Governor of the Perm region, Yuri Trutnev, declares "Uralkali" Prikamye's production investment leader

10.11.2003

Adhering to its vigorous investment policy "Uralkali" continues to make significant investments in the development and upgrade of its fixed assets and maintenance of its existing production facilities. In 2003 the overall amount of investments made by the company amounted to 1,408 million rubles. It is 200 million rubles more than in 2002.

Governor of the Perm region, Yuri Trutnev, visited "Uralkali". He met with heads of company's subdivisions. Chairman of "Uralkali" Board of Directors, Dmitry Rybolovlev, and company's Director General, Maxim Shirokov, informed the Governor of the main production results for the previous nine months as well as of enterprise's perspectives.

According to Maxim Shirokov this year "Uralkali" is ready to break the 2002 record (four million tons of potassium chloride) and put out at least 4,300 thousand tons of produce. It is expected that this year the company's profit will amount to 8,346,477 thousand rubles - almost one billion rubles more than in the previous year. Adhering to its vigorous investment policy "Uralkali" continues to make significant investments in the development and upgrade of its fixed assets and maintenance of its existing production facilities. In 2003 the overall amount of investments made by the company amounted to 1,408 million rubles. It is 200 million rubles more than in 2002.

It is expected that the overall production output and product shipment volume of "Uralkali" will grow by an additional 300,000 tons in 2004. Production investments will grow by almost two billion rubles. It is expected that investments in capital construction will also grow significantly. A large amount of money will be invested in a project targeted at the development of company's own electric power supply system. Speaking of company's perspectives "Uralkali" Director General, Maxim Shirokov, emphasized the importance of production of granulated potassium chloride. Over the past several years the company's priorities primarily focused on investing in the improvement of quality and the increase of output of granulated fertilizers. According toMaxim Shirokov the future of the potassium industry lies with this product.

In December "Uralkali" plans to sign a credit agreement with the European Bank of Reconstruction and Development to obtain a $75 million dollar credit and initiate its investment programs.

During the conference Governor Yuri Trutnev asked "Uralkali" management several questions and answered a number of their questions. In particular, he informed his counterparts of the forthcoming referendum on the merger of the Komi-Permyatsky Autonomous District with the Perm region. Yuri Trutnev stressed that advantages of the merger will extend not only to the residents of the District and areas adjacent to it, but also to residents of Berezniki, Solikamsk, Usolski, Krasnovishersky, and other districts of the region.

Summing up results of the meeting the Governor stated: "I am impressed by the processes underway in the company. First of all, by the practically fourfold increase of the investments volume. It is a lot for an enterprise as large as "Uralkali". Aiming for more than three billion rubles of investments in 2004 "Uralkali" becomes leader of the Perm region as far as production investment is concerned. This is very important because we understand that an enterprise such as "Uralkali" will not waste a single ruble. Consequently, if the company invests three billion rubles this will result in an increase of production output and higher profits. This will positively affect the economy and the people who live both in Berezniki and in the Perm region in general."

Following the conference Yuri Trutnev was shown the "Uralkali" server facility. It is a structure filled with the newest equipment in which communication units of a complex system of management of company's resources - "Oracle"- are located. It is here where all "Uralkali" communication channels are concentrated. Implementation of this project was one of "Uralkali" priorities in 2003. The strategic goal of the project is to fully comprehend and effectively manage company's expenses. First and foremost it is the possibility of operative and permanent analysis that results in the effective utilization of resources. The project implemented in "Uralkali" is unique for Russia and considered to be one of the best in the Eastern Europe. The Governor was informed in much detail about how "Oracle" operates and what the system's possibilities and technical resources are.

In addition, the Governor visited the new office building of the company which is scheduled to be opened shortly. The building occupies 2.5 thousand square meters. It is expected that officers of the following three "Uralkali" subdivisions will be located here: Human Resources, Information Technologies, and Taxation. All offices will be equipped with the newest telecommunication and the most up-to-date office equipment. In addition, a number of personnel training facilities have also been accounted for in the new complex. According to "Uralkali" Director General, Maxim Shirokov, this office complex has no analogues in Berezniki.

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