February 10^th, 2015 - Moscow, Russia. URALCHEM OJSC, a leading manufacturer of nitrogen fertilizers, and Stamicarbon BV, a world leader in the area of development and licensing of urea production technologies, part of Maire Tecnimont Group, have reached an agreement to start the project of urea production modernization at Mineral Fertilizers JSC in Perm. The investment in the project is estimated at 4.2 billion rubles. It is planned that by 2019 plant capacity for the production of urea will be increased by 40% or by 250 thousand tons annually.

Stamicarbon will act as the licensor of urea production technology, and as a general contractor for the project design and survey works. The corresponding contract was signed by General Director of URALCHEM OJSC Dmitry Konyaev and CEO of Stamicarbon BV Pejman Djavdan. NIIK JSC will be a subcontractor to ensure the compliance of design documentation with the Russian standards and regulations.

The modernization of urea production at the PMF plant will be performed in accordance with the newest technology of Stamicarbon - Urea2000plus. By replacing part of the existing equipment and the addition of a new cycle of production facilities at PMF, the performance of the existing urea aggregate will be increased from 1930 tons per day to 2700 tons per day.

“For URALCHEM, with its role of a global player in the world fertilizer market, the increase of business efficiency is a strategic objective”, said Dmitry Konyaev. “The company’s priority is to increase production at existing facilities via modernization and introduction of the most advanced technologies. It is very important for us that our partner in this work is Stamicarbon - the leading global player in urea technology. This is an additional guarantee of the successful implementation of the project.”

“We are pleased to be the part of this promising project in Russia and to develop mutually beneficial cooperation with one of the industry leaders. We fully share the desire of URALCHEM to use the most advanced developments in the field of design, construction and implementation of modern facilities for production of mineral fertilizers”, Pejman Djavdan commented. “We are confident that our contribution to the modernization of the PMF will make it evolve into one of the most efficient production facilities.”

The modernization of Perm Mineral Fertilizers plant will be the second joint project of URALCHEM and Stamicarbon. In the end of 2013 the companies began the development of new technologies for urea synthesis. It is based on the intellectual property of Stamicarbon, as well on the results of URALCHEM and the Faculty of Chemistry of Moscow State University joint research. The new technology enables production of higher quality urea with lower capital costs.

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URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of phosphate 0.8 million tonnes of complex fertilizers and 1.2 million tonnes of urea. URALCHEM, OJSC is the largest ammonia and ammonium nitrate producer in Russia and the second largest producer of urea in Russia.

Stamicarbon is the innovation and license company of Maire Tecnimont Group and the global market leader in the licensing and development of urea production technology. The company holds more than 50% of the synthesis market share and 32% of urea granulation market share. Stamicarbon has over 60 years of experience licensing of urea production technologies and related services. This offers Stamicarbon customers various benefits such as anoptimum environmental performance, safety, reliability and high productivity with minimal investment. Stamicarbon technologies are used in more than 260 urea production plants. The company has implemented more than 90 revamp and debottlenecking projects in close partnership with their customers.

Maire Tecnimont Group is a global leader in international Engineering & Construction (E&C), Technology & Licensing and Energy Business Development & Ventures markets, with specific competences in plants, particularly in the hydrocarbons segment (Oil & Gas, Petrochemicals and Fertilizers), as well as in Power Generation and Infrastructures. The Group is present in over 30 countries and directly and indirectly controls over 45 operating companies, counting some 4,300 employees. The Group manages large-scale engineering, procurement and construction projects in many countries, including Russia. The first cooperation with Russia dates back to the 1930s, when the Group has contributed to the construction of one of the first plants to produce ammonia in the USSR. Up until today the Group has implemented 48 plants in the CIS (24 in Russia) for a total contracts value of more than USD 2 BN at historical values.

NIIK JSC, Scientific, Research and Design Institute of Urea and Organic Synthesis Products, is an engineering company that specializes in the production of urea, chemicals, control systems, construction and industrial safety. More than 100 large scale industrial units have been built using design projects of NIIK and with its participation.