Press-service

Press Release

 2009-06-19 

The Annual General Shareholders Meeting of OJSC “Kazanorgsintez” on results of company’s activity in 2008 was carried out today, 19 June 2009.  Prime Minister of the Republic of Tatarstan, Roustam Minnikhanov, Minister of Land and Property Relations, Azat Khamaev, Head of Moscow District Administration of Kazan Municipal Organization Executive Committee, Alexander Lobov and other guests took part in the Meeting. 

General Director of OJSC “Kazanorgsintez” Leonid Alekhin delivered his speech on results of activity in 2008. In his speech he mentioned that consequences of world financial crisis affected all petrochemical companies including OJSC “Kazanorgsintez”.   In this connection the Company could not finish the year with positive results. 
At the same time production capacities and sales amount increased in reported year. 410 thousand tones of ethylene were produced and over half million tones of polyethylene were sold – these are record performance indices.  New high density polyethylene grades, PE-100 polyethylene pipes production were mastered, production of new types of products – polycarbonate, butene-1 and carbon dioxide – was started.  In general, production growth rates in comparable prices made  106,7% in comparison with 2007. Proceeds from sales made 23,5 billion Rubles, profit from sales made  1,8 billion Rubles. The Company performs payments to all level budgets and payment of salaries in due time and in full.
However, due to rapid products price decrease profitability of the sales substantially decreased, and US dollar and EURO exchange rates increase led to negative exchange difference under foreign currency loans in amount of about 3 billion Rubles. As the result of these factors the Company achieved negative financial result in 2008 in amount of 2,8 billion Rubles. 
 Participants of the Meeting approved the Annual Report, Accounting Report of the Company for 2008. Due to absence of net profit of OJSC “Kazanorgsintez” under results of financial year 2008 it was decided not to announce and not to pay dividends under shares of OJSC “Kazanorgsintez”.  
Participants of the Meeting elected the Board of Directors of OJSC “Kazanorgsintez” consisting of 11 representatives. It includes:
1. Leonid S. Alekhin – General Director, OJSC “Kazanorgsintez”
2. Sergey V. Alexeev – First Deputy General Director, OJSC “Svyazinvestneftekhim”
3. Evgeny A. Grishin – RT President Counselor of State on Economical Issues 
4. Alexander N. Lobov – Head of Moscow District Administration of Kazan Municipal Organization Executive Committee
5. Vladimir V. Presnyakov – Deputy General Director, OJSC “TAIF”
6. Rinat K. Sabirov – Counselor of RT Prime Minister on Oil and Gas Chemical Complex
7. Andrey V. Sarkin – Head of Corporate Property and Investments Management, OJSC “TAIF”
8. Marat R. Safioullin – Minister on Economics of RT (appointed as a representative of RT to the Board of Directors based on special right (“gold share”))
9. Roustem N. Soulteev – First Deputy General Director, OJSC “TAIF”
10. Dmitry I. Teslenko – Head of Financial and Economic Department, OJSC “TAIF”
11. Albert K. Shigaboutdinov - General Director, OJSC “TAIF”

The Shareholders meeting approved ZAO “PricewaterhouseCoopers Audit” to be the auditor of the Company.  
          After completion of General Shareholders Meeting of OJSC “Kazanorgsintes” the first Board of Directors Meeting was held in new membership. The new Board of Directors upheld proposal of the Prime Minister of RT and again elected Albert K. Shigaboutdinov, General Director of OJSC “TAIF” as the chairman of the Board of Directors.   The Board of Directors confirmed the authorities of Leonid S. Alekhin as General Director of OJSC “Kazanorgsintez.