JSC KHIMPROM NOVOCHEBOKSARSK RUSSIA. Marina N. KAYGORODOVA, Commercial Director

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1 JSC KHIMPROM Marina N. KAYGORODOVA, Commercial Director

2 General information on the enterprise JSC Khimprom is one of the leading chemical enterprises of Russia Year of foundation 1960 Legal capital $33 million Workforce % - blue-collar workers 14% - white-collar employees 12% - managerial staff Average age 42 years

3 Location NOVAYA ZEMLYA NOVAYA ZEMLYA Nor weg ian Sea Nor weg ian Sea SWEDEN R U S S I A FINLAND NORWAY St. Petersburg EST. UNITED IRELAND KINGDOM London DENMARK NETH. BEL. CZ. REP. AUS. SLO. MOLDOVA ROMANIA CRO. BOS.& HERZ. SER. & MONT. BULGARIA BlackSea F.Y.R.O.M.* FINLAND ALB. SPAIN UKRAINE SLOV. HUNG. SWITZ. ITALY PORTUGAL Samara POLAND GERMANY LUX. Paris Caspian Sea GREECE NORWAY Perm' Moscow LITH. RUS. BELARUS FRANCE SWEDEN Izhevsk LAT. North Sea MALTA Mediterranean Sea R U S S I A St. Petersburg EST. UNITED IRELAND KINGDOM London North Sea DENMARK RUS. Moscow LITH. 700 km BELARUS NETH. BEL. GERMANY LUX. CZ. REP. AUS. FRANCE SWITZ. SLO. Novocheboksarsk Samara POLAND Paris UKRAINE SLOV. MOLDOVA HUNG. ROMANIA CRO. BOS.& HERZ. ITALY PORTUGAL Izhevsk LAT. SER. & MONT. ALB. SPAIN BULGARIA F.Y.R.O.M.* GREECE MALTA Mediterranean Sea BlackSea Caspian Sea Perm'

4 General information on the enterprise Main production complexes: inorganic organochlorous organophosphorus organosilicon Over 200 high quality chemicals are manufactured at Khimprom

5 Our production Major products Share in the production volume of RF Hydrogen peroxide 74 % bleaching agent Acetonanil (TMQ) 100 % antioxidant for tires and rubber Phosphate plasticizers 100 % additives for polymers Chloromethanes 47 % for fluoroplastic production Complexones 48 % salt deposit inhibitors М % monomer for ultrastrong fibers Ethylsilicates 80 % for precise casting in machine-building

6 General information on the enterprise Sales structure, 2004 Russia 78,8% Europe, Asia 17,5% CIS 3,7%

7 General information on the enterprise Sales profit, $ million , , , (forecast) (forecast)

8 Export 21,2 % - export share of total sales volume 30 21,00 26,50 $ million , (forecast) Export products: Trichloropropylphosphate Methylene Chloride Monophenylglycol Acetonanil N Chloroform Phenyltrichlorosilane

9 Quality Policy Quality is our permit to future success In compliance with requirements to safety of consumers life and health all production of the enterprise is certified. At present preparation for Quality Management System certification on conformity with requirements of ISO 9001:2000 is carried out at the enterprise. The QMS system will be certified by Bureau Veritas Quality International.

10 Development Investment in fixed capital, $ million total own funds loans (forecast)

11 Implemented projects Implemented projects on creation of new productions in Economic profit $3,5 million Key project re-equipment of Acetonanil production. The technology of Acetonanil production was modernized, new pellet form of the product was introduced, modern packaging equipment was installed. The project was carried out with participation of the firms Sandvik (Sweden) and Tecnopack (Italy).

12 Implemented projects Implemented projects on power saving in Economic profit $2,2 million Key project construction of a boiler shop. Khimprom is the only enterprise in the Chuvash Republic having its own boiler shop. It allows the enterprise to satisfy its demands in steam.

13 Promising projects for period till 2008 Upgrading of chlorine and caustic production Creation of production complex of chemical additives for environment friendly tires Modernization of hydrogen peroxide production with increase of capacity Re-equipment of chloromethanes production Updating of technology of oxygen bleacher sodium percarbonate production

14 Investment proposals Acetonanil production enlargement Capital investment Payback time $5 million 2,5 years Project goal Creation of the second line of Acetonanil production with capacity increase up to 30 thousand tons per year Achieved results Enlargement of cooperation with world leading tire companies Organization of package deliveries of chemical additives for tires of new generation

15 Investment proposals Upgrading of chlorine and caustic production Capital investment Payback time $65 million 6 years Project goal Re-equipment of basic production with introduction of the advanced membrane technology. Achieved results Higher technological level of production Decrease of energy consumption by 30 % and improvement of production quality

16 Leadership of the enterprise Victor S. Starodubtsev General Director Tel Fax Vitaly B. Vyazovoy First Deputy General Director Tel Fax Marina N. Kaygorodova Commercial Director Tel.: Fax

17 Leadership of the enterprise Alexey N. Savelyev Financial Director Tel.: Fax Nikolay E. Nikiforov Technical Director Tel Fax Anatoly I. Efremov Head of R&D Center Tel.: Fax

18 Our address We invite you to cooperation JSC KHIMPROM Promyshlennaya street, 101, Novocheboksarsk, Chuvash Republic, , Russia

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