Neochim Plc

History

Neochim PLC is the successor of the Chemical Plant in the town of Dimitrovgrad in Bulgaria which started its production activities on 5th of November 1951. In the beginning nitrogen and phosphate fertilizers were produced. Later on, expansions, reconstructions and modernizations of the production facilities were carried out. In 1987 a new complex for the production of ammonia, nitric acid and ammonium nitrate was commissioned. In the period 1992-93 the plants producing sulfuric and phosphoric acid, aniline and nitrobenzene were shut down.

Location

Neochim PLC has been registered at the district court of Haskovo with its seat in the town of Dimitrovgrad. The plant's infrastructure is distributed on two plots with a total area of 2 300 decares, situated on both banks of the Maritsa river, outside the town limits. It is located 200 km southeast of Sofia, in a region with well-developed railway junction and near to Pan - European transport corridors # 4, 9 and 10.

Purpose

Production and trade of inorganic and organic chemical products.

Management Structure and Staff

Neochim is a joint-stock company with a single-stage structure of management, managed by a Board of Directors, consisting of 8 members.

The organizational and executive activities are concentrated in departments, each administered by a Director, directly subordinate to the Chief Executive Director and an Executive Director.
The company employs nearly 1250 people.

Capital

The capital of NEOCHIM PLC is distributed in 2 654 358 shares, each share having a nominal value of 1 lev.

On June 12th 2000 a contract was signed for the privatization sale of a package of 1 353 723 shares, representing 51% of the capital of NEOCHIM PLC, between the Privatization Agency as Seller, and "EVRO FERT" PLC - Dimitrovgrad, and "KARIFERT INTERNATIONAL OFFSHORE" SAL, BEIRUTH, LEBANON as Buyer.

The state participation of 24% has been changed as a result of the sale of shares under preferential conditions and compensations for real estates.

The main shareholders as of December 31th 2008 are:

"Eco Tech" PLC - 27.42%
"EVRO FERT" PLC - 23.82%
"KARIFERT INTERNATIONAL" Lebanon - 17.16%
"AGROFER INTERNATIONAL ESTABLISHMENT" Lichtenstein - 7.68%
"NEOCHIM" PLC (repurchased stocks) - 2.58%
"ZLATEN LEV HOLDING" PLC - 1.95%
"LUKOIL GARANT" - Bulgaria - Universal Pension Fund - 1.12%
Universal Pension Fund "Saglasie" - 1.01%
Others - 16.65%

Structure of the production facilities

The production facilities are structured in the following groups:

Nitrogen Fertilizer Complex
Organic Production
Repair and Mechanical works
Railway Station
Infrastructure

Advantages

Modern equipment
High quality products
Well-developed distribution network, combined with storage facilities.
Highly motivated and trained personnel
Good and well established maintenance practice
Environment friendly production

Capacities

Operational nameplate capacities for major production units are:

Ammonia	450 000 mt/yr.
Nitric Acid	480 000 mt/yr.
Ammonium nitrate NEOFERT ®	710 000 mt/yr.
Sodium Nitrate	9 300 mt/yr.
Sodium Nitrite	9 300 mt/yr.
Formalin	30 000 mt/yr.
Urea-Formaldehyde Resins	20 800 mt/yr.
Ammonium Bicarbonate	6 000 mt/yr.

Neochim is the only company in Bulgaria producing formalin (formaldehyde solution), urea-formaldehyde resins, sodium nitrate, sodium nitrite, ammonium bicarbonate, laughing gas (nitrous oxide), etc.

Markets

On the local market all products of Neochim PLC are distributed by the trading company Euro Fert PLC.

The products of Neochim PLC are well received on the international markets. The company has commercial relations with partners from USA, Brazil, Great Britain, France, Italy, Greece, Turkey, Poland, Romania, etc. 40 to 60% of the earnings are formed by exports.

The market advantages of Neochim PLC are:

excellent process technologies and modern equipment;
offering high quality products;
stable positioning on international markets in Western Europe, the Balkan Peninsula, Latin America and the USA;
well-developed distribution network and warehouse facilities on the Bulgarian market;
excellent trade relations with its business partners.