OREANDA-NEWS. February 11, 2010. Meleuz Mineral Fertilizers, a 100% subsidiary of Salavatnefteorgsintez, showed mixed mineral and nitrogen fertilizer output performances in 2009, but achieved its manufacturing targets 100%.

Meleuz Mineral Fertilizers (RTS: MEMY), a toll manufacturer of mineral fertilizers for Salavatnefteorgsintez (RTS: SNOZ), lowered its 2009 fertilizer output by 22% to 174,500 tons. In a breakdown by product lines, the company showed quite controversial production dynamics: output of ammonium nitrate dropped 35% to 88,200 tons, production of nitrogen-phosphate fertilizers declined by 43% to 19,900 tons, and NPK fertilizer produce rose 26% to 66,400 tons. We note that the company fully realized its 2009 manufacturing plan.

The fact that the company kept to a set production schedule shows that the cut in output was planned and most likely related to some technical reason, such as routine maintenance works. This year, the company is expected to improve its output figures. With an anticipated recovery of prices for phosphate and nitrogen fertilizers, a surge in output should have an upward impact on Salavatnefteorgsintez financials.