OJSC Crimean Soda Plant: record production of caustic ash in 2007

In 2007 Open Joint-Stock Company Crimean Soda Plant, part of the international OstChem Holding group, increased production of caustic ash by 7.9 percent to 734,000 tons. This is an all-time record for the Crimean Soda Plant.

The Crimean Soda Plant emerged from the crises of the 1990s under the efficient new ownership of OstChem Holding so that by 2004 it had become the foremost company in Ukraine’s chemical industry and continues to make excellent progress.

Production of caustic ash grew 3 times that of 1995, while that of the most valuable grade A ash grew eight-fold to 396,000 tons. This success was made possible by extensive automation of production, modernization in management and renewed efficiency. Production growth was also stimulated by involvement in new markets in Central Asia and South America. The share of exports in the plant’s sales amounted to 62 percent in 2007.

The Crimean Soda Plant achieved positive financial results in 2007 despite significant problems arising from the substantial increase in gas prices. Having sustained some losses in the first few months of 2007, the company ended the year with 7.6m hryvnas in earnings before tax. Industrial output totaled 586.5m hryvnas. The sales department ensured uninterrupted deliveries of high grade coal and a wider range of limestone fractions. The plant’s railway stock also operated uninterrupted over the course of the last year.

Successful operation in the plant enabled a marked improvement in the employees’ standards of living. The average wage grew 26.3 percent and to 1,763 hryvnas. 4.6m hryvnas was allocated to the upkeep of the plant’s social infrastructure in 2007. Voluntary medical insurance was introduced for the employees on November 1 to improve their employment benefits.

The Crimean Soda Plant also met its targets in relation to Government and local authorities. 31.8m hryvnas was contributed to governmental budgets, including 10.8m to the local authorities. Payments to the budget increased 50 percent to 12m hryvnas. The Crimean Soda Plant yet again showed its commitment to socially responsible business.

Commenting on the company’s showing, Chairman of Crimean Soda’s board Vladimir Ponomarenko said:

“This has not been an easy year, but it has been a very positive one for the plant. We can be proud of having managed to renovate and modernize the main production assets and achieve record indices. We intend further to embrace contemporary technologies, cut production costs and strive for maximum efficiency. All this goes hand in hand with taking good care of our staff, of the environment, and supporting the local social infrastructure”.