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Caprolactam & tire cord fabric output up at KuibyshevAzot

Feb '07
In 2006 at “KuibyshevAzot” JSC growth of physical production volumes for all main products was reached. In the last year the following products were produced:

- caprolactam 146,98 thousand tons, that is 102.6 % compared to the last year results;
- mineral fertilizers in conversion to 100 % of nitrogen - 354,5 thousand tons, increase by 8.4 %, including ammonium nitrate - 447,5 thousand tons (+13.7 %) and urea 256 thousand tons (+10.1%);
- ammonia – 506 thousand tons (+3.8%)
- polyamide-6 – 32.2 thousand tons (+36.5%),
- polyamide yarn – 4.2 thousand tons (+14.2%)
- tire cord fabric – 2.5 thousand tons, 2.4 times higher than in 2005.

However, in 2006 in comparison with the previous year financial results deteriorated. Sales revenue is 12.7 billion rubles (95.3% of the level in 2005), profitability of sales decreased from 18.3% to 7.1 %, sales profit decreased 2.7 times to 904.1 million rubles.

These data are determined by the following factors:

- benzene shortage (main feedstock for caprolactam) caused by shutdown of Russian manufacturers, due to this situation the enterprise had to use expensive imported benzene;
- decrease of prices, which reached maximum in 2005, for such products as caprolactam, urea, polyamide, technical yarn.

In spite of this fact in the last year, as within all recent years, the company invested considerable means to its own technical development, upgrading of capital stock,repair and maintenance. For this purpose in total 2.2 billion rubles were spent, including production development - 1 168 million rubles.

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