Acron

Acron Group is a leading Russian and global mineral fertilizer producer with a diversified product portfolio consisting of multi-nutrient fertilizers such as NPK, NP and bulk blends, as well as straight nitrogen-based products such as urea, ammonium nitrate and UAN. The Group also produces organic synthesis products, including methanol, formaldehyde and UFR, and inorganic synthesis products, such as industrial grade ammonium nitrate, carbon dioxide and calcium carbonate.

NPK, a mix of three primary nutrients – nitrogen, phosphorus and potassium – accounted for approximately 50% of the Group’s 2008 fertilizer sales by volume. The Group ranked first in Russia and second worldwide in the production of NPK fertilizers and accounted for approximately 6% of the total NPK production output in China. In addition, Acron produces approximately 1% of the total output of nitrogen and phosphate fertilizers globally and 11% of such output in Russia.

The Group’s products are sold in over 50 countries. In 2008, its output of ammonia and mineral fertilizers (exclusive of own use) totaled 3.6 mln tonnes in fast-growing, developing markets such as Russia and China, as well as countries in Latin America, Asia and the countries of the former USSR. In 2008, the Group’s output of organic and inorganic compounds (exclusive of own use) totaled 1.2 mln tonnes.

The Group has fertilizer production facilities in three locations: Acron, located in Novgorod Region in Russia’s northwest; Dorogobuzh, located in Smolensk Region in central-western Russia; and Hongri Acron, located in China’s Shandong Province.

In addition, with a view to securing supplies of phosphate and potash, the Group has acquired licenses for the development of two apatite-nepheline ore deposits in Russia’s Murmansk Region, and a potassium-magnesium salt deposit in Perm Region.

The Group also has significant logistics and transportation capabilities. These capabilities include approximately 2,100 railway units (which cover roughly half of its rail transport needs in Russia) and three seaport transshipment facilities on the Baltic Sea, through which the Group ships a substantial proportion of its exports.

The Group has distribution networks in Russia and China. Another integral part of its marketing strategy is Agronova International Inc, Acron’s trading company covering foreign markets.

The Group believes that these locations provide it with a strong platform to capitalize on projected fertilizer demand growth in Russia and China, which are expected to experience some of the faster growing fertilizer consumption growth globally.