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Summing up the 2004 results of Acron’s operation

Acron Holding has summed up the results of its 2004 production activity in Russia. The past year 2004 has become for the Company one of the most successful years in the past decade. The Company has achieved high financial and production performances.
In 2004 the mineral fertilizers production volume increased — it totaled 3291 thousand tons (in physical weight). 1678 thousand tons of complex fertilizers (azophoska) were produced. Urea output amounted to 400 thousand tons. In 2004 the total volume of ammonium nitrate made 1189 thousand tons. The achieved output volume of porous ammonium nitrate has turned out to be the highest volume for the whole period of its production.
In 2004 at the Novgorod enterprise of the Holding a record was achieved in ammonia production — at two aggregates, the production capacity of which amounts to 450 thousand tons each, 1027 thousand tons of this product were produced!
During the reporting period 345 thousand tons of organic synthesis products were produced, which is the highest result for the last 12 years. 97 thousand tons of methanol were produced. The output volumes of amino-formaldehyde resins and formalin amounted to 110 thousand tons and 134 thousand tons accordingly.
The production capacity utilization rates remained high in 2004. The ammonia output capacities were utilized up to 109.8%, those of mineral fertilizers — up to 93%, organic synthesis production capacities — up to 87.8%.
In 2004 the financial performance considerably improved. The product sales proceeds increased 1.3 times in comparison with the year 2003 and achieved almost 475 million US dollars. The sales profit amounted to approximately 88 million US dollars, which is 1.8 times higher than the analogous index of the previous year. The net profit exceeded 6 times the level of the year 2003, having achieved the amount of 48 million US dollars. This indubitable success of the Company is composed, in general, of two constituents: modernization and production reconstruction at the expense of a high investment level and highly professional work of the Company's staff.
The output launch of a new type of fertilizer — nitroammophos NP 32:6 — on an industrial scale has become a significant event of the year 2004.
Another project providing for the stable future of JSC Acron has become the construction, which began in October 2004, of a formalin production plant with the capacity of 75 thousand tons per year and an urea-formaldehyde resins production plant with the capacity of 105 thousand tons per year. The construction is being carried out in accordance with the contract concluded with the Danish Company Haldor Topsoe. The technology purchased allows to use the methanol surpluses available at the production facility.
The regional marketing network of JSC Acron continued consolidating in 2004. At present it unites 6 regional and 16 specialized agrochemical enterprises located in the main agricultural centers of the European part of the RF. Due to this fact in 2004 the quantity of mineral fertilizer supplies to the domestic market increased by 40%.
The management of the Company permanently takes care of its employees. The level of a monthly average salary of the enterprise employees in 2004 was 59% higher than in the industry in general.
Acron is a dynamically developing Company, permanently expanding the spheres of its activity. And therefore the success of the Company is obligate and regular: JSC Acron has been recognized the winner of the All-Russian Contest "The Best Russian Enterprises" for the eighth time. In 2004 the Company won in the nomination "For high financial efficiency".