As part of its strategy, CZP seeks to maintain, expand and increase the efficiency of its production facilities. A substantial portion of CZP’s plant’s production facilities has been upgraded or constructed, beginning in 1987 with a contract with the Italian engineering firm Snamprogetti.
1999 - 2002 - CZP made an aggregate capital expenditure of RR 2,544.0 million, of which it estimates RR 2,306.7 million was applied to the upgrading and expansion of its production facilities: the completion of the construction of the new electrolysis plant, the reconstruction of two sulphuric acid production units and the installation of Larox filters in the Waelz kiln plant and hydro-metallurgical processing plant. As a result, CZP increased the overall annual production capacity from 130 thousand tonnes to 160 thousand tonnes.
2003 - 2005 - CZP made an aggregate capital expenditure of RR 658.7 million, of which it estimates RR 438.1 million was applied to the upgrading and expansion of its production facilities.
2006 - CZP made an aggregate capital expenditure of RR 626.7 million (of which it estimates approximately RR 508.2 million are applied to upgrading and expansion).
CZP’ total capital expenditure in 2007 equaled RR 1,408 million. The largest investment project completed in 2007 was the construction of Waelz kiln #5.
CZP budgeted capital expenditure of RUB 716.7 mln. in 2008. Due to unfavorable market conditions Board of Directors revised and reduced these costs to RUB 433.7 mln. Within the framework of implementing the strategy, in 2008, reconstruction of the sulphuric acid plant system 4 was completed. The value of the project amounted to USD 35 m. State-of-the-art materials and technologies were used in the course of the construction of the sulphuric acid system, which made it possible to enhance the efficiency of SO2 reclamation process, reducing emissions of gas and sulphuric acid to the atmosphere. CZP pays attention to upgrading and expanding its production facilities being confident that these investments have a positive material impact on the Company’s financial results.
In accordance with the Company 2007-2010 business strategy CZP plans to expand an overall production capacity of 200 000 tonnes per year. Factors affected investment strategy:
world economic and technology development trends;
technology progress perspectives; economic development perspectives;
