on the basis of prices for the following brands of oil : Urals, REBCO, ESPO, Siberian Light, Brent, Dubai Crude, Light Sweet, WTI. 1 Subsidizing Oil Shale: Tracing Federal Support for Oil Shale Development in the United States, Taxpayers for Common Sense, November 29, 2012, link: http://www.taxpayer.net/images/uploads/downloads/OilShale-v7.pdf 2 Henderson D., М. Belova M., LNG: Made in USA. Skolkovo energetic centre. hyperlink: http://energy.skolkovo.ru/upload/medialibrary/07c/SEneC_LNG_ Made_in_USA.pdf 4 Russian gas export price in 2013 averaged USD 380 /1,000 m3. U.S. price – USD 132 /1,000 m3. Company news http://neftegaz.ru/news/view/118120 5 Wearing of equipment – a systemic problem of the entire power industry // Power market. – 2011. – № 3(39) May–June 2011. hyperlink:http://market.elec. ru/nomer/36/iznos-oborudovaniya-sistemnaya-problema-vsej-elekt/ 7 Zabolotsky S.A. Outlooks for development of LNG supplies: changes in the global markets // Neftegaz.ru. – 2013. – № 10. – p. 21–26 (http://lib.ieie.nsc.ru/ docs/NeftegazRU_2013_10.pdf) `ˆÌi`Ê܈̅Ê̅iÊ`i“œÊÛiÀȜ�ʜvÊ �vˆÝÊ*ÀœÊ*Ê`ˆÌœÀÊ 60 Eurasian chemical market № 1(85) February 2013 /œÊÀi“œÛiÊ̅ˆÃÊ�œÌˆVi]ÊۈÈÌ\Ê ÜÜܰˆVi�ˆ°Vœ“ÉÕ�œVް…Ì“ Re Re gis ter t i by s O ra tio 31 M pe n ay n ! fo r gis be Industry CEOs to provide innovative perspectives to help your business thrive! Kasper Rorsted, CEO, Germany Michitaka Sawada, President and CEO, Japan Peder Holk Nielsen, President and CEO, Denmark Kurt Bock, Chairman of the Board of Executive Directors, Germany Itsuo Hama, President and CEO, Japan H. Fisk Johnson, Chairman and CEO, USA st r Additional insight from… ¨ UNICEF x u e r t n o M 2014 Veolia Water Solutions & Technologies World Conference on Fabric and Home Care 6-9 October 2014 | Montreux.aocs.org | Montreux, Switzerland Where global leaders shape the future of the fabric and home care industry to enhance our quality of life. ate . Chemistry and business w w w. chemm a r ke t . in fo EuroChem Reports IFRS Financial Information for 2013 EuroChem Antwerpen’s premises EuroChem Mineral and Chemical by 8% to 10.6m metric tons (MMT) as com- is well positioned to drive and support robust Company (“EuroChem”) announced consoli- pared to 2012 sales volumes (or up less than 1% cash flow generation across the business dated full year 2013 revenues according to on a like-for-like basis, excluding EuroChem cycle. The ensuing value creation is set to be IFRS of RUR 176.9bn (USD 5.6bn), which Antwerpen and EuroChem Agro). Mining raw boosted by our targeted strategic initiatives, represented a 6% increase on revenues of material sales volumes, which include iron ore such as in potash, nitrogen and phosphates, RUR 166.5bn (USD5.4bn) in 2012. Earnings and baddeleyite, added over half am tonnes and which will serve to further entrench our before interest, taxes, depreciation, and grew to 5.9 MMT, which represented an 11% resilience.” amortisation (EBITDA) amounted to RUR increase on the previous year. 43.0bn (USD 1.3bn), as compared to RUR 49.2bn (USD 1.6bn) in the previous year. CEO Dmitry Strezhnev commented: 2013 Market Conditions “Despite the growth in fertiliser demand Full year fertiliser sales volumes for the falling short of market expectations, we The fertiliser markets had a rather tumultu- company’s nitrogen and phosphate seg- continued to challenge ourselves to increase ous year. While the year started off slowly on ments, excluding sales of mining co-products, volumes and gain market share. As high- account of adverse weather in some key mar- increased 788 thousand metric tons (KMT) or lighted by our results, our unique asset base kets, conditions had materially improved by 62 Eurasian chemical market № 1(85) February 2013 Chemistry and business w w w. chem mar ket. info late spring. Farmers quickly made up for the lost time as favourable soft commodity prices provided the incentive to increase yield and expand acreage. Despite the return of healthy demand levels for all three nutrients, the first quarter’s inventory build-up limited any significant pricing appreciation. Urea prices proved the most vulnerable on account of record urea exports from China where ample coal supply and lower prices boosted the global competitiveness of local producers. On the demand side, India’s currency devaluation coupled with what has been described as an archaic subsidy system left one of the View of Severneft-Urengoy world’s largest fertiliser importers incapacision projects were reassessed in the wake of for urea and AN trading, the breadth and In a positive for both producers and cus- this market reshuffling, EuroChem reiterated flexibility of the company’s production and tomers, raw material price dynamics mirrored its commitment to the “third nutrient” with distribution assets alleviated some of the the softer market conditions. Over the course work continuing at both its greenfield potash pressure. The consolidation of EuroChem of the year, gradually weakening ammonia, projects in Russia. At an average of USD Antwerpen and EuroChem Agro yielded sulphur and phosphate rock prices helped 352/tonne in 2013 MOP (FOB Baltic Sea) significant gains for the company’s more alleviate some of the margin pressure on the contract prices fell 17% YOY as compared advanced crop nutrition products. Sales in producer side. Prilled urea (FOB Yuzhny) to an average of USD 424/tonne in 2012. NPK, UAN, and granulated AN increased a averaged USD 341/tonne in 2013, down 16% The spot price premium to contract prices combined 978 KMT over the previous year, from its 2012 average of USD 408/tonne. tightened as buyers held out given the mar- more than compensating the slightly lower Ammonium nitrate (AN) (FOB Black Sea) ket uncertainty. MOP (FOB Baltic Sea) spot urea and AN sales volumes, which slipped performed slightly better and finished 2013 prices ended 2013 with an average USD 379/ 7% and 11% YOY respectively. CAN sales with an average of USD 288, 5% below its tonne, 19% behind their 2012 average of volumes were also strong, increasing 24% to average for the previous year. USD 467/tonne. Spot prices for MOP on the 943 KMT as compared to 759 KMT in 2012. tated for the better part of the year. While phosphate prices received some Baltics finished the year at around USD 290/ The company’s nitrogen revenues for the support from the growth in planted acre- tonne, or ca. 40% below their late December 12 months ended 31 December 2013 climbed age in Latin America, the market remained 2012 levels. to a record high of RUR 100.1bn, which rep- otherwise fragile given the limited buying Buoyed by stronger-than-expected demand resented an 8% increase on what was a strong activity from India. Average MAP and DAP from China, iron ore (63.5%Fe, China CFR) 2012 performance. Average prices for nitro- (FOB Baltic Sea) prices for 2013 were USD averaged USD 136/tonne for the year, a 3% gen products nevertheless reflected the chal- 454 and USD 457USD/tonne respectively, increase versus its 2012 average. lenging market backdrop and pulled nitrogen trailing their 2012 average prices by 18% and 17% respectively. Midway through the year, unexpected strategic repositioning by Uralkali wreaked segment EBITDA down 14% to RUR 26.2bn BUSINESS SEGMENTS as compared to RUR 30.6bn in 2012. Sales to Europe, which represented 26% Nitrogen segment of total nitrogen sales in 2012, increased 29% and accounted for 31% of the Group’s chaos over the potash landscape. Citing lost market share and declining sales volumes, the The company’s 2013 nitrogen segment nitrogen sales in 2013. The increase in sales Russian potash producer’s abrupt exit from sales volumes continued to benefit from the to Europe was primarily brought on by the the BPC marketing vehicle, which it formed added depth to its fertiliser production chain. expansion of the company’s distribution net- with neighbour Belaruskali, brought the mar- Full year volumes increased 11% and rose work and asset base in Western Europe cou- ket to a standstill. Potash prices reacted in a to 8,217 KMT, which corresponded to an pled with challenging conditions on the other knee-jerk fashion and went on to shed over additional 838 KMT of product as compared side of the Atlantic. The company’s sales to 25% by year end. While many potash expan- to 2012. While the year proved challenging Russia increased 14% and accounted for 23% № 1(85) February 2013 Eurasian chemical market 63 Chemistry and business w w w. chemm a r ke t . in fo The company’s mining operations mitigated the weakness in phosphate-based fertilisers as healthy demand from China carried average iron ore prices 3% higher YOY. Iron ore and baddeleyite, which are the coproducts of apatite mining operations at the company’s Kovdorskiy GOK mine, together generated 38% and 74% of phosphate segment revenues and EBITDA, respectively, as compared to 31% and 51% in 2012. The sales geography of the company’s phosphate segment reflected the contribution of mining co-products to the segment’s performance. The share of revenue from Asia increased three percentage points as comGeneral view of Fosforit (Kingisepp, Leningrad region), a member of Eurochem chemical company pared to 2012 and accounted for 30% of total segment sales. Higher feed phosphate sales drove gains in Europe. As in 2012, it was the of segment sales (2012: 22%).Urea’s relative by a 2-3% raise from October 1st. No price company’s second largest phosphate market weakness versus other nitrogen products was increases have been announced for 2014. and represented 29% of 2013 sales, a three especially felt in the Americas. Sales to Latin America and North America decreased 31% Phosphate segment and 18% respectively. Together these two regions accounted for 23% of sales in 2013 (2012: 32%). percentage point increase on last year. Sales to Russia declined six percentage points on lower MAP/DAP prices and accounted for Total sales volumes for the phosphate seg- 18% of sales in 2013. ment, excluding raw material mining opera- In late October 2013 the companyan- At the company’s upstream nitrogen tions, slipped 2% or 50 KMT to 2,405 KMT nounced the launch of drilling and blasting operations, its Severneft-Urengoy (SNU) in 2013, as compared to last year. MAP/DAP operations at the company’s phosphate rock natural gas subsidiary provided RUR 5.1bn sales remained practically flat with a mod- mining project in Kazakhstan. Most of the and RUR 1.5bn to the Group’s revenues and est 13 KMT YOY increase while NP sales major equipment items required to build the EBITDA, respectively. Natural gas sales finished the year 53 KMT below their 2012 initial phase have been purchased, includ- volumes increased 27% YOY to reach 830m levels. Iron ore demand remained resilient ing but not limited to excavators, dozers, m3 while gas condensate sales volumes throughout the year. Sales of the company’s haul trucks, crushers, as well as screening, expanded 26% to 141 KMT as compared to apatite-mining co-product finished the year conveying and loading facilities. First pro- 2012. The natural gas volumes were sold to up 11% to 5,858 KMT as compared to 2012. duction is expected to come on stream in the Novomoskovskiy Azot at regulated prices The strong iron ore backdrop lent support fourth quarter of 2014. With its targeted ini- to the company’s phosphate segment revenues tial production capacity of around 640 KMT company’s for the January to December 2013 period and of phosphate ore per year, the company’s Novomoskovskiy Azot and Nevinnomysskiy limited the effects of the year’s lacklustre MAP/ Kazakh mining project has been an important Azot ammonia facilities paid average natural DAP showing. Full year revenues for the com- part of the company’s upstream raw material gas prices of RUR 3,966 and RUR 4,120 per pany’s phosphate segment amounted to RUR strategy. 1,000m3 respectively (c. USD 3.87 and USD 58.3bn, representing a 4% decline on 2012 4.03/mmBtu), as compared to average prices segment revenues of RUR 60.8bn. Phosphate of RUR 3,432 and RUR 3,594 per 1,000m3 segment EBITDA had a more pronounced respectively (c. USD 3.43 and 3.60/mmBtu) decline, pulled down by the lower average for the 12 months ended 31 December realised prices for phosphate fertiliser products, 2012. Two natural gas price increases were particularly MAP/DAP, and finished the year implemented in 2013 in Russia. An increase at RUR 13.9bn, 15% below the RUR 16.2bn of 15% took effect from July 1st followed recorded a year earlier. less a 5% discount. For the year, the 64 Eurasian chemical market № 1(85) February 2013 Potash segment Eurochem VolgaKaliy (Gremyachinskoe deposit, Volgograd region) With the cage shaft bottom cleared of water and debris, the companyresumed sink- Chemistry and business w w w. chem mar ket. info ing in the fourth quarter and had progressed As of 31 January, underground operations and Q3 2012, respectively, the company’s to a depth of -148 meters as of 31 January. at the Usolskiy skip shaft were down to 509 revenues and EBITDA for 2013 amounted to As previously announced, the restart of sink- meters with only 37 meters left to sink before RUR 135.0bn and RUR 39.2bn respectively. ing was delayed by several months. Once the shaft’s planned depth. The companyalso For the twelve months ended December the shaft was cleared, detailed surveying made progress on other excavations in this 2013, the company’s total cost of sales dis- revealed that corrections to the shaft liner shaft such as openings for the loading bins played a 15% increase over the previous year were required. These issues were inherited and pockets. and amounted to RUR 112.8bn. The increase from the company’s initial contractor for the Above ground, the company’s teams were in costs outpaced the 6% revenue growth as project and included the need to remove and engaged in the construction of the tailings average costs and tariffs for key raw mate- replace eleven tubing rings and the concrete pond and railroads. The landscape of the site rials such as natural gas, phosphate rock, backing. further evolved with the erecting of the foun- ammonia, and energy moved slightly higher Work also continued on schedule at the dations for various buildings including the than in the previous year. In line with the skip shaft #1 where the freeze wall was administration building, mine rescue build- growth in production volumes, group costs completed in December. Sinking operations ing and permanent canteen. for materials and components used or resold resumed after extensive testing of the water For the January to December 2013 period, increased from RUR 64.6bn in 2012 to RUR and pressure below the bottom concrete plug. total capital expenditure at both VolgaKaliy 70.1 bn in 2013. However, their share within The plug was then removed and sinking and Usolskiy amounted to RUR 12.4bn, the Group’s costs of sales structure decreased operations resumed from -572 meters. As of bringing the aggregate total to RUR 57bn four percentage points to 62%. 31 January, the skip shaft #1 had reached a since the start of the company’s greenfield depth of -601 meters out of its planned -1,147 potash developments. meters. The freeze wall for the skip shaft #2 was Within cost of sales, labour costs, which include social fund contributions, increased 11% in 2013 and amounted to RUR 10.9bn. Distribution segment Most of the uptick in labour costs was driven further developed and had achieved its des- by a salary indexation in January 2013 com- ignated thickness at the time of this release. The company’s distribution segment com- bined with an increase in personnel brought Sinking efforts on the company’s phase 2 prises the sale of fertilisers and services via on by the integration of assets acquired in skip shaft are currently scheduled to start a number of retailers located within the CIS, the previous year. As in 2012, labour costs later this month. specifically in Russia, Ukraine and Belarus. comprised 10% of the Group’s total costs of sales in 2013. On the surface, the companysaw good The strategy to provide its clients with progress on the construction of the main “yields, not just fertilisers” is there to support Despite the considerable increase in pro- process beneficiation building, warehous- its customers improve yields through better duction volumes, the share of energy costs ing facilities, and loading and shipping crop nutrient balance. In 2013, the com- within the company’s cost structure remained facilities. The main electrical substation pany’s distribution segment realised sales of flat at 7%. Although the companyregistered a is essentially complete and undergoing RUR 17.0bn and generated EBITDA of RUR 14% YOY increase in energy costs following rigorous commissioning checks prior to 683m. the upward revision to tariffs in the Russian energising.] power generation, the company’s efficiency FINANCIAL upgrade program yielded substantial savings. Particularly, in addition to increasing internal EuroChem Usolskiy Potash (Verkhne- Income statement kamskoe deposit, Perm region) power generation capacity at Phosphorit, the replacement of obsolete catalysts at completed Consolidated revenues for the twelve cage shaft sinking operations in October months ended 31 December 2013 grew 6% 2013 and expect to wrap up skip shaft to RUR 176.9bn (USD 5.6bn). The additional Total distribution costs ticked up 8% to sinking efforts within the next quarter. The 838 KMT in nitrogen sales volumes coupled RUR 25.3bn as compared to RUR 23.3bn for abandonment of the site’s two freeze walls, with an 11% increase in iron ore sales vol- the same period in 2012. Within S&D costs, which were designed, installed, and oper- umes helped alleviate the pricing erosion transportation expenses registered a slight ated by Thyssen Schachtbau is underway, in phosphates and drive the YOY revenue 3% growth to RUR 18.6bn (2012: RUR a program also contracted with the German expansion. Excluding EuroChem Antwerpen 18.1bn). Despite increasing YOY, transporta- mining specialists. and EuroChem Agro, consolidated from Q2 tion costs comprised 74% of total distribution The companysuccessfully Novomoskovskiy Azot provided RUR 45m in energy savings in 2013. № 1(85) February 2013 Eurasian chemical market 65 Chemistry and business w w w. chemm a r ke t . in fo a club facility for an amount of USD1.3bn. Structured as a 5-year unsecured finance facility and priced at LIBOR 3M + 1.8%, the facility includes a 2-year grace period. The proceeds were immediately used to pay down the outstanding amount under EuroChem’s 2011 USD1.3 billion pre-export facility. While the company’s debt ratio remained well below bank covenant levels and at all times within the company’s targeted acrossthe-cycle range, the volatility in the fertiliser Eurochem-Belorechensk Mineral Ferulisers plant produces DAP and sulphoammophos markets prompted the Group’s shareholders to proceed with a pre-emptive USD 300m capital injection in the fourth quarter of 2013 expenses in 2013, down from 78% a year Lifosa’s 50th anniversary, and the upgrade through the acquisition of 2.36% of share earlier. While lower maritime freight rates of social infrastructure and public utilities capital of the Group’s holding company. provided a 14% reduction in transportation in Novomoskovsk, site of the company’s Consequently, the companyclosed 2013 with costs, the savings were offset by an increase Novomoskovskiy Azot nitrogen facility. a net debt to 12-month rolling EBITDA ratio in rail shipments of iron ore concentrate to Zabaikalsk (Chinese border). General and administrative Below the operating profit line, the companyrecognised unrealised financial foreign of 2.07x as compared to 2.27x in Q3 2013 (2012: 1.53x). (G&A) exchange losses of RUR 5.9bn, compared Highlighting EuroChem’s strong product expenses for the Group increased 20% from to an unrealised gain of RUR 4.3bn in 2012. and geographic diversification, its partial RUR 5.6bn in 2012 to RUR 6.7bn in 2013. Changes in these noncash items reflect the vertical integration and its advantageous Accounting for 47% of G&A expenses, impact of the weaker Russian rouble on the position on the industry cost-curve as its core labour costs increased 16% over the same company’s primarily US dollar-denominated strengths underpinning its cash flow gen- period. Total staff costs, including social debt which matches the company’s mainly eration, Fitch Ratings and Standard & Poor’s expenses, grew to RUR 16.6bn, up15% USD-denominated revenues. both affirmed EuroChem at BB / stable out- from RUR 14.4bn a year ago. As highlighted Interest expenses for 2013 increased in line earlier, the growth in staff expenses was with the Company’s higher debt level and primarily linked to recent acquisitions and amounted to RUR 5.2bn (2012: RUR 4.3bn). organic growth initiatives. Some of the key For 2013 the companyrecognised other finan- ongoing projects of 2013 were the develop- cial losses of RUR 945m on changes in the fair At RUR 36.2bn, operating cash flow for ment of phosphate rock mining operations value of USD/RUR non-deliverable forward the twelve months ended 31 December 2013 in Kazakhstan, the launch of the company’s contracts and changes in the fair value of cross remained within 7% of the previous year’s railcar depot to service the Group’s 6,500+ currency interest rate swaps in amounts of RUR level. rolling stock, and its ambitious VolgaKaliy 535m and RUR 165m, respectively. and Usolskiy potash projects in Russia. For the full year 2013 the companyrecog- Balance sheet nised other operating expenses of RUR 425m look in 2013. Cash flow The company’s total capex spending for the January to December 2013 period amounted to RUR 32.6bn (USD 1.0bn), comprised of investments of RUR 12.4bn versus other operating income of RUR 371m Working capital needs decreased slightly in potash, RUR 10.4bn in nitrogen and RUR in 2012. The main items behind other operat- as lower prices for finished goods slightly 8.6bn in phosphates. The remainder was allo- ing expenses for the period were sponsorship balanced higher prices for certain raw mate- cated to its distribution network and logistics expenses of RUR 839m (2012: RUR 516m) rials. The Company’s net working capital infrastructure. and foreign exchange gains of RUR 393m decreased 3% from RUR 23.9bn in 2012 to (2012: losses of RUR 263m). The main RUR 23.1bn as at 31 December, 2013 2013 corporate developments sponsorship expenses included a new sports EuroChem’s portfolio of borrowings from facility in Kedainiai, Lithuania, constructed banks remained fairly unchanged until late In 2013 the Group finalised the acquisi- as part of celebrations commemorating August when the companysuccessfully closed tion of 54,613 ordinary shares of OJSC 66 Eurasian chemical market № 1(85) February 2013 Chemistry and business w w w. chem mar ket. info “Murmansk Commercial Seaport” for a total consideration of RUR 3.15bn. These ordinary shares represent 48.26% of the total number of the ordinary shares and 36.20% of the total issued share capital of the Company. As at 31 December 2013, the Group held 36.20% of the OJSC “Murmansk Commercial Seaport” voting rights. On 10 July 2013, EuroChem announced its intention to consider building an ammonia and urea production plant in Louisiana. A final decision on the parameters and location of the facility should be taken later in 2014. On 29 July 2013, the companyannounced its plans to create a joint venture (JV) with the Migao Corporation, a specialty potash fertiliser producer based in the southern Nevinnomysskiy Azot is the largest producer of nitrogen fertilisers in Russia Chinese province of Yunnan. The JV is expected to bring up to 60,000 tonnes per for which the leave is granted, including out until March. While Chinese urea export year of potassium nitrate (NK) and 200,000 interest and cost at EUR 886m. The court parameters have been relaxed for 2014, tonnes per year of chloride-free NPK capac- held an in-depth hearing on 21 January 2014 EuroChem expects yearly export volumes ity online by the end of 2014. where it considered the arguments and wit- from China to remain in line with 2012-2013 nesses of both sides, following which, the levels. In Europe, annual benefit payments to court notified that a final judgment is to be the agricultural sector have been distributed rendered on 16 April 2014. and should provide a positive impact on ferti- Legal proceedings In October 2012 the group filed a claim against Shaft Sinkers (pty) ltd and Rossal liser purchasing activity. Outlook Re-emerging demand in phosphates has 126 (pty) limited (formerly known as Shaft tightened supply and provided a boost to Sinkers (pty) ltd.), (“Shaft Sinkers”), the Despite the lingering presence of global prices. While lower ammonia prices may contractor involved in the construction of the imbalances and market volatility, the growth help margins at producer levels, the com- mining shafts at the Gremyachinskoe potash of the fertiliser industry remains solidly panywould expect to see any significant deposit, seeking compensation for the direct underpinned by global food demand. Growing upward movement in DAP/MAP prices to be costs and substantial lost profits arising from yield gaps in certain regions coupled with the matched by a ramp-up in capacity utilisation. the delay in commencing potash produc- increasing pressure on the global food system Prices are expected to gradually come down tion, due to the inability of that construction from emerging economies and dietary shifts as seasonal demand diminished. India’s mar- company to fulfil its contractual obligations. will continue to support and further drive the ket presence is likely to remain limited until Further details of the proceedings are avail- use of fertilisers. after the May elections. able in note 34 of the Group’s 2013 IFRS accounts. Following their significant rally, nitro- In potash, contract prices have established gen prices have reached more comfortable a floor price for the upcoming months. Potash In March 2013 the Group filed a claim levels which could be sustained heading producers have been applying upward pres- against International Mineral Resources B.V. into the second quarter on account of plant sure on spot prices with product in Latin (“IMR”) which, the Group believes, held a turnarounds in the Middle East and limited America and Southeast Asia trading at controlling interest in Shaft Sinkers, claim- export flows from China to North America around USD 350 CFR.While the changes ing IMR is responsible for its subsidiary’s as compared to last year. At the same time, in the ownership of Uralkali should eventu- actions. In July 2013, a Dutch Court granted weather related delays to spring planting ally restore joint marketing of product with EuroChem definitive leave for levying the in the US could erode some of the price Belaruskali, this does not appear to be immi- requested prejudgment attachments against gains. Nevertheless most producers are in a nent in the near term and presents a challenge IMR’s Dutch assets, while fixing the amount comfortable spot with many reportedly sold to significant price appreciation. № 1(85) February 2013 Eurasian chemical market 67 Chemical equipment w w w. chemm a r ke t . in fo Certificates for Industrial Equipment and Installations Needed to Access Market of Customs Union By Yvonne Oppermann, TÜV Hessen and Yury Kulikou, TÜV SÜD Industrie Service Manufacturers of industrial equipment wishing to sell their products in the Customs Union (CU) need to obtain special national certifications – such as the new Technical Regulation on pressure equipment that came into effect on February 1, 2014. Working with their affiliate TÜV SÜD RUS, TÜV Hessen and TÜV SÜD support and assist manufacturers throughout the entire process. Equipment for the oil and gas industry, have now been established. There are several tions by experts. In addition, the applica- such as pumps and production systems, is in certification bodies, testing laboratories and tion for certification can only be filed by a particular demand by the chemical industry intermediaries for the new TR certificates of legal entity located in Russia, such as the in the Russian Federation and the Customs the Customs Union (of Russia, Belarus and manufacturer’s subsidiary, a retailer or the Union. The reason is that to date there have Kazakhstan). However, even in existing sup- customer. Certification can refer to either a not been enough small- and medium-sized plier relationships it is important to have a batch of goods or series production. In the enterprises in these sectors to ensure com- partner that offers command of the language, latter case, certificate validity ranges from petitive production also at international level. familiarity with the market and long-standing one to five years. In this context manufactur- This makes the market highly interesting for local experience. ers must observe the transition from GOST R European manufacturers and their suppliers. However, market access involves challenges and TR to TR CU certificates. All certificates Differing safety and quality requirements that must not be underestimated and a host that are still based on the old standards will continue to apply up to 15 March 2015. This of regulatory aspects, some of them deviat- The Customs Union created a significant time is considered a transition period during ing significantly from European regulations. economic area that has established its own which manufacturers can apply for TR CU Matters are rendered even more difficult by standards to monitor and ensure that products certificates. the fact that extended customs formalities or satisfy minimum safety and quality require- special local infrastructure features make the ments. For this purpose, the CU’s own set of import of products for some sectors of indus- technical regulations (TR) came into effect in try even more complicated. Other examples February 2013 and now comprises over 20 Small- and Medium-sized Enterprises include more restrictive import regula- different safety and quality standards, includ- should expect costs in the four-digit range tions and somewhat extensive certification ing the CU’s Technical Regulation “On the and allow adequate time for the new certifi- requirements. safety of equipment working under excessive cation process. Manufacturers that frequently pressure.” deliver components or systems require cer- Imported industrial equipment is subjected What costs and efforts must be expected? to in-depth testing in test organisations. Products imported anywhere in the CU tificates on series production that are valid for While in the past the certification procedure need a CU TR certificate. Only mandatory one, three or five years. These certificates are has been prone to misuse in individual cases, certificates and mandatory declarations meet slightly more costly. Manufacturers that need with certificates in Moscow sometimes avail- this requirement. As an important rule, many certificates for many different equipment able within hours after money changing certificates require manufacturers to submit or components may have to expect costs hands, a separate authority and clear rules product samples or involve factory inspec- in the five-digit range. Some installations 68 Eurasian chemical market № 1(85) February 2013 Chemical equipment w w w. chem mar ket. info TÜV Hessen and TÜV SÜD provide comprehensive consulting services on GOST and the new TR CU certificates issued. Experts with longstanding experience determine the certificates that German manufacturers must submit to export their products and place them into service, and the criteria their products must meet to obtain these certificates. For certification, products have to undergo desktop/document review plus “conventional” conformity assessment. The documentation is in Russian. A further advantage for German exporters is the direct contact to Russian authorities they can establish via the affiliate TÜV SÜD RUS. 30 to 40 person-days of work, not includ- checked the documentation for conformity ing translation into Russian. Comprehensive with the Russian codes and standards, the support by a qualified partner can help to service provider will coordinate the certifi- speed up the process. As the Customs Union cate with the client. Clients should normally increasingly orients itself to European stand- receive an acceptance report by email, with ards, processes are expected to become less the original certificates and certified copies time-intensive in the future. following by post; they can then be presented to import and customs controls. Once all documents are complete, processing of the What documents are required? applications takes an average of three weeks. In addition to the application form, customs code (HS code) and product name in English TÜV Hessen or Russian (series number, model etc), Yvonne Oppermann manufacturers must supply technical docu- Rüdesheimer Str. 119 mentation (in Russian, German or English) 64285 Darmstadt as well as product design drawings, material Germany specifications and assembly instructions. Test Tel.: +49 6151 600-373 records and an ISO 9001 certificate, where [email protected] and equipment may fall under the scope of available, are also considered important www.tuev-hessen.de multiple technical regulations, consequently documents. The product description should requiring several certificates. In case of a cover all components included in the scope TÜV SÜD Industrie Service one-off export or exports at irregular longer of delivery. Service providers commissioned Yury Kulikou time intervals, a single certification which to carry out certification can prepare their Gottlieb-Daimler-Straße 7 is available at relatively low costs may be quotations on the basis of these documents. 70794 Filderstadt sufficient. Where appropriate, a checklist that specifies Germany the other documents to be submitted can be Tel.: +49 711 7005-248 enclosed with the quotation. [email protected] Companies preparing for certification in accordance with the new standards often invest After the Russian regulatory bodies have www.tuev-sued.de/is № 1(85) February 2013 Eurasian chemical market 69 Countries and regions w w w. chemm a r ke t . in fo Review of the Chemical Industry of Uzbekistan: A Strong Focus on Modernisation Almost eight years have passed since successfully till nowadays. This model is carbon dioxide - (+4.8%); technical salt – by the first issues of our magazine containing the most effective for the development of 2.4 times; polyethylene film – by 5 times. articles reviewing the chemical industry of natural resources - oil, gas, etc. different countries were published includ- As for factories of the manufacturing ing an article covering the then state of the industry, which were built before the collapse Uzbek chemical sector. The country is the of the USSR, production output at most of Uzbekistan has a strong mineral raw mate- 56th largest in the world by area and the 42nd them stabilised and gradually ramped up. rial base, which is one of the major sources of by population. Among the CIS countries, Through some uncompetitive workshops and income for the country’s economy. Today this Uzbekistan is the 5th largest by area and the sometimes even entire manufacturing plans base consists of more than 1,800 of mineral 3rd by population after Russia and Ukraine. I. Raw material recourses were closed down. Now, after raising invest- deposits, about 1000 of mineral occurrences In fact, the chemical industry of Uzbekistan ment resources and improving the legislative and 118 types of minerals, of which 65 are has a long history of development. The first framework, the government has prepared the mined. Mineral resources of Uzbekistan are chemical plants were launched in the early chemical industry for radical changes, which estimated at about USD 3.5 trillion. 30s of the 20th century. A number of large are taking place today. Geological reserves of natural gas in agrochemical factories were constructed in In recent years, the chemical industry of Uzbekistan are over 5 trillion cubic metres. the country because of the demand of the Uzbekistan produces more than 1m tonnes Proven reserves of natural gas - 3.4 trillion agricultural sector for mineral fertilisers and of mineral fertilisers, more than 120,000 cubic metres (including the following depos- pesticides. As a result, it became a strong tonnes of chemical crop protection products, its: Sho’rtan - 0.5 trillion cubic metres and foundation for the creation of one of the most 1.35 million tonnes of sulphuric acid, 50,000 Alania - 0.2 trillion cubic metres and Urga vigorous industry sectors in Central Asia. tonnes of chemical fibres, more than 90,000 with reserves of 1.5 trillion cubic metres). Major economic changes took place thanks tonnes of coatings, over 120,000 tonnes of The Gazly deposit is located 100 km to the to the privatisation of the chemical industry plastics and synthetic resins. A consider- north- west of Buxoro and has been devel- over the first 15 years of the independence able part of these products are successfully oped for several decades. Reservoir rock is of the country. Several new chemical plants exported. sandstones. Gas contains 96-97% of meth- together with mining and processing com- Uzbek chemical output showed a 5.3% ane. Sulphur-free gas accounts for the main plexes supplying feedstocks to the first ones YOY rise due to stable development of the share of total production, but more and more were constructed. chemical industry. Total production of the low sulphurous gas and sour gas are pro- Our journal has dedicated a great deal industry amounted to UZS 1,554 bn. In H1, duced. The Shakhpakhty and Kuanish gas of information to difficulties connected 2013 the production of the following chemi- deposits are located in the Ustyurt district. with the transition from the planned Soviet cal products increased: phosphate fertiliser – In 2010, new natural gas fields were found economy to up-to-date market models. (+5.1%); complex compound fertiliser – by 3 in Uzbekistan near the Kosbulak downfold The planned economy inherited from times; sulphuric acid – (+6.2%); wet-process and North Ustyurt region (Western Aral), as the Soviet Union and closer government phosphoric acid – (+10.5%); ammonium sul- well as at the prospective area of Ernaz in the control over privatisation processes with phate - (+18.2 %); strong nitric acid – by 1.8 Buxoro-Xiva oil and gas region. Uzbekistan keeping the controlling stake in the hands times; suprephos - (+3.2%); soda ash - (+26.3 occupies the 14th place in the world in terms of state companies are the main vectors of %); hydrochloric acid - (+9.7 %); acetic acid of natural gas reserves and the 11th in terms the economic development in Uzbekistan. – by 9.1 times; acetaldehyde – by 1.7 times; of gas production. Natural gas production This model has been operating relatively chemical crop protection agents - (+12.4 %); in Uzbekistan in 2012 totalled 62.9bn cubic 70 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info metres. Production of liquefied gases for the value of coal is 22,000 kcal/kg. The Boysun Dalnee and Sary-Chequ as well as a number same period amounted to 273.600 tonnes. deposit has two coal-bearing strata of up to of smaller ones (Balykty, Karabulak and 2.5m. others). Olmaliq KMK (Olmaliq Mining- O’zbekneftegaz produces 70bn cubic metres of gas and 8m tonnes of liquid hydrocarbons per year. CNPC (China Probable reserves of oil shales in Uzbekistan are about 47bn tonnes. The yield National Metallurgical Complex) operates on the basis of porphyry copper deposits. Petroleum of diesel fraction from combustible shale of Lead and zinc deposits are mainly located Corporation), KNOR (Korea), Gazprom the Sangruntau deposit (C1 + C2 = 357m in the Middle Tien Shan, in the Chatkal- and Lukoil (Russia) hold strong positions tonnes) reaches about 30%. This yield is the Kuraminsky mountains and, in particular, in the Uzbek energy industry. Oil geological highest among the major deposits of this type at the Kurgashinkansky mine (the Olmalig reserves in the country are estimated at 5m in the country. The country takes the 7th place province) and a number of smaller manifes- tonnes and proven reserves – 530 m tonnes. in terms of uranium reserves accounting for tations (Koshmansay, Miskan). The main ore Hydrocarbons fields of the Fargona Basin 4% of global reserves) and the 5th – in terms minerals are galenite, sphalerite, chalcopyrite - North So’x, South Alamyshik, Polvontosh, of uranium production. Currently, about 40 and pyrite. Magnetite and hematite also occur Galcha-Changara and smaller Chimyon, deposits are explored, and the largest one is there. Trace elements are indium, silver, bis- Shoʻrsuv and others mostly contain oil. Oil is Uchkuduk. Such deposits as Kendyktube, muth and gold. Rare-metal mineralisation, mainly light, sweet, paraffin, with a high con- Ljavljakan, North including scheelite and molybdenite, are tent of light distillates. Ozokerite (earth wax) Kanimekh, Alenda, Mejlisaj are operating as essentially developed at the Koshmansay is a by-product of refining the oil from these well. The estimated reserves of uranium are deposit. The Kurgashinkan deposit is cur- deposits. The oil fields Xaudag, Uchkyzyl, 185,800 tonnes (138,800 tonnes - arenated rently operational. Namely owing to the Kokayty, Kashgar and Amudaryo are discov- deposits of uranium, 47,000 tonnes - black development of this deposit the country is ered in the Surxondaryo Province. The oil and shale deposits). on the third place in the world in terms of Sugraly, Tohumbet, gas deposit Lalmikar is almost completely Uzbekistan is ranked fourth in the world cadmium production. Ores are processed at depleted. Oils in the region are heavy and sul- for gold reserves, and ninth in terms of the Olmaliq KMK. Sulphide-polymetallic phur. Gas condensate (Adamtash, Gumbulak, gold production. According to the State deposits of lead and zinc are located in the Pachka-mar, Kyzylbayrak and Amanat) and Geological Committee of Uzbekistan, 41 southwest Hissar (Handiz). The main ore oil fields are located in the South-West Hisor. gold deposits are discovered in the coun- minerals are pyrites, sphalerite, galenite and North Muborak and Akdzhar are oil-bearing try, and nine of them are being developed. chalcopyrite, but there are also gold and sil- deposits – in the Buxoro-Xiva province. Explored and proven gold reserves in ver minerals. In 2012, oil and gas condensate production Uzbekistan are estimated at about 2,100 Carbonate-polymetallic lead-zinc depos- in Uzbekistan amounted to 3,16m tonnes: oil tonnes. Total reserves reach approximately its (Uchquloch, Sarykan, Kandzhaylau and production - 1,56m tonnes and gas conden- 3,350 tonnes. Gold is mined in the basin of Kulchulak) are typical for the Middle Tien sate – 1,6m tonnes. the River Zarafshon and in the Kyzyl Kum. Shan. The Uchquloch deposit, which is There are three major coal deposits in The Muruntau, a unique gold deposit, is con- located in the foothills of the Nurota North Uzbekistan: Angren (Toshkent province), sidered to be the largest one in Eurasia and Range, the Hanbandytau Range, is the most Shargʻun and Boysun (Surxondaryo prov- has been developed since 1967. Its ores are promising field. The main ore minerals are ince) as well as several smaller ones. All of the gold-quartz type. In 2012, 90 tonnes of galenite, pyrite; secondary - chalcopyrite, these deposits consist of alternating layers gold were produced at this deposit and nearby marcasite, covellite, bornite-chalcocite. of sand and clay rocks, with subordinate coal ones (Kokpatas, Marjonbuloq, Guzhumsay, Lode lead-zinc deposits are common in beds formed in the wetland conditions of riv- Promezhutochnoe, Charmitan, Kara-Kutan the Middle Tien Shan Mountains, especially ers’ valleys and deltas. and others – 12 in general). in the Kurama mountaines. The ores of these The Angren deposit is located in the val- About 900 ore occurrences and depos- deposits contain high amounts of bismuth ley of the River Angren, and is known for its of copper are known in Uzbekistan, but and silver (especially the Lashkerek deposit). heavy beds of lignite with a total amount of only three deposits are operated. Uzbekistan Tungsten deposits are concentrated mainly 1.9bn tonnes. The deposit is developed by an holds the 10th place in the world in terms in the Southern Tien Shan. They are pre- open-pit method. The Angren heat and power of proven copper reserves. Copper deposits sented by a group of postmagmatic contact station operates on its basis. The Shargʻun and ore occurrences are common for the skarn scheelite formations, which occur deposit is located in a mountainous area (alti- Middle Tien Shan and especially the Qurama in the Nurota, Zirabulak, Karatyubin and tude 600-800 metres). Coal seams average Ridge. The main deposits are concentrated in Chakylkalyan mountains. The Ingichka and 4.5m and may even reach 12m; the heating the Olmaliq province. These are Kalmakyr, Qoʻytosh deposits are operated on their № 1(85) February 2013 Eurasian chemical market 71 Countries and regions w w w. chemm a r ke t . in fo basis. The most interesting deposits are third place among the world leaders in terms Boysuntov Mountains and the Kandadzhuaz Langar, Qoʻytosh, Ingichka, Kara Tube and of silver reserves. Uzbekistan also has man- in the Mechetly Mountains may be commer- Yahton; less promising for industrial devel- ganese deposits in the Zarafshon, Zirabulak, cial deposits. In general, there are prospects opment – Chash-Tepe, Kamangaran, Djam, Karatyube and Lolabulak mountains - of developing commercial bauxite deposits in Sarykul and Sazagan. Such tungsten deposits Ziyovuddin, Dautash, Kyzyl Bayrak, Tahta the country. like Sargardon and a group of deposits and Karachinsk, Tersaksay and Chapanatin. The This also applies to other two feedstocks ore occurences of Maydontol - Oygaing dis- content of manganese is 8-28%. Reserves of for aluminum production - alunite and kaolin. trict (Anaulgan-Karakyz, Oygaing) are the some deposits are small but promising and in There are alunite ore occurrences and depos- most important in the Middle Tien Shan and the total amount is about 8 million tonnes. its in the Kurama, Chatkal and Hissar moun- the Chatkal-Kurama mountains. Sedimentary manganese deposits and tains. The largest one is the Gushsay deposit Uzbekistan has a number of molyb- occurrences are found in the northern and in the Kurama Ridge. Pilot testing showed denum ore occurrences of hydrothermal northeastern parts of the country (Azatbash, a high degree of extraction of alumina. We type: Obizarang in the west of the Hissar Mazarskos, Morguzar and Karaalminsk should also mention the Angren kaolinic coal Ridge, Oygaing in Chatkal, quartz-sericite- occurrences). deposit – a quite large one. A ceramic factory scheelite-molybdenite (Chavata, Unkurtash Magmatic deposits of chromium of Kyzyl is built on the base of this deposit. So, kaolin in Chatkal, Shaugaz in the Kurama Ridge), Kum-Fatgona belt in the Tamdytau and is currently used as a raw material for refrac- skarn-molybdenite (Chimgon in Chatkal), Sultan Uwais are of particular interest. tories. Primary kaolin seams are within the skarn-scheelite with molybdenite, quartz- More than a hundred of tin ore occurrences sericite-molybdenite-chalcopyrite (Olmaliq and several small deposits are known, but Uzbekistan has large reserves of dolomite. district). However, molybdenum is recovered only the Karnab deposit operated in the 50s The Farkhad rock deposit provides dolo- as a by-product of copper porphyry ore min- of the 20th century. mites, which are used as refractory materials. ing, which is the 8th deposit in terms of Mo reserves. Bismuth deposits are discovered in the range of 2-46m. Mercury and antimony are not mined in Bentonite clays are mainly located in the Uzbekistan because of the lack of identified Ustyurt in the South Aral, Sultan Uwais, the cost-effective commercial deposits. A large central part of the Kyzyl Kum desert and the main number of ore occurrences that can become Zirabulak-Ziadin mountains. A total of 40 formation is arsenic-bismuth (Urtasaray, operating mines have been discovered. The deposits have been discovered. Burchmullo) The most promising one is located in the South Commercial talc can be found only in Ustasaray is the only operating deposit. Fargona belt, where more than a hundred the Sultan Uwais. The major deposits are There are also copper-bismuth deposits, of mercury and more than ten of antimony Zinelbulak, Kazgantau and Kyzylsay. such as Kyzylgut in the Kurama Mountains, occurrences have been discovered. The Natural sulphur occurs in the Farg’ona Tashkesken in the Chatkal Ridge and most significant occurrences are located district: Kyzyl-Archinsk, Andijan, Kurshab Uzumlek in the Maygashkan. There are sev- near Kokpatas in the Navoiy province. The and Amu Darya district with sulphur-bearing eral hundred of iron deposits and occurrences Myksk, Shutsk and Karasu deposits can also deposits in the Ustyurt. The Tyubegatan of different genetic types and formations in be developed. deposit is considered to be the most promis- Chatkal-Kurama Mountains. and The copper-bismuth. Uzbekistan, as well as a number of magnetic A lot of bauxite (a raw material for alu- ing one. However, in Uzbekistan big volumes anomalies, which are possible indicators of minum production) occurrences are found of sulphur are produced not at natural depos- iron ore. The Tebinbulak titanium-magnetite in Uzbekistan, but there are no deposits. its but by removing sulphur from natural deposit (Qaraqalpaqstan Respublikasi) is the Bauxites occur in the Kyzyl Kum, Nurota, gas at the Muborak gas processing plant in most significant. The Kazgantau deposit, and South Fargona regions. The most signifi- Qashqadaryo province. which is located in the Hissar belt, presum- cant ore occurrence is Aktau in the Tomditov ably refers to this type. Skarn-magnetite Mountains. Karst occurrences are found deposits mainly occur in the Middle and in the Nurota district (Mirishkor, Kyzyl Uzbekistan is rich in sodium chloride and South-Western Tien Shan in the Chatkal- Bulak) and coastal bauxite occurrences are potash salts and has lower reserves of magne- Kurama mountains. More than 30 ore occurrences and deposits of graphite are known in the country. located there as well (Qoytosh, Narvan, sium and sodium sulphates. The most signifi- Sedimentary iron ore occur in the Aral sea and Karatau). Bauxites are also available in cant deposits are Tubegatan, Baybichekan, region, the Kyzyl Kum desert and the Sultan the Hissar and Kyzyl Kum districts. More Akbash, Uwais. There are ore objects containing than 70 ore occurrences are available in the Gaurdak-Kugitang. silver in Uzbekistan. The country takes the Hissar district. The Kayrak occurrence in the 72 Eurasian chemical market № 1(85) February 2013 Lyalimkan, Hodzhaikan and Salt-bearing layers in all the mentioned Countries and regions w w w. chem mar ket. info above deposits occur at substantial depths A total of 17 deposits of limestone in the Suren Atinsk Ridge. A high content and can be mined by in situ leaching methods. and chalk have been explored, and five of potassium oxide and the ability to yield Since 2010, Dehkonobod Potash Fertiliser of them are operating (Sherobod, Jizzax, to weathering makes glauconite a useful Plant has been operating on the basis of the Qorovulbozor, Quvasoy and Dzhamansaysk). fertiliser. It is also used as a raw material for Tyubetagan deposit. They are located throughout the country. The manufacturing green paints. There are also Salt formations (lacustrine and saline) Dzhamansaysk limestone deposit, which is reserves of corundum in the country (the occur on the plains, in the erosion and mined 250km from the production site of Sharaksay deposit in the Malguzar mountains intermountain areas. The largest deposits Qo’ngirot Soda Zavodi, is characterised by and the Aktash deposit in the Karzhantau of this type are Kushkanataus, Karaumbet, proven reserves of about 70m tonnes. mountains). Kumysbulak and Tumryuk. It should be especially noted, that there are Mirabilite deposits with reserves of The Barsa-Kelmes deposit of sodium large reserves of such cement raw materials sodium sulphate, which exceed 1.5 b tonnes, chloride, which is located close to the former as limestone, chalk, marlstone, clays and clay are discovered in the western deepwater area island of the almost dryed Aral Sea, is the loam in Uzbekistan. of the Aral Sea, in the Gulf Tuschibas, and main source of raw materials for Qo’ngirot The deposits of fluorspar, which is used in the western part of the “Small Aral” under Soda Zavodi (Qo’ngirot soda plant). Its as a source of fluorine, are located in the a 0.5 - 1.5m layer of silt on the total area of proven reserves - 131 m tonnes of salt with a Chatkal-Kurama Mountains, with occur- about 2000 km2. NaCl content of more than 97%. rences in the southwestern Hissar, and a few Uzbekistan takes the 5th position in the of them can be found in the boundary belts of world in terms of cotton production and the the Southern Tien Shan. second position for of cotton exports. Since 1997, the Navoiy kon-metallurgiya kombinati (Navoi Mining and Metallurgical Plant) has been developing the DzheroySardara phosphorite deposit. This deposit Commercial deposits of fluorite are oper- In order to develop the mining industry, the government offers more than 500 industrial ated in the country. is located in the Central Kyzyl Kum. The In Uzbekistan, magmatic deposits of feld- facilities to potential investors including 4 reserves of the deposit are estimated at 300m spar are found (Langar, Lolabulak, Karichsay deposits of metallic ores, 26 deposits of vari- tonnes of ore and 58m tonnes of phospho- in the Southern Tien Shan). Sedimentary ous ores and 10 deposits of minerals intended rus pentoxide. The reserves will cover the deposits - quartz-feldspar sands - are dis- for chemical production. All in all 38 mineral demand of the country’s agricultural sec- covered in the Zirabulak-Ziadin Mountains fields are proposed to be invested in. A total tor for phosphorus fertilisers for more than (Kermininsk, Karzhantau). Uzbekistan is of 159 large deposit occurrences are proposed 100 years. Total reserves of phosphorite of one of the 15 largest countries in the world in for geological survey. the Kyzyl Kum region exceed 1bn tonnes. terms of mining feldspar. Feldspars are used However, the deposit has low-grade ores, in the ceramic industry as a flux; in the glass which are characterised by a high content industry -as fillers and light abrasives (e.g., in of carbonate minerals and chlorides. That the manufacture of toothpaste). II. Subsidiaries of JSC O’zkimyosanoat All industrial enterprises in Uzbekistan, is why phosphates here require preliminary Uzbekistan has about 50 occurrences which are engaged in chemical production, beneficiation. In addition, there have been and deposits of wollastonite. Most wollas- can be divided into two groups - the part of the carried out preliminary exploration of the tonite deposits are located in the Southern state joint-stock company O’zkimyosanoat Karakatinsk deposit and evaluation of the and Middle Tien Shan (Qoʻytosh, Langar, (Uzhimprom), which was founded in 2001, South Dzhetym Tau deposit. Both deposits Karatube, Ingichka, and independent companies. Most chemical are also located in the Central Kyzyl Kum., Chimgan, Kumyshkan, Barkrak). plants in the country belong to the first group. It is possible to start the beneficiation of Wollastonite is used as an additive filler in The Uzbek chemical industry is mainly based phosphorites (there are significant reserves plastics, non-ferrous metallurgy, in the tyre, on agrochemical production. On one hand, it of phosphorites in the country) on the basis asbestos and coating industries, and in the is determined by the need to intensify the use of the Karakatinsk and South Dzhetym Tau production of ceramics. Wollastonite is also of farmlands along river valleys, while most phosphorite deposits with the help of foreign used in the car industry, as a part of a filler of the country is covered with deserts and investors in order to increase production and for a number of important automotive com- mountain ranges, which are not arable. On exports of phosphate fertilisers. ponents: brake pads, plain bearings etc. It is the other hand, Uzbekistan has rich deposits used in anti-corrosion coatings as well. of phosphoric and potash ores, and natural There are eight explored deposits of gypsum in Uzbekistan (the largest one is Tubegatan). Yakhton, Akbulak, and Only one glauconite sandstones deposit has been discovered in Uzbekistan - Changi gas - basic raw materials for the production of mineral fertilisers. № 1(85) February 2013 Eurasian chemical market 73 Countries and regions w w w. chemm a r ke t . in fo O’zkimyosanoat implements production, O’zkimyosanoat produced goods worth acetaldehyde and ammonium sulphate were innovation, marketing programmes aimed UZS 270.6bn (about EUR 89m), or 107.6% launched. In 1971 a new production line for at developing chemical enterprises, creating of the planned figure. Within the framework ammonia, weak nitric acid and ammonium conditions and prerequisites for sustainable of investment projects included in the com- nitrate was put into operation. In 1973 the development of the chemical industry. An pany’s investment programme, the plants first batch of acrylonitrile was produced, and important aim of the company is privatisa- of O’zkimyosanoat spent USD 136.66m commercial production of �Nitron’ synthetic tion of chemical companies with attracting of investments on various purposes. Now fibres was set up. In 1975, the company foreign and domestic investors. it is time to tell about the subsidiaries of became a production association, and the O’zkimyosanoat in details. following year production at the complex O’zkimyosanoat includes 14 manufacturing plants turning out more than 170 �Catalyst’ started up. In 1982-1983, the plant Navoiyazot JSC chemical products. 13 regional distribution continued capacity expansion and widening organisations marketing fertilisers across a range of �Nitron’ synthetic fibres Nitron. Founded JSC In 1988, a thiourea and hydrochloric acid ture of O’zkimyosanoat. Scientific research (Navoiy) is the largest chemical enterprise in plant came on stream. In 1990-1991, produc- and design institutes, haulage companies Uzbekistan. Today the plant employs more tion of consumer goods started up. In the fol- Kimyotrans and Kimyotrans-logistik engaged than 11,000 people. It accounts for over lowing two years the company proceeded to in foreign economic activities, as well as bro- 30% of chemical production manufactured manufacturing epoxy resins, polyelectrolytes kerage company Hamqor-kimyoservis, are in Uzbekistan. Its product range includes and synthetic fabrics; polyacrylamide glue, members of O’zkimyosanoat JSC. products of several segments of the chemical salt, sodium tripolyphosphate and colloidal industry. sulphur. the country are also involved in the struc- As for the company’s production results in 1961, Navoiyazot of the first nine months of 2013, we should Initially, Navoiy Chemical Plant (this was In 1996-1999, lithium carbonate, ammo- mention the following: the subsidiaries of the name of the company till 1975) manu- nium thiocyanate, methanol, acetone, argon O’zkimyosanoat produced goods at current factured weak nitric acid and ammonium went into production. In 2001, a workshop prices for UZS 1.25bn (about EUR 414m); nitrate, which went into production at the end for caustic soda and liquid chlorine was consumer goods were manufactured for UZS of 1964. put into operation. The workshop was built 90.2bn (about EUR 30m); 846,430 tonnes of Launching a unit for filling cylinders with in cooperation with Germany-based Lurgi. fertilisers were turned out including nitrogen technical oxygen in November 1965 was a After that production of formalin, hydrochlo- fertilisers – 648,570 tonnes, phosphorus- significant event for the company. In 1965- ric acid, sodium hypochlorite and ammonium containing fertilisers – 122,000 tonnes and 1967 the plant started production of ammonia chloride was mastered. KCl fertilisers – 75,860 tonnes. and ammonia water. In 1968-1970, work- In 2002 the company was transformed into import-substituting shops for carbon dioxide, sodium cyanide, a joint-stock company. The authorised capital programme, in January-September 2013 hydrocyanic and acetic acids, acetylene, of the company as of July 2009, when the According to an company’s assets were revaluated, exceeded UZS 42bn (about EUR 139m). Total number of shares was 753,696 shares. Nominal value per share was UZS 55,918. In accordance with the order of the State Property Committee, the shareholding structure of Navoiyazot is as follows: the state’s share is 51% (384,385 shares), the share for sale to foreign investors - 49% (369,311 shares). Today the company manufactures more than 60 kinds of products. The main ones are liquid ammonia, ammonia water, caustic soda, ammonium nitrate, nitrogen-phosphate fertiliser (mixture of melt NH4NO3 and Outdoor production unit at Navoiyazot 74 Eurasian chemical market № 1(85) February 2013 phosphorite meal), ammonium sulphate, Countries and regions w w w. chem mar ket. info t Production structure of Navoiyazot liquid chlorine, hydrochloric acid of various Production workshops grades, ammonium chloride, sodium chlo- Start-up Capacity, thousand tonnes / year ride, sodium chloride of pharmacopeia grade, �Ammonia-I,II’ 1964 370 sodium hypochlorite, sodium cyanide, nitric �Ammonia-III’ 1971 180 acid, carbon dioxide, argon gas, oxygen gas, Production of nitric acid – second (II) stage 1965 351 Production of nitric acid – second (III) stage 1971 400 Production of ammonium nitrate –first and second (I-II) stages 1964 350 Production of ammonium nitrate – third (III) stage 1971 600 Production of N-P fertiliser 2010 180 1976 Including: 1) NaOH, chlorine, 26,000 tpy chlorine-based production; 2) NH4Cl; 3) �Unifloc’ preparation; 4) polyacrylamide; 5) hydrochloric acid; 6) methanol; 7) pentaerythritol; 8) formalin; 9) urea-formaldehyde resin; 10) water-soluble polymers; 11) NaCl; 12) flammable liquid storage facility Organic chemicals 1969 Including: 1) acetylene; 2) hydrocyanic acid and sodium cyanide; 3) acetic acid; 4) acrylic acid nitrile; 5) ammonia liquefying workshop Production �Nitron’ fibres 1983 In addition to fibre, K-9 preparation Production of technical thiourea 1987 1,4 pyrolysis acetylene, acrylonitrile, acetaldehyde, acetic acid of different concentrations, methanol of various grades, polyacrylamide gel, formalin, thiourea, methyl acrylate and acetone. Polyacrylic fibre and yarn made under the trade name Nitron is one of the major products of the company, which is used in the production of women’s and children’s hygiene products by a joint Uzbek-Chinese company Navoiy Hunan Pulp LLC. The company is located in the free industrial economic zone Production of �caustic soda and lowtonnage chemical products’ Navoi. A carpet weaving company Horazm Gilamlari JSC (Xorazm) and Ozoda Ozod Joint Venture (Buxoro) are the largest consumers of fibres from Navoiy. Thiourea solutions manufactured in Navoiy are used to dissolve gold from refractory ores and concentrates, while a cyanide process does not yield good results (thiourea dissolves gold in acidic solutions in the pres- tions. ence of an oxidant with forming a cation type mixture of polyacrylamide with ammo- complex. Water-soluble polymeric agent nium sulphate), manufactured under the Uniflok (hydrolysed polyacrylonitrile) pro- trade name Flocculant PAA-GS, is used duced by the company is used for strength- in the form of diluted aqueous solution Today Navoiyazot JSC is dozens of work- ening wellbore walls, reducing fluid losses for suspension flocculation in the mining, shops, which make up a single industrial while drilling and stabilising drilling muds, chemical, pulp and paper and by-product mechanism for accomplishment of produc- enhancing oil & gas reservoir performance, coking industries as well as domestic and tion tasks (Table 1). for sedimenting suspended particles in sedi- industrial water supply. Acrylic emulsion The main raw materials purchased by the mentation tanks and water tanks, filtering and also produced by the company is used for company are: natural gas, soda ash, indus- precipitating different pulps in domestic and manufacturing water-based paints, in the trial salt, ferrous sulphate, sulphur, catalysts, industrial water supply. leather, textile and furniture industries and monoethanolamine, isopropanol, cationic for producing adhesives. dyes, hydroquinone, diisopropyl ether, ita- Another water-soluble polymer - agent Granulated polyacrylamide (a which is applied for production of mineralcotton materials as a binder. There are production facilities for pentaerythritol and zinc nitrate as well. K-4 - is used to reduce fluid loss and stabi- Urea-formaldehyde resin of KFZH grade lise drilling muds. It also finds application in is widely used for manufacturing plywood, Domestic raw materials account for a agriculture as a gelling agent; for sediment- gluing furniture parts; building products and substantial part of the company’s feedstock ing suspended particles in sedimentation joinery; for production of moulding cores consumption. The major local suppliers of tanks and water tanks; as an adhesive in the and casting moulds; soil stabilisation; as well raw materials are Navoiy Kon-Metallurgiya printing industry; for dust control in the met- as for manufacture of moulding materials, Kombinati allurgical industry; as a flocculant for fighting laminated and foam materials, adhesives, Metallurgical sand movement. conic acid and sorbital. JSC (Navoiy Plant), Mining and Samarqandkimyo coatings, paper and fabrics manufacture; for JSC, Olmalik Kon-Metallurgiya Kombinati Another water-soluble polymer agent gluing abrasive grains onto abrasive paper. JSC (Olmaliq Mining and Metallurgical K-9 is intended for well drilling opera- KS-11 is another urea-formaldehyde resin, Combine), Muborak Gazni Qayta İshlash № 1(85) February 2013 Eurasian chemical market 75 Countries and regions w w w. chemm a r ke t . in fo Table 2. Projects of Navoiyazot Project The plant is due on stream in 2016. Start-up Capacity Construction of an ammonia and carbamide complex 2014 660,000 tpy of ammonia, 1,000,000 tpy of carbamide other investment projects aimed at develop- Expansion of thiourea production 2014 Capacity expansion up 3,000 tpy Construction of potassium nitrate production equipment in order to achieve sustainable 2015 3,000 tpy Construction of unit for bleaching agents for textile manufacture 2015 10,000 tpy Construction of monochloroacetic acid production 2015 5,000 tpy Navoiyazot JSC actively implements ing innovative technologies and upgrading competitiveness of products at the domestic and foreign markets by improving products quality and reducing their production costs (Table 2). Zavodi JSC (Muborak Gas Processing Plant) and Ammofos Maxam JSC. Farg’onaazot JSC According to the feasibility study, the cost of the project totals USD 501.1m and its estimated Farg’onaazot JSC (Farg’ona) is one of Navoiyazot sells its products both on capacity for suspension PVC – 100,000 tpy, the leading manufacturers of ammonia, the domestic and foreign markets. Positive caustic soda – 71,800 tpy, methanol – 295,400 ammonium dynamics of export supplies plays an impor- tpy. The payback period including the invest- nitrate and urea in the country. It was com- tant role in ensuring the financial stability of ment period - 9.2 years. The implementation missioned in 1956. The company’s produc- the company. One of the main income items of the project will provide the needs of the tion facilities have been repeatedly upgraded of the company is nitrogen fertilisers sup- construction, electrical, medical, petrochemical and increased over the last ten years. Now it plied to local agricultural producers. Other and chemical industries of the country for the can turn out up to 400,000 tonnes of ammo- major consumers include O’zkimyosanoat mentioned products. Moreover, it is planned nia, 360,000 tonnes of weak nitric acid, SJC, Navoiy Kon-Metallurgiya Kombinati to export 50,000 tonnes of PVC and 22,500 425,000 tonnes of ammonium nitrate and JSC, Olmalik Kon-Metallurgiya Kombinati tonnes of caustic soda annually. 270,000 tonnes of urea per year. Moreover, Farg’onaazot manufacture JSC, Navoiy TES JSC (Navoi TPP), Chkalov Creating PVC production will enable the Nomli Toshkent Aviasiya İshlash Chiqarish company to utilise chlorine obtained in the sodium chlorate intended for production of Birlashmasi (Toshkent Aviation ON by course of caustic soda manufacture. It has defoliants and chlorine dioxide for bleach- Chkalov) and Toshkent Traktor Zavodi. already been noted that the country has suf- ing pulp and fabrics, water disinfection, and The main export markets of the company ficient reserves of technical sodium chloride weed killing (herbicide). Another important are Kazakhstan, Kyrgyzstan, Tajikistan, for producing caustic soda and chlorine. PVC product of the company is liquid defoliant Turkmenistan, China, Iran, Pakistan, Turkey, production will utilise acetylene (via chloride - 36% aqueous solution of magnesium chlo- Ukraine, Russia and United Arab Emirates. monomer), and acetylene will be obtained rate. It is used in agriculture for preharvesting from natural gas. elimination of leaves and for drying plants So, we know what the company produces today, but what Navoiy chemists will manufacture in the coming years? Currently O’zkimyosanoat is considering the project “Construction of a plant for The feasibility study also envisages the (cotton plants, soybeans, sunflowers and construction of an oxygen and argon gas potatoes). Universal complex action defoli- workshop to cover the growing needs of ants “UzDef” and “PoliDef” complete the Uzbek companies for technical gases. range of agrochemicals. polyvinyl chloride (PVC), caustic soda and It is planned to use methanol as a petrol In 2010 Farg’onaazot put into operation methanol on the basis of Navoiyazot”. The additive. Wastes of methanol production a baking soda production line designed to development of a preliminary feasibility (distillates) will be used as an additive to manufacture 1,000 tonnes of NaHCO3 per study was completed in August 2012 fol- natural gas during transportation through year. The equipment utilised for production lowed by its agreeing with an authorized trunk pipelines to fight gas blocks. In the of sodium bicarbonate was made by local expert group. The latter gave its positive future, the bulk of methanol will be directed manufacturers, and only local raw materials verdict after giving recommendations and to a methanol-to-olefins complex planned to are used. eliminating deficiencies. In May 2013 a be built in years to come. A few years ago, with the assistance of tender for turnkey construction of the plant After putting the integrated plant into Chinese company Greencool Engineering, was announced. The winner - China National operation, about 900 new jobs will be cre- a cellulose diacetate unit was revamped. Chemical Engineering Group Corporation ated. Products worth USD 234.5mn will be Cellulose diacetate is used for manufac- (CNCEC) was announced on 28 August, manufactured annually, including exports - turing acetate filament and acetate silk 2013. more than USD 68.5m. as well as cigarette filters. The former 76 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info Farg’ona chemical fibre plant, a subsidiary Natural gas consumption per one tonne of of Farg’onaazot became a production site ammonia will be reduced by 20.3 Nm , the for cellulose acetate fibre manufacture. The total consumption of gas - by 81.2m Nm3 per plant, which can also produce tyre cords year. Project execution will reduce electric ammophos and nylon-6, was put into operation in energy consumption for production of one phosphate NH4H2PO4 with an admixture 1998. The main raw material for tyre cords tonne of ammonia by 72 kWh and total power of diammonium phosphate (NH4)2HPO4), and nylon-6 was caprolactam. Polyamide-6 consumption will be cut by 28.4m kWh per ammonium-phosphate-sulfate capacity totalled 7,000 tonnes per year. But year. These factors will allow the company to monoammonium phosphate (NH4H2PO4) and polyamide-6 capacity is currently idling reduce costs of ammonia by 12.6% in 2015, ammonium sulphate (NH4)SO4, NP 15:23), due to lack of floating capital and sales thereby increasing competitiveness of the suprephos -NS (a mixture of CaHPO4, markets, but is in good condition and ready product. (NH4)2SO4, NN4N2RO4, (NH4)2N2RO4 and 3 (100% P2O5 per year) and for sulphuric acid (monohydrate) – 500,000 tonnes. The main products of the company are: containing monoammonium containing In January 2014, Farg’onaazot repeatedly from 0.5-2% of Mg salts of four grades Besides the company can turn out announced a tender for equipment procure- with a total content of active substances of sodium nitrate and carbamide-ammonia ment for USD 15.5mn. The tender was 80-90%), monoammonium phosphate (NP mixtures. The major importers of its prod- announced within the frames of a project 12:52), ammonium sulphate (granulated, for ucts are Russia, Tajikistan, Turkmenistan, for reconstructing the urea and ammonia alkaline soils), sulphuric acid (improved; first Kyrgyzstan, China, Iran and Afghanistan. workshops. First, the USD 18.8m tender and second grades), sulphuric electrolyte for for operation. The main raw materials consumed by was planned to be held in June 2013 and the batteries (32-35% H2SO4), orthophosphoric the company are natural gas, sulfuric acid, results were to be announced in the Q3 of acid (four grades - from 18% to 31% P2O5), hydrochloric acid, industrial salt, magnesium 2013. However, it was not held due to lack of phosphogypsum for soil improvement (three chloride, caustic soda, monoethanolamine competitive bids. grades a with CaSO4 • 2H2O content of from and cotton cellulose. Currently, it employs about 7,000 people. The project involves spending USD 16.3m 80% to 90%, and hygroscopic moisture of the company’s own funds in the coming 15-25%), feed ammonium phosphates of A The Farg’ona plant follows the course years. In addition, it will be financed at the and B grades (monoammonium NN4N2RO4 for upgrading chemical production taken by cost of the Fund for Reconstruction and with low and controlled content of As, Pb O’zkimyosanoat SJC. In 2014-2015, it is Development of Uzbekistan for USD 24m and F), ground sulphur (for agricultural use), planned to conduct large-scale modernisa- and cost of Uzbek banks for USD 22m. sodium biphosphate (NaH2PO4 with moisture tion of ammonia synthesis unit AM-76 and urea production. One of the key results of the content of 20.5%, application areas - refining Ammofos-Maxam JSC of metals, water treatment, an auxiliary agent in the dyeing of textiles, a buffer in solutions modernisation at Farg’onaazot JSC will be a reduction in ammonia production costs. The Ammofos-Maxam JSC (Olmaliq, Toshkent expediency of the reconstruction is deter- province) is one of the largest companies in phate, a mixture of NaH2PO4 and Na2HPO4 mined by three factors: ammonia is a basic Uzbekistan. It was launched in 1969. Today with a moisture content up to 23%), disodium component of many mineral fertilisers; the the plant manufactures complex N-P fertilis- phosphate (Na2HPO4 with a moisture content volume and cost of the product determine the ers on the basis of phosphorite of the Kyzyl of up to 25%; application fields - boiler water amount of fertiliser produced and their cost; Kum deposit. The company is a member of treatment, production of glazes for pottery the construction of the new units require O’zkimyosanoat SJC. In 2009, 49% of the and porcelain, enamel manufacture, tin plat- large capital expenditures. company’s shares were sold to a foreign ing, tanning, a reagent for electroforming investor – a Spanish corporation Maxam. (galvanoplastic processes, production of The main aim of the new investment for electroplating); mono disodium phos- project is to improve the reliability and per- The production site of Ammofos-Maxam pigments in the textile industry); trisodium formance of equipment at AM-76 unit and is located at the foot of the Kurama Range, phosphate (Na3PO4, there are two grades - its operational safety, reduce energy con- 60 km from Toshkent and 7 km from Olmaliq with a moisture content of 15% and 45%, it sumption and, as was previously mentioned, occupying 194.5 hectares. is used for water treatment and softening, and ammonia manufacturing costs. The plant has two workshops for as cleaning and degreasing agents). The project envisages increasing ammonia ammophos, two phosphoric acid workshops, In addition, the Olmaliq company pro- capacity by 50,000 tpy; urea production - by sulphuric acid production, production of con- duces fiberboards from cotton stalks and 30,000 tpy, to 300,000 tonnes; ammonium sumer goods and a number of auxiliary facili- plant fibres. Its products are in great demand nitrate capacity - by 62,000 tpy and nitric ties. Installed capacity of Ammofos-Maxam both in the domestic and foreign markets. acid manufacture – by 50,000 tpy. for phosphate fertilisers is 217,500 tonnes The fertilisers are used in different climatic № 1(85) February 2013 Eurasian chemical market 77 Countries and regions w w w. chemm a r ke t . in fo the accumulation of sugars in root vegetables and fruit. UAN is a new type of nitrogen fertilisers produced by the company containing carbamide (30%) and ammonium nitrate (40%). All-in-one nutrient solutions based on ammonium nitrate solution - is a liquid complex fertiliser prepared by mixing ammonium nitrate, monoammonium phosphate and potassium chloride. All-in-one nutrient solution is a liquid compound fertiliser obtained by mixing carbamide-ammonia mixture, ammophos and potassium chloride. The fertiliser mixture manufactured by Maxam-Chirchiq is used for pre-sowing application, pre-sowing seed treatment and foliar feeding of plants by spraying them in greenhouses and on the Panorama of Maxam-Chirchiq open ground. zones and for various soil types for all kinds Using natural gas doubled the output and Technical magnesium sulphate improves of crops, thanks to the balanced composition significantly reduced products costs. In 1975 crop yields due to the formation of car- of nutrients. The company is certified under the company was renamed Elektrokhimprom bohydrates and promotes fruit formation. ISO 9001 QMS standards. It cooperates with Production Association. In 2002, in accord- Phosphourea is a mixed fertiliser produced the research and development institutes of ance with a state programme for denation- by mechanical mixing of urea and Uzbekistan and the Russian Federation. alisation and privatisation Elektrokhimprom ammophos. It is particularly useful for neu- was transformed into Elektrkimyosanoat tral and acidic soils. Another type of ferti- JSC. liser, urea sulphate, is derived by mixing urea The main raw material is burnt phosphorus concentrate, which is supplied by the Kyzyl Kum phosphorite complex. Muborak In 2007, Spanish company Maxam pur- and ammonium sulphate. Potassium sulphate Gazni Qayta İshlash Zavodi (Muborak, chased 49% of the company’s stock of shares. produced in Chirchiq is a highly concentrated Qashqadaryo province) supplies sulphur and In this regard, the company was renamed potassium fertiliser with a minimum 48% Maxam-Chirchiq JSC (Chirchiq, Toshkent Maxam-Chirchiq JSC. O’zkimyosanoat SJC potassium content. province) – ammonia. has 51% of the shares. Maxam-Chirchiq Sodium nitrate is a nitrogen fertiliser con- The products of the company can be taining 16% of nitrogen. It is meant for soils divided into 4 groups: mineral fertilisers, of all types potatoes, beet-root, other vari- chemicals, resins and catalysts. ous vegetables, fruit and decorative plants. This company was the first one in Central The range of fertilisers, produced in Lime-sulphur spray is a product designed for Asia to produce nitrogen fertilisers. In 1932 Chirchiq is the widest in Uzbekistan. This crops affected by powdery mildew, red spi- it was decided to build Chirchiq nitrogen fer- group ammonium der, anthracnose and other fungal diseases. tiliser plant in the Toshkent province. Since nitrate, ammonium sulphate and 9 other Lime-sulphur spray can also be used for other its commissioning in 1940, the company bore types of fertilisers and one pesticide. A industrial purposes. It is produced from tech- the name Chirchiq electrochemical plant. mixed highly concentrated granular nitrogen- nical sulphur, limestone and water. includes carbamide, In the beginning it was specialised in phosphorus fertiliser (NPF) is obtained by The product line of fertilisers is extremely production of nitrogen fertilisers by the mechanical mixing ammonium nitrate with diverse both in terms of chemical composition fixation of nitrogen via electrical arc. Due ammophos in the ratio 9:1. and application areas. So, in addition to ammo- to the development of deposits of natural High phosphorus content helps to increase nium nitrate of agricultural application three gas in the Buxoro province, the company plant resistance to unfavorable environmen- varieties of NH4NO3 are produced in Chirchiq. began to use natural gas supplied by pipe- tal factors (drought and frost), and increases Ammonium nitrate of low density is used lines to Chirchiq. the resistance of plants to diseases, promotes for commercial purposes; ammonium nitrate 78 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info without conditioners for technical applica- Gaseous oxygen is used for welding sumption for hydrogenation of sulphur com- tion is produced exclusively for the needs of non-ferrous metals, light-weight alloys and pounds from hydrocarbons in production of foreign customers. And ammonium nitrate intensifying metallurgical processes. Liquid ammonia. solution is purchased by companies manu- oxygen is a by-product of manufacturing Sulphur absorbent NPV-03 is manufac- facturing industrial explosives. liquid nitrogen from atmospheric air by low- tured at the existing equipment for produc- The company produces 4 types of HNO3: temperature rectification. It is applied after tion of catalyst GIAP-8 from zinc oxide, nitric acid (56%) of reactive grade (used in gasification for flame treatment of metals and which is derived from spent catalysts (zinc the electronics and medicine industries), other industrial purposes. sinks) GIAP-10. nitric acid for special purposes (designed for Gaseous nitrogen is intended to create an The main raw materials consumed by the electronic and metallurgical industries), inert atmosphere during production of easily Maxam-Chirchiq are: natural gas, caustic weak nitric acid (for production of ammo- oxidizable products, high-temperature pro- soda, sulphur, hydrochloric acid, formaline, nium nitrate, complex fertilisers and metal cessing of metals, which do not interact with methanol and monoethanol amine. etching), and concentrated nitric acid of A nitrogen, for preserving closed metal vessels The main consumers of the local plant are and B grades. and pipelines. Liquid nitrogen is derived agro-industrial companies and farms, chemi- Grade A is used in the electronic and radio from atmospheric air by deep cooling and it cal and other industries. Major importers are electronic industries, for nitration of organic is used by agricultural companies as a refrig- Russia, Kazakhstan, Tajikistan, Afghanistan, compounds in manufacture of explosives, erant. Chemists in Chirchiq produce two Turkmenistan, Kyrgyzstan, China, Iran and chemical treatment of metals, in the medical types of urea-formaldehyde resins (COP -11 Turkey. industry and plastics manufacture. Grade B and KFZH), similar to those by Navoiyazot is applied for galvanic processes, in produc- JSC (see above). Qo’qon superfosfat zavodi tion of chemical reagents, for dissolving The plant produces a number of important chemicals impurities, in processes of nitra- industrial catalysts. Thus, for ammonia syn- Qo’qon superfosfat zavodi JSC (Qo’qon tion of organic compounds in manufacture of thesis catalysts CA-C (oxidized) and CA-CB Superphosphate Plant, Qo’qon, Farg’ona explosives. (reduced) are designed to operate at tempera- province) is one of the oldest companies in Technical aqueous ammonia of reactive tures from 400 °C to 600 °C at pressure from the country for production of phosphate ferti- grade as well as liquid ammonia of three 15 MPa to 55 MPa. Nickel catalyst GIAP-8 lisers. It employs 500 workers. grades (A, B, and Ak) is produced on the basis is designed for steam, air and vapour carbon- The plant was built on the basis of a of NH3 synthesised in Chirchiq. Ammonium dioxide conversion of gaseous hydrocarbons bulk blending plant, which was part of carbonate (Ak grade) is a mixture of ammo- to produce commercial hydrogen and various People’s Commissariat of Heavy Industry nium carbonate and bicarbonate intended for industrial gases. of the USSR GlavAzot, and it was put into synthesis of ammonium sulphate. Chrome-alumina catalyst GIAP-14 is meant operation in 1935. The initial product range Industrial gases occupy an important place for loading in the upper zone of second stage included organo-mineral fertiliser mixtures. in the product range of Maxam-Chirchiq. shaft reactors for air-steam conversion of natu- In wartime, the factory manufactured defense Technical hydrogen is used in the electronics, ral gas under pressure of 4 MPa. Methanation products. In 1942-1945 the plant produced chemical, pharmaceutical industries, in fer- catalyst TS-2 is designed to purify a mixture explosive “Dinamon Zh”. rous metallurgy and in the communications of nitric oxides from carbon oxide. Catalysts In 1941, construction of a superphos- and energy industries. UCC-02, UCC-02E are applied for the process phate plant started using the equipment Solid carbon dioxide is used for cooling in of conversion of carbon oxide with steam under delivered from Nevsky (St. Petersburg) and refrigeration equipment, processing, storage, pressure of 5 MPa and at temperatures from Voskresensky (Moscow region) chemical transportation and sale of frozen and chilled 320 °C to 350 °C. fertiliser plants. The first stage of the plant foods by direct or indirect contact with them. Low temperature methanation catalyst for started up in 1946. Apatite and imported Gaseous and liquefied carbon dioxide is used carbon oxide conversion NTK-4U is used for sulphuric acid were raw materials for super- to create protective environment for welding catalytic processes in carbon oxide conver- phosphate production. At the same time the of metals; for food processing in manufac- sion with water vapour in ammonia produc- construction of a sulphuric acid plant started ture of carbonated drinks, dry ice, for cool- tion. It contains primarily metal oxides and and it was completed in 1947. ing, freezing and storing food in direct and produced in the form of cylindrical pellets. After discovering the Karatau phospho- indirect contact with them; for drying casting Aluminium nickel molybdenum catalyst rite basin, the plant mastered a technology moulds; for fire extinguishing. CGI-09 is manufactured for intraplant con- for production of superphosphate from the № 1(85) February 2013 Eurasian chemical market 79 Countries and regions w w w. chemm a r ke t . in fo deposit. In 1949, designing and constructing be implemented within 5 years. The volume 1,000 tonnes, and magnesium compounds a new superphosphate plant with a design of investments accounted for about USD 3m with an annual capacity of 1,000 tonnes. capacity of 42 tonnes per year (in terms of before the cancellation of the contract. Samarqandkimyo 100% P2O5) started, and in 1958 the plant As for the structure of the share capital of was put into operation. In 1956, the sulphuric the company, 85.2% of the shares have been acid plant was reconstructed and its capacity returned to the SPF, 10% are the share of the The plant was founded in 1949. In 1950, was increased due to the growing output of labour collective and the rest 4.8% belong to according to a project of the USSR Giprokhim superphosphate. other minority shareholders (companies and the construction of sulphate, superphosphate, natural people). oxygen and mechanical repair and engineering In 1953, a pilot plant was installed and production of ammoniated superphosphate In 2010, as a result of series of imple- workshops was started. A network of access started up. At the same time construction of mented innovative technical solutions, roads, which included two railway stations an ammoniated superphosphate plant with a the capacity of the plant for ammoniated and two auxiliary stations (Superfosfatnaya designed capacity of 45,500 tonnes per year superphosphate reached 230,000 tonnes. and Zavodskaya) was built. The main focus (in terms of 100% of P2O5), began. In 1962, Ammoniated superphosphate is the main of the plant was phosphorus-containing min- the plant was put into operation. product. The nutrient content of the fer- eral fertilisers of superphosphate type for In 1964 a technology for producing tiliser is: P2O5 - 13 ± 1%, nitrogen in the needs of the cotton-growing republics ammoniated superphosphate by a new flow ammonium form - 1,5 ± 0,5%. It is used of Central Asia. The phosphorite deposit in sheet was introduced – �ammonation - dry- in agriculture for growing different crops Karatau (Dzhambul region, Kazakhstan) was ing - sieving – crushing’. In 1967, two more - vegetables, fruit and both technical and the raw material base. drum ammonation units were installed. In decorative plants. Ammoniated super- A workshop for production of sulphuric 1971, the reconstruction of the drying plant phosphate is recommended for using in acid by contact process with the main appara- was made. Battery cyclones were replaced conjunction with potassium fertilisers. It tus located out of specialised industrial prem- with cyclones with a self-cleaning device. is sold to consumers at USD 90 per tonne ises was built in the USSR at the Samarqand In 1973, two additional screens GIL-52 were (bulk) by railway or in consumer’s bags superphosphate factory. The experience integrated into the process flow sheet. (50 kg bags) by the buyer FCA (railway of the Samarqand plant showed that under station Qo’qon -1). conditions of careful development of manu- Since 1998 with the commissioning the Kyzyl Kum phosphorite plant, Qo’qon The main consumers of ammoniated facturing processes and maintenance, equip- superfosfat zavodi started processing local superphosphate are agricultural companies, ment of sulphuric acid plants can be used in raw materials - raw phosphorites from the which are mainly located in the Farg’ona, the open area, which significantly reduces Tashkura deposit. In 1999, Chirchiq leading Andijon and Namangan provinces. The fer- the capital cost of construction of workshops research O’zkimyosanoatLoyiha tiliser is in demand in the neighboring coun- and equipment installation; makes it easier to (Uzbek chemical industrial projects) estab- tries, particularly in Tajikistan, Kazakhstan install ventilation, remove harmful gases and lished ammoniated superphosphate capacity and Kyrgyzstan; it is also shipped to Iran and excessive heat. at 178,000 tonnes per year in physical terms Afghanistan from time to time. institute during the transition to phosphate raw material from the central Kyzyl Kum. The export potential of producers of ammoniated superphosphate is increasing Planned output of sulphuric acid, which is needed to produce mineral fertilisers, started in 1954. In 2004, the first stage of reconstruction from year to year. If the volume of exports in In 1955, a superphosphate workshop began including drying, grading and packaging of 2005 amounted to 900 tonnes, in 2009 it was operating. However, the fertiliser produced fertilisers was completed at Qo’qon superfos- 19,300 tonnes, and during the last years it has from phosphate of the Karatau deposit had fat zavodi JSC. been at the level of 30,000-32,000 tonnes. poor physical properties, which made their In 2008, Russian company Monolith LLC The main types of process feedstock come soil application difficult. In order to improve (Moscow) became the owner of 85.2% of the from the local market. This is phosphorite the properties of simple superphosphate, company’s shares, paying for them approxi- meal, sulphuric acid and ammonia. construction of a granulation workshop was started, and it was completed in 1960. mately USD 3.6m to State Property Fund The company produces building gypsum of Uzbekistan (SPF). In 2011, this deal was and mineral fertilisers in small packaging for A little earlier, a unit for production of bat- cancelled by mutual consent. Investment the domestic consumer market. The future tery acid and selenite sludge was installed. In commitments of the Russian company at plans of the company are: launching of pig- 1962 the plant started production of ammoni- closing the deal were USD 5m, which had to ment production with an annual capacity of ated superphosphate. The output of concen- 80 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info trated and complex fertilisers was growing quickly. The most important type of fertiliser was ammophos, and its production started in 1976. In 1978, ammophos was awarded the State Quality Mark. In 1984, a plant for extraction phosphoric acid of the third stage was put into operation. The capacity of the plant was 136,400 tonnes per year. In 1994, due to cessation of deliveries of phosphate raw materials from Kazakhstan, the second stage of the plant was switched to production of granulated ammonium sulphate. Since 1994, a new technology for production of fertilisers based on the processing of local raw materials was developed on the Production facilities at Samarqandkimyo plant basis of the second of the plant. In 2004, specialists of the company and Design Institute O’zkimyosanoatLoyiha developed a new kind of fertiliser - NPF (nitrogen-phosphorus fertiliser). activates enzymes and strengthens the cell Potassium is one of the most important nutrients for plants. It keeps and retains water walls. The efficiency of this complex fertiliser has in stems and leaves, enhances the formation In 2005, by order of the State Property been proven at several Uzbek farms. Studies of sugars; it increases the resistance of plants Committee of Uzbekistan, the company have shown that it has a positive effect on to disease, drought and frost. became company plant growth and development, thereby N-P-K (nitrophoska) is produced by mix- and was renamed Samarqandkimyo JSC. increasing the crop yield by 17-20% on aver- ing nitrophosphate pulp and crystalline Currently the company employs over 800 age. It is recommended for cereals crops, KCl. The technology for producing N-P-K people. Unfortunately, in recent years cucurbits crops, cotton and forage crops, fertilisers has been developed by specialists Samarqandkimyo has been unprofitable. In fruit and berry crops, vegetables as well as of Samarqandkimyo JSC. Complex mineral this regard, in January 2014, the Cabinet houseplants. N-P-Ca should be used as a base fertiliser ZHSFS (suspended liquid phospho- of Ministers, the Ministry of Economy, the fertiliser before sowing and as a plant food rus-containing nitrate) contains nitrogen (7% Ministry of Finance with the involvement throughout the growing season. N), phosphorus (7% P2O5) and water-soluble an open joint-stock of stakeholders had to develop and adopt a All its components are well absorbed by calcium (7% CaO). It is manufactured by programme for tackling financial crisis and plants in neutral carbonate-containing soils, mixing calcium nitrate-phosphate pulp with actual bankruptcy of some industrial compa- even highly saline soils of the Central Asian ammonium nitrate solution. nies in a three-month period. region, and in all other types including black Now the product range of the plant includes N-P-Ca (nitrofos), N-P-K (nitrophoska) and suspended liquid phosphorus-containing nitre. The solution is used in agriculture to feed all kinds of crops throughout the period of soil. N-P-K (nitrophoska) is a highly effective their vegetation. According to test results mineral fertiliser, which contains the basic of the Uzbek Research Institute of Cotton nutrients needed for plant growth - nitro- in conjunction with the Institute of General Complex fertiliser N-P-Ca (nitrofos) con- gen, phosphorus, potassium and calcium and Inorganic Chemistry of the Academy tains 6% of nitrogen, 16% of phosphorus (N - 5%, P2O5 - 14%, K2O - 14% and CaO of Sciences of Uzbekistan recommenda- and 11% of calcium. Nitrogen regulates the - 12%) – in the available form. The tech- tions for its use in agriculture have been growth of vegetative mass and determines nology of production of this fertiliser was developed. the level of productivity. Phosphorus acti- mastered at the plant not that long ago - after ZHSFS is used for foliar application vates root growth, accelerates the develop- the company Dehqonobod Kaliyli O’g’itlar by spraying the suspension solution onto ment of all processes and increases winter Zavodi (Dehqonobod Potash Fertiliser Plant) leaves, and for root nutrition during the hardiness. Calcium stimulates plant growth started manufacture of crystalline potassium formation of leaves, during budding and and root development, increases metabolism, chloride. blooming periods. These methods of appli- № 1(85) February 2013 Eurasian chemical market 81 Countries and regions w w w. chemm a r ke t . in fo JV Elektrokimyozavod JV Elektrokimyozavod CJSC (Navoiy) electrochemical plant was founded in 1971 for production of chemical crop protection products: insectoacaricides, herbi- cides and fungicides for Central Asia and other former Soviet republics. The second birth of the company was the creation of the Uzbek-Panamanian joint venture, Elektrokimyozavod JSC, in 1994. After the plant became a joint-stock company, it took a course on production of chemical crop protection agents from imported active ingredients and components from local raw materials. Economic expediency of Dehqonobod potash fertiliser plant the plant, which would allow the country to save up to one third of the currency for pur- cation stimulate growth and development operation. In 2010, the company produced chasing finished crop protection agents, was of crops, and also serve as means of protec- 55,000 tonnes of potassium chloride; in 2011 taken into consideration. To expand the range tion from diseases. – 180,000 tonnes, and in 2012 reached its of products and to improve their quality, a Beside the main products – fertilisers - the design capacity. Construction of the second reconstruction of basic workshops was car- plant manufactures battery sulphuric acid. stage of the plant at the cost of USD 254.5m ried out, modern technology and packaging The main importers of plant products are: provides an increase of the capacity of the equipment was purchased, as well as modern Tajikistan, Afghanistan, Kyrgyzstan and Iran. plant by three times - up to 600,000 tonnes of analytical equipment. The basic raw materials required for produc- potash fertilisers per year, and about 350,000 tion are phosphorite meal and nitric acid. tonnes will be exported. Dehqonobod Kaliyli O’g’itlar Zavodi Unitary Enterprise The company used to produce only four kinds of products but today the range of In 2011, ZUMK signed a contract with products includes more than 60 articles. O’zkimyosanoat to expand capacity of the Some are manufactured under licenses of the production complex worth USD 128m, and following companies: Dalston Associated with CITIC Ltd - to expand capacity of the pro- (Panama), Syngenta (Switzerland), BASF The construction of Dehqonobod potash cessing complex at the cost of USD 110m. The (Germany), FMC (USA), Keminova Agro fertiliser plant on the basis of the Tubegatan construction started in late 2011 and in the mid- (Denmark), sylvite deposit in the Qashqadaryo province 2014 production should be put into operation. August JSC (Russia), Schyolkovo Agrochim United Phosphorus (India) started in 2007. In 2008, O’zkimyosanoat USD 110.5m from Export and Import Bank SJC concluded contracts with ZUMK (ZAO of China, O’zkimyosanoat’s own finances Products quality fully meets the require- UK Western-Ural Machine Building Concern and credits of the Fund for Reconstruction ments of the licensors. For using at house- CJSC Management Company; Perm) and and Development of Uzbekistan in the hold plots, fertilisers are available in small CITIC Pacific Ltd. (China) for building on a amount USD 128.1m were allocated for the packaging. Production of veterinary drugs for turnkey basis; with the Russian company - to project. The payback period from the begin- controlling parasites for animals and poultry, build a mining complex; with the Chinese - ning of construction is 7.5 years. The number as well as drugs for use as disinfectants, for the construction of a processing complex. of created jobs is 944. Potassium chloride disinsectants and exterminating substances The first tonne of sylvite mined by according to State Standard GOST 4568-95 was launched. Tubegatan potash mine group (TPMG) was produced by the plant is shipped to local However, today the company’s economy is processed at the plant in December 2009. farmers, factories producing complex min- based on production from local raw materi- And in mid-2010 the plant at the cost of USD eral fertilisers, as well as abroad - Sri Lanka, als. Manufacture of some products such as 123.7m and with capacity of 200,000 tonnes UAE, Iran, Kazakhstan, Georgia, Vietnam, chemical crop protection agents and simple of potash per year was put into commercial Malaysia and China. superphosphate is included in the Republican 82 Eurasian chemical market № 1(85) February 2013 JSC (Russia) using brands of the companies. Countries and regions w w w. chem mar ket. info programme of localisation of finished prod- chloride-3-pyridyl)-methyl]-imideazolidine- the only defoliant for cotton, which is manu- ucts, components and materials on the basis 2-ilene-amine; it is intended for cotton and factured by the company and applied before of local raw materials. In the new economic wheat against sucking insects). harvesting. environment, the company confidently took The group of protectants includes Tebu In 2003, after development work, the a leading position in production of chemi- (microemulsion containing 60 g/l of tebucon- construction of simple superphosphate pro- cal plant protection products not only in azole - (RS)-1р-chlorophenyl-4,4-dimethyl- duction was started, and in 2004 the first Uzbekistan, but in all Central Asia. 3-(1H-1,2,4-triazole-1-il-methyl)pental-3-il; processing line was launched. Since 2007, Let’s review the company products in detail. it is used for pre-sowing treatment of grain), simple superphosphate is also available in The herbicidal group includes Estamp (emul- Daltebu (water soluble suspension, contain- granular form. sion concentrate containing 330 g/l of active ing 6% of tebuconazole; it is applied for Experience has shown that using poor substance pendimethalin пендиметалина - pre-sowing treatment of grain); Dalucho phosphate of the Tashkura deposit and sul- 2,6-Dinitro-N-(1-ethylpropyl) -3,4-xylidine; (wettable powder, containing 70% of imida- phuric acid of the Uchkuduk deposit as raw pre-emergence herbicide of a broad-spectrum cloprid; it is applied against insects that feed materials allows manufacturing mineral fer- designed for combating annual cereal and on moisture of plants and infect seed stocks) tilisers of high quality. That is why Navoiy dicotyledonous weeds at arable farmlands). and Dalbron (an active ingredient - Bronopol, superphosphate is in high demand not only or among local farmers, but it is also exported Dalstar (dry flowable suspension, con- 2-bromo-2-nitropropane-1,3-diol; it taining 750 g/kg of the active ingredient enhances the ability of seeds for germination. tribenuron methyl – (methyl-2-[4-methoxy- Its application increases cotton crop by 5-6 6-methyl-1,3,5.triazin-2-yl(methyl) centners per hectare. carbo- abroad. An important step towards improving the economic performance of the company was moylsulfomoyl] benzoate); it is used in small The company produces two veterinary re-starting previously mothballed capac- doses as a highly effective postemergence drugs - Cypermethrin (25% emulsion con- ity. Production of sodium sulphide ethyl herbicide for fighting broadleaf weeds in centrate of pyrethroid cypermethrin; it is acetate and sodium chloride was launched at winter and spring grain crops) and Dalzlak used to combat leaf-eating insects) and idled capacity. A subsidiary company Eltuz Extra (emulsion concentrate, containing Tsiperfos (emulsion concentrate containing was established specially for production of 104 g/l of active substance haloxyfop-(P- two active substances - 5% of cypermethrin sodium chloride. It should be mentioned that methyl - methyl (R)-2-{4-[3-chloride-5-(tri and 50% of chlorpyrifos - 0.0 - diethyl- 0 -( iodised salt of the highest quality, produced fluoromethyl)-2-pyridyloxy]phenoxy}propi- 3,5,6 - trichloro -2- pyridyl) phosphothioate; under the brand name JP, is known through- onate; the postemergence systemic herbicide it is used for combating leaf-eating insects out the country. Each month, 500 tonnes of designed to control annual and perennial and psyllas, suppresses and prevents from edible salt are shipped to consumers. Quality gramineous weeds in cotton sowing). ticks). management system of the company was cer- The group of insectoacaricides includes Rodenticides are presented by Zookumarin Esfen Alpha (emulsion concentrate containing (sodium salt compound of technical warfarin, 5% and 20% esfenvalerate - A, α-fenvalerate- 4- hydroxy -3 -(3 - oxo -1- phenylbutyl) cou- (S)-3-methyl-2-(4-chlorophenyl)-butyric marin; it is used for deratisation). tified in 2007 according to the international standard ISO 9001:2000. Maxam-Uzbekistan JV acid (S)-α-cyano -3-phenoxybenzyl ester; it Growth-regulating chemicals, which are has contact and enteral damage effects on manufactured in Navoiy, include Uzrep Uzbek-Spanish company, which employs insects and worms), Tsiraks (25% emulsion and Dalrost (aqueous solution containing more than 40 people, is located in Olmaliq concentrate cypermethrin - (R, S)-a-cyano- 720 g/l of ethephon - 2-chloroethylphos- (Toshkent province) and produces industrial 3-phenoxybenzyl (1RS)-cis-trance-3-(2,2-di phonic acid; it accelerates plant growth explosives “Manfo-8, 7.” It is a mixture of vinyl chloride)-2,2-dimethyl cyclopropane and ripening of cotton) and Dalpiksi (5% ammonium nitrate, diesel fuel, fuel oil and carboxylate, which has contact and enteral aqueous solution of mepiquat chloride - N, aluminum powder. Its main customers are damage effects), N-dimethylpiperidinium), which accelerates domestic mining companies. Karbofos (emulsion concentrate, contain- ripening cotton bolls). Qo’ngirot Soda Zavodi Unitary Enterprise ing 50% of malathion - organophosphorus Extra Avguron (a suspension concentrate compound, which has contact partly fumi- containing two active components - 360 gant effects on insects and ticks) and Dalprid g/l of tidiazuron - 3 - (1,2,3-Tiadiazolin- (water soluble concentrate containing 200 g/l 5)-1-phenyl-urea and 180 g/l of diuron - 3 Unitary Enterprise Qo’ngirot Soda Zavodi of imidacloprid - 4,5-dihydro-N-nitro-1-[(6- - (3,4-dichlorophenyl) -1,1-dimethylurea) - (Qo’ngirot Soda Plant, located in the vil- № 1(85) February 2013 Eurasian chemical market 83 Countries and regions w w w. chemm a r ke t . in fo Commissioning the plant allowed to refuse from imports of soda ash from Russia and Ukraine. The plant’s products are demanded by the light industry, production of detergents, glass, paper and cellulose, the non-ferrous industry and other sectors of the Uzbek economy, which consume about 80% of soda ash. Quvasoy glass factory is the main customers. Furthermore, sodium carbonate is exported to foreign consumers, mainly to Kazakhstan, Russia and Turkey. Over the last three years, the sales of the company’s products abroad rose fivefold. By the results of 2013, 22,000 tonnes of soda ash were shipped to foreign customers. Qo’ngirot Soda Plant Due to increasing demand for soda ash in lage Elobod in the north of the country, in installation of process equipment of the plant domestic and foreign markets, it was ruled Qaraqalpaqstan Respublikasi’ is the only at the cost of USD 32.3m. The technological to increase soda ash production of Qo’ngirot company producing soda ash on the territory part of the project was funded on account of Soda Zavodi by more 100,000 tonnes by of Central Asia. a loan from the Industrial and Commercial the presidential decree “On the priorities of The plant was founded in 1995. However, Bank of China under insurance cover of industrial development of Uzbekistan for it was a difficult task to build a modern China Corporation of export-credit insurance 2011-2015” dated 15 December, 2010. In chemical company in the desert. It was nec- (90% of the contract value) and on account April 2013, O’zkimyosanoat started con- essary to build a 40 km road to the deposit of a loan from Uzpromstroybank (10% of structing the II stage of the plant. Increasing of sodium chloride; to provide electric power the contract value) under the guarantee of the capacity of the plant up to 200,000 tonnes supply, natural gas and water; to create government. per year is one of the priorities of industrial normal conditions for personnel. Later, the General construction works were car- main production units of the plant were built ried out by local construction companies at The start up of a production line for hyper – workshops of sodium bicarbonate, calcina- expenses of O’zkimyosanoat. Its designed pressed bricks is scheduled for the second tion, lime burning and slaking, purification of capacity is 100 tonnes of soda ash per year. half of 2014. Manufacture of new products salt solutions, technical and aqueous support, The main raw materials for soda ash produc- from limestone should start in the mid-year, as well as a boiler station. tion are sodium chloride and calcium carbon- which will employ 65 people. By the end development of Uzbekistan until 2015. Some ancillary facilities were built: a ate (limestone). All major raw materials are of 2015 it is planned to commission a glass motor pool, a testing area for reinforce con- mined in Uzbekistan and they have been containers unit. crete products, mechanical repair shops, a described above. Jizzax plastmassa compressor station, an administrative and According to a conclusion of geologists, amenity building and a fire station. Most of the rational use of underground resources the installed equipment was manufactured of the Ustyurt plateau can ensure the needs Jizzax plastmassa JSC (Jizzax) is the largest in China, and some was delivered from the of the plant for over the next 100 years. producer of films, pipes and consumer goods United States, Italy and Germany. The plant, O’zkimyosanoat, and from high and low pressure polyethylene in which currently employs 1,360 people, was Navoiyazot supply ammonia – another raw Central Asia. The plant was commissioned in commissioned in 2006 by a Chinese com- material. 1972. Its capacity is about 60% of total capac- pany CITIC Pacific Ltd and O’zkimyosanoat SJC. Maxam-Chirchiq In 2006, the factory produced 12,810 ity of polymer producers in Uzbekistan. Jizzax tonnes of soda ash, and in 2011 this figure plastmassa manufactured 18,200 tonnes of PE Total project cost was USD 100m. The increased sevenfold. In 2012 more than film per year, 10,800 tonnes of polyethylene company CITIC Pacific Ltd, according to the 92,000 tonnes of soda ash were produced, pipes 315-630 mm in diameter, and 1,370 contract, carried out the turnkey design and and in 2013 - about 102,000 tonnes. tonnes of consumer goods (fittings). 84 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info Pipes produced in Jizzax are used for utilities, installation of hot and cold water supply networks and gasification, and that is why these products are practically not affected by seasonal decline in consumption. The company has a modern unit for PE films and pipes, injection moulding equipment, and equipment for packaging manufacture, as well as several crushing machines, which are used for recycling plastic waste. Number of workers employed at the plant - 439. Shortan Gas Chemical Complex, which was put into operation in 2001 and produces 125,000 tonnes of polyethylene per year, supplies raw materials to Jizzax. The main local consumers are: the agristruction companies. The main importers of Jizzax plastmassa is equipped mainly with Chinese is mainly equipped with Chinese machinery products are Kazakhstan and Tajikistan. cultural sector, farms, private firms and con- stable gas condensate, commercial liquid gas were processed. Production of liquefied Unfortunately, over the years, the company and lump sulphur, commercial granulated gas (propane-butane) reached 15,000 tonnes has been in a financial crisis. In this regard, sulphur, granulated polyethylene of vari- instead of the planned 8,500 tonnes. the President of Uzbekistan Islam Karimov ous grades, polyethylene pipes and fittings, The plant produced 298,400 tonnes of in January 2014 instructed the government to polyethylene film, parts for drip irrigation stable gas condensate and 347,800 tonnes develop and adopt a “roadmap”, which would systems. Below we will describe only two of elemental sulphur, which was certified allow the company to avoid bankruptcy (by companies that use chemical technology in 2007 according to the international qual- the way, most of the shares of Jizzax plast- processes. ity management system. For six months of massa still belong to the state). III. Other chemical companies Petrochemical companies 2013 the volume of liquefied gas production Muborak Gazni Qayta İshlash Zavodi USE increased by almost 6.4 times, and gas condensate – by almost 4.4 times, compared to the same period last year. Muborak Gazni Qayta İshlash Zavodi We mentioned the course for modernisa- (“Muborak Gas Processing Plant”, Muborak, tion of chemical production conducted by O’zneftgazqazibchiqarish (Uzneftegazdo- Qashqadaryo region) is a pioneer in the field the national government. According to the bycha) includes the largest companies of of processing of natural gas on the territory course, a special programme for technical Uzbekistan for oil production, natural gas and of Uzbekistan. Here, natural gas is converted re-equipment at the plant was developed. condensate recovery and natural gas process- into liquefied gas, gas condensate and other In particular, in July 2013, three production ing: Muborakneftgaz USE, Sho’rtanneftgaz hydrocarbons. The company is one of the lines of propane -butane mixture were put USE, Andijonneft JSC, Jarqo’rg’onneft JSC, largest gas processing plants in the world. into operation. Construction of this large Usturtgaz USE, Gazlineftgazqazibchiqarish The plant was commissioned in 1971 and it industrial facility is the result of the imple- USE, Sho’rtan Gaz Kimyo Majmuasi USE is designed for annual processing 30bn m3 of mentation of an important investment project and Muborak Gazni Qayta İshlash Zavodi gas. “Construction of a propane-butane mixture USE. The main processes of Muborak plant processing unit to increase production of liq- Companies of O’zneftgazqazibchiqarish are absorption purification of natural gas, uefied gas at Muborak Gazni Qayta İshlash produce commercial oil, natural gas (sup- followed by low-temperature drying, com- Zavodi USE” worth USD 244m. plied via trunk pipelines), liquefied hydrocar- mercial sulphur gas production by the Claus Funding for the project was provided bon gas for municipal consumption, liquefied method and condensate stabilisation to obtain by O’zbekneftgaz proper, a loan of Fund hydrocarbon gas for automobile transport, liquefied gas. In 2012, 27,65bn m3 of natural for Reconstruction and Development of № 1(85) February 2013 Eurasian chemical market 85 Countries and regions w w w. chemm a r ke t . in fo enable Muborak Gazni Qayta İshlash Zavodi to increase operating rate, and employ 186 people. In addition, by 2015 O’zbekneftgaz is planning to proceed to construction of a gas chemical complex on the basis of Muborak Gazni Qayta İshlash Zavodi. The project will be implemented by a 50:50 joint venture with Indorama Group (Singapore). It envisages production of 492,000 tonnes of polyethylene, 66,000 tonnes of gas condensate and 53,000 tonnes of pyrolysis petrol per year. The construction period of the complex is three years. The project initially estimated at USD 2.5bn, will be financed by funds raised by Indorama, a loan of the Fund for Reconstruction and Uzbekistan, as well as loans of the National O’zLITIneftgaz, construction and instal- Development of Uzbekistan and equity funds Bank for Foreign Economic Activities and lation works were carried out by local of O’zbekneftgaz. the China Development Bank. Construction contractors, of a new complex is also a result of coopera- equipment is produced in workshops of tion of the leading companies from Russia, O’zbekkimyomash Zavodi. The advan- Ukraine, France, the USA, Poland and China. tage of the new equipment is the ability Foreign manufacturers installed unique most of manufacturing to process not 250,000 m but 300,000 m 3 3 Sho’rtan Gaz Kimyo Majmuasi Sho’rtan Gaz Kimyo Majmuasi Unitary Daughter Enterprise (Shortan Gas Chemical high-tech equipment. At the same time, of natural gas per hour. USD 171.8m has Complex; most of it is made in Uzbekistan by special- been invested in this project. At the next Qashqadaryo province) is a perfect example ists of O’zbekkimyomash Zavodi JSC and step of modernisation of the plant, which of the “new way” of the economic devel- Namanganmash JSC. The new unit, which will be implemented by the end of 2015, opment of Uzbekistan. Being a part of the is designed to strengthen the exports poten- O’zbekneftgaz will gradually build the USSR, Uzbekistan was mainly regarded as tial of the industry, can process 12bn m of eighth stage of gas desulphurisation. USD a source of cheap gas and cotton, but after natural gas and produce up to 258,000 tonnes 220m will be allocated from the funds of declaration of independence, the country’s of liquefied gas and 125,000 tonnes of gas O’zbekneftgaz. The implementation of the industrial production has been reoriented suf- condensate per year. project will ensure reliable operation of the ficiently to deep processing of raw materials 3 Sho’rtan, Guzor district of In addition, taking into account decom- system for purification of natural gas from close to their location. This is undoubtedly missioning of outdated installations, the hydrogen sulphide and acid gas in the long- one of the most successful projects of the construction of the seventh stage of des- term prospect. National Holding Company O’zbekneftgaz, ulfurisation consisting of three universal Blocks of the new stages also allow solv- which was carried out during the years of units with a total capacity of 6bn m of gas ing the problem of processing hydrocarbon per year was completed. All the three units raw materials supplied from the gas-bearing There was a need for construction of were put into operation in the period from area Khausak -Shady in the Buxoro province, such a complex. Ten years ago, the country August 2012 to March 2013. The absorp- which is being developed by the Russian experienced a serious shortage of poly- tion system of the new units is equipped company Lukoil within the frames of a joint ethylene, and consumers were completely with modern contacting tip �Peton’ that venture with Uzbekistan. In October 2013, dependent on imports from Russia, China gives the opportunity to save electricity, the company Lukoil Uzbekistan started and South Korea, and that required sig- heat and absorbents, and to increase output producing and transporting gas to Muborak nificant investments and increased plastic of high-quality products by 20%. Gazni Qayta İshlash Zavodi. It is planned to goods production costs. 3 independence. Construction documents of the new process and transport 2.2 bn m3 of gas per However, a feedstock for manufacture of units were prepared by the institute year. The implementation of the project will polyethylene - natural gas with a high con- 86 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info Panorama of Shortan Gas Chemical Complex tent of light hydrocarbons (ethane, propane, consisting of globally renowned companies and ethylene refrigerant systems and a unit butane and a relatively small amount of sul- (ABB Lummus Global, Shell, Nissho Iwai, for ethylene production. phur) –was found in the Sho’rtan gas deposit Mitsui, Toyo Engineering, Nova Chemicals). Amine treatment is used for purification (30% of all Uzbek gas) and in the South The project was financed by export-import from acid components, and separated sour Tandyrcha, Adamtash and Gumbulak depos- banks of the USA and Japan, Germany- gas goes to a unit for sulphur production. its. In addition, the local gas condensate based Credit Agency Hermes, by the banks Sulphur granulated and packed in bags of 25 contains a significant content of aromatics Chase Manhattan (USA) and Commerzbank kg is shipped to a warehouse for subsequent - a valuable raw material for petrochemical (Germany). sale to consumers. Purified gas is supplied synthesis. The cost of the engineering aspect of the to a gas separation unit, from which pure After conducting necessary geological design was USD 656.6m. Besides foreign methane, as a marketable gas, is sent to a gas survey in November 1997, it was decided to loans, an amount equivalent to USD 328m transmission system. The main component, build Sho’rtan Gaz Kimyo Majmuasi. The in the national currency of Uzbekistan was ethane, is converted at a cracker, where ethyl- aim was to build a powerful plant for pro- invested in the construction of the plant. The ene is derived used in the further production cessing of 3.5bn m of gas per year by etha- total investment exceeded USD 1bn. of polyethylene. 3 nolamine method for production of 125,000 In 2001, the construction was mostly It should be noted that liquefied natural gas tonnes of polyethylene UzClear in granules, completed, the plant was commissioned and produced at the company is extremely pure, 100,000 tonnes of liquefied gas, 100,000 the company started to approach the design since in the course of the manufacturing pro- tonnes of gas condensate and 1,500 tonnes of capacity. In 2005, Sho’rtan Gaz Kimyo cess each fraction (propane, butane) is sepa- sulphur. Majmuasi was successfully certified under rated to 99.99% purity and a part of propane ISO 9001:2000 QMS requirements. is used as a refrigerant. Then these two com- ® Sho’rtan complex became an example of successful international cooperation, We will briefly describe the production ponents are mixed in the required proportions as companies from the USA, Japan, Italy, technology. Natural gas from the Sho’rtan according to the existing standards. Propane- Germany, Canada, France, South Korea and field is fed to a separation unit after amine butane fraction, just like liquefied gas, is sold Russia participated in its financing, design, treatment and its deep processing with frac- to consumers in tanks. Heavier fractions C5 construction, training of staff, in addition to tionation starts. ABB Lummus is a licensor of +, which are derived while converting natural O’zbekneftgaz. the gas separation technology and production gas, are sent to refineries for further process- In 1998, O’zbekneftgaz signed a turnkey of ethylene. Ethylene production consists of ing as gas condensates. contract for design, equipment supply, con- amine treatment plants, a gas separation plant The main volume of ethylene is applied struction, and commissioning on the basis of with a chilling system, a block of pyrolysis for production of polymers and the rest fixed price with an international consortium gas preparation, pyrolysis furnaces, propane is converted at a dimerization unit into № 1(85) February 2013 Eurasian chemical market 87 Countries and regions w w w. chemm a r ke t . in fo Table 3. Polyethylene grades by Sho’rtan Gaz Kimyo Majmuasi Grade and type of PE Density, g/cm3 ПТР, g/10 min Value Processing type Recommended applications Injection moulding grades I-0754 Injection moulding HDPE 0,952 – 0,956 5,0 – 8,0 Household goods I-0760 HDPE 0,958 – 0,962 5,5 – 8,5 General purpose I-1561 HDPE 0,958 – 0,962 13,0 – 18,0 For producing receptacles, containers, boxes I-2560 HDPE 0,958 – 0,962 20,0 – 30,0 General purpose, receptacles, containers I-1625 LLDPE 0,922 – 0.928 12,0 – 20,0 Garbage containers I-0525 LLDPE 0,923 – 0.927 4,0 – 6,0 For low-capacity articles (caps, artificial flowers) Film grades F-Y720 LLDPE 0,918 – 0,922 0,60 – 0,90 Extrusion Industrial packaging (thick film) F-0120 LLDPE 0,918 – 0,922 0,80 – 1,50 General purpose film F-0220 LLDPE 0,918 – 0,922 1,5 – 2,5 Ultrathin film (for mulching) F-0320 LLDPE 0,918 – 0,922 2,5 – 3,5 Thin film (basic layer of stretch film) F-Y336 MDPE 0,934 – 0,938 0,24 – 0,30 For films and bags F-Y240 HDPE 0,936 – 0,942 0,19 – 0,31 For films and bags F-Y346 HDPE 0,942 – 0,948 0,19 – 0,31 Rustling film and bags Cable grades WC-Y434 MDPE 0,932 – 0,936 0,30 – 0,46 Extrusion For cable and wire insulation WC-Y734 MDPE 0,932 – 0,936 0,60 – 0,85 P-Y337 MDPE 0,936 – 0,940 0,21 – 0,33 P-Y342 HDPE 0,940 – 0,944 0,24 – 0,36 Piping, basic grade for high-pressure pipelines Р-Y456 HDPE 0,952 – 0,958 0,31 – 0,51 Large diameter pipes (drainage) For insulation of cables and rigid hoses Pipe grades Extrusion Basic grade for gas pipes Blow moulding grades B-Y250 HDPE 0,948 – 0,952 0,19 – 0,30 Blow moulding Cans B-Y456 HDPE 0,954 – 0,958 0,33 – 0,43 Blow moulding goods for general purposes B-Y460 HDPE 0,958 – 0,962 0,33 – 0,43 Bottles for packaging and storing liquids Rotational grades R-0333 MDPE 0,931 – 0,935 2,5 – 3,3 R-0338 MDPE 0,935 – 0,940 2,0 – 3,0 R-0448 HDPE 0,946 – 0,950 3,1 – 4,1 Rotational moulding For large-size articles (tanks, containers for agrochemicals, fuel) Extrusion For tapes, monofilament for industrial bags, oriented films Oriented grades О-Y446 HDPE 88 Eurasian chemical market № 1(85) February 2013 0,944 – 0,948 0,33 – 0,43 Countries and regions w w w. chem mar ket. info butene-1 – co-monomer for subsequent co- 2009, a production line for component parts The development plan includes raising the polymerisation for production of polyethyl- of drip irrigation system was commissioned amount and type of natural gas processing, ene of medium and low density. Using the co- there. Since 2010, an extrusion line for pro- use of methane, which is produced and sold monomer allows one to change polyethylene duction of polyethylene pipes in diameter today as a marketable gas and a feedstock for density from 0.918 g/cm3 to 0.962 g/cm3. from 315 mm to 630 mm has been operated. production of pure synthetic fuels (99.99%). The production process of the main prod- Over the past years, the plant produced more In September 2013, in Toshkent, there was uct, polyethylene, takes place in a solution by than 10,000 tonnes of finished products per held a conference of the main creditors of the liquid-phase technology Sclairtech (it ena- year. project �Production of synthetic liquid fuels bles the company to quickly adjust the engi- Today Sho’rtan Gaz Kimyo Majmuasi based on purified methane at Sho’rtan Gaz neering process to manufacturing any of 148 produces the lion share of the product range Kimyo Majmuasi’, also known as Oltin Yol varieties of polyethylene) under the license planned by the project: polyethylene (more GTL. It is expected that the first synthetic of Canadian company Nova Chemicals. The than 70 % is exported to the EU, as well as premium fuel will be produced in Uzbekistan main advantage of this technology is the pos- to Turkey, China, Israel, Pakistan, Russia, in 2017. This will allow Uzbekistan to pro- sibility of varying the physical and chemical Kazakhstan and Ukraine), liquefied gas (sup- vide fuel for its growing economy and simul- and rheological parameters of polyethylene plied to Iran and Afghanistan), sulphur and taneously reduce energy carriers imports. using a serial mode of tubular and autoclave gas condensate. Sho’rtan polyethylene has type reactors. shown itself to good advantage in extrusion Farg’ona neftni qayta ishlash zavodi Thus, the company could produce linear processes and blow and rotational molding polyethylene of various kinds at a single and injection molding machinery (see Table process line. The resulting polymer is com- 3). All kinds of polyethylene produced by the pletely separated from the solvent, residual plant have environmental and hygiene certifi- neftni catalysts, purified from harmful substances cates guaranteeing the safety of their use. refinery), subsidiary of O’zneftmahsulot Unitary Daughter Company Farg’ona qayta ishlash zavodi (Farg’ona and in the molten state, with the least con- At the domestic market, the products of (�Uznefteproduct’), includes 35 process tent of volatile compounds, is sent into the the Sho’rtan company are marketed through units for production of almost all range of oil main extruder. All the necessary additives are the Republican Commodity Exchange, which products. The plant is one of the leading com- added to the liquid or molten form, which weekly trades in liquefied gas and polyethyl- panies manufacturing fuels and lubricants in ensures good mixing and complete homog- ene in required amounts. It is to be stressed Central Asia with a feed capacity 5.5m tonnes enization. Polyethylene produced by this that the share of products sold at the domestic of oil and gas condensate. technology can be used to manufacture any market increases from year to year. Initially, The development of the oil industry in the products, which contact with food and the annual state order for cotton mulching film region dates back to 1868, when Russian human body without any harm. accounted for basic sales of polyethylene industrialists made the first attempts to pro- After packing, polyethylene is sent to at the domestic market, whereas today this duce oil in the Farg’ona Valley, but it was warehouses for storage and subsequent ship- amount is less than one fifth of the total con- stopped for various reasons. ment to consumers by rail or road. Some part sumption of polyethylene at the internal mar- Oil wells with a flow rate sufficient for of polyethylene is used for production of ket. Pipe, blown, cable, rotational and film launching commercial oil refining were dis- plastic bags and pallets, which enables the polyethylene grades are in demand among covered only in 1904. The former Vannovskiy company to package polyethylene on pallets consumers. oil refinery (presently the Alty-Aryk refin- in one tonne in 25 kg bags and to further store and ship it by any type of transport. About 50% of polyethylene is exported ery – a subsidiary of Farg’ona neftni qayta to the EU countries (Italy, the Netherlands, Unitary Daughter Enterprise) was put into In 2006, Sho’rtan Gaz Kimyo Majmuasi Poland, Hungary, Lithuania and Latvia), operation in 1906. Presently, the Alty-Aryk took ownership under Qarshitermoplast Asia (Iran, Turkey, Pakistan and China), the refinery with a 3.2m tpy feed capacity spe- (Uzbekistan, Qarshi), where, after installa- CIS countries (Russia, Ukraine, Kazakhstan, cialises in engine oil production. tion of extrusion equipment manufactured by Azerbaijan, Kyrgyzstan, Tajikistan). The necessity to set up local oil processing Ermafa (Germany), gas - and water pipes and Today, several directions of develop- and develop industry and transport in Central fittings with diameters from 25 mm to 250 ing the complex are considered. These are: Asia on the whole forced the construction mm for agriculture and municipal complexes increasing polyethylene production and of a refinery in Farg’ona. The refinery also were produced. Pipe grades of high density synthesis of natural gas for manufacturing allowed for solving a task of bringing indus- polyethylene are used as raw materials. In environmentally compatible synthetic fuels. try nearer to the sources of raw materials № 1(85) February 2013 Eurasian chemical market 89 Countries and regions w w w. chemm a r ke t . in fo an issue of a harmful emissions reduction — an elemental sulphur plant was built. Simultaneously, the refinery began producing high quality diesel fuel (max. 0.5% of sulphur). Starting with 2003, the country has been importing oil from the Kumkol deposit in southern Kazakhstan for processing at the Farg’ona refinery at the amount of 0.5m tonnes per year. Uzbekistan is forecast to raise oil imports mostly from Turkmenistan and Russia due to reducing production at its own oil fields and switching oil supplies of the Kumkol deposit to the Pavlodar Refinery in Kazakhstan. Today, the Farg’ona refinery offers more than 60 types of oil products and consumer goods to its clients. Oil solvent �Nefras’, technical and illuminating kerosene, AI-80, AI-91, B-92 petrols and extraction state-run Production facilities of Farg’ona refinery petrol belong to a group of light oil products and to consuming regions. Its trouble-free 1964; 11) A bitumen production plant — in line includes black oil, diesel fuel, boiler oil, operations satisfied demand of Central Asia 1960; 12) Delayed coking units — from 1964 furnace oil and jet fuel. Apart from these, the including Kazakhstan for oil products previ- to 1975; 13) A petroleum coke calcination company manufactures four kinds of univer- ously delivered from faraway regions and plant — in 1987; 14) An ethane unit — in sal oils, two kinds of engine oils for car and excluded long-distant haulage and related 1968; 15) A high quality nitrogen production tractor diesels, three kinds of other engine excessive operating and capital expenditures. unit — in 1999. oils, two kinds of turbine oils, six kinds of produced at the refinery. Its fuels product The date 27 January, 1959, when an atmos- Due to switching to a local feedstock with industrial oils �Ferganol’; hydraulic, trans- pheric vacuum distillation plant AVT-1 – the a high sulphur compound content in 1995, mission, compressor and spindle oils; trans- first processing unit of the refinery – became Farg’ona faced a problem of maintaining its former oil of selective purification; two kinds operational, is regarded as a birthday of the product range and quality as well as master- of lubricating oils from sulphur petroleum Farg’ona refinery. Later, to increase oil con- ing up-to-date technologies in order to manu- for rolling mills. It should be also mentioned version ratio, the following processing units facture globally competitive commodities. three kinds of bitumens (construction, road were put into operation: 1) Primary oil and In this regard, the Cabinet of Ministers of and impregnating), two kinds of sulphur gas condensate processing plants of ELOU- Uzbekistan within the frames of an invest- cokes for delayed coking, grease lubricant AVT type (desalting and atmosphric vacuum ment programme together with European �Fersol’, wax candles and technical sulphur. distillation) – from 1959 to 1994; 2) Petrol Bank for Reconstruction and Development catalytic reforming units – from 1965 to and Export-Import Bank of Japan gave its 1978; 3) An extraction azeotropic distillation approval for reconstructing the refinery with unit – in 1964; 4) Plants for debituminisation the purpose of providing quality of light oil of petroleum tar by propane – from 1960 to products in accord with global standards The first stage of Unitary Daughter 1969; 5) Selective oil treatment plants – from and improving environmental state. The Enterprise Buxoro neftni qayta ishlash 1960 to 1966; 6) Oil dewaxing plants – from reconstruction project worth USD 200m zavodi (Buxoro refinery), a subsidiary of 1961 to 1969; 7) A contact final oil treatment was implemented by Japan-based Mitsui and O’zneftmahsulot JSC, was commissioned plant — in 1961; 8) An oil hydrofining plant Toyo Engineering. in August 1997. The refinery built under a Buxoro neftni qayta ishlash Zavodi — in 1966; 9) A vacuum distillation plant With the launch of a diesel fuel hydrodes- turnkey project by a consortium consisting — in 1961; 10) A wax production unit — in ulphurisation unit in 1999, there was solved of Technip (France) and Marubeni—JGC 90 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info (Japan) was partially financed by the government of Uzbekistan (USD 100m) and export credit agencies of France, the USA and Japan (USD 300m in total). It is equipped with machinery from UK-based Glitch (UK) and Thomasen (the Netherlands). In 2009, the refinery was upgraded and proceeded to manufacturing jet-propulsion fuel (180,000 tpy capacity). The Buxoro refinery with a 2.5m tpy feed capacity is focused on processing gas condensate and producing high quality petrol, diesel fuel, aircraft kerosene and black oil conforming to international standards. It is capable of producing 660,000 tpy of petrol (АI-80, АI-91 and АI-95), 1,030,000 tpy of diesel fuel (two grades) and 300,000 tpy of jet fuel (two grades as well). Apart from these, the enterprise turns out liquefied Outdoor installations at Buxoro refinery hydrocarbon gas, black oil, illuminating kerosene, hydrocarbon solvent С4-13 5/220 refinery for processing “heavy oil” in cost of USD 39m as well as solve an issue of and technical sulphur. Jarqo’rg’on (Surkhandaryo province) in financing the project. This project worth USD 2005. 42.3m envisages doubling production of petrol, The development programme of the country’s oil & gas industry envisages the con- The 55:45 joint venture is owned by struction of the second stage of the Buxoro Petromaruz LLC (St. Petersburg) and refinery up to 2016 inclusive. The cost of Jarqo’rg’on neft JSC. The refinery has capacity the project, which is to turn out 960,000 of to process 130,000 tpy of heavy crude oil, of petrol, 706,000 tpy of diesel fuel and 250,000 which 60,000 tpy of bitumen and 50,000 tpy of tpy of Euro-3 aviation kerosene, totals USD diesel fuel and related products are produced. 475m. diesel and furnace oil and oil bitumen by 2016 at the cost of increasing a raw materials base and expanding refining capacity. JV Igilik-gaz In Q1, 2014 the Russian joint proprietor is Uzbek-Russian joint venture Igilik-gaz Within its frames, a 300,000 tpy isomerisa- planning to start up a project for heavy crude LLC was founded by Farg’ona neftni qayta tion unit for the first stage of the refinery is refining expansion. Till the end of the year, the ishlash zavodi Unitary Daughter Enterprise planned for construction. The project serves JV will carry out a tender for procuring equip- with a 49% share and by Oil & gas company to optimise and modernise existing capacity ment for processing heavy crude at a license StroyTransgaz-oil Progress owning 51%. The with the use of technologies for increasing production site of the joint venture at a starting authorised capital of the JV is USD 547,000. light oil products yield up to 95%. US-based UOP and Honeywell Basic were awarded a contract on carrying out an audit, to be followed by doing a preliminary feasibility study. O’zneftgaz will make its own investment in the project and also attract foreign credits. JV Jarqo’rg’on neftni qayta ishlash Russian-Uzbek joint venture Jarqo’rg’on neftni qayta ishlash set up a USD 7m new Production facilities of Igilik-gaz № 1(85) February 2013 Eurasian chemical market 91 Countries and regions w w w. chemm a r ke t . in fo A mini-plant for processing gas conden- categories including trademark certificates, Russian products on price. However, the sate and hydrocarbons raw stock of Igilik- patents of the Republic of Uzbekistan and the financial state of the company employing 50 gaz located in Russian Federation on different manufactur- steadily worsened. Finally, a court decision ing processes and product designs. was made to launch bankruptcy proceedings Qo’ng’irot (Republic of Qoraqalpoq’iston) employs 72 people. The mini-plant for gas condensate processing Its net earnings, and net income have 266А-PU utilising straight-run fractions reduced significantly over recent years produces petrol, kerosene, diesel fuel, sol- although assets have increased in value (in vent �Nefras’. The first stage of the mini- particular, they amounted to UZS 14.85bn plant with a daily feed capacity of 120-150 (EUR 5m) in 2011). tonnes came on stream in 2004. In 2005, feed capacity was increased up to 500 tonnes of Uz-Koram Ko became operational. Uz-Koram Ko LLC was founded by Koram Plastics Co., Ltd (South Korea) and two Uzbek companies — O’zavtosanoat JSC and Sabr Ko Plastics processing Sovplastital Andijon Polietileni and Andijon Polipropileni JV Located in Andijon, Uzbek-American Andijon Polietileni JV turns out PE film for cotton cultivation. PE bags by Andijon gas condensate. Later, a similar 300 tonnes / day mini-plant for gas condensate processing against the JV in July, 2013. in 1995. Authorised capital is USD 5m. In 1997, Polietileni are in high demand both in the local and foreign markets. JV Retal Pet the company started producing large-sized plastic goods (automotive bumpers and tool- Uzbek-Russian joint venture Retal Pet was bars for cars produced at GM-Uzbekistan JSC). created by NB-Retal CJSC. The latter is one Soviet-Italian joint venture Sovplastital Six injection moulding machines by Japan and of the leaders in producing press moulds for JSC was established on the basis of Scientific Korea are installed in the company’s work- PET processing in the CIS and Russia being and Production Enterprise Uzbytplastik and shops capable of producing 270,000 automo- a subsidiary of international company Retal Italy-based Alma Rosa in 1987. In 2007 the tive items. Uz-Koram operates a paint spraying Industries – one of top-three European pro- enterprise was transformed into an open joint line by Yaskawa Motoman for coating bumpers ducers of press moulds. Retal Pet began its stock company with an authorised capital of in colours matching with those of car bodies. own production of press moulds in Toshkent UZS 683.2m (EUR 227). It should be mentioned that Uz-Koram Ko is in 2006. Since late 2007, it has been the big- The company is focused on producing the only company in Uzbekistan engaged in hot gest player on the Uzbek market in press plastic goods for both consumer and indus- shaping of polypropylene (the correspondent mould for PET processing. trial purposes including decorative elements workshop was commissioned in 2009). of interior and furniture: artificial flowers, plastic furniture, accessories for bathrooms Other enterprises of the sector Uzbarrelproduction Among domestic enterprises – plastic pro- and toilets and toys. Sovplastital incorporates several daughter companies, among which Toshkent-based Uzbarrelproduction LLC cessors – we should also single out Nukus we should mention only plastic processors: 1) registered as an Uzbek-English joint venture Polipropilen LLC (Nukus) producing PE Uzbek-Italian JV Sovplastital & Tabor spe- manufactured the first products in May 2005. bags (including inflatable bags), PP packages cialising in manufacturing artificial spruces, The main activity of the company is pro- and bags and Uzbek-Turkish joint venture various souvenirs and New Year’s decora- duction of 10, 20, 30, 60, 155 and 220 litre Nur-Plastik LLC (Andijon) manufacturing tions; 2) Uzbek-Italian JV Sovplastital & Fiori polyethylene drums for food and industrial PE films of different kinds and for various (artificial flowers, trees and flower arrange- products. Manufacturing capacity amounts to purposes (sleeved films, greenhouse films, ments); 3) Almeko LLC (plastic goods and 400-430 drums per day (90 tonnes monthly). co-extrusion three- and five-layer films). sheets from polystyrene, ABC-plastic, acryl These receptacles intended for storing and polymers as well as various co-polymers and transporting liquid and loose materials con- vacuum moulding goods); 4) Tashinvestplast form with European production and trans- LLC (large-sized rotational moulding goods portation standards having high safety factor including those for industrial purposes). The and low weight. At first, these drums, which product range of Sovplastital has more than have no analogues in Central Asia, were in 8,000 items. The company possesses more great demand in Azerbajan, Kazakhstan, The construction of Navoiy kon-met- than 800 protection documents of various Kyrgyzstan and even competed with similar allurgiya kombinati (Navoiy Mining and 92 Eurasian chemical market № 1(85) February 2013 Production of inorganic chemicals Navoiy kon-metallurgiya kombinati Countries and regions w w w. chem mar ket. info Metallurgical Combine, NMMC) started in the late 50s of the past century. This diversified enterprise manufactures various industrial products. The facilities of NMMC are located in most part of flatlands of Uzbekistan in the interfluves of the Rivers Amu Darya and Syr Darya (Kyzyl Kum desert) in the cities of Navoiy, Zarafshon, Uchkuduk, Zafarabad, Krasnogorsk and Hurabad. It employs more than 67,000 people. Key gold and uranium deposits are concentrated in the Central Kyzyl Kum district. Having an extremely broad product range, the company gives priority to mining gold and uranium. All activities of the enterprise as a mining and metallurgical company with a full cycle of production from exploration, ore mining and processing up to producing gold (999,9) and diuranium pentoxide-uranium trioxide are based upon these valuable minerals. NMMC accounts for 80% of total gold output in the country and is the sole operator in Uzbekistan Mining facilities of Navoiy Mining and Metallurgical Combine engaged in the mining and export-oriented Sugraly and Tokhumbet uranium deposits ores of the Uchkuduk deposit was tested. In manufacture of uranium in the form of a by underground leaching have started. 1963, the Severnoye mining administration ready-to-use product – diuranium pentoxide- Recently, the Severny Kanimekh, Alendy adopted the underground leaching technol- uranium trioxide. and become ogy. The Hydrometallurgical plant (GMZ-1) The foundation of its raw materials source operational. Presently, six uranium mines came on stream in 1964 to start commercial is twenty deposits and ten promising fields utilising in-situ leaching are operating, and production of diuranium pentoxide-uranium of uranium. The uranium industry is rapidly another nine uranium deposits are being trioxide. In 1966, pilot workshop #1 began developing owing to rising production at the developed. Uranium-containing ore pro- developing a manufacturing process for operating enterprises and putting into opera- duced at the mines undergoes final process- extracting gold from the Muruntau deposit tion new manufacturing facilities. ing at GMZ-1 (Hydrometallurgical plant), followed by the start-up of open-pit mining after which it is marketed as a finished at the said deposit in 1967. The construction by underground leaching over the past product of GMZ-2 began the same year. The year fifteen years. This technology has enabled trioxide). NMMC has been mining all its uranium Meylisay deposits (diuranium have pentoxide-uranium 1969 was marked by developing the Yuzhny the company to radically change and sig- Apart from the above-mentioned, NMMC Bukinay uranium deposit, which gave its first nificantly increase its raw materials base mines phosphate rock, produces sulphuric commercial batch of uranium ore three years via economically viable mining operations acid and gold and silver articles. In addition, later. at arenated-type deposits with low-grade the company has mastered manufacture of uranium ores in the Kyzyl Kum region. To liquid glass, explosives, PVC and PE pipes. Also, in 1969, GMZ-1 switched to producing finished products in the form of raise uranium production became expedi- And now we will make a retrospective jour- ent due to high prices in the global market. ney into the history of the enterprise. Navoiy while GMZ-2 made its first gold ingot. Since achieving independence, techni- mining and metallurgical combine dates In 1971, Mining administration #5 was cal upgrading of the uranium enterprises back its history to 1 September 1958, when established (Leninabad mining and chemi- have begun and two underground leaching the gold ore deposit Muruntau was brought cal combine). A year later the Yuzhnoye mines have been built and commissioned into operation. In 1962, pilot workshop #1 mining administration started pilot produc- at the Kendyktube and Lyavlyakan depos- was launched by the company, at which a tion of uranium by underground leaching, its. Moreover, pilot development of the technology for extracting uranium from the while GMZ-2 mastered the manufacture of diuranium pentoxide-uranium trioxide, № 1(85) February 2013 Eurasian chemical market 93 Countries and regions w w w. chemm a r ke t . in fo affined silver. The second stage of GMZ-2 where went into service in 1973 and the third started up. By the end of 2001, the calcined one – in 1975. The first batch of uranium phosphorite concentrate unit operated at its from the Beshkak deposit was mined in full capacity of 430,000 tonnes per year. phosphorus fertiliser production put into operation a unit for separating phosphorite ore from chlorine. In 2008, after upgrading, GMZ-2 reached its designed feed capacity of 32m tpy of gold- 1978. The advancement of the under- In 2002, the Central mining administration containing ores. Since its start-up, GMZ-2 ground leaching technologies in the 80s launched an emulsion explosives plant. The had processed 700m tonnes of gold-contain- predetermined the construction of H2SO4 main ingredient of explosives is pelletised ing ores by that time. In 2008, the Severnoye manufacture as part of NMMC. A sulphuric ammonium nitrate produced by Navoiyazot mining administration introduced a technol- acid plant in Uchkuduk entered into service JSC. The proximity of a reliable supplier ogy for bacterial leaching BIOХ® as well. in 1985. The plant reached its nameplate guarantees virtually unrestricted shipments In 2009, the company proceeded to the capacity (450,000 tpy) within only three of raw materials. Thus, the country no development of the Maylisay deposit of rare months. Along with increasing industrial longer imports expensive foreign explosives. earth metals. demand for sulphuric acid, the company Blasting operations at affiliates of NMMC built the second stage of the Uchkuduk have entirely switched to up-to-date innova- plant with a capacity of 210,000 tpy in tive technologies, whereas dangerous, not Besides these, NMMC built a pilot ore- January 1989. However, when political efficient labour has been eliminated and the picking complex for beneficiating gold-con- and economic reforms in the post-Soviet efficiency of ore mining operations has sig- taining ore with a 1.2m tpy feed capacity over states began, the second stage was closed nificantly improved. With growing output of the period passed since the country gained down. In 1986, a technology for extracting packaged emulsion explosives (nobelit and independence. associated rhenium was developed at the nobelan), the enterprise provides with explo- At present structural divisions of NMMC enterprise and ammonium perrhenate pro- sives not only its subsidiaries but also leading that are engaged in chemical production duction became operational. In 1995 there companies engaged in blasting operations are as follows: 1) Mining administration were brought into service the first stage of across the whole country. Today, 80-85% of “GMZ-1” - manufacture of diuranium GMZ-3 and a gold heap leaching complex raw materials used by the emulsion explo- pentoxide-uranium trioxide, rhenium and (presently CGHL of the Central mining sives plant are of local origin, which saves gold (Navoiy); 2) Central mining administra- administration). In 1996, mining opera- the country about USD 8-10m yearly. tion (Zarafshon): hydrometallurgical plant A high angle conveyor became operational at the Muruntau mine. tions began at the block Tashkura of the In 2003, Mining administration #5 com- #2 (GMZ-2) for processing gold-containing Dzheroy-Sardaryo phosphorites field, and menced the development of the Tokhumbet ores; a mine and a workshop for heap leach- the Yuzhnoye mining administration con- deposit. In 2005, workshop #1 started work- ing of gold ores; the Kyzyl Kum phosphorite structed and launched a PVC pipe plant. ing at adopting a technology for biological complex; the packaged emulsion explosives In 1997, a uranium mine using under- leaching of ores from the Kockpatas and plant; 3) Severnoye mining administra- ground leaching was put into operation at the Daugyztau deposits. In 2005, the Severnoye tion (Uchkuduk): a uranium underground Kendyk-Tube deposit, and GMZ-1 mastered mining administration began to construct a leaching mine; gold-containing ores mines; commercial production of liquid glass. complex for biological leaching of gold on hydrometallurgical plant #3 (GMZ-3); a In 1998, the Kyzyl Kum phosphorite the basis GMZ-3, and Uzbek-Russian joint sulphuric acid plant; 4) the Yuzhnoye mining complex utilising newest technologies devel- venture for processing anthropogenic wastes administration (Nurobod): hydrometallurgi- oped by NMMC together with specialised of mining and metallurgical production was cal plant #4 (GMZ-4); underground gold ores organisations from Russia and Uzbekistan set up. To further facilitate the commercial leaching mines; gold ores mines; a PVC and was brought into service. To be precise, the development of the Dzheroy-Sardaryo phos- PE pipes plant; 5) Mining administration #5 first stage of the complex with a capacity phorites field, improve quality and phos- (Zafarabad): uranium underground leaching 300,000 tpy of ground phosphate rock came phorite products output, in 2006, there was mines. on stream. The Yuzhnoye mining administra- introduced an integrated engineering process Modernisation and capacity expansion of tion started up a polyethylene pipe workshop for beneficiating phosphorite ores. The inte- chemical production are key areas of concern in 2000. grated manufacturing process allows for for the company over many years. The year In addition to raw ground phosphate rock, producing 400,000 tonnes of washed and cal- 2014 will not be an exception. In the short the Kyzyl Kum phosphorite complex began cined phosphorite concentrate and 200,000 run, NMMC will commence construction of manufacturing calcined phosphorite concen- tonnes of the washed and dried concentrate. a new sulphuric acid unit. Initially, the com- trate supplying it to Samarqand and Olmaliq, In 2007, the Kyzyl phosphorite complex 94 Eurasian chemical market № 1(85) February 2013 pany planned to begin it in 2012, but the pro- Countries and regions w w w. chem mar ket. info Products of Uzbek integrated works of refractory and heat-resistant metals ject was declared economically inadvisable 50-year experience of producing tungsten the workshop began manufacturing molyb- at that moment and postponed. The project and molybdenum products. The integrated denum rods of MC grade, of which one was preliminary estimated at USD 125m envis- works with a closed process cycle consists able to produce wires with increased recrys- ages the building of the 500,000 tpy sulphuric of hydrometallurgical, powder, wire, and tallisation temperatures. acid unit, which will satisfy increasing needs rolling and melting units. The availability of In 1963, the company was the first in the of uranium production due to commissioning its own resources of W- and Mo-containing former Soviet Union to set up pilot produc- new mines and expansion of a raw materials raw materials in Uzbekistan (Koytash and tion of single crystals from molybdenum and base. Construction period will last two years. Ingichkin mines) together with the rapid, pro- tungsten and products thereof including bars, Navoiy kon-metallurgiya Kombinati will gressive advance of the chemical sector and wires, flat-rolled products and strips. At dif- provide its own finance for the project. fuel and energy complex and the develop- ferent times, the company started producing new kinds of products. In addition, NMMC is planning to raise ment of Elektrkimyosanoat JSC in Chirchiq output of quality phosphorite raw materials up producing high purity hydrogen, nitric acid to 716,000 tpy. Within the frames of another and ammonia water required for W and Mo investment project entitled �Expansion of manufacturing current phosphorites beneficiation produc- localization of production of these metals in tion’ on the basis of the operating Kyzyl Kum the said region. According to a project made phosphorite complex, there was signed a by the Federal State Research and Design EUR 19,96m contract on basic and detailed Institute of Rare Metal Industry (�Giredmet’; in 1968 – single crystals with preset crys- engineering, equipment, material and spare Moscow), the integrated works was designed tallographic orientation of OChM – OM part procurement, installation supervision as an enterprise with a continuous process, grade (ø10-20mm) as well as wire for com- and start-up activities between Navoiy kon- up-to-date equipment and large production ponents of vacuum-tube devices and wire metallurgiya Kombinati and Germany-based capacity. with increased recrystallisation temperature processes predetermined In particular, in 1965, manufacture of Mo ingots of MchVP grade began; in 1966 – wire made of Mo ingots of MchVP grade; in 1967 – wire made of alloy of BP-273VP grade; Engineering Dobersek GmbH in 2012. The integrated works traces its history The USD 59.9m project will be backed by to 1956, when the first molybdenum bar in 1969 – bars from yttrium tungsten of NMMC’s own funds (USD 24,92m) and a was obtained laying the foundation of the SVI-1 grade, Mo single crystals with preset USD 35m credit of the State-Commercial company’s development. In 1957, there was crystallographic orientation of OChV – PD National of the Republic of Uzbekistan. approved a planned task for design and con- grade and bars thereof. O’zbekiston Respublikasi qattiq qotishmalar va o’tga chidamli metallar kombinati O’zbekiston Respublikasi qattiq qotish- from Mo single crystals; struction of a wire workshop and a unit for In 1967, a tungsten anhydride unit came rolling products for vacuum tube production. on stream because of rising production of In spring 1958, the company started manu- tungsten wire. The integrated works utilised facturing new types of products necessary tungsten raw materials from third-party sup- for the metalworking and mining industries pliers for six years after its launch and Mo – hard-alloy components. feedstocks from outside producers - over malar va o’tga chidamli metallar Kombinati In 1962, workshop #1 mastered produc- seven years. In April 1962, hydrometallurgi- JSC (Uzbek integrated works of refractory tion of Mo square bars for further processing. cal workshop #4 went into service. This ena- and heat-resistant metals; Chirchiq, Toshkent They were used for turning out round bars bled the company to largely satisfy demand province) is a diversified company having and flat-rolled products. Starting with 1965 of its metallurgical workshops for raw mate- № 1(85) February 2013 Eurasian chemical market 95 Countries and regions w w w. chemm a r ke t . in fo rials. The workshop used a classic technol- sten solutions from molybdenum, silicium, oping the country’s tungsten deposits with a ogy of autoclave and soda decomposition of fluoride, arsenic and permanent sedimenta- total tungsten concentrate output of 2,700 tpy artificial scheelites at the beginning of the tion of artificial scheelite. for the 2007-2013 period with the purpose process and acid decomposition of artificial A technology for ammonium paramolyb- of increasing the capacity utilisation of the scheelites up to wolframic acid followed by date was improved as well. In 1978, a melt- integrated works. However, the programme re-washing the said acid by ammonia water ing and rolling workshop cane on stream. has not been launched yet for a number of and evaporating paratungstate. Subsequent That large and complex production facility financial and technical reasons. Now raw introduction of a continuous process of for refractory metal goods had no analogue materials for manufacturing Mo-containing artificial scheelite decomposition and wash- in the former Soviet Union. Flat-rolled prod- products are supplied from Olmaliq min- ing of wolframic acid in column equipment ucts and round bars from refractory metals ing and metallurgical combine (Olmaliq, significantly enhanced the production capac- were turned out there. Production processes Toshkent province), while a tungsten feed- ity of the workshop and simplified work of were carried out both in vacuum and inert stock is delivered from Russia on the basis of maintenance personnel. Unlike acid treat- gas media with the use of complex equipment tolling agreements. Currently, the operating ment with the help of hydrochloric acid used and process control systems. rate of the company average 20%. Moreover, at similar plants at that time, the integrated By mid 80s, the integrated works mastered there is a distinct tendency towards a further works adopted a technology for processing production of 117 products supplied to more decline. For instance, the Uzbek production artificial scheelites by nitric acid decomposi- than 5,000 consumers including foreign ones. of metallic tungsten showed a 25% YOY tion. In the course of the nitric acid method By mid 90s, the company could turn out 130 reduction, to 98 tonnes in 2013. The output of Mo concentrates processing, molybdenum kinds of marketable products for industrial of metallic molybdenum at the integrated and accompanying rhenium entirely go into purposes and more than 45 kinds of con- works fell 6.5%, to 490 tonnes. The decline solution. The company introduced a sorp- sumer goods. can be related to shrinking global demand for tion technology for extracting molybdenum In 1994, production of lamps utilising these products. All the company’s production and rhenium from solutions, which had been imported components was set up at the facilities are located at two sites. The first site a difficult task due to their complex salt enterprise. Loss of economic ties with the is a stage of obtaining metallic molybdenum composition. former Soviet Republics oriented towards the and metallic tungsten and their processing into rolled stock, wire and hard alloys. As a result, the company had the possibil- defense industry, special metallurgy, radio ity to use equipment and pipelines made of electronics and illuminating engineering The second manufacturing site is a hydro- acid-resistant stainless steel, improve equip- was a shattering blow to the company and metallurgical stage combining workshops ment reliability and process wastewaters resulted in initiating a bankruptcy procedure. #4, #5 and #6 for converting concentrates into sodium nitrate. The latter was both used From 1996 to 2003, the company remained into intermediate products – ammonium for intraplant consumption and commercial in the red due to a shortage of its own float- molybdate, ammonium perrhenate, tungsten sales. The company together with scientists ing assets, which did not allow the integrated trioxide, ammonium paratungstate, etc. synthesised a sorbent for sorption of tungsten works to complete installation of imported The integrated works has a full process from concentrated solutions, developed a equipment for producing molybdenum rolled cycle from processing concentrate up to technology for its extraction and tested sorp- stock (a rolling mill and a cutting machine). manufacturing of commercial products from tion processes at a pilot plant. In 1976, there At the same time, the capacity of a tungsten tungsten and molybdenum, hard alloys and was put into operation an industrial-scale unit wire drag line brought on stream in December tools thereof as well as incandescent lamps for sorption extraction of tungsten, which 1998 already exceeded demand for this prod- for general purposes. replaced four basic process steps – sources uct in the global market. Mo production includes the following of harmful emissions. The introduction of Today, re-starting spare capacity, attracting stages: 1) hydrometallurgical processing of the sorption technology enabled the inte- investments in projects for reconstructing the molybdenum concentrates, industrial prod- grated works not only to improve production beneficiation plants and maintaining unique ucts and Mo-containing wastes by nitric acid efficiency but also to cut primary and aux- tungsten and molybdenum manufacture is decomposition with producing ammonium iliary raw materials consumption as well as of urgency proceeding from rising global molybdate; 2) production of metallic powders to reduce manufacturing costs and manual demand for tungsten and molybdenum prod- and Mo workpiece blanks by powder metal- labour. In the early 70s, the company devel- ucts for steelmaking. lurgy via reduction of molybdenum trioxide oped and introduced automatic production In early 2006, the Government of in the hydrogen environment (ammonium processes for continuous purification of tung- Uzbekistan approved a programme for devel- molybdate serves as a feedstock for MoO3); 96 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info 3) manufacture of molybdenum rolled products and alloys with obtaining Mo rods and wire with a diameter of from 0.03mm to 20mm by treating Mo rods via thermoplastic deformation in the hydrogen environment at forging and drawing equipment; 4) melting and rolling production of vacuum-melted ingots and small and large-size, flat-rolled products from molybdenum; 5) production of hydrogen and oxygen in electrolytic baths via electrolytic decomposition under pressure for production workshops; 6) manufacture of general-purpose lamps with the use of tungsten, molybdenum wire and component parts. Tungsten manufacture includes the following stages: 1) hydrometallurgical processing of tungsten concentrates and tungstencontaining wastes with producing tungsten anhydride (up to 3,900 tonnes / year); 2) production of metallic powders and compact tungsten workpiece blanks via powder metallurgy (1750 tonnes/year), where tungsten anhydride serves as a feedstock; 3) produc- A copper-smelting furnace at Olmalik Mining and Metallurgical Combine tion of hard alloys (1000 tonnes / year); 4) production of tungsten wire (1,75m metres / alloy ingots, Y-W rods, powdered tungsten was renamed Olmalik Kon-Metallurgiya year), tungsten rolled products (228 tonnes / carbide and aluminium sulphate for water Kombinati in 1967. This name corresponded year) with tungsten rods as a feedstock. treatment (coagulant). with both the profile and the geographical The enterprise has a full process cycle for hard alloys and compounds obtained via preparation of tungsten carbide and titanium location of the enterprise, which was justly Olmalik Kon-Metallurgiya Kombinati called a flagship of the ferrous metallurgy of the republic by that time. In 1997, Pb-Zn mining activities stopped and the combine carbide followed by mixing with cobalt. Hard-alloy compounds after high-temper- Olmalik Kon-Metallurgiya Kombinati JSC switched over to processing Cu-Mo ores ature pressing and agglomerating convert (OKK, Olmalik Mining and Metallurgical mined at a quarry put into operation at the into hard alloys of two groups WC-Co and Combine, Toshkent province) engaged in Sary-Chequ deposit in 1974. WC-TiC –Co possessing high hardness, mining and processing ores of noble and But the core of copper production was strength and wear resistance. Hard alloys of nonferrous metals is an industrial complex the Qalmaqyr deposit. A copper beneficia- various types are used for fabricating lathe consisting of three open pit mines, four tion plant and a copper smelting works were and woodworking tools and milling as well underground gold mines, five ore dressing established on its basis. In 1959, an act of as drawing and mining equipment. Besides plants, two metallurgical works, sulphuric acceptance of the first stage of the Qalmaqyr these, non-standard high-wear details for acid units, an explosives plant and a lime- deposit was signed. At present, two Cu-Mo machinery and mechanisms are made of hard stone plant. ore mines are merged into a single company alloys from various grades. The governmental decision to construct a — the Qalmaqyr Mining Administration. The product range of the company lead-zinc mine Altyn-Topkan became fun- The copper beneficiation plant is the larg- includes molybdenum and tungsten powders, damental for the Olmalik mining and metal- est one of its kind in Uzbekistan producing rods, bars, Mo strips, wire, bars from molyb- lurgical combine and the date of signing that Cu and Mo concentrates, of which noble and denum single crystals, Ti-W and Ti-Ta-W document became a birthday of the OKK. The precious metals are recovered including gold, compounds, Ti-W and Ti-Ta-W compounds, first products rolled off its production lines in silver, rhenium and cadmium in addition to ferromolybdenum and ferrotungsten, W-Cu 1954. Altyn-Topkan lead and zinc combine ferrous metals. № 1(85) February 2013 Eurasian chemical market 97 Countries and regions w w w. chemm a r ke t . in fo Table 4. Properties of copper sulphate produced by Olmalik Kon-Metallurgiya Kombinati JSC Brand A Grade % of total СuSO4 output СuSO4x 5H2O, % Cu, % Fe, % H2SO4, % Insoluble residue, % Top grade 40,60 % 99,50 25,32 0,017 0,025 0,03 1 48,20 % 98,76 25,14 0,017 0,025 0,032 1 11,20 % 97,50 24,83 0,020 0,025 0,033 B for making mineral fertilisers. Companies from Tajikistan, Kyrgyzstan and Kazakhstan are also among the consumers of the combine. Copper, fine gold and silver occupy a significant share in sales. Like other manufacturing enterprises of the country, Olmalik Kon-Metallurgiya Kombinati has developed and is currently successfully implementing The first stage of copper beneficiation in one the largest of its kind worldwide. a programme for technical and technologi- plant came on stream and the first batch of Limestone for production processes are sup- cal modernisation. Till the end of 2015, it Cu concentrate was manufactured in 1961, plied from the Saukbulak lime deposit. is planned to upgrade the zinc plant, build which is celebrated as its birthday. The combine’s raw materials base is nota- a sulphuric acid workshop and install a new As a basic feedstock, the company utilises ble not only for mineral reserves but also for furnace at the copper smelter, set up produc- reserves of a group of Cu-Mo, Pb-Zn and some other useful resources including mine tion of portland and white cements in the Au-Ag ore deposits located in the Toshkent, dumps, mill tailings, and metallurgical pro- Jizzax province and reconstruct grinding and Jizzax and Namangan provinces. duction wastes. Raw material reserves accu- fine grinding units at the copper beneficiation The deposits of the district are notable for mulated at these man-made objects amount to plant. high complexity. Currently, a list of minerals millions of tonnes and can serve an additional includes 179 different names, of which 60 source for manufacturing various metals and belong to ore minerals. All the deposits are other products. Angren Kaolin LLC characterised by interbedded layers of molyb- More than 30m cubic metres of rock mass Uzbekistan is extremely rich in primary denite, pyrrhotine, pyrite, bornite, sphalerite, are yearly processed at the combine, and and secondary kaolinitic clays. Proven chalcopyrite, galenite and hematite. These in twelve various chemical are extracted. reserves of kaolin are located at the Angren fact contain noble metals as well as rare and trace elements. The company produces refined copper (in deposit (Toshkent province) — the largest cathodes of min. 50 kg; Cu — min. 99,99%, complex deposit of brown coal, fire clay The porphyry copper and gold- and 1000x1100х(10-15) mm), metallic cadmium and kaolin in Uzbekistan. The reserves of molybdenum-containing deposits Qalmaqyr of КD-0 grade (Cd — min. 99,974%, ingots secondary, raw kaolin at the Angren deposit and Sary-Chequ supply raw materials to a — 380х190х22 mm, weight — about 10 kg), total 382.4m tonnes. Primary and secondary copper division of the copper beneficiation powdered technical selenium of SТ-1 grade kaolinitic clays are used as a feedstock for plant (CBP) for further processing. The ores (Se — min. 99,3%, Fe — min. 0,005%, Cu cement and ceramic goods production. In from Sary-Chequ are beneficiated at the ben- — min. 0,005%), technical tellurium of T-1 1998, Germany-based PAB Bautzen put into eficiation plant CBP-2 and the concentrates (Te — min. 99,66%) and T-2 (Te — min. operation a 200,000 tpy kaolin beneficiation are processed at the copper smelting plant. 99,34%) grades as well as copper sulphate plant on the basis of the deposit. The project To provide the zinc plant with a feedstock, (see Table 4), ammonium perrhenate of АР-1 was financed by a DM 57m loan of Berliner the combine process zinc concentrates into (Re — min. 69,23%) and АР-2 (Re — min. Bank under the guarantee of the Uzbek gov- metallic zinc and cadmium, refined lead and 69,245%) grades. ernment and refinanced by the National bank sulphuric acid on the basis of tolling agree- A technology for metallic zinc production for foreign economic activity of the republic ments. The Qauldy mine, the Angren mining encompasses stages of concentrate roasting, of Uzbekistan. The loan was to be repaid administration, the Chadaq mining admin- ore leaching, and electrolysis. The produc- within 9.5 years including 2 years of a credit istration, and the Angren and the Chadaq tion capacity of the combine enables it to grace period at a 6.8% annual interest rate. gold recovery factories belong to the gold manufacture 125,000 tonnes of zinc per year An Uzbek-German JV �Kaolin’ (Angren, extraction division of the combine, and their (Zn — min. 99,988%) in 25kg ingot bars. Toshkent province) took full ownership of products are supplied to the copper smelter All these products are sold in the domestic the plant. The co-founders of the JV were for processing. market via the Uzbek Commodity Exchange. company KulKoni (51%) and Ugol JSC Zinc is exported to Iran, Russia and Ukraine. (49%) (now - O’zbekko’mir). Copper reserves of the Qalmaqyr deposit amount to 20m tonnes. This fact allows Up to 80% of sulphuric acid produced In autumn of 1999, KulKoni transferred including the raw materials base of the by Olmalik Kon-Metallurgiya Kombinati is its proprietary rights to PAB Bautzen. The Olmalik mining and metallurgical combine shipped to subsidiaries of O’zkimyosanoat plant was not capable of entering target sales 98 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info markets in Europe. The JV only made annual Qo’ngirot natriy sulfat has bright devel- supplies of 10-12,000 tonnes to the countries opment prospects due to availability of of Central Asia and the Middle East. plentiful natural resources for producing Today, about 400 various paints and coat- Paints and coatings In March 2007, the Economic court of this chemical product. To realise the pro- ings are manufactured in Uzbekistan. The the Toshkent province declared �Kaolin’ a ject, the above-indicated reserves of mira- capacity of the domestic paintwork materials bankrupt. At the moment of bankruptcy, the bilite in the north of the country will be market in physical terms is 230,000 tonnes. share of PAB Bautzen in the JV made up 44% utilised. The launch of the plant will make This market is notable for a distinguished and that of O’zbekko’mir JSC — 56%. The a valuable contribution towards developing upward trend, with yearly growth rates of enterprise went into receivership. The deci- detergents and glass manufacture as well approximately 9%. sion of the court was made because the JV as to the textile, leather, metallurgical and had not performed its liabilities for repaying pulp industries. foreign loans attracted under the governmental guarantee. engaged in this business. However, they can- Bo’ston Talk not meet domestic demand, import deliveries In spring 2009 the government of the country put up for sales 184 bankrupt companies In Uzbekistan, several large enterprises with a total capacity of 120,000 tpy are accounting for 50-52% of market volume. Bo’ston Talk LLC specialises in ver- Despite low production volumes, small com- Angren Kaolin miculite ores mining and processing at the panies manufacture nearly 20% of total out- LLC was established at the production site Tebinbulak deposit (Qarao’zak district of put. They are basically focused on enamels of the joint stock company currently owned Qoraqalpog�iston republic), where an ore and semi-finished varnishes for external and by the National bank for foreign economic mining and processing industrial complex internal applications. activity of the republic of Uzbekistan (basic was built. With an annual capacity of 8,000 Basic trends in the market are fast-growing creditor of the JV). By mid 2009 the com- tonnes, it is capable of producing vermiculite manufacture of water dispersion coatings and pany restored manufacturing facilities and concentrate. Total reserves of the Tebinbulak oil paints with low concentrations of organic resumed production of the deficit feedstock. deposit are estimated at 1,33m tonnes. Owing solvents along with a decrease in a share of including the JV Kaolin. Currently, Angren Kaolin LLC produces to its valuable sound- and heat-insulation oil paints with high concentrations of organic high quality raw materials for the pulp properties and impressive lightness, vermicu- solvents. Water dispersion paints, primers and paper, sanitary engineering, delftware lite is useful over a wide range of applica- and enamels are most popular among con- and porcelain production and the ceramic tions in a number of manufacturing indus- sumers. These paintwork materials are used industry. tries, the construction sector and agriculture. by more than 90% of repair and construction Application fields of vermiculite materials in companies. Qo’ngirot natriy sulfat chemical technology and equipment is quite The paints and coatings market in broad. In particular, vermiculite-containing Uzbekistan features stiff competition and Qo’ngirot natriy sulfat Unitary Enterprise granulated materials are used on a large scale rivalry between home and foreign suppli- is the youngest chemical enterprise in the in cleaning and drying of gases and organic ers. Most imported coatings belong to the country set up in November 2013, when there liquids, chemical purification and industrial luxury segment. Key exporters of paints began production of high quality export- wastewater treatment and separation of and coatings to the country are Russia, oriented sodium sulphate and top grade required components including oil products. Germany, Belarus, Finland, Korea and iodised table salt in Qo�ng�irot district of the Researches and pilot production confirm the Lithuania. Qoraqalpog’iston Republic. possibility of their use for purifying indus- The government of the country makes The company is expected to manufacture trial wastewaters from copper, nickel and every effort to protect the domestic producer. 148 tonnes of sodium sulphate and 148 tonnes cobalt cations. The main consumers of prod- In 2011, it imposed a special tax on imports of iodised salt daily already in the near- ucts from exfoliated vermiculite are thermal of some types of paintwork materials. In par- est future. In Uzbekistan, domestic sodium power stations, glass and cement works, ticular, foreign paints and varnishes on the sulphate demand amounts to 50,000 tpy. At agriculture, paints and coatings manufacture basis of synthetic polymers, modified natural present, the chemical product is exported at and the construction sector. Bo’ston Talk polymers, acrylic and vinyl polymers as well USD 500 per tonne on average. Production exports its produce as well. For instance, it as oil paints and varnishes are taxed at USD costs of a tonne of Uzbek sodium sulphate has already shipped 82 tonnes of vermiculite 0.5 per kg. equal UZS 250-300,000, which is one fifth of to its clients in Ukraine, Poland, Russia and those of the foreign analogues. Afghanistan. Due to expansion of the Uzbek market over the past years, this industry is № 1(85) February 2013 Eurasian chemical market 99 Countries and regions w w w. chemm a r ke t . in fo (1964) and a 2,000 tpy workshop for iron oxide pigments (1968). A big reconstruction of the plant occurred in 1984, when a chemical water treatment unit was put into operation. In 2003, a unit for lithographic tin plate for labeled cans. Today, the company has at its disposal five basic units: a unit for varnishes based on condensation resins, a metal packaging workshop, a consumer goods workshop, an enamels and primers unit and a yellow iron oxide pigment and zinc white workshop. The enterprise with a total area of 20.1 hectares and a 56% built environment degree is capable of producing 20,000 tpy of paints and coatings. Its product range includes roof paint, road enamel, enamel PF-118 KhS (cold drying), matt enamel PF-117, enamel PF-133 (different colours), PF-266, PF-115, PF-191, waterbased paints VD-АК-112, VD-АК-116, VD-АК-229, textured paint �Khoper’, varnishes PF-283 and BT-51, primers AK-011, GF-0164 and GF-0163, red and yellow iron oxide pigments, Central office of Lok Kolor Sintez regarded as investment-attractive. Foreign JV Toshkent lok bo’yok zavodi majors wish to set up their own production PVA adhesive, solvent RS-2, drying oil �Oksol’. All these products are highly demanded on the internal market, all the more, their quality has significantly facilities in the republic. Demand for coat- JV Toshkent lok bo’yok zavodi JSC ings has been lately displaying a stable, (Toshkent paints and coatings plant) is the The company has plans to produce electric upward trend not only in construction but biggest manufacturer of paintwork materials insulation, furniture and floor varnishes, auto- also in furniture production and mechani- in Central Asia. motive enamels and mastics for underbody. cal engineering. At the same time, paints The decision to build this plant was taken and coatings consumption in Uzbekistan in 1945. The construction of the first facilities barely reaches 5 kg per capita. began in 1946, and the first products — 318 The consumption of paintwork materials rises steadily in recent years as well. Experts tonnes of oil paints - rolled off its lines in 1947. improved. JV Lok Kolor Sintez Established in 1996, Uzbek-Dutch JV Lok Kolor Sintez is focused on producing paints note that due to a significant income gap, In 1950, the company put into operation and coatings for mechanical engineering, which will remain in the country for pretty a 10,000 tpy workshop for varnishes on the transport, construction and repair works as a long time, the price structure of a range of basis of condensate resins in 1953, followed well as for producing auxiliary materials. The coatings should be differentiated. The fact by a 10,000 tpy enamels and oil paints work- capacity of the joint venture totals 6,000 tpy that the majority of consumers express no shop in 1953. Later there were reconstructed of alkyde resin (semi-finished varnish) and preferences to domestic or foreign coatings as well as newly built and commissioned a 20,000 tpy of paints, decorative and protec- together with increased activity of Western 10,000 tpy workshop for zinc white paints tion coatings with maximum resistance to producers should stimulate Uzbek manufac- (in 1962), a 5,000 tpy workshop for grinding atmospheric conditions for mechanical engi- turers to take all measures aimed at main- natural pigments, a 2,000 tpy silicate paints neering, construction, aircraft and military taining and developing domestic coatings unit (1964), a 10,000 tpy unit for enamels on industries, railway transport as well as for production. condensation resins and water-based paints households. 100 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info Import-substituting products with no ana- The company was founded in 1995, when phate specially designed for application of logues in Uzbekistan account for more than an agreement was signed on establishing a microcrystalline coatings. XW-954 Remover 60% of overall coatings output. The company’s joint venture between Korea-based DongJu is a mix of organic solvents, thickeners, and specialists carry out researches into new paints Industrial Co. Ltd and O’zavtosanoat with the leavening agents meant for removing old and coatings and develop available technolo- purpose of constructing a plant in Andijon. paint and varnish coatings including those on gies. At present, the company has more than As far as 1997, the new plant started pilot the basis of epoxy and polyurethane primers 25 unique, proprietary developments. These production of automotive coatings, with first and enamels from industrial equipment and enable Lok Kolor Sintez to enter the interna- batches of the products being shipped to aircrafts. tional market. In 2000 enamel Alur passed suc- Uz-Daewoo Auto CJSC in 1998. JV Link Paints Trading cessful tests of Marubeni Corporation and was The year 1999 was marked by the com- recommended for painting railway passenger mencement of manufacturing construction cars. The State Standard of Russia issued a and industrial coatings supplied to clients in Uzbek-Russian JV Link Paints Trading conformance certificate for serial production of the Russian Federation and in Kyrgyzstan. (Toshkent) turns out paintwork materials primer and enamel Alur and a metal primer. The The exports of these products to Afghanistan offering a range of products for wholesale primer and enamel Alur also passed accelerated began in 2004. In 2004-06, the company was and retail clients – both decorative and spe- climatic tests at the Scientific and Production certified under ISO 9001:2000, ISO 9001:2000, cial protective coatings. Product quality is Association “Paint Coating” (NPO LKP; OHSAS 18001:1999, and ISO 14001:2004. tested by a certified laboratory fitted out with modern equipment and located at its produc- Moscow) under moderate and cold conditions. Today, Uz Dongju Paint Company is the Lok Kolor Sintez has developed and put only supplier of coatings to GM-Uzbekistan, into production flame resistant compound a manufacturer of passenger cars UzDaewoo Deflam tested at a laboratory of the Fire and Chevrolet. Among the permanent cus- Safety Head Administration of the Ministry tomers of Uz Dongju Paint Company are of Internal Affairs of Uzbekistan. In 2003, two manufacturers of tractors - Toshkent the company turned out biocide (antisep- Traktor Zavodi CJSC and Uzbek-American engaged in the production and marketing of tic) paints and enamels Biocavat tested JV O’zkeysTraktor, SamAuto (Samarkand more than 40 product names of high quality by the R & D Institute for Epidemiology, Automobile Factory; Samarqand), Uz-Koram coatings intended for individual customers Microbiology and Infection Deceases and LLC, a producer of large-sized auto parts, and large enterprises. The company’s product later recommended by the Ministry of Public and JV Uz Saemyung. range includes facade and interior water- tion site. East-Kolor Toshkent-based East-Kolor LLC is Health for using in crowded areas. In 2004, Uz Dongju Paint Company also produces based paints, enamels, primers, liquid glass, it began manufacturing cost-effective mass PVC-based sealants for abrasion-resistance colour paste, PVA adhesives, decorative and consumption matt paint Tejam, impregnation and anticorrosion protection of car bodies textured plaster �Khoper’, acrylic plasters for Peneton, primer Biogrunt as components of a and underbodies, polyester putties, enamels various applications, polyethylene bucket product line for facade finish, acrylic paints on the basis of polyester melamine, alkyde containers, 100 l polyethylene drums and featuring resistance to water and chemicals melamine, water-soluble alkyde and acrylic screw caps. The enterprise has at its disposal of Akrilux series. A year later, Lok Kolor copolymer var- a manufacturing line for semi-finished var- Sintez proceeded to manufacturing colour nishes, alkyde, acrylic melamine and acrylic nish and drying oil as well as a polyethylene translucent varnishes at imported equipment. urethane resins; primers based on alkyde receptacles unit. East-Kolor continuously In 2009, alkyde enamel of diverse colours melamine, chlorinated polyolefin, epoxy and raises its production output and has already for various application fields (analogue of acrylic resins. established business links with a number of PF-115) and polyacrylic gloss paint Sharq went into mass production. JV Uz Dongju Paint Company resins; polyester-based Acrylic copolymer resin road paint АТ-540 domestic big producers of feedstocks for U is intended for painting bitumene, concrete, coatings manufacture including JV Toshkent bitumene-concrete road surfaces, etc. lok bo’yok zavodi JSC, Farg’ona neftni qayta Alkali cleaner Chemkleen #49 is used for ishlash zavodi and Maxam-Chirchiq JSC. cleaning by spraying and preparing metallic Among other companies, Uzbek-Korean JV Uz Dongju Paint Company should be surfaces for a uniform and deep phosphate Alcohol industry companies coating. singled out. It produces a wide spectrum of Phosphate material Chemfos-168 is a Ethanol is quite demanded product in the automotive coatings for UZDaewoo cars. compound containing zinc, iron and phos- domestic market and its output rises all the № 1(85) February 2013 Eurasian chemical market 101 Countries and regions w w w. chemm a r ke t . in fo time. Local alcohol manufacturers are merged Darmon JSC — a pharmaceutical supplier. a complex for rectified food grade alcohol into the state company O’zspirtsanoat. Till 2016, the company is expected to boost sourcing wheat grain of local origin. Today Uzbekistan increased production of crude ethanol production. The holding company the company turns out food ethanol of ethyl alcohol by 10.7%, to 6,038m decalitres has already announced a tender for equip- �Extra’, �Highest purity’ and �Lux’ grades. as compared to 2011. In Q3-Q4 of 2013, food ment procurement. Its capacity for ethyl alcohol (food grade) grade alcohol production in the country went up 7.7%, to 4,76m decalitres against the same is 821,400 decalitres a year and that for Qo’qonspirt rectified ethyl alcohol (technical grade) period of 2012. — 170,000 decalitres. Food ethanol manuEstablished Andijon biokimyo zavodi under the name Novokokandskiy khimzavod (Novoqo’qon facture was certified for ISO 9001:2000 Quality Management Standards. Chemical Plant) in Qo’qon (Farg’ona pov- Biokimyo continuously works on quality Andijon biokimyo zavodi JSC (Andijon ince) in 1983, Qo’qonspirt initially produced improvement. In particular, under a recom- biochemical plant) was founded in 1953 sulphuric acid and ammophos. In 1989, ferti- mendation of the company’s engineers, an for producing technical ethanol on the basis liser manufacture closed down on account of additional column for final purification was of cottonseed hulls. When supplies of this environmental problems, and the enterprise installed at a brew-purification department, feedstock were stopped in 1991, the plant retrofitted its equipment in order to produce which allows for significant enhancement switched to production of food grade alcohol ethyl alcohol from local wheat grain. The of organoleptic and physical and chemi- from cereal grains (mainly from wheat grain) capacity of the first stage amounted to 1.6m cal properties of the end product. There in accord with a project of the R & D institute decalitres of C2H5OH annually. The second were also carried out serious work aimed Sibgipprobiosintez (Krasnoyarsk, Russia). 0.8m decalitres stage came on stream in 2000. at introducing new, more efficient enzyme The manufacture of food grade ethyl alcohol Currently, utilisation rate exceeds 95%. Most preparations and a new race of distillers was launched at the then only production line equipment is made in Russia and relatively yeasts. The key consumers of food grade with a capacity of 857,000 decalitres per year modern. The company changed its form of alcohol are liquor and winemaking plants of in 1999. The second line of the same capacity ownership and was renamed Qo’qonspirt O’zvinosanoat. Besides these, food alcohol was built in 1999 but put into operation only JSC in 1999. The share of the state in the is used in medicine and food processing. in 2001. The production facility was equipped company is 51%, foreign investors own 47% Technical grade alcohol finds application with EUR 2.82m state-of-the-art equipment and labour collective — 2%. The authorised in the cable industry, perfumery, scientific in 2012 and started producing 30,000 litres capital of the company is more than UZS and production laboratories, the chemical of high quality food grade alcohol per day. 10bn (about USD 33m). Its product range and other industries. The state has 51% in In 2013 the similar second line worth EUR includes food grade alcohol of the following Biokimyo, employee stock is 9% and the 2.7m became operational. Both lines operate grades: �Extra’, �Highest purity’ and �Lux’ rest 40% is put up for sale. at full capacity turning out 60,000 litres of marketed mostly within the borders of the ethanol daily. country (circa 80%). The rest is exported to The main product is rectified food grade alcohol of �Extra’, �Highest purity’ and �Lux’ grades complying with the State Standard the countries of Central Asia. Biokimyo The consumers of the end produce are manufacturers The construction of a 300,000 decalitres per year food ethyl alcohol plant in GOST 5962-67. liquor Bektemir-spirt eksperimental zavodi JSC - subsidiaries of The former Yangiyoʻl biochemical plant Toshkent started owing to a decision of and now Biokimyo JSC started its activities the Cabinet of Ministers of Uzbekistan in 1957, when a hydrolysis alcohol plant in 2006. A year later rectified food grade Apart from alcohol workshops, the com- with a designed capacity of 170,000 decali- alcohol production from grain was com- pany operates a 4,380 tonnes/year carbon tres of technical alcohol was put into oper- missioned. The plant is capable of turning dioxide unit, a medicines unit producing ation. The main feedstock was plant-based out 915,000 decalitres of alcohol per year. 5% tincture of iodine – 1.5 tonnes/year, 1% raw materials — sawdust and rice hulls. At The main type of produce is food grade alcoholic solution of brilliant green1% - 0.8 present, technical alcohol is obtained by re- alcohol of �Extra’ and �Highest purity’ tonnes/year and 70% rubbing alcohol O’zvinosanoat. - distillation of ether-aldehyde fraction — a grades. Equipment and tanks used in pro- 21 tonnes/year. The consumers of these by-product of grain-based ethanol manu- duction processes are made in Russia. The medicines are daughter companies of Dori- facture. In 1996, there was commissioned shareholding of the state amounts to 51%. 102 Eurasian chemical market № 1(85) February 2013 Countries and regions w w w. chem mar ket. info Producers of surfactants and household chemicals Foreign-owned Enterirse �My lovely Asia’ The niche area of foreign-owned enterprise �My lovely Asia Со.’ founded in Toshkent in 2008 is household chemicals including shampoos, soap, gels for dish washing, liquid detergents, washing powders, cleaning agents as well as PVA adhesive. All in all the company produces 1000 various products under the trade names Arakc, Arta, Negina, Padide, Mashhad stably demanded in the domestic market. Its customers are more than 100 different organisations across the country. Agro Bio Kimyo Agro Bio Kimyo LLC (Toshkent) is a subsidiary of state-owned O’zfarmsanoat and the only domestic maker of new generation disinfectants: ABK-Extra, АBKKhloraktiv, Extra-Dez, antiseptin, means for cold chemical sterilisation DS-1 as well as skin antiseptics Antiseptin-OP. All its products are made on the basis of the most up-to-date and highly efficient environmentally friendly disinfectants by Akzo Nobel, Lonza, BASF including coconut benzine dimethylammonium chloride, chlorinated izocyanurate, N,N-Bis(3-aminopropyl)dodecylamine, glutaric aldehyde, polyvinyl pyrrolidone iodine. ABK-Extra — a professional disinfecting and washing agent for surfaces in various premises and sanitary equipment possess- Manufacturing facilities and ready-to-use products of �My lovely Asia’ ing antiviral (including HIV and hepatitis colour with a characteristic odour of methyl gram-positive and gram-negative bacteria viruses), antibacterial and fungicide prop- alcohol. It possesses antimicrobial activ- (including erties. Disinfectant ABK-Khloraktiv in the ity (including tuberculosis mycobacteria), viruses (hepatitis, HIV, poliomyelitis) and form of solutions made from tablets and viruses, fungi and designed for treatment fungi. It has washing and deodorising prop- pellets is meant for disinfecting surfaces in of small, hard-to-reach surfaces in various erties. Antimicrobial agent DS-1 is a trans- various premises, furniture, sanitary equip- premises, pieces of furniture, devices and parent liquid of from colourless to light ment, clothing, dishware, toys, patient care medical equipment. Disinfectant Extra-dez yellow colours with a weak specific odour items, products for medical purposes and is a transparent liquid of from colourless to possessing antibacterial action (including cleaning utensils. Antiseptin is a ready- light yellow colours with a weak specific that against tuberculosis mycobacteria, to-use transparent chemical of a light blue odour having antimicrobial activity against germs of especially dangerous infections — tuberculosis mycobacteria), № 1(85) February 2013 Eurasian chemical market 103 Countries and regions w w w. chemm a r ke t . in fo smallpox, cholera, legionellosis), viruses Currently, the firm is the only in (including viruses of parenteral hepatitides Uzbekistan to make chemical products Before 1992 basic consumers (nearly and HIV), fungi and mold with sporocidal, for fire extinguishing — foaming agents 90%) were enterprises of the USSR. Today washing and deodorising properties. It is produced depending upon application and about 60% of the products are aimed at the meant for disinfecting surfaces in various storage conditions under the brands Sitora, domestic market and approximately 40% are premises, furniture, sanitary equipment, Sitora-1, TFM-50. These are biodegradable, exported to the CIS states. surgery and dental appliances, surfaces hydrocarbonic, fluorosynthetic, cold resistant In 1994 the enterprise was transformed into of various devices and apparatuses, cloth- foaming agents for general and special pur- O’zbekkimyomash zavodi JSC, and became ing, dishware (including laboratory one, poses intended for extinguishing class A and an affiliate of National Holding Company dishwashing products, patient care items, B fires which generate low-, medium- and O’zbekneftgaz in 1999. cleaning utensils, medical wastes as well high-expansion foams. As a foaming agent O’zbekkimyomash is a leading producer as mold. Preparation Tozaden has a wide for concrete production (cellular concrete) of pressure vessels and equipment for chemi- spectrum of antimicrobial action possess- and foam concrete blocks, the company cal, oil processing, gas processing and other ing antiseptic, disinfectant, antifungal and proposes STAR+ - an aqueous solution of branches of industry. It has a staff of 470 antiprotozoal actions. It is meant for dis- anionic surfactants with stabilising additives. engineers and 1080 employees of key and infecting hands and antiseptical treatment Foaming agent STAR+ is used in a technol- auxiliary facilities. The production area of of mucous membranes. Skin antiseptic ogy for manufacturing foam concrete with O’zbekkimyomash zavodi amounts to 19.3 Antiseptin-OP is a transparent light green the use of excessive pressure both without hectares consisting of a pressure vessel liquid action preliminary production of foam (turbulent workshop, a compressors and pumps work- possessing having antimicrobial antimicrobial activity chemical equipment and turbo compressors. against way – by mixing) and with preliminary foam shop, a forgery unit, a mould workshop, and gram-positive and gram-negative bacteria generation (foam generators). Having up- a consumer goods workshop. The company (including against tuberculosis mycobacte- to-date processing equipment, the company is the only producer of oil & gas equipment ria), parenteral hepatites, viruses of paren- develops and produces washing powders, in Uzbekistan providing its machinery to teral hepatites and HIV, fungi, candidiasis technical detergents, dishwashing detergents, the largest companies in the country includ- germs and dermatomycosis. Preparations products for skin defatting and treatment. ing Sho’rtanneftgaz, Muborak Gazni Qayta ABK-Insecticide and Tsimavet are trans- At present, the company’s specialists are parent light yellow or colourless liquids working on developing surfactants that can Chirchiq containing cypermethrin and malathion as be used as floatation reagents and wetting kombinati JSC and Navoiy kon-metallurgiya active substances. They are distinguished agents in various industries as well as liquid kombinati. with sharp insecticide action against cock- coolants for metal processing and produc- supplied its produce on orders of foreign roaches, flies, fleas, bed bugs, mosquitoes ing concrete and foam concrete products for companies: and their larvae as well as ticks. treatment of mould surfaces. (USA), Metal Technology (Israel), Krebs- Private Enterpise Ablaqulov Y.N. Private Enterprise Y.N. founded in İshlash Zavodi, Navoiyazot JSC, MaxamJV, Olmalik kon-metallurgiya O’zbekkimyomash ABB-Lummus has Global also Inс Speichim (France), Achema JSC (Lithuania), Khimprom (Volgograd, Russia), Severstal Chemical machine building (Russia), etc. O’zbekkimyomash zavodi The company specialises in designing, Chirchiq (Toshkent province) in 1998, con- producing and servicing diverse equipment was including that for the oil and gas industry, ucts for improving fire fighting efficiency. formed under the name of Uzbekkhimash processing blocks, heat exchangers, col- Over the past time, the company has devel- in1941 on the basis of evacuated Sumy umn equipment, evaporating apparatuses, oped on its own together with specialists of machine building plant. The plant laid the pressure vessels, complete process units, Fire and technical laboratory of the Head foundation of developing chemical engineer- separation equipment, filters, air coolers, Administration of Fire Safety of Uzbekistan ing in Uzbekistan. Initially, it manufactured centrifuging machines and pumps includ- process regulations, formulations and techni- military goods but as far as 1942 began turn- ing turbine compressors and equipment for cal conditions of manufacturing products for ing out civil produce. After the WW2, the environmental protection. The used materials industrial enterprises from different indus- plant became one of the leading enterprises are alloy and carbonic steels and alloys, steel tries including products for ensuring fire of chemical machine building of the former castings, grey cast iron and alloyed cast iron safety. Soviet Union. The main type of produce is and titanium alloys. centrate its activities on manufacturing prod- O’zbekkimyomash 104 Eurasian chemical market № 1(85) February 2013 zavodi JSC Countries and regions w w w. chem mar ket. info R & D base Institute of general and inorganic chemistry of Academy of Science of Uzbekistan There have been developed bases of cre- of various natural and technical dispersions ating efficient mineral and organomineral have been obtained on the basis of local raw fertilisers, defoliants and stimulators. materials and industrial wastes; 10) an original The distinctive feature of the researches con- technology for producing superphosphate from ducted is their link with problems and require- highly carbonaceous Kyzylkum phospho- ments of the Uzbek economy. We should note rites; 11) new kinds of complex phosphorus-, the following developments of the institute: 1) a calcium-, nitrogen- and sulphur-containing The Institute of general and inorganic technology for producing optimum thinners for fertilisers; 12) �Khosil’ type stimulators for chemistry of Academy of Science of high melt oils and oil products; new base oils plant growth have been obtained; 13) physical Uzbekistan and additives for sealing greases; 2) a technol- and chemical and technological foundations was established in Toshkent in 1933. The ogy for manufacturing solvents from gas con- of synthesis of a number of new defoliants main sphere of activities is �Development densate used for paints and coatings as well as a have been developed; 14) low toxicс, highly of scientific and practical bases of com- solvent for extracting plant oils and press cakes; efficient defoliants “Sikhat” and “Mezon” and plex processing of mineral raw materials in 3) energy-saving technologies for producing universal defoliants “Nazhot”, “Sardor” and Uzbekistan’. The laboratories of the institute innovative, efficient water-based and weakly- “SuperKhMD-Zh” have been developed; 15) carry out fundamental and applied researches soluble surfactants, emulsifiers, cold bitumen the institute has developed a highly efficient into defining interrelations between compo- emulsions, high viscosity bitumens, emulsion technology for producing a nitrogen-calcium- sition, and properties of new compounds. lubricants and adhesives from local feedstocks phosphate fertiliser from phosphorites of the Scientific researches are targeted at develop- and industrial wastes; 4) efficient ways of mix- Central Kyzylkum. ing efficient technologies for deep processing ing high viscosity oils as well as technologies Science intensive technologies devel- of oils from new deposits of Uzbekistan, for producing and applying multipurpose cata- oped by the institute are widely used by sustainable use of by-products of oil extrac- lysts on the basis of nickel and molybdenum Samarqandkimyo JSC, Farg’onaazot JSC, tion, creating technologies for recycling compounds for manufacturing motor fuels, JV Elektrokimyozavod CJSC and Buxoro metallurgical wastes and solving urgent lubricants and solvents directly from oil , its neftni qayta ishlash Zavodi Unitary Daughter import-substitution problems of ferrous and residues and by-products; 5) scientific bases Enterprise. non-ferrous metallurgy as well as producing of processing polymetallic raw materials and This institute has considerable experience innovative reagents and fire-resistant materi- wastes of metallurgical production; the institute of successful scientific collaboration with R als. One of the priority scientific directions of has defined ways of obtaining iron sulphate & D centres in Germany, France, Italy, the the institute is to develop bases of synthesis from metal-containing wastes, chrome oxide UK, the USA, the Russian Federation, Japan, and technologies for obtaining mineral and pigment Korea and other countries. organomineral fertilisers, promising defoli- aluminium sulphate - on the basis of wastes ants accelerating reapening of agricultural of chemical etching of aluminium wastes; plants, efficient polyfunctional stimulators 6) technologies for extracting iodine from for growth of cotton and cereals. associated petroleum and geothermal waters from chrome-containing solutions; Future production plants and those under construction Usturt Gaz Kimyo Majmuasi in Qaraqalpaqstan The institute has obtained results of a fun- with the assistance of sorption and desorption damental character, which allowed it to cre- methods; obtaining pure crystalline iodine and ate a new subdivision of science — adsorp- potassium iodide from iodine paste as well as tion-energetic stoichiometry. Researches into iodizing edible salt; 7) technologies for produc- scientific foundation of controlling properties tion of cement and exfoliated vermiculate for O’zbekneftgaz and a Korean consortium con- of disperse systems, obtaining materials with manufacturing heat insulation materials as well sisting of Kogas, Lotte Daesan Petrochemical tailor-made properties, regulating colloid- as enriching talc-magnesite ore for manufactur- Corporation, LG International Corporation, SK chemical processes, directed synthesis of ing magnesite concentrate used for obtaining Gas and STX Energy founded a joint venture polyelectrolytes and surfactants, flocculants high flame-resistant materials, talc concentrate Uz-Kor Gas Chemical on the basis of match- and sorbents enable the R & D establish- for producing ceramic, rubber, abrasive and ing contribution for implementing a project for ment to establish regularities of interrela- cable products; 8) organo-clay and carbon-clay construction of a gas chemical synthesis com- tions between colloid-chemical properties of sorbents have been obtained; 9) a number of plex (Usturt Gaz Kimyo Majmuasi; Usturt). disperse systems with their compositions and surfactants and polyelectrolytes for use as sta- The raw materials base of the project structure. bilisers, flocculants adsorbents and plasticisers are gas and gas condensate deposits Surgil, In 2008, National holding company № 1(85) February 2013 Eurasian chemical market 105 Countries and regions w w w. chemm a r ke t . in fo Vostochniy Berdakh-Uchsay and Severniy Bedrakh. Surgil – the largest of these deposits with reserves estimated at 120bn cubic A plant for processing combustible shales in Navoiy province metres of gas – was discovered in 2009 and is pleting the construction of the main building, warehouses, a feedstock reception area, laying external and internal power supply lines, a sewage system, and water supply, foreign currently being developed by O’zbekneftgaz. O’zbekneftgaz National holding Company The USD 4.1bn project will be financed by has intentions to start constructing a plant O’zbekneftgaz’s own financial resources at for processing combustible shales from the the amount of USD 200m and a 300m loan of Sangruntau deposit in the Navoiy province in the Fund of reconstruction and development H2, 2014. specialists proceeded to installation of up-todate equipment. Future tyre and conveyor belt production in Angren of Uzbekistan in addition to credits of foreign At the end of 2013, there was issued a ten- financial institutions. The new enterprise will der for a licensor of a shales processing tech- Tyres are not produced in Uzbekistan employ 1,000 people. nology. Its results will be known in February- and exclusively imported from Russia and O’zbekneftgaz is currently developing the March and the construction of the plant may China. That is why, O’zkimyosanoat issued Surgil deposit on its own in order to provide begin by summer of 2014. In the first half an international tender for constructing a Usturt Gaz Kimyo Majmuasi with 3bn m3 of the current year, a feasibility study of the turnkey tyre and conveyor belt plant in the of natural gas per year by the moment of its project should be prepared and negotiations special industrial zone �Angren’ on the basis launch. Another 1.5bn cubic metres will be on its financing be completed. of liquidated Rezinotexnika JSC. The plant supplied from the other above-mentioned At the first stage (2014-15), it is planned will be capable of turning out 100,000 run- deposits of the Usturt region. The complex to launch a unit for processing 2m tonnes ning metres of conveyor belts, 200,000 tyres in Usturt, the construction of which started of shales per year. Later (2015-2018) unit for agricultural machinery and 3m tonnes of in 2012, will annually process 4.5bn m3 is planned to process 8m tones of shale ores car tyres. The preliminary cost of the project of natural gas and turn out 4bn m of com- yearly and turn out 1m tpy of oil products. is USD 230m and construction period is 3-4 3 mercial gas, 400,000 tonnes of polyethylene The preliminary project of the con- years. The project will be financed through of various density, 100,000 tpy of polypro- struction of the shale processing plant credits of the Export-Import Bank of China pylene and 100,000 tpy of pyrolysis petrol. was Institute (USD 190m), O’zkimyosanoat’s financial The complex is due on stream in late 2016. Atomenergopeoject Unitary assets and raised funds. Samsung Engineering, GS Engineering and Enterprise (St. Petersburg) in 2012. The In 2011 году Chinese CITIC Ltd signed Construction и Hyundai Engineering are project envisages building of eight solid a contract with O’zkimyosanoat on turnkey general contractors of the project. American heat carrier units (UТТ-3000) with a feed basic and detailed engineering and equip- company KBR will provide technologies and capacity of 1m tpy of shales. The USD 600m ment procurement for building the plant. engineering and construction services to JV project will be backed by O’zbekneftgaz’s Within the frames of the project, the parties Uz-Kor Gas Chemical, which will build a own financial resources a loan of the Fund are going to create a JV, in which CITIC will polyethylene unit in Usturt. The latter will of reconstruction and development of establish a consortium with a tyre producer. be the first HDPE unit on the basis of KBR’s Uzbekistan and foreign credits. Apart from O’zkimyosanoat, Uzbekistan license utilising its own SCORE™ process. Within the frames of the project, the American company will also undertake engineering and made by Russia-based federal JV Uz-Shindong Silicon in Angren design of a furnace for polyethylene produc- will be represented by O’zbekneftgaz and O’zavtosanoat JSC. In 2012, Linlong Rubber Co (China) and O’zkimyosanoat signed a memorandum of collaboration tion and provide equipment and construction Uzbek-Korean joint venture Uz-Shindong envisaging the participation of the Chinese services. The HDPE unit will manufacture Silicon is building a 5,000 tpy silicon plant in company in the creation of the JV for the the following grades of the polymer: 1) injec- the special industrial zone �Angren’ (Angren, plant’s construction. tion moulding grades; 2) film grades; 3) pipe Toshkent province). The project estimated at grades; 4) cross-linked pipe grades; 5) yarn and USD 8.67m is implemented via direct invest- monothread; 6) blow moulding grades. The PP ments of the co-founders of the JV – the State plant will turn out homopolymers, random pol- geological and mineral resources committee ymers and impact-resistant copolymer. Europe, of Uzbekistan and Korea-based Shindong Eastern and South-Eastern Asia are expected to Enercom Inc. The general contractor is O’zneftmahsulot JSC are going to launch be the main sales markets. O’zneftgaz qurulishinvest JSC. After com- 43,000 tpy production of base oils from 106 Eurasian chemical market № 1(85) February 2013 Production of base oils from wastes in Angren Bulgaria-based Prista Oil and Countries and regions w w w. chem mar ket. info wastes on the basis of hydrofining in the city At the same time, new plants and workshops manufactured in the country; 2) income tax, of Angren as well. The USD 15m project will coming on stream across the virtually entire single tax (for entities using a simplified be realised on the production site of liquidated territory of the country allow Uzbekistan not taxation system) on products manufactured Rezinotexnika JSC and financed through only to make up for these losses but also to under import-substitution projects; 3) tax direct investments of Prista Oil at the amount support the steady advancement of the chem- on basic production assets employed for of USD 7.65m and O’zneftmahsulot’s own ical industry. There is also a serious problem producing import-substituting products. funds (USD 7.35m) . that cannot be solved even by successful man- An attentive reader has probably noted that The project is included in a list of invest- agement decisions relating to the geographi- unlike some former Soviet states, authori- ment projects for expansion of production cal location of Uzbekistan. Both the country ties of Uzbekistan retain efficient control volumes of competitive products on the proper and all its neighbors has no access to under the chemical sector, and not merely basis of operating plants approved by Islam global sea trade and, therefore, to the cheap- administrative but also financial one. Karimov - President of Uzbekistan. est cargo delivery – by sea transport. Due to Most chemical enterprises are under the It is planned to use a considerable share of insatiable needs of agriculture, river naviga- auspices of state-owned O’zkimyosanoat, produced base oils as a key feedstock for JV tion is also unavailable de facto. As a result, and manufacturing plants that are not its Uz-Prista Oil specialising in synthetic and most finished goods shipments and feedstock affiliates but possess chemical workshops mineral oils production in Uzbekistan. In supply chains are based on railway trans- are managed by relevant state-owned stock late 2011, Prista Oil acquired 50.1% in JV port. Whereas a rail network in the country companies. Namely, central management Uz-Texaco from Texaco Overseas Holdings has substantially improved for the years of companies adopt development strategies of Inc (USA). The JV was subsequently independence and a number of its sections their daughter companies including issues renamed Uz-Prista Oil. The Uzbek founder have been electrified, it is obvious that Uzbek of privatisation and financing technical of the joint venture is O’zneftmahsulot JSC chemical producers cannot increase railway upgrade projects. They also take decisions (49.9%). tonnage capacity and improve infrastruc- on building new large chemical works, ture facilities in the neighboring countries. which, as it is often the rule, is implemented Relatively cheap fertilisers of the domestic in close collaboration with foreign compa- producers are consumed within the limits of nies. The latter may be either general con- VI. Problems and prospects of Uzbek chemical industry Uzbekistan and border areas of the neigh- tractors (subcontractors) or investors. At For almost 23 years of independence, the bors, i.e. transportation costs account for an the same time, tactical issues are decided chemical industry of Uzbekistan has under- insignificant share in price structure. On the by the management of the daughter com- gone quite dramatic changes and the process contrary, outlooks for mid-range chemicals panies on their own. It can be seen from of transformation is still going on. Though sales are not so bright due to long-distance the said above that enterprises with 100% a basic orientation towards meeting diverse haulage, e.g. to Russia or to China via transit foreign capital are rather exceptions from needs of the agricultural sector is still prevail- states. In this regard, the current policy of the the rule than the rule itself. In case that a ing, hydrocarbons processing with producing government aimed at developing the internal foreign partner becomes a shareholder, various polymers is becoming priority for market in chemical products and encourag- the state all the same holds the controlling the country’s government. However, the ing import-substitution seems to be quite stake. Despite the fact that investing in the modernisation and upgrade of the chemical reasonable. Programmes for localisation of Uzbek economy is rather difficult occupa- industry, as is often the case, take place with manufacturing finished goods, spare parts tion because of a complex and contradic- considerable losses. For instance, produc- and materials on the basis of industrial co- tory system of regulating foreign economic tion shutdown has occurred and processing operation adopted and promptly corrected in activities, the inconvertible currency, obli- equipment has been dismantled either com- case of urgency by the Cabinet of Ministers gations to fulfill a number of plan figures pletely or partially at Uzbekrezinotexnika, every three years serve the crucial factor in traced through monthly statistical report- Angren chemical and metallurgical plant this policy. The enterprises included in these ing, obligations to sell many types of prod- and Farg’ona furane compounds plant. The programmes are exempted from: 1) cus- ucts only via a state commodity exchange, management and personnel of the companies toms duties (except for customs formalities etc., Uzbek chemical companies and their notable for low capacity utilisation such as charges) on imported processing equipment foreign partners in most cases look for- Samarqandkimyo JSC, Jizzax plastmassa and spare parts as well as on components ward with optimism. Uzbekistan pursues a JSC, Olmalik Kon-Metallurg iya Kombinati utilised in engineering processes for mak- course of modernisation and is unlikely to JSC are faced with rather serious difficulties. ing import-substituting products and not turn off this way. № 1(85) February 2013 Eurasian chemical market 107 New Polymers: Polychlorotrifluoroethylene World Market for Phthalic Anhydride Production and Market of Hydrochloric Acid in Former USSR Russian Market for Substituted Silanes Market for White Spirit in FSU These prices are valid starting from 04.04.2013 * Number of editions www.chemmarket.info
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