The Board of Directors of Metafrax confirmed the budget for 2014

On the 25th of December a scheduled meeting of the Board took place. The Board revised the process of implementation of reconstruction and development program for 2012-2017 as well as complex personnel management program for up to 2017.

At the last meeting of 2013 the Board confirmed the budget for 2014. The company is planning to reach income of 12.2 billion RUR while net profit is anticipated to reach 2.5 billion. Investments for the company will increase by 2.4 times compared to 2013 reaching 1.25 billion RUR against 0.515 billion in 2013.

- The budget for 2014 is balanced, - said the Chairman of the Board Armen Garslyan, - and the first half of the year should be stable judging by the situation on the market.

Forecasted profits are a bit lower than the values for 2013. This is because we have plans for a long maintenance of our methanol plant, which is going to last for 40 days. We are going to spend more than 450 million RUR on production improvement and modernization.

A lot of money is going to be spent for investment projects. The largest of these projects is building of formalin plant which amounts at 700 million. The plant is going to be started in 2016. We will increase production by approximately 50% in future.

- By 2020 we forecast a significant growth in formalin consumption on our own plants, and more than 60% of product will be used on our sites, namely for resin production, - explained Armen Garslyan.

Also next year the company will start development of urea and ammonia production unit, implementation of which might be started in 2016.

In 2014 a micronized hexamine and pentaerythritol plant will be deployed in production. Total amount of investments into the project will exceed 60 million RUR.

Metafrax investments into social infrastructure will reach 80 million RUR. They include building a three-storeyed block of flats for employees as well as new units at the corporate recreation facility.

- 2013 was very successful for us from the financial point of view; this is why we can make investments in development of our sites and social infrastructure. Total income of the company amounted at 13 billion RUR, whereas net profit was over 3 billion. These are the best results the company achieved in its history, - added Armen Garslyan.

According to the results, the Board decided to pay dividends for 9 months at the rate of 3 RUR per share. An unscheduled meeting of the Board should take place in February 2014.