Annual Report 2011   English  |  Russian

Production

In 2011, Acron’s three production facilities produced 5.844 million tonnes of commercial products, an all-time record for the Group.

Acron (Veliky Novgorod, Russia)

Main production capacity (’000 t):

  • Ammonia – 1,100;
  • NPK – 1,150;
  • AN – 900;
  • UAN – 700;
  • Urea – 470 (+335 starting in 2012);
  • Methanol – 100;
  • Formalin – 200;
  • UFR – 260.

Acron is the Group’s flagship. The Acron production facility was originally commissioned in the 1960s and 1980s and revamped throughout the 1990s and 2000s. Several modern units were constructed in 2006-2009.

Acron has the largest ammonia and NPK production capacity and is the only asset producing a diversified product portfolio, which includes nitrogen fertilisers and organic compounds.

Due to its favourable location in proximity to Baltic Sea ports, Acron is mainly focused on fertiliser export.

Dorogobuzh (Smolensk region, Russia)

Main production capacity (’000 t):

  • Ammonia – 500;
  • NPK – 600;
  • AN – 900.

Dorogobuzh production facility was launched throughout the 1960s and 1980s and updated in the 1990s and 2000s.

Dorogobuzh produces ammonia, AN and complex fertilisers.

Dorogobuzh production facility is located close to key agricultural regions in Russia and the CIS (Ukraine and Belarus) and, accordingly, the Company’s sales are oriented to the Russian market and adjacent regional markets.

Hongri Acron (Shandong Province, PRC)

Main production capacity (’000 t):

  • Ammonia – 100;
  • NPK and bulk blends – 750;
  • Hydrochloric acid – 170.

Hongri Acron is the largest Russian-Chinese chemical company. The Hongri Acron facility was commissioned in 1999-2000, and produces complex fertilisers for the Chinese market.

Acron Group’s consolidated output      
Product (’000 t) 2011 2010 Change
(%)
Ammonia 1,770 1,723 2.7
Including own use 1,574 1,466  
Nitrogen fertilisers 2,420 2,260 7.1
Including own use 358 313  
Complex fertilisers 2,607 2,447 6.5
Including own use 33 34  
Organic compounds 399 371 7.5
Including own use 208 188  
Non-organic compounds 821 750 9.5
Total commercial output (excluding own consumption) 5,844 5,550 5.3

Investments in production

Acron Group’s key business is the production of fertilisers and industrial products. The Group’s sustainable progress is based on maintaining high production and sales efficiency, improving product quality and reducing prime costs.

CAPEX
  • Ammonia is the base of the Group’s product portfolio. For the past several years, the Group has implemented a programme of upgrades at its production sites in Veliky Novgorod and Smolensk region, with a focus on reducing gas consumption and improving the efficiency of existing operations. Thanks to that, ammonia units in Veliky Novgorod have reduced their gas consumption to the lowest level in Russia: 1,081 m3/t at the Ammonia-3 unit and 1,096 m3/t at the Ammonia-2 unit.
  • Ammonia-4 is a strategic project to construct Russia’ largest ammonia unit, with a capacity of 700,000 tpa, at the Veliky Novgorod production facility. The project will increase nitrogen fertiliser production and ammonia sales. Design work for the new facility started in 2011, and its commissioning is expected in 2015. Total project investment is estimated at USD 400 million.
  • Urea is a core product for Acron Group’s business development, being both fertiliser and a raw material for the production of UAN and UFRs. For several years, Acron (Veliky Novgorod) has been revamping its existing production facilities to increase output and improve product quality.
  • Urea-1000 is a project to construct a new urea unit with a capacity of 335,000 tpa. This increase in production will allow the Group to increase its urea sales and expand its UAN capacity (from 700,000 to 1 million tpa) and UFRs output.
  • In 2008-2011, the main construction work and installation of production equipment were completed. Start-up and commissioning of the facility is scheduled for the first half of 2012. Total project investment is USD 95 million.
  • Nepheline-10 and Rare-earth Elements are innovative projects for the comprehensive processing of apatite and nepheline ore produced by the new Oleniy Ruchey mine. The Group is proceeding with creation of a pilot production facility at the Veliky Novgorod site, which is expected to be finalised in 2013.
Assets
Production: 32%
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Production facilities CAPEX (RUB mn)
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