15 Oct 2009 13:34

URALCHEM expects to see production drop by around 5% in 2009

MOSCOW. Oct 15 (Interfax) - URALCHEM expects its production to drop by around 5% in 2009, the company's head, Dmitry Osipov, told journalists.

He said that the company has, for example, lowered the production phosphorus fertilizer.

According to Osipov's forecasts, by the end of the year the company does not expect an increase in fertilizer prices.

He added that company is looking into the possibility of holding an IPO. He did not specify the timing of the measure only saying that it would be possible once the market had recovered.

In August 2008, URALCHEM announced that it would hold an IPO the following autumn in which the company would place around 20% of its shares. Owing to the crisis, the company's IPO has yet to take place. In the middle of this year, URALCHEM said that it was still considering a share placement. The company plans to transfer all of its enterprises into a singe share in preparation for the placement. The Federal Financial Markets Service (FFMS) has already authorized the company to place 25% of its shares overseas.

URALCHEM was formed in 2007 with chemical assets controlled by Dmitry Mazepin. The company includes controlling stakes in the Kirovo- Chepetsky Chemicals Plant, Perm's Azot and Voskresensk Mineral Fertilizers, and almost a 10% stake in Togliattiazot.

Agrochem Finance owns 99% of URALCHEM, and Chemical Invest owns 1%.