OREANDA-NEWS  On 12 September was announced, that a new sulfuric acid production will allow the CJSC "Crimea TITAN" to become a leading sulfuric acid production plant in Ukraine.

In the year 2005 the "OstChem Holding AG" company set up the construction of a new modern sulfuric acid production plant. For the years 2006-2007, the experts of the company made a thorough feasibility study on the project, specified optimal technical points, and chose necessary equipment.

Taking into account a considerable project cost, the company management have made a decision to attract credit funds in addition to the ownership capital. With this end in view, this year in July in Germany an official meeting was held between the CJSC "Crimea TITAN" management with the representatives of the "Ostchem Germany GmbH" company, of the one part, and the "Commerzbank AG" firm, of the other part. In the course of the visit a new credit agreement with the "Commerzbank AG", a contract with the prime contractor "Chemieanlagenbau Chemnitz GmbH" and a contract with the insurance company "Euler HERMES" have been signed.

Scheduled costs for construction of new sulfuric acid production workshop amount to about EUR 55 mil., EUR 25 mil. of the sum is money of shareholder "OstChem Germany GmbH", and EUR 30 mil is the credit granted by German "Commerzbank AG".

The general contractor "Chemieanlagenbau Chemnitz GmbH" has concluded purchase contracts with producers to buy the whole complex of thermotechnical facilities for new workshop. The supplies according to the above contracts are planned for April 2009.

Since the 1st of September of this year Crimea TITAN has already begun the preliminary works for construction of new sulfuric acid production workshop (pile layout for pointing the axes of future foundation, altimetric survey and marking up coordinates of the main facilities on the plot plan).

Economic potential of commissioning of up-to-date sulfuric acid production lies in cost reduction, and also increase of production output of titanium dioxide and monoammonium phosphate produced by Crimea TITAN. In social sphere it means new jobs for people who live in the region. In environment protection field it means usage of new environment safety technology in production process that will allow minimizing the environmental impact of chemical manufacturing processes.