Siberian Business Unit (SDS) has acquired a 100% interest in Sibur Fertilisers

Moscow, December 27, 2011 SIBUR-Fertilizers announces that 100% of its shares has been purchased by Joint Stock Holding Company "Siberian Business Union", known by its Russian initials SDS. SDS manages diversified assets across various industries, including one of the leading coal mining companies in Russia (SDS Coal).

SIBUR-Fertilizers manufactures and markets nitrogen products, mostly for industrial customers. The Company’s production and service assets are located in Western and Eastern Siberia and include Kemerovo Azot, Angarsk Nitrogen Fertilizer Plant, Biisk Railcar Repair Plant and AZOT-Service. The Company sells its products in over 40 countries, exports accounting for over 50% of commercial ammonia and nitrogen products sales (90% of urea, 98% of ammonium sulphate, 10% of ammonium nitrate) and 100% of caprolactam sales.

On the regional market (Siberia and the Far East of Russia, Mongolia and Kazakhstan) the Company’s primary product for sale is ammonium nitrate, which is widely used to make explosives for mining companies, its key consumers (annual amount of industrial grade ammonium nitrate consumed in the region totals 900,000 tonnes). SIBUR-Fertilizers accounts for over 70% of the region’s ammonium nitrate market.

“On behalf of the Company, I would like to say thank you to all our colleagues from SIBUR Holding for productive cooperation. In the past five years we’ve created an efficient business structure allowing to realize the full potential of the Company’s Siberian assets and secure SIBUR’s effective exit from its non-core, fertilizer, business. The Company is now entering a new stage of its development starting with ,its integration into the SDS structure. Acquisition of a large chemical business will seriously enlarge SDS’ business, enable operational synergies, and give the Company a new impulse to its growth and further expansion into the fast-growing nitrogen markets in Russia and internationally”, said Andrey Teterkin, SIBUR-Fertilizers’ CEO.

In 2011, the Company’s plants (Kemerovo Azot and Angarsk Nitrogen Fertilizer Plant) are expected to produce 1.07 million tonnes of ammonia, 1.15 million tonnes of ammonium nitrate, 576,000 tonnes of urea, 315,000 tonnes of ammonium sulphate and 112,000 tonnes of caprolactam. The Company’s revenues (excluding the effect of Perm Minudobrenia plant consolidation) are expected to amount to 31.2 billion Russian roubles, EBITDA – 8.7 billion Russian roubles, EBITDA margin – 28%, in 2011.