Address by Director General

Dear Colleagues!

United Chemical Company “Shchekinoazot” produces and sells methanol, ammonia, ammonium sulphate, caprolactam, carbamide-formaldehyde concentrate (UFC), cyclohexane at domestic and foreign markets.

Having considerable experience, knowledge and competence, we offer our clients qualitative solutions in the sphere of chemistry, i.e. for oil and gas extraction, transportation and processing, motor-vehicle construction, electronics, pharmaceutical, agrochemical, pulp and paper industry, water treatment, production of textiles, construction materials, industrial and consumer commodities.

Important advantages of our enterprises are modern production facilities and well-developed transportation infrastructure. Economically advantageous geographical position helps the company to provide stable and timely delivery of products to customers in European states and APAC countries, with the enterprise performing long-term export contracts on a high level of reliability.

Shchekinoazot has been working for 60 years! Both earlier and now the enterprise managing team gives priority to high quality of products, efficiency of manufacturing, managing and economic policy.

Today’s strategic objectives of the Company are its capitalization and profitability growth enabled by implementation of innovations, persification of activities, mastering the production of HVA products. Compliance of engineering processes with high standards of ecological and industrial safety, as well as successful social decisions enable the company to performs its mission, i.e. to bring ultimate good to human society, to help implementing transformations which change our life for the better through steady increase, sustainability and responsible attitude towards the world around us.

Shchekinoazot development strategy was worked out in the course of federal investment policy.

Execution of definite technical projects allows raising competitiveness of the company and tapping markets with high upside potential. Since 2005 there has been execution of nine large projects finished at Shchekinoazot industrial site; new productions have come on line.

The largest project in the history of the company became the project on foundation of Russia’s advanced methanol production in JSC Shchekinoazot which is the base for further development of processing productions. On October 20th, 2011, there was the ceremony of putting into operation of the unit with the capacity of 450 000 tons of methanol per year. The project was implemented in accordance with the technology of the licensor with a world-reknown name, Haldor Topsoe A/S. Business cooperation of Shchekinoazot, OJSC (Russia) and Haldor Topsoe A/S started in 2007 and has been continuing thus far.

Presently our enterprise successfully operates the hydrogen generation unit, which was designed and built with the use of technologies, equipment and catalytic agents of Haldor Topsoe A/S.

Today on the industrial site of Shchekinoazot there are production plants manufacturing carbamide-formaldehyde concentrate (CFC) and concentrated low-methanol formalin, high-tenacity yarns and spunbond. Joint venture with American company Momentive on manufacture of phenol-formaldehyde resins is in good progress.

Technical revamping of formalin/hexamine production has increased its technological level and boosted UF-85 consumption.

In 2013 caprolactam production capacities were significantly modernized followed by the products quality and competitiveness improvement. We have reached out decreasing of benzene consumption index on lactam, energy consumption, negative impact on the environment.

Uptake of modern technology in cyclohexane oxidation section ensured equipment reliability, lowered consumption norms for raw materials and energy.

Both Pervomayskaya Heat and Power Plant and production capacities of Efremov Affiliated Branch reconstruction has been continuing.

I would like to highlight the importance of the tasks completed by the Energy Service of the enterprise. For the first time in the history of the plant the need of industrial facility in energy resources were satisfied with own generating capacities.

However we stay strong in the pursuit of our goals! Our cohesive team continues to work on projects of the Shchekinoazot development strategic program.

In 2013 we declared execution of a new project, i.e. construction of the methanol and ammonia manufacturing complex. Shchekinoazot and Haldor Topsoe A/S signed the contract on the license and basic design for the new combined methanol/ammonia generating unit. Its production capacity will make 1350 TPD of methanol and 415 TPD of ammonia. Its launch is planned to be carried out in 2018.

It is pleasant to note that our cooperation with partners from Denmark exceeded the scope of business issues. In 2013 we reached accords to direct our joint efforts to charity and social development.

In 2012 Shchekinoazot together with German company PCC started execution of a new project of dimethyl ether production. Construction began in 2014. This project is the second cooperative activity of Shchekinoazot with foreign partners.

This year it is planned to finish the expansion of phenol-formaldehyde resins production within the framework of joint venture between Shchekinoazot and Momentive Company.

Development of industrial, intellectual, economic potential of the company, modern sales policy, successful work of professional team have attained Shchekinoazot a name of honest business partner and reliable supplier of chemical products for Russian and international companies.

Our specialists perform inpidual approach towards every customer. We offer reasonable prices and optimal conditions for chemical products supply and are always open for mutually beneficial cooperation.

We will be glad to see you among long-standing partners of our company!

Best Regards,

Director General

UCC Shchekinoazot, LLC (Russia)

Boris A. Sokol