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The information memorandum

The full and short name

Joint Stock Company «Grodno Azot»


JSC «Grodno Azot»

The address (location)


Pr-t Kosmonavtov 100, Grodno, Republic of Belarus, 230013

Website www.azot.by

Data of the State registration

Grodno City Executive Committee has registered the Society on 13.09.2002 by the decision
No 758 in the Uniform State register for legal bodies and individual businessmen № UNN
500036524

The information about the organization management, contact phones


as for 01.04.2014

Mayanov Konstantin Pavlovich General Manager +375 152 79 46 50 (office)


+375 29 7808101 (mobile)
Posledniaya Tamara Ivanovna First Deputy General +375 152 79 45 27
Manager - Deputy General +375 29 7811423 (mobile)
Manager on Economy and
Finance
Krotov Maxim Viktorovich Chief Engineer +375 152 79 41 17
+375 29 7871023 (mobile)
Obukhov Viktor Nikolaevich Acting Deputy General +375 152 79 49 61
Manager on Production +375 29 7871025 (mobile)
Petrov Pavel Viktorovich Acting Deputy General +375 152 79 44 45
Manager on Commercial +375 29 7871040 (mobile)
Matters
Lipsky Gary Vladimirovich Deputy General Manager +375 152 79 40 03
on Capital Construction +375 29 7871017 (mobile)
Kravchenko Michail Deputy General Manager +375 152 79 42 29
Varfolomeevich on Personnel +375 29 7871118 (mobile)
Management, Social
Matters and Ideology
Bobyr, Igor M. Vice General Director - +375 152 56 12 64
Director of PTC +375 29 7800155 (mobile)
«Khimvolokno»
Poznyak Alexander Antonovich Assistant to General +375 152 79 41 11
Manager

Rzaeva Antonina Mihajlovna Chief Accountant +375 152 79 45 35


+375 29 7871090 (mobile)
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I. General information about the organization

1) History of creation of the enterprise


According to the trends of the USSR national economy development for 1959-1969
on 10.04.1959 Council of Ministers of the USSR by the decision № 379 has approved
among constructions for the seven-year plan the Belarus nitric fertilizer plant (NFP).
The original project provided annual production of 167 thousand tons of ammonia,
240 thousand tons of weak nitric acid, 70 thousand tons of urea , 313 thousand tons of
ammonium nitrate.
In October, 1961 the management of NFP under construction has started to work.
On November, 30th, 1963 installation and construction personnel built a starting
complex to the State inspection. On December, 3rd, 1963 in ammonium nitrate division
were released first tons of fertilizer on imported ammonia.
In the beginning of January, 1965 the first line of Ammonia-1 plant and then in turn
Urea -1 line were put into operation. The second line of Ammonia-1 plant was put into
operation in January, 1967. Capacity of the plant reached 200 thousand tons a year.
The second stage of development of the enterprise assumed construction of the
second line of ammonia and urea production with designed capacity accordingly 218 and
180 thousand tons per year and caprolactam production with designed capacity of 50
thousand tons.
In March, 1970 Ammonia-2 plant, in April of the same year Caprolactam -1 plant and
in June, 1971 – Urea -2 plant were put into operation.
In October, 1970 Grodno fertilizer plant was transformed to chemical combine
named after S.O.Pritytsky.
In May, 1975 the Grodno chemical combine was transformed to the Grodno
production association "Azot".
The third stage of development was connected with construction in 1976 - 1979 of
large-capacity Ammonia-3 plant (capacity of 450 thousand tons/year) which was put into
operation in May, 1979, and Urea-3 plant (capacity of 330 thousand tons/year) which was
put into operation in October 1979, equipped with modern automatic equipment better , than
operated manufactures.
On April, 7th, 1981 valorous activities of the staff were distinguished by a high
government award - Order of Peoples' Friendship.
In November, 1981 caprolactam production of 2nd train was started up.
In 1985 Ammonia-4 plant with the capacity of 450 thousand tons a year was put into
operation.
In 1986 was started up Urea -4 plant with the capacity of 330 thousand tons a year.
Since December 1993 production of ammonium nitrate was shifted to production of
liquid nitric fertilizers (UAN), and from July, 1st 1992 manufacture of crystalline urea was
shifted to manufacture of urea solution for UAN.
In 1994 crystalline hydroxylamine sulphate was started up.
In 1996 on the basis of the deduced from operation plant Ammonia-2 was made the
production of crude methanol. At the end of 1999 according to a government program of
import substitution the production of rectified methanol with the capacity of 55 400 tons a
year was started up.
In 2002 together with the Dutch Engineering Company "Stamicarbon" was put into
operation trial installation on urea granulation in «a boiling bed». By results of installation
work high level of technological process and quality of released product was noted. JSC was
granted the right to duplicate the technology on her site without licensing.
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On August, 16th, 2000 by the decision of Executive Committee № 620 Grodno
production association «Azot» was transformed to the Grodno industrial republican unitary
enterprise «GPO Azot».
On August, 28th, 2002 according to the order of the Ministry of Economics of the
Republic of Belarus № 116 Grodno industrial republican unitary enterprise «GPO Azot»
was transformed to open joint-stock company «Grodno Azot».
On the basis of the decision of the Grodno city executive committee the record dtd
30.09.2011 was brought into the Uniform state register of legal bodies and individual
businessmen about an exception of open joint-stock company «Grodno Khimvolokno» due
to the termination of its activity by joining to JSC «Grodno Azot».

2) Principal activity (an activity from which the enterprise receives the basic volume
of revenue, share of the given kind of activity in total revenue amount, in %)

Production of nitric fertilizers - 48,0 %

3) Other kinds of activity carried out by the enterprise

Manufacture of the refined oils and fats


Manufacture of ready textile products, except clothes (covers)
Manufacture of ropes, cords, twine
Manufacture of other textile products (cord fabric, technical fabric)
Manufacture of petroleum products
Manufacture of industrial gases
Manufacture of other basic inorganic chemical substances
Manufacture of other basic organic chemical substances
Manufacture of nitric compounds
Manufacture of plastic in primary forms
Manufacture of agrochemical products
Manufacture of paints, varnishes, enamels and mineral pigments for them
Manufacture of soap and washing cleaning and polishing agents
Manufacture of perfumery and cosmetic products
Manufacture of the chemical products which are not included into other groups
Manufacture of artificial and synthetic fibers
Manufacture of plastic products for packing of the goods
Processing of metal products with use of the basic technological processes of mechanical
engineering
Manufacture of the other metal products which are not included into other groups
Manufacture of the equipment and apparatus for chemical processes
Manufacture of the goffered paper and cardboard, paper and cardboard tare
Edition of newspapers
Polygraphic activity which is not included in other groups
Capron line for fishing
Processing of a waste and breakage of nonferrous metals, extraction of mercury from lamps,
thermometers
Manufacture of the electric power by thermal power stations
The electric power developed by power stations of the general use, block stations and other
electro generating installations.
Electric power distribution
Manufacture of thermal energy by thermal power stations, independent boiler-houses, other
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sources
Collecting, purification and water distribution
Rent of the constructing equipment
Repair and maintenance service of cars under orders
Retail trade in shops
Granting of services by other places for residing
Granting of services by bars
Public catering
Activity of railway industrial transport
Activity of the other overland passenger transport which is not submitting to the schedule
Activity of an automobile truck transport
Leasing of own real estate
Hire of subjects of cultural and household
Technical tests and researches
Preschool education
Activity of sanatorium establishments
Medical practice
Dentist practice
Gathering and swapping of drains
Activity at sports objects
Cultivation of vegetables, their seeds, sprouts
Bee keeping

4) Enterprise capacities and market share


Description Units Capacity on the
beginning of 2014
1 Synthetic ammonia thousand tons 976,8
2 Sulfuric acid thousand tons 305,0
3 Nitric fertilizers on 100 % nitrogen thousand tons 750,1
basis
4 Caprolactam thousand tons 121,2
5 Methanol thousand tons 80,0
6 Carbonic acid of the highest grade thousand tons 24,0
7 Biodiesel fuel thousand tons 200,0
8 FAME thousand tons 30,0
9 Polyamide-6 thousand tons 93,34
10 Polyamide chemical fibers and yarns thousand tons 58,475
11 Polyester chemical fibers and yarns thousand tons 3,645

Product description World market share, %


Urea less than 1 %
UAN 2–3%
Ammonium sulfate 1 - 1,5 %
Caprolactam 6-8%
Methanol 2-3%

Share of PTC «Khimvolokno» in the market.


Manufacture of cord and industrial yarn in Belarus (PTC «Khimvolokno» JSC
«Grodno Azot») in 2012 made up 37,8 thousand tons that makes 7,3 % of the worlds
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production of PA-6 yarn.
In 2012 PTC «Khimvolokno» JSC «Grodno Azot» produced 7493 thousand tons of
polyamide texturized yarn what makes 0,83 % of the worlds volume of polyamide
(PA6+PA66) carpet yarn production and 1,7 % of the worlds volume of PA6 carpet yarn
manufacture.
Consumption of polyamide industrial yarn in the Russian Federation in 2013 was
about 14,0 thousand tons. Share of PTC «Khimvolokno» in the market of the Russian
Federation was 62,1 %.
Consumption of polyamide cord fabric in the Russian Federation in 2013 was
40005,1 thousand m2. Share of PTC «Khimvolokno» in the market of the Russian
Federation was 30,5 %.

5) Advantages of the enterprise (for example, the favorable location, raw-material


base presence, presence commodity distribution networks, own transport, available awards
of competitions, exhibitions, etc.)
- Proximity to Baltic sea ports;
- Presence of the European railway track;
- "Know-how" perfection;
- Qualified personnel;
- High innovative-technical potential.
Stability of the work, the guaranteed high quality of production, performance of all
proved requirements of consumers, excellent service - all it promoted creation of worthy
image of JSC «Grodno Azot» in the world markets of mineral fertilizers and caprolactam.
Acknowledgement to that is delivery to the enterprise of some high government awards,
award of the international prizes.
In 1970 as the repeated winner of competition between the industrial enterprises,
Grodno production association «Azot» received the Red Banner of the Central Committee
of the CPSU and Council of Ministers of the USSR on eternal storage, and in 1981 it was
awarded Order of Peoples' Friendship.

In 1970 as the repeated winner of competition between the industrial enterprises, the
Grodno production association «Azot» has received the Red Banner of the Central
Committee of the CPSU and Ministerial council of the USSR on eternal storage, and in
1981 year it has been awarded by an award of Friendship of the People.
The enterprise is the winner of awards of the Grodno regional executive committee
(2002 and 2005), the Governments of the Republic of Belarus (2006) for achievements in
the field of quality, in 2002 was awarded the diploma of the Belarus Chamber of commerce
as the prize-winner of republican competition" The Best exporter of year”. By results of
activities for 2007 «Azot» became the winner of city competition among the industrial
enterprises with delivery of the Red Banner.
Among the international awards received by «Azot» there are - a prize of Fund of
assistance to development of east countries "Gold globe" (1994), Grand prix of the
International program "Partnership for the sake of progress" (1997.), prizes "For the best
trade mark" (2000), "Erstmaker-2000" in a nomination "For dynamics and progress of
economic development" and others.
Many kinds of products produced by «Azot» were repeatedly included into number
of "the Best goods of year of the Republic of Belarus".

6) Licenses, patents, certificates ISO.


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Quality management system on manufacture of the basic production operates at the
enterprise and corresponds to the next requirements:
ISO 9001, certified by the international body of Bureau Veritas - the conformity
certificate № UA 226725 dtd 03.11.2011 is valid till 27.11.2014;
STB ISO 9001, certified by Grodno - the certificate of conformity BY/11205.01.007
01237 is confirmed 19.02.2014, valid till 19.02.2017.
In 2013 at the enterprise held the external audits which confirmed conformity of
quality management system to standard requirements.
Since 2004 the system of environment control corresponding to the requirements of
STB ISO 14001 functions at the enterprise. The system of environment control is certified
in National system of acknowledgement of conformity of the Republic of Belarus. The date
of the certificate of conformity is confirmed on 22.12.2012 and valid till 22.12.2015.
The control system of a labor safety and industrial safety corresponding to
requirements OHSAS 18001, certified by the international body of BUREAU VERITAS
operates at the enterprise since 2008. The conformity certificate No UA 226726 dtd
03.11.2011 is valid till 27.11.2014.
In 2012 at the enterprise the system of management of food safety of production of
liquid dioxide of carbon, conforming the requirements ISO 22000:2005, ISO/TS 22002-
1:2009 is introduced. The certificate of conformity No DNKFRC95891FH dtd 18.09.2012 is
valid till 17.09.2015.
Nine divisions of the enterprise are accredited on technical competence according to
requirements of standard STB ISO/MEK 17025: test laboratory (Central department of
technical control), the central laboratory of enterprise, department of technical diagnostics,
laboratory of not destroying control methods, test laboratory of mechanical-repair
production, sanitarian laboratory, division of tests and measurements of electric equipment,
sewage laboratory, calibration laboratory of Chief Metrologist Department.

At PTC "Khimvolokno" JSC "Grodno Azot" there are certified by BUREAU


VERITAS Certification body:
Quality Management System to conform to the requirements of the international
standard ISO 9001:2008, Certificate of Compliance UA227037 dd. November 08, 2012.
Valid till December 16, 2015;
Environmental Management System to conform to the requirements of the
international standard ISO 14001:2004, Certificate of Compliance UA226713 dd. October
25, 2011. Valid till November 15, 2014;
Occupational Safety Management System to conform to the requirements of the
international standard OHSAS 18001:2007, Certificate of Compliance UA227038 dd.
November 08, 2012. Valid till November 26, 2015.
In 2013 BUREAU VERITAS Certification body carried out supervisory audits of
Quality Management System, Environmental Management System and Occupational Safety
Management System. The systems were found as conforming to requirements of standards.

At PTC "Khimvolokno" with the purpose to confirm the conformity of activity of test
laboratories to requirements of STB ISO / IEC 17025-2007 there were accredited:
chemical research sector (CRS) (certificate No. BY /112 02.2.0. 3345 dd. 30.09.2008,
valid from February 20, 2012 till February 20, 2017). Accreditation area of CRS is physical
and chemical control of finished products;
methodical and analytical sector (МАS) (certificate No. BY /112 02.2.0. 0359 dd.
30.09.1996, valid from February 06, 2012 till February 06, 2017). МАS ensures control of
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raw material, oils, sanitary and industrial control of working zone air, ecological control of
ventilation emissions, outdoor air, sewage waters, soils and aerodynamic tests of ventilation
systems and air conditioning systems.
Test laboratories are accredited by National accrediting body of the Republic of
Belarus (Belarusian State Accreditation Center).

The enterprise has 40 patents for inventions and useful models (including 3 patents
for inventions - PTC «Khimvolokno»).
In connection with reorganization of JSC "Grodno Khimvolokno" by joining to JSC
“Grodno Azot” all rights of the legal owner to trade marks and the rights of patent holder on
patents for inventions (belonging to JSC «Grodno Khimvolokno») have been transferred to
legal body of JSC «Grodno Azot» and procedure of the state registration of transition of the
exclusive right concerning all objects of intellectual property registered in the State registers of
the Republic of Belarus, Russian Federation, Ukraine and Republic of Kazakhstan was made.

The list of security documents of objects of the intellectual property for guarding goods
export of PTC "Khimvolokno":
Republic of Belarus:
The invention «Fire-resistant polyamide composition» Patent No. 7161
Together with Mechanic Institute of metal polymer systems
named after V.A.Beliy » NAS Belarus and ОDО «Tekma»
Word trade mark «ГРОДНАМИД» Certificate No. 333
Word trade mark «GRODNAMID» Certificate No. 334
Graphic trade mark Certificate No. 10812
Combined trade mark Certificate No. 10813
Word trade mark «Гроднонить-УФ» Certificate No. 36620
Word trade mark «grodno-khim» Certificate No. 36379
Russian Federation:
The invention «The way of heat&light stabilized Patent No. 2330131
polycaproamide yarn reception»
The invention «Fire-resistant polyamide composition» Patent No. 2200744
Together with Mechanic Institute of metal polymer systems
named after V.A.Beliy »NAS Belarus and ОDО «Tekma»
Word trade mark «ГРОДНАМИД» Certificate No. 289384
Word trade mark «GRODNAMID» Certificate No. 280285
Combined trade mark Certificate No. 463701
Ukraine:
Word trade mark «ГРОДНАМИД» Certificate No. 61782
Word trade mark «GRODNAMID» Certificate No. 61783
Graphic trade mark Certificate No. 126168
Kazakhstan
Combined trade mark Certificate No. 39708

LIST
of special permissions (licenses)
as of 01.04.2014

1 2 3
8
No and date of State authorities granted the The license for the right of the
license issue license execution of the following activity
02300/1005-1 Gospromnadzor, Ministry of for the right of activity concerning the
dtd 30.03.2009 Emergency Measures of industrial safety
Republic of Belarus
02330/0494145 Ministry of Information of for the right of execution of the printing
dtd 30.04.2004 Republic of Belarus activity

02190/5-01053 Ministry of Transport and for the right of activity concerning the
dtd 11.06.2012 Communications of Republic of road transport
Belarus
02200/0064549 Ministry of Finance of Republic for the right of activity connected with
dtd 27.02.2009 of Belarus the precious metals and jewels

02120/1928 Ministry of Natural Resources for the right of activity connected with
dtd 05.12.2011 and Environmental Protection of the environment impact
Republic of Belarus
02260/17/160 Ministry of Industry of Republic for the right of activity connected with
dtd 07.03.2008 of Belarus manufacture of aluminum, lead, zinc,
tin, copper and casting of finished parts
and half-finished products from
aluminum and heavy nonferrous metals
02140/0184923 Ministry of Communications and for the right of activity concerning the
dtd 30.03.2009 Information of Republic of communications
Belarus
02010/0528785 Ministry of Internal Affairs of for the right of activity concerning the
dtd 26.02.2010 Republic of Belarus safety of legal and individual persons

02300/605 Ministry of Emergency for the right of activity concerning the


dtd 19.12.2005 Measures of Republic of Belarus fire safety

02040/0572445 Ministry of Health of Republic for the right of activity connected with
dtd 26.03.2009 of Belarus the turnover of narcotics, psychotropic
substances.
02040/6372 Ministry of Health of Republic for the right of execution of medical
dtd 26.03.2010 of Belarus activity.

02300/164-4 Ministry of Emergency for the right of activity concerning the


dtd 30.03.2009 Measures of Republic of Belarus using of atomic energy and ionizing
radiation sources.

09100/00232 The Belarusian State Concern for the right of execution of wholesale
dtd 05.04.2013 for Oil and Chemistry and retail trade of petrochemicals
9

II. Financial indices of business activity of the organization.

Index 2011 2012 2013

Cost of net assets, mln rbl . 5 111 754 6 955 866 7 853 277
Product sales, works and services revenue
6 029 269 8 413 436 9 858 427
(without taxes), mln rbl.
Profit (loss) from current activity, mln rbl.
900854 635043 294647
(page 090 of profit and loss statement)
Product sales, works and services profit, mln
1 059 258 855 034 980 804
rbl.
Net profit, mln rbl. 758 376 520 955 27 611
Profitability of sales, works, services, % 21,3 11,3 11,0
Accounts receivable*, mln rbl.
509 371 500 164 928 293
(page 170 + page 250 of balance sheet)
Short-term accounts payable*, mln rbl.
818 474 571 888 790 110
(page 630 of balance sheet)
Average wages and salaries, ths rbl. 3 523,6 6 379,6 8 053,3
* - Accounts receivable and accounts payable on 01.01.2012, 01.01.2013,
01.01.2014.

III. Information about produced output

No Product description Units 2011 год 2012 год 2013 год

Mineral fertilizers in 100%


1
nitrogen t 735 254 745740 762260
2 Caprolactam t 131 434 121269 129130
3 Technical methanol t 80 588 84279 72316
4 Cord fabric thous.m 45 415 49 549 41 277
5 Industrial yarn t 19 201 20 753 21 141
6 Texturized yarn t 6 102 7 493 6 366
7 Polyamide-6 t 22 697 51 625 77 742
8 Polymeric composite materials t 10 434 10 384 10 191

IV. Realized (or realized for last 3 years) investment projects with their cost,
volumes of the assimilated investments, data on the introduced new technologies, the
equipment, increase in volumes of manufacture, assortment expansion etc., new
technologies provided with introduction of new equipment.

1. Put in force of fixed capital in 2013: 1 108 187 million rbl.


Including major projects:
JSC «Grodno Azot»
1) Reconstruction of cyclohexanone rectificate production unit, cyclohexanone -2
plant (updating).
10
Cost of fixed assets - 213479 million rbl.
Date of input is 03.2013 (the order No 218 dtd 29.03.2013).
2) Reconstruction of hostel No 2 JSC «Grodno Azot». (updating).
Cost of fixed assets - 18458 million rbl.
Date of input 04.2013 (order dtd 12.04.2013 No 269).
3) Reconstruction of hostel No 2 JSC «Grodno Azot». (Updating). Rooms of housing
and utility department.
Cost of fixed assets - 864 million rbl.
Date of input 04.2013 (order dtd 12.04.2013 No 269).
4) Reconstruction of hostel No 2 JSC «Grodno Azot». (updating).
Seasonal works.
Cost of fixed assets - 936 million rbl.
Date of input 06 (order dtd 13.06.2013 No 453).
5) Reconstruction of cyclohexanone rectificate production unit, cyclohexanone -2
plant (updating).
Seasonal works.
Cost of fixed assets - 816 million rbl.
Date of input 06.2013 (order dtd 13.06.2013 No 456).
6) Upgrade of 2 case horizontal reheater of feed water, item 603 of ammonia – 4
plant.
Cost of fixed assets - 50347 million rbl.
Date of input 08.2013 (order dtd 30.08.2013 No 669).
7) Reconstruction of Urea - 4 plant with the purpose of increasing of capacity up to
1200t/day. 1st line of construction. Cost of fixed assets - 74288 million rbl.
Date of input 08.2013 (order dtd 30.08.2013 No 670).
8) Reconstruction of dairy farm in Gonchary village with the motor road and
construction of two artesian chinks (1-working, 1-reserve).
Cost of fixed assets - 43526 million rbl.
Date of input 09.2013 (order dtd 30.09.2013 No 740).
9) Reconstruction of Caprolactam-1 plant. Reduction of the fire-extinguishing system
in building 2007 to therules NTB 15-2007.
Cost of fixed assets - 7526 million rbl.
Date of input 11.2013 (order dtd 29.11.2013 No 903).
10) Intensification of benzene distillation in Caprolactam-1 plant.
Cost of fixed assets - 6342 million rbl.
Date of input 11.2013 (order dtd 29.11.2013 No 903).
11) Reconstruction of pool in sanatorium «Zhemchuzhina» . 2-nd starting complex.
Cost of fixed assets - 2364 million rbl.
Date of input 12.2013 (order dtd 31.12.2013 No 1005).

PTC "Khimvolokno"
12) Expansion of spinneret workshop
Fixed assets value – 3 314 mln. rub.
Date of realization – 02.2013, (Order No. 254 dd. 28.02.2013);
13) Reconstruction of caprolactam warehouse of plastics processing workshop.
Updating.
Fixed assets value – 12 991 mln. rub.
Date of realization – 08.02.2013, (Order No. 232 dd. 22.02.2013)
14) Complete technological spi-draw-winding plants for polyamide (PА6) industrial
yarns. 2nd start-up complex.
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Fixed assets value – 303 503 mln. rub.
Date of realization – 05.2013, (Order No. 621 dd. 31.05.2013)
14) Rebuilding of change room of mechanical repair workshop into medical unit
Fixed assets value - 1 637 mln. rub.
Date of realization – 06.2013, (Order No. 717 dd. 28.06.2013)
15) Reconstruction of caprolactam warehouse of plastics processing workshop.
Updating. Seasonal works.
Fixed assets value – 100 mln. rub.
Date of realization – 06.2013, (Order No. 718, dd. 28.06. 2013)
16) Installation of inspection table
Fixed assets value – 5 427 mln. rub.
Date of realization – 08.2013, (Order No. 904, dd. 30.08.2013)
17) Construction of the market-milk dairy farm for 777 milk-cows in Studeniki
village, Svisloch district. Updating. 2nd start-up complex.
Fixed assets value – 38 760 mln. rub.
Date of realization – 07.2013, (Order No. 819 dd. 31.07.2013)
18) Construction of grain-cleaning and drying complex КЗСВ – 30 «Lida-Aray» in
agrotown Novy Dvor, Svisloch district. 1st start-up complex
Fixed assets value – 5 755 mln. rub.
Date of realization – 07.2013, (Order No. 818 dd. 31.07.2013)
19) Construction of grain-cleaning and drying complex КЗСВ – 30 «Lida-Aray» in
agrotown Novy Dvor, Svisloch district. 2nd start-up complex
Fixed assets value – 1 473 mln. rub.
Date of realization – 10.2013, (Order No. 1131а dd. 31.10.2013)
20) Reconstruction of cord and nylon yarn production site. Reconstruction of twisting
site of TWW. Updating
Fixed assets value – 54 315 mln. rub.
Date of realization – 10.2013, (Order No. 1130а dd. 31.10.2013)
21) Reconstruction of farm territory for cattle fattening operation No. 1,2,3 in
agrotown Novy Dvor, Svisloch district.
Fixed assets value – 1 936 mln. rub.
Date of realization – 11.2013, (Order No. 1272 dd. 10.12.2013).
22) Reconstruction of farm territory for cattle reproduction in agrotown Novy Dvor,
Svisloch district.
Fixed assets value – 997 mln. rub.
Date of realization – 11.2013, (Order No. 1271 dd. 10.12.2013)

Investment projects planned to realization

The investment program of company in 2014 bases on projects which are scheduled in the
Program of perspective development of JSC «Grodno Azot» for 2011-2015 and for the
period till 2020.
The purpose of the designed program is:
- Increase the profit of the enterprise due to increase of volumes of production and
decrease of costs;
- Decrease of power consumption of production;
- Production of new competitive products;
- Reduction of exhausts of harmful substances in an environment.
The indicated program ensures the solution of the following tasks:
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• Increase of capacities for the production of ammonia, mineral fertilizers,
caprolactam, polyamide and products from it;
• Keeping of sales markets as for main kinds of production;
• Updating of the basic productive assets;
• Introduction of perspective technologies;
• Decrease of power constituting in the production cost;
• Decrease of specific norms of consumption of main kinds of raw material;
• Improving of working conditions and ecologies;
• Meeting the needs of the enterprises of Republic of Belarus in the raw
material purchasing for import;
• Increase of the profit at the expense of increase of production volumes and
realizations of production in the markets of CIS countries and far abroad;
• Decrease of costs for the production at the expense of introduction of the
high-technology equipment;
• Mastering of new competitive products.

1. Reconstruction of ammonia-3 plant with the increasing of capacity and decreasing


of power consumption
The purpose of the project:
- Increase of capacity of the plant on 19,7 thousand tons/year;
- Decrease of consumption of power resources (natural gas, return water) on 1
ton of ammonia;
- Decrease of exhausts of harmful substances in the environment on 1 ton of
ammonia;
- Increase of delivery of excess steam (2,7 MPa in industrial network).
At the present time:
The technology of heat using of ammonia after the ammonia compressor for the
heating of demineralized water, item 127-СА was introduced;
The installation of waste-heat boilers, item 103-C and item 104-C was made;
Reconstruction of air compressor, item 101J/JT according to agreement with JSC
NPF «ENTEKHMASH, Saint Petersburg » was made;
Reconstruction of the compressor of synthesis gas, item 103J/JT together with the
specialists of company «TRIZ», Saint Petersburg was made.
Term of realization: 2010-2015.

2. Reconstruction of ammonia-4 plant with the increasing of capacity and decreasing


of power consumption
The purpose of the project:
- Increase of ammonia production on 44,8 thousand tons/year;
- Decrease of power consumption up to 8,3 gigacal/t;
- Increase of excess steam (2,7 MPa in industrial network);
- Decrease of exhausts of harmful substances in the environment on 1 ton of
ammonia.
At the present time:
The installation of the new feed water heater, item 603 waqs made;
It is developed and handed over to the Equipment Department the technical
assignment concerning the purchasing of additional section of heat exchanger, item 604, the
contract for the delivery was concluded;
13
It is developed and handed over to the Equipment Department the technical
assignment concerning the purchasing of AVO, item 429, the contract was concluded;
The information concerning the reconstruction of AVO, 903 A, B, V, G is examined.
Term of realization: 2010-2014.

3. Reconstruction of air separation units at methanol plant.


The purpose of the project:
- Decrease of power consumption on 43135,54 thousand kW/h per year;
- Decrease of consumption of return water on 14446,71 thousand m3 /year;
- Improving oxygen quality up to the technical and medical level.
At the present time:
22.08.2013 on the meeting of competitive commission concerning the purchasing of
two modular air separation units for methanol plant the envelopes with the offers from
qualifying applicants were opened.
According to «Method of competitive offers estimation», approved by the chief
engineer, the winner of tenders was determined.
It was company «Red Mountain Energy Co», Moscow. The contract with the
company «Red Mountain Energy Co.» was concluded 15.10.2013.
At the present time the study of financing and fulfillment of the contract is made. The
negotiations with bank «BPS-LEASING» concerning the financing through the purchasing
of air separation units in leasing are conducted.
Term of realization: 2010-2016.

4. Construction of the plant for the production of nitric acid with capacity 1200 t/day
with the reconstruction of existing UAN production.
The purpose of the project:
- Increase of capacity of the plant for the production of nitric acid on 150 thousand
tons/year;
- Increase of capacity of the plant for UAN production on 422 thousand
tons/year;
- Replacement of old energy-intensive production of nitric acid on modern and
high efficiency;
- Decrease of consumption of power resources;
- Decrease of exhausts of harmful substances in the environment as a result of
application of modern technologies and equipment.
At the present time:
Together with the winner of tender (company «ThyssenKrupp Uhde GmbH») the
contract was signed 30.07.2013;
The procedures connected with the beginning of work performance under the
contract are carried out, i.e. advance payment is effected and the letter of credit in favor of
the seller is opened.
Term of realization: 2010-2017.

5. Reconstruction of caprolactam production.


The purpose of the project:
- Increase of capacity of caprolactam on 18,8 thousand tonsyear;
- Decrease of consumption of heat- and electric power;
- Decrease of consumption of benzene and soda caustic for the caprolactam
production;
14
- Improvement of labour conditions of the operating personnel;
- Reduction of exhausts of harmful substances in the environment as a result of
using of modern technologies and equipment.
At the present time:
The facility «Reconstruction of unit of receiving of rectificate cyclohexanol at
cyclohexanone – 2 plant » is put in operation 30.06.2012;
The facility «Processing of Х-oils of distillation section at cyclohexanone-1 plant.
The stage of cyclohexanol-rectificate receiving (column C-534 А/V) at cyclohexanone-1
plant» is put in operation 28.11.2012;
The facility of reconstruction of caprolactam-1 plant:
«Reconstruction of unit of cyclohexanoneoxime extraction and cyclohexanone
distillation from ammonium sulphate solution of oximation stage of caprolactam-1 plant», «
Reconstruction of neutralization stage of caprolactam-1 plant», «Reconstruction of
evaporation stage of caprolactam water solution of caprolactam-1 plant» are accepted for
operation 18.12.2012;
The facility «Reconstruction of caprolactam distillation stage of caprolactam-1 plant»
is accepted for operation 29.12.2012;
The facility «Reconstruction of caprolactam-1 plant. Reduction of the fire-
extinguishing system in building 2007 to the rules NPB-15-2007» is accepted for operation
29.11.2013;
The facility «Intensification of benzene distillation stage of caprolactam-1 plant» is
accepted for operation 29.11.2013;
The facility «Reconstruction of rectification of cyclohexanone - 2 plant» is accepted
for operation 29.03.2013.
For 2014:
- Reconstruction of hydroxylamine sulphate plant;
- Reconstruction of ammonium sulphate plant.
Term of realization - 2014.

6. Construction of granulated polyamide-6 plant with the capacity of 35000 tons/year


The purpose of the project:
- Creation of modern high efficiency production for the production of polyamide-6
granulate;
- Arrangement of high-level processing of own raw material;
- Arrangement of full process cycle of polyamide-6 granulate production;
- Securing of stability of the enterprise to caprolactam market fluctuations;
- Creation of additional places of work.
At the present time:
Company «Aquafil Engineering» (Germany) according to the agreement No B 0708
dtd September 24, 2007 is carried out the delivery of the equipment and the engineering
documentation.
Installation and construction works are made, namely:
Construction works in the production building, in the warehouse of finish products,
in the boiler-house, in the the water-cooling tower, are made;
Installation of equipment of the basic building and boiler-house is made;
Works concerning the outside nets of electric-power supply, water pipe and
canalization are made.
Planned input in operation of this plant is Q3, 2014.
Estimated cost of the project: 315486 mln.rbl.
15
Term of realization - 2007 - 2014.

1. Increase in volume of composite materials production.


Project is implemented based on high technology and advanced equipment of
company - LRS planung&technologie, Germany. The project provides for installation of
complete line to manufacture chips of polymer composite materials with a production
capacity of 9 tons per day.
Implementation period – III Quarter 2012 - II Quarter 2014.
Project estimated cost: 17 629 mln.rub.
Sources of financing - banks credits and a special fund for financial support of
concern’s organizations.
At the present time:
it is effected delivery to warehouse and customs clearance of equipment of LRS
planung&technologie, Germany;
it is performed work in order to clear the area.

2. Installation of rope making machine to manufacture 3-strand ropes with different


diameter.
Scheduled production capacity of machine is up to 2,5 thous. running meters per day.
Implementation period - IV Quarter 2012 - IV Quarter 2014.
Project estimated cost: 4 840 mln.rub.
Sources of financing - banks credits and own means.
At the present time it is concluded a Contract for delivery of equipment with
company SIMA, Italy.

3. Installation of rapier weaving machine.


Project is intended to increase the volumes of production and to expand the
assortment of industrial fabrics.
Implementation period - IV Quarter 2013 - IV Quarter 2014.
Project estimated cost: 2 070 mln.rub.
Sources of financing – own means and a special fund for financial support of
concern’s organizations.
At the present time it is executed Task for procurement of rapier weaving machine.

4. Installation of 48-strand braiding machines (5 pcs)


Project is intended to increase the production volume of high quality cordage, which
are in household demand, as well as special-purpose products– safety ropes and fire safety
ropes.
Project implementation period - II Quarter 2013 - Quarter 2014.
Project estimated cost – 2 625 mln.BYR.
Sources of financing – own means.
At the present time:
it was concluded a Contract for delivery of equipment with company Herzog,
Germany;
it was started the preparation of design and estimate documentation.

5. Improvement of conditioning process in TWW.


As a consequence of project implementation, it is planned to put into operation 6
conditioners with air recirculation with total air capacity 600 thous. m3/hour, and total rated
16
consumed power - 564 kW. Conditioners are installed instead of obsolete conditioners with
total production air capacity 750 thous. m3/hour, and total rated consumed power 891 kW.
Implementation period - III Quarter 2012 - IV Quarter 2014.
Project estimated cost: 20 800 mln.rub.
Sources of financing – own means.
At the present time:
it was concluded a Contract for delivery of equipment with company IООО Ecо-
energo;
it was performed prepayment for equipment.

6. Installation of water boiler (to serve peak loads within heating season).
Implementation period - IV Quarter 2012 - II Quarter 2014.
Project estimated cost: 9 020 mln.rub.
Sources of financing – own means.
At the present time:
the equipment was delivered;
it is performed construction and erection work.

V. Structure of the employees (including data from PTC “Khimvolokno”) as of


11.04.2014.:

Age: Total
-25 25-35 35-40 40-45 45-50 50-55 55+
Number, including 454 2017 989 1152 1311 1591 843 8357
- number of 59 936 438 310 266 353 229 2591
employees with
higher education
- with specialized 187 473 172 207 285 372 191 1887
college education
- with technical 172 541 325 504 534 462 223 2761
education
- with secondary 35 63 53 126 226 402 196 1101
education
- with base education 1 4 1 5 2 0 4 17

Total number of employees as of 11.04.2014: 8357


- number of management personnel 679
- number of production and process personnel, 8182
Including the number of basis workers 2116

VI. Structure of products (works, services) realization:

Structure (in %) 2010 2011 2012 2013


Domestic market 53,6 30,9 44,3 43,5
Foreign market 46,4 69,1 55,7 56,5
Total 100 100 100 100
Production of the enterprise is successfully delivered to the markets of Latin and
South America, Africa, Europe, Asia and Australia.
17

VII. Information about the land plots that are in use, rent, property

LIST OF LAND-USE
of Grodno State Open Joint Stock «Grodno Azot»
as of 18.04.2014 Grodno

State certificate
for the right of
Decision of
land-use
Under which object the overhead
Territory (certificate The right to
No the land plot is organization
, hectares number, date of land plot
allotted (number,
issue), certificate
date of issue)
of state
registration
1 Land plot for 4,1321 SC No 0180840 Grodno City permanent
maintenance of the 30.06.2005 Executive use
upper way (railway Certificate Committee
track with rail gage of (document ID) No97
1435 mm for roads №400/356-328 17.02.2005
and other 06 .05. 2005
transportation routes)
Grodno Oblast,
Grodno,
Kosmonavtov Av., 100

2 Land plot for 1,1072 SC No 0180841 Grodno City permanent


maintenance of 30.06.2005 Executive use
railway track number Certificate Committee
7 (under roads and (document ID) No97
other transport links) No 400/356-285 17.02.2005
Grodno Oblast, 06.05.2005
Grodno,
Kosmonavtov Av., 100

3 House hold plot, land 9,1936 SC No 0180842 Grodno City Permanent


under hotel 30.06.2005 Executive use including
"Rubanovka", photo Certificate Committee 6,51 hectares
lab, dentistry, sport (document ID) No97 of agricultural
club No 400/356-286 17.02.2005 lands (2,89
Grodno Oblast, 06.05.2005 arable land,
Grodno, 3,62 perennial
Kosmonavtov Av., 100 trees)

4 Land plot No 1 for 404,8219 SC №0180843 Grodno City permanent


production area 30.06.2005 Executive use
service Certificate Committee
Grodno Oblast, (document ID) No97
Grodno, No 400/356-283 17.02.2005,
18
Kosmonavtov Av., 100 06 .05. 2005 No 213
08.04.2009.
Land plot No 2 for 1,7485 Certificate Grodno City permanent
production area (document ID) Executive use
5 service No 400/448:566 Committee
Grodno Oblast, 09.11.2006 №107
Grodno, 08.04.2009
Kosmonavtov Av., 100

6 Land plot for 1,327 Certificate Grodno City permanent


production territory (document ID) Executive use
service No 400/1119- Committee
Grodno Oblast, 2942 №213
Grodno, 7.12.2011 15.02.2006
Kosmonavtov Av., 100

7 Kindergarten No 92, 1,0155 SC №0260377 Grodno City permanent


Grodno 28.11.2005 Executive use
Kosmonavtov Av., 34а Certificate Committee
(document ID) No 363
No 400/92-366 15.06.2005
11.10.2005
8 Kindergarten No 99, 1,0687 SC №0261840 Grodno City permanent
Grodno 28.11.2005 Executive use
pr. Kletskova,9 Certificate Committee
(document ID) No 363
№400/92-366 15.06.2005
11.10.2005
9 Kindergarten No 28, 1,1320 SC No 0260380 Grodno City permanent
Grodno 28.11.2005 Executive use
ul. Gorkogo, 69а Certificate Committee
(document ID) No 424
No 400/92-369 20.07.2005
15.11.2005

10 Kindergarten No 40 1,0352 SC №0260423 Grodno City permanent


Grodno 28.11.2005 Executive use
ul. Pushkina, 26a Certificate Committee
(document ID) No 424
No 400/92-368 20.07.2005
31.10.2005
11 Sanatorium Certificate Grodno City permanent
‘Zhemchuzhina” 5,1734 (document ID) Executive use
Grodno Oblast No 400/385-3287 Committee
Grodno 13.12.2010 No 819
ul. Sanatornaya, 26 Extract from the 24.11.2010
Register of Grodno City
Rights, Executive
Restrictions Committee
of(encumbrances) No 715
19
right to the land 22.12.2012
plot Extract from
No 324:36/14 the Decision
No 390
19.07. 2013
Extract from
the Decision
No 528
23.09. 2013
12 Land for the operation 0,1840 SC №0261757 Grodno permanent
and maintenance of 21.12.2005 District use
the boiler house Certificate Executive
Grodno Oblast (document ID) Committee
Grodno No 400/267-237 No 492
ul.Sanatornaya, 20 08.11.2005 25.08.2005

13 Recreation Camp 3,8306 SC №0261757 Grodno permanent


"Kupalinka" 21.12.2005 District use
Grodno Oblast Certificate Executive
Grodno (document ID) Committee
ul.Sanatornaya, 20 No 400/267-236 No 492
08.11.2005 25.08.2005
14 Land plot No1 for the 0,2507 Certificate Grodno City temporary use
improvement of the (document ID) Executive
neighborhood for a No 400/296-3284 Committee
hostel No 2 (part of 06.06.2012 No 706
land plot is under 09.12. 2013
registration for
permanent use for
parking lot) 0,2734 Certificate
Land plot N 4 for (document ID)
construction of power No 400/296-3287
supply networks for 07.06.2012
the hostel No 2

15 Land for hostels: permanent


Hostel: 2 ; Grodno, use
2nd Pereulok Belusha,2
0,1628 SC No 0306808 Grodno City
28.02.2006 Executive
Certificate Committee
(document ID) No 363
No 400/92-52 15.06.2005
05.01.2006
20
Hostel: 8 ; Grodno, 0,1681 SC No 0306802
2nd Pereulok Belusha, 28.02.2006.
8 Certificate
(document ID)
No 400/92-58
05.01.2006

0,1717 SC No 0306805
nd
Hostel: 4; Grodno, 2 28.02.2006
Pereulok Belusha,4 Certificate
(document ID)
No 400/92-57
05.01.2006

0,2955 SC No 0306807
Hostel: 19; Grodno, 28.02.2006
ul. Belusha 19 Certificate
(document ID)
No 400/92-51
05.01.2006

0,1552 SC №0306806
Hostel: 12а ;Grodno , 28.02.2006
2nd Pereulok Certificate
Belusha,12a (document ID)
No 400/92-56
05.01.2006
Certificate Grodno City
0,1455 (document ID) Executive
ul. Belusha 22 No 400/26:105 Committee
16.02.2007 No 504
21.07.2008
SC №0306804
0,1392 28.02.2006 Grodno City
ul.Lidskaya 25; Certificate Executive
Grodno, ul. Lidskaya, (document ID) Committee
25 No 400/92-54 No 363
05.01.2006 15.06.2005
16 Pier by the River 0,0925 Certificate Grodno Rent - 25
Neman (document ID) District years
Grodno Oblast No 400/1037- Executive
Grodno, ul. Karskogo 1844 18.05.2010 Committee
65 No 117 dd.
02.03.2010
17 Land for allocation of 4,5320 Certificate Grodno permanent
health care buildings (document ID) District use
21
and service buildings No 400/556-4543 Executive
(for Sanatorium 14.02.2014 Committee
"Zhemchuzhina" No 36
Grodno Oblast, 27.01.2014
Grodno,
ul. Sanatornaya, 24
18 Land for the 15,7055 Certificate Purchase permanent
maintenance and (document ID) Agreement use
operation of buildings No 400/296-2386 No 41-017-
and facilities of the 18.04.2011 10-П
Gagarin Camp 07.12.2010

19 Land for servicing 1,5687 Certificate Grodno City permanent


small sports facilities (document ID) Executive use
rifle sport club, sports No 400/1101- Committee
complex 3666 No 80
Grodno Oblast, 29.08.2012 20.02.2013
Grodno,
Kosmonavtov Av., 100

20 Land for the 5,3056 Certificate Grodno City Rent until 18


placement of the (document ID) Executive September,
processing industry No 400/136-2481 Committee 2062
(filter) No 400/136-2482 No 505
Grodno Oblast, 28.12.2012 19.09. 2012
Grodno, ul. Karskogo,
65
21 Land plot for shutoff 0,1001 Certificate Grodno City Rent until 18
and safety valves (document ID) Executive September,
service, Grodno Oblast No 400/136-2491 Committee 2062
Grodno, ul.Karskogo No 400/136-2492 No 505
65 09.01.2013 19.09.2012

22 Land for service of 0,2612 Certificate Grodno City Rent until 18


pump station of th 1st (document ID) Executive September,
lift with a protective No 400/136-2672 Committee 2062
dike No 400/136-2674 No 505
Grodno Oblast 22.07.2013 19.09. 2012
Grodno, ul.Karskogo
65

23 Land plot for service 1,9479 Certificate Grodno City Rent until 18
of the left sludge (document ID) Executive September,
collector in Grodno by No 400/136-2483 Committee 2062
highway M-6, 2nd km. № 400/136-2484 No 505
Grodno Oblast 28.12. 2012 19.09. 2012
Grodno, ul. Karskogo
65
22

24 Land plot for service 2,5915 Certificate Grodno City Rent until 18
of the left sludge (document ID) Executive September,
collector in Grodno by No 400/136-2485 Committee 2062
highway M-62, 2nd No 400/136-2486 No 505
kilometer. 28.12 2012 19.09. 2012
Grodno Oblast
Grodno, ul.Karskogo
65
25 Land for maintenance 0,5297 Certificate Grodno City Rent - 99 year
of access road to the (document ID) Executive
car park near the No 400/136-2487 Committee
railway workshops 05.01.2013 No 549
checkpoint No8 09.10.2012
Grodno Oblast, No 615
Grodno, 13.11.2012
Kosmonavtov Av., 100

26 Land for maintenance 0,4412 Certificate Grodno City Rent until 17


of shore protection (document ID) Executive November,
works near pump No 400/136-2921 Committee 2063
station of the 1st lift No 400/136-2920 No 639
Grodno Oblast, 21.01.2014 18.11.2013
Grodno, ul.Karskogo

27 Land for service 0,3288 Certificate Grodno Rent is valid


station of water (document ID) Oblast up to
deferrization and No400/1007-6023 Executive 26.03.2112
utilities to the station, 25.06.2013 Committee (Contract No
Grodno, area of health No 175 2856)
camp for children 27.03. 2013
"Kupalinka" land plot
No1, Grodno Oblast,
Grodno
28 Land for service Certificate
station of water (document ID)
deferrization and 0,0174 No 400/1007-
utilities to the station, 6020
Grodno, area of health 25.06.2013
camp for children
"Kupalinka" land plot
No2, Grodno Oblast,
Grodno
23
29 Land for service Certificate
station of water 0,0121 (document ID)
deferrization and No400/1007-6021
utilities to the station, 25.06.201
Grodno, area of health
camp for children
"Kupalinka" land plot
No3, Grodno Oblast,
Grodno
30 Land for service Certificate
station of water 0,0871 (document ID)
deferrization and No 400/1007-
utilities to the station, 6024
Grodno, area of health 25.06.2013
camp for children
"Kupalinka" land plot
No4, Grodno Oblast,
Grodno
31 Land for service 0,0307 Certificate Grodno Rent is valid
station of water (document ID) Oblast until
deferrization and No 400/1007- Executive 26.03.2112
utilities to the station, 6025 Committee (Contract No
Grodno, area of health 25.06.2013 No 175 2856)
camp for children 04.07.2013 27.03. 2013
"Kupalinka" land plot
No5, Grodno Oblast,
Grodno

32 Land plot for the 0,2675 Certificate Grodno permanent


placement of (document ID) Oblast use
connection objects to No 400/345- Executive
the object "Extension 4716 Committee
of the sanatorium" 08.08. 2013 No 329
Zhemchuzhina "JSC 13.06. 2013
Grodno Azot "with the
reconstruction of the
health center
“Zdorovie” in Grodno,
land No 1
33 Land plot for the 0,2708 Certificate Grodno permanent
placement of (document ID) Oblast use
connection objects to No 00/345-4722 Executive
the object "Extension 23.08. 2013 Committee
of the sanatorium" No 329
Zhemchuzhina "JSC 13.06. 2013
Grodno Azot "with the
reconstruction of the
health center
“Zdorovie” in Grodno,
land No 2
24
34 Grodno Oblast 0,26705 Certificate Grodno permanent
Grodno (document ID) District use
Skidelskoe Highway No 400/267-510 Executive
external heat network 25.07. 2006 г. Committee
No 823 от
27.11.2003
35 Grodno Oblast Grodno 0,0001 Written extract Grodno permanent
Skidelskoe Highway Oblast use
external heat network No296:229/12:97/ Executive
up to pavilion П 1-3, 12 Committee
У-1 08.07.2011 No 357
25.05.2011
36 Grodno Oblast 0,22845 Written extract Grodno permanent
Grodno No 1007:97/12 District use
Skidelskoe Highway 08.07.2011 Executive
external heat network Committee
up to pavilion П 1-3, No 823
У-2 27.11.2003

37 Land plot for the 15,00 No 029160 Grodno permanent


maintenance and Act registered in District use
operation of water the record book Executive
treatment plants, for the right to Committee
Grodno Oblast, use land No 6
Grodno, tract No 5229 16.02.1995
"Grandichi" 23.03.1995

38 Land plot for service 11,8537 No 006832 Grodno permanent


of underground Act registered in District use
communications of the record book Executive
river water. for the right to Committee
use land
Grodno Oblast No 5167
Grodno, Karskogo 12.10.1993
street.
39 Plots of land for Grodno
reconstruction and Oblast
maintenance of Executive
pressure collectors Committee
workshop and No 15
purification of 16.01.2014
industrial waste water
Grodno Oblast,
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania
25

0,0027 Certificate
( 3*0,000 (document ID) permanent
Land plot No1,No 2, 9) No 400/202-6586 use
No3 No 400/202-6587
No 400/202-6588
13.03.2014

Certificate
1,0452 (document ID) temporary use
No 400/202-6589 as for a term
Land plot No 4 13.03.2014 of 14 months

40 Land plot for 1,1104 SC 0260378 Grodno City permanent


maintenance of 28.11.2005 Executive use
kindergarten building, Certificate Committee
Kindergarten No 56, (document ID) No 424
Grodno, Stroitelei Ave. No 400/202-6589 20.07.2005
19

41 Land plot for 0,9150 SC 0263064 Grodno City permanent


maintenance of 28.11.2005 Executive use
kindergarten building, Committee
Kindergarten No 63, No 424
Grodno 20.07.2005
ul. Zakharova, 7

42 Land plot for 1,0415 SC 0260379 Grodno City permanent


maintenance of 28.11.2005 Executive use
kindergarten building, Committee
Kindergarten No 50, No 424
Grodno 20.07.2005
ul. Dombrovskogo, 33

43 Land plot for 0,9366 SC 0260381 Grodno City permanent


maintenance of 28.11.2005 Executive use
kindergarten building, Committee
Kindergarten No 42, No 424
Grodno 20.07.2005
ul. Kutuzova, 28/1

LIST OF LAND-USE
26

of Grodno State Open Joint Stock «Grodno Azot»


as of 18.04.2014 Grodno District
State certificate
for the right of
land-use Decision of
(certificate the overhead
Under which object Plot
number, date of organization The right to
No the land plot is territory,
issue), certificate (number, the land plot
allotted hectares
of state date of issue)
registration

1 Land plot for 12,54710, Certificate Grodno permanent


placement of buildings (document ID) District use
of "Khimik" camp №400/1007-5560 Executive
Grodno Oblast, 03.01.2013 Committee
Grodno District, No 193
area of Beloye Lake 22.03.2006
No 579
07.08.2007
2 Land plot for 0,0042 Certificate No 261
maintenance and (document ID) 04.04.2008
operation of the No 400/324-268 No 77
transformer plant 10.04.2006 06.02.2009
building Grodno No 67
Oblast 25.01.2010
Grodno District, No 905
area of Beloye Lake 10.12.2012
Grodno
3 Land plot for 0,0739 Certificate Oblast
maintenance and (document ID) Executive
operation of the No 400/324-267 Committee
pumping station 10.04.2006 No 82
building 13.02.2008
Grodno Oblast
Grodno District,
area of Beloye Lake
4 Land plot for 75,8748 Certificate Grodno permanent
maintenance of (document ID) District use
bioponds and sludge No 400/345-3194 Executive
beds 21.06.2008 Committee
Grodno Oblast No 669
Grodno District, 20.09.2007
Sopotskinsky
settlement council,
area of v.Berezhany
5 Land plot for 0,1384 Certificate Grodno permanent
maintenance of meat (document ID) District use
processing unit No 400/601-2792 Executive
27
Grodno Oblast 05.06.2009 Committee
Grodno District, No 356
Indurskoe Highway, 30.04.2009
v.Lutskovlyany,
ul. Jubilejnaya 56A

6 Land plot for the 0,2187 SC №0258321 Grodno permanent


operation and 28.02.2006 District use
maintenance of Certificate Executive
industrial waste (document ID) Committee
landfill No 400/267-63 No 710
Grodno Oblast, 27.01.2006 25.11.2005
Grodno District, area
of v.Gornitsa
7 Plots of land for Grodno temporary use
reconstruction and Oblast for the period
maintenance of Executive of 14 months
pressure headers of Committee
workshop for No 15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania
1,1312 Certificate
(document ID)
Land plot No1 No 400/202-6581
12 .03.2014

1,3293 Certificate
(document ID)
Land plot No 2 No 400/202-6584
13.03.2014

0,7452 Certificate
(document ID)
Land plot No 3 No 400/202-6580
12.03.2014

0,6862 Certificate
(document ID)
Land plot No 4 No 400/202-6566
12.03.2014
8 Land plot No 5 0,7321 Certificate Grodno temporary use
(document ID) Oblast for the period
28
No 400/202-6565 Executive of 14 months
dd. 12.03.2014 Committee
No 15
Land plot No 6 1,7817 Certificate 16.01.2014
(document ID)
No 400/202-6552
11.03.2014

Land plot No 7 1,5800 Certificate


(document ID)
No 400/202-6544
11.03.2014
9 Plots of land for Grodno permanent
reconstruction and Oblast use
maintenance of Executive
pressure headers of Committee
workshop for No 15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania

0,0024 Certificate
Land plot No 34 (document ID)
No 400/202-6523
10.03.2014

0,0024 Certificate
Land plot No 35 (document ID)
No 400/202-6524
10.03.2014

0,0024 Certificate
Land plot No 16 (document ID)
No 400/202-6526
10.03.2014

0,0025 Certificate
Land plot No 17 (document ID)
No 400/202-6527
10.03.2014
10 Land plots for Grodno permanent
reconstruction and Oblast use
maintenance of Executive
pressure headers of Committee
29
workshop for No 15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania

0,0009 Certificate
(document ID)
Land plot No 41 No 400/202-6533
10.03.2014

0,0054 Certificate
(6*0,000 (document ID)
Land plot No 40, 39, 9) from No
38, 37, 36, 33. 400/202-6534
to No 400/202-
6539
11.03.2014
0,0036
Land plot No (4*0,000 Certificate
32,31,30,29. 9) (document ID)
from No
400/202-6540
to No 400/202-
6543
No28 0,0009 11.03.2014

Certificate
(document ID)
No 400/202-6545
11.03.2014
11 Land plots for Grodno permanent
reconstruction and Oblast use
maintenance of Executive
pressure headers of Committee
workshop for No 15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
30
Lithuania

No21- No27,No26
Land plot No27, 0,0009 Certificate
26,25, No22- (document ID)
24,23,22,21. 0,0009 No400/202-6550,
No23- No400/202-6551.
0,0009 11.03.2014
No24- No25,No24
0,0024 Certificate
No25- (document ID)
0,0024 No400/202-6553,
No26- No400/202-6554.
0,0009 dd. 11.03.2014
No27- No23,No22,No21
0,0009 .
Certificate
(document ID)
from
No 400/202-6555
to
No 400/202-6557.
11.03.2014
12 Land plots for Grodno permanent
reconstruction and Oblast use
maintenance of Executive
pressure headers of Committee
workshop for No15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania
0,0045 Certificate
(5*0,000 (document ID)
Land plot No20,19,18, 9) from
15,14. No 400/202-6560
to
No400/202-6564.
11.03.2014
0,0009
Land plot No 13 Certificate
(document ID)
No400/202-6567
12.03.2014
13 Land plots for Grodno permanent
31
reconstruction and Oblast use
maintenance of Executive
pressure headers of Committee
workshop for No15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania

0,0027 Certificate
Land plot No8,9,10, (3*0,000 (document ID)
9) from
No 400/202-6577
пto
No 400/202-6579.
12.03.2014.
14 Land plots for Grodno permanent
reconstruction and Oblast use
maintenance of Executive
pressure headers of Committee
workshop for No 15
purification of 16.01.2014
industrial waste water
Grodno Oblast
Grodno District,
near the interchange at
4,193 km of road P-
145-Grodno-Ostrino-
Raduń-border of
Lithuania
0,0018 Certificate
(document ID)
Land plot No 11 No 400/202-6582
12.03.2014

0,0009 Certificate
(document ID)
Land plot No 12 No 400/202-6583
13.03.2014

LIST OF LAND-USE
32

of Grodno Open Joint Stock Company “Grodno Azot” as per


18.04.2014 on the lands of Ivie Region

State certificate
for the right of
Decision of
land-use
Under which object Plot the overhead
(certificate The right to
No the land plot is territory, organization
number, date of the land plot
allotted hectares (number,
issue), certificate
date of issue)
of state
registration
1 Land plot for 3,9761 Certificate Grodno permanent
construction and (document ID) Oblast use
service of potato No 441/627-8202 Executive
storage house 15.01.2014 Committee
Grodno Oblast, No 712
Ivie Region, Ivie 05.12. 2013
village council
ag.Daylidy
Land plot for 0,1832 Certificate Grodno temporary use
construction and (document ID) Oblast for 12 months
maintenance of potato No 441/627-8206 Executive
storage house and 15.01.2014 Committee
engineering structures No 712
to it. Grodno Oblast 05.12.2013
Ivie Region, Ivie
village council
ag.Daylidy
3 Land plot for 0,0509 Certificate Grodno temporary use
construction and (document ID) Oblast for 12 months
maintenance of potato No 441/627-8205 Executive
storage house and 15.01.2014 Committee
engineering structures No 712
to it. Grodno Oblast 05.12.2013
Ivie Region, Ivie
village council
ag.Daylidy
4 Land plot for 0,0606 Certificate Grodno temporary use
construction and (document ID) Oblast for 12 months
service of potato No 441/627-8203 Executive
storage house and 15.01.2014 Committee
engineering structures No 712
to it. Grodno Oblast 5.12.2013
Ivie Region, Ivie
village council
ag.Daylidy
33
5 Land plot for 0,0082 Certificate Grodno temporary use
construction and (document ID) Oblast for 12 months
maintenance of potato No 441/627-8204 Executive
storage house and 15.01.2014 Committee
engineering structures No 712
to it. Grodno Oblast 5.12. 2013
Ivie Region, Ivie
village council
ag.Daylidy

6 0,0888 Certificate Purchase


Land plot for house (document ID) Purchase Agreement is
Grodno Oblast No 441/1411-353 Agreement valid until 23
Ivie Region 07.09.2012 No 2704 August, 2062
ul. Sovetskaya, 19 07.08.2012

LAND-USE
of Grodno Joint Stock Company «Grodno Azot» PTC «Khimvolokno»
as of 18.04.2014, Grodno

Госакт на право Решение


землепользовани вышестоящ
Площад я (номер акта, ей Право на
Seq. Под какой объект
ь отвода, дата выдачи), организаци земельны
No. отведена земля
га свидетельство о и й участок
государственной (номер, дата
регистрации выдачи)
1 Land lot for servicing of 1,3047 Certificate of state Grodno City permanent
buildings of health centre registration Executive use
and building of sewage No.400/1007-4050 Committee
pumping station of 17.11.2011 No.406 of
Grodno region, Grodno, 13.06.2007
ul. Tomina, 26
2 Land lot for servicing of 0,0980 Certificate of state Grodno City permanent
building of the service registration Executive use
block of No.400/1007-4057 Committee
Housing and utilities of 18.11.2011 No.823 от
administration, Grodno 03.10.2003г.
region, Grodno, ul.
Tomina, 14/1
3 Land lot for upkeep and 0,2679 Certificate of state Grodno City permanent
maintenance of hostel, registration Executive use
Grodno region, Grodno, No.400/1007-4059 Committee
ul. Tomina,20 of 21.11.2011 No.111 of
18.02.2004
4 Land lot for upkeep and 0,2516 Certificate of state Grodno City permanent
34
maintenance of hostel, registration Executive use
Grodno region, Grodno, No.400/1007-4058 Committee
ul. Tomina, 16 of 21.11.2011 No.111 of
18.02.2004
5 Land lot for upkeep and 0,1700 Certificate of state Grodno City permanent
maintenance of hostel, registration Executive use
Grodno region, Grodno, No.400/1007-4060 Committee
ul. Tomina, 14 of 21.11.2011 No.111 of
18.02.2004

6 Land lot for upkeep and 0,3769 Certificate of state Grodno City permanent
maintenance of hostel, registration Executive use
Grodno region, Grodno, No.400/1007-4119 Committee
ul. Tomina, 18,18А of 05.12.2011 No.111 of
18.02.2004
and No.425
of 03.06.2004
7 Land lot for upkeep and 68,4036 Certificate of state Grodno City permanent
maintenance of production registration Executive use
territory, No.400/1007-4137 Committee
Grodno region, Grodno, of 15.11.2011 No.111 of
ul. Slavinskogo, 4 18.02.2004
and No.425
of 03.06.2004
8 Land lot of unidentified 1,0424 Certificate of state Grodno City permanent
purpuse (for construction registration Executive use
and use of passenger car No.400/1007-4765 Committee
temporary parking and of 04.05 2012 No.469 of
access road) 09.09.2011
Grodno region, Grodno,
ul. Slavinskogo (near
central checkpoint area)
9 Land lot for upkeep and 0,3484 Certificate of state Grodno City permanent
maintenance of parking registration Executive use
near the administrative No.400/1007-4744 Committee
building, of 30.04. 2012 No.111 of
Grodno region, Grodno, 18.02.2004
ul. Slavinskogo,4)
10 Land lot for upkeep and 0,2267 Certificate of state Grodno City permanent
maintenance of hostel, registration Executive use
Grodno region, Grodno, No.400/1007-4752 Committee
ul. Tomina 14А of 02.05.2012 No.153 of
21.04.2012
11 Land lot for upkeep and 1,0898 Certificate of state Grodno City permanent
maintenance of registration Executive use
kindergarten No.74, No.400/1007-4764 Committee
Grodno region, Grodno, of 04.05.2012 No.153 of
ul. Tomina 22 21.04.2012
12 Land lot for upkeep of 0,0136 Certificate of state Grodno City tenant right
Central heat unit -1 registration Executive to
35
building No.400/1007-4751 Committee 27.02.2062
Grodno region, Grodno, of 02.05.2012 No.112 of
ul. Tomina 16 28.02.2012
13 Land lot for use and 3,3753 Certificate of state Grodno City permanent
maintenance of railway registration Executive use
road, No.400/1007-4795 Committee
Grodno region, Grodno, of 14.05.2012 No.133 of
area of ul. Slavinskogo, 06.03.2012.
ul.Vesyolaya

LAND-USE
of Grodno Joint Stock Company «Grodno Azot» PTC «Khimvolokno»
as of 18.04.2014, Grodno region

Госакт на право Решение


землепользован вышестоящ
Seq. Площад ия (номер акта, ей Право на
Под какой объект
No. ь отвода, дата выдачи), организаци земельны
отведена земля
га свидетельство о и й участок
государственно (номер, дата
й регистрации выдачи)
1 Land lot for use and 0,5887 Certificate of Grodno permanent
maintenance of pump state registration Region use
station No.400/1007- Executive
Grodno region, Grodno 4216 of Committee
district, Koptyovski r/c, 28.12.2011 No.524 of
Pogorany village. 09.08.2000
2 Land lot for use and 0,4712 Certificate of Grodno permanent
maintenance of the wastes state registration Region use
disposal area, No.400/1007- Executive
Grodno region, Grodno 4118 of Committee
district, near Gornitsa 05.12.2011 No.635 of
village 27.08.2007

VIII. Information about capital structures (buildings, constructions) as of


01.04.2014
JSC «Grodno Azot» without PTC «Khimvolokno»:
Quantity of
Year of Number of Quantity of inventory
Name inventory
construction storeys numbers
numbers
Buildings 1963-2013 1-12 849 satisfactory
Constructions 1962-2013 1091 satisfactory
Regarding «Grodno Azot» floor space let on lease:
Buildings and constructions – 128 073,37 m2.

PTC «Khimvolokno»
Q-ty of
Year of Number of
Name inventory General state
construction stories
numbers
Buildings 1977-2011 1-12 168 satisfactory
36
Structures 1977-2013 119 satisfactory
As regards PTC "Khimvolokno" area on lease:
buildings 14 104 m2;
structures 15 889,2 m2.

IX. Information about the machines and equipment

JSC «Grodno Azot» without PTC «Khimvolokno»:

Name of the equipment, power Quantity Function Commissioning year

Machines and equipment 29 878 production 1963-2013

PTC "Khimvolokno"

Function
Equipment name, Condition
Number of (place in Year of
manufacturer, (wear-out
units production commissioning
capacity percent)
process)
machinery and as of production 1974 - 2013 31,91
equipment 01.01.2014
8 953 units