OREANDA-NEWS. March 17, 2008. During its last meeting the Board of TVEL OJSC analyzed the implementation of the company’s complex development program till 2020. The key goals of the program are to reduce costs, to optimize the personnel and production areas, to diversify products, to develop non-nuclear and innovative productions.

The program is supposed to help TVEL to reduce the cost of its fuel, to relieve its plants of unnecessary burdens, to raise the wages and, as a result, to enhance its competitiveness on the world market.

In 2007 all of TVEL’s subsidiaries performed well and fulfilled all of their tasks, including technical development measures and scientific-technical and experimental projects.

Several quality management and ecological management audits were conducted at TVEL companies in 2007. TUV CERT (Germany) conducted a certification audit. All the auditors confirmed the compliance of TVEL’s leading companies with ISO 9001:2000 (quality management system) and ISO 14001:2004 (ecological management system) standards.

The preliminary results of TVEL’s financial-economic performance in 2007:

• sales revenues: Mashinostroitelny Zavod OJSC (Elemash) – 8.748bln RUR, Novosibirsk Chemical Concentrate Plant OJSC – 5.817bln RUR, Chepetsk Mechanical Plant OJSC – 7.916bln RUR, Chemical and Metallurgical Plant OJSC – 302.3mln RUR;

• net profit: Elemash – 894mln RUR, Novosibirsk Chemical Concentrate Plant – 980mln RUR, Chepetsk Mechanical Plant – 1.023bln RUR, Chemical and Metallurgical Plant – 37mln RUR;

• investments in reconstruction, enlargement and modernization: Elemash – 1.357bln RUR, Novosibirsk Chemical Concentrate Plant – 1.054bln RUR, Chepetsk Mechanical Plant – 1.131bln RUR, Chemical and Metallurgical Plant – 14mln RUR;

• number of employees: Elemash – 8,205 people, Novosibirsk Chemical Concentrate Plant – 4,861 people, Chepetsk Mechanical Plant – 8,282 people, Chemical and Metallurgical Plant – 606 people;

• average age of employees: Elemash – 43.6, Novosibirsk Chemical Concentrate Plant – 43.7, Chepetsk Mechanical Plant – 42.6, Chemical and Metallurgical Plant – 48;

• In 2007 the average salary of TVEL companies was mostly higher than the average salary in their host regions: the average salary at Elemash made up 21,700 RUR (in Moscow region – 18,800 RUR), Novosibirsk Chemical Concentrate Plant – 21,000 RUR (Novosibirsk – 10,600 RUR), Chepetsk Mechanical Plant – 14,800 RUR (Glazov, Udmurtia – 10,000 RUR), Chemical and Metallurgical Plant – 13,900 RUR (Krasnoyarsk – 14,200 RUR).

President of TVEL Yuri Olenin said that the plan to raise the company’s average salary to 50,000 RUR by 2015 should be fulfilled ahead of time. Among the other priorities are active development of non-nuclear production and recruitment of young highly qualified specialists.

In 2008 TVEL will continue its new image program envisaging reduction of production areas and optimization of personnel by reorganization of auxiliary productions into subsidiaries.

By 2010 TVEL is planning to reduce its expenses on the production of nuclear fuel.

TVEL is also planning to enlarge its inventory of non-nuclear products. The company is going to develop its non-nuclear productions by actively promoting innovative projects on new markets. Olenin suggested setting up project groups for development and introduction of innovative technologies in the field of non-nuclear production.

In 2008 TVEL is planning to start the production of ceolite catalyst, superconducting material and aluminothermic calcium as well as to develop the commercial production of titanium, calcium, hafnium, technical ceramics, magnet materials, lithium.

In 2008 TVEL is planning to invest 2.080bln RUR in Elemash, 1.833bln RUR in Novosibirsk Chemical Concentrate Plant, 3.387bln RUR in Chepetsk Mechanical Plant and 381mln RUR in Chemical and Metallurgical Plant.

In conclusion, Olenin said that the following 2–3 years were crucial for TVEL: “We will have to work hard to achieve our goals and to rise to new higher levels of production and quality.”