History

Construction of the national industrial group KAUSTIK started in 1961 within the territory of the southern industrial hub of Volgograd. This location was selected intentionally due to close proximity of a large mineral salt deposit which is a raw material for the manufacture of the main products: caustic soda and chlorine.

The first chemical product - Chlorophos insecticide was manufactured in July 1967. In the same year the production of the household products was set up. Shortly after the manufacture of chlorine, mercury-cell caustic soda, polyvinyl chloride, packaging film, hydrochloric acid and other products was launched. In the 70’s-80 the production of freons, chlorine and diaphragm-cell caustic soda and a number of other products was built up. In challenging 90’s the plant had to go through tough times like many other domestic companies. But the Company managed to survive and opened a new page of its history thanks to professional competence of the Management and employees

In the beginning of 1991 production of suspension polyvinyl chloride PVC-S became separate and the Plant named JSC Plastcard started its business activity as an independent legal entity. In the subsequent years some other production plants gradually became separate for further optimization of these business lines within the strategic program of NIKOCHEM Group development.

As of today NIKOCHEM Group includes JSC NikoMag (production of magnesium compounds), ZIRAX LLC (production of high purity reagents for various industries), Nikopharm LLC (production of high-efficient pharmaceutical forms, substances, Biologically Active Compounds and halobacterium-based cosmetic products) and CJSC Soligran, a joint venture with Belgian Solvay besides JSC Kaustik which can be regarded as the fixed production assets.

At the turn of the century JSC KAUSTIK executes projects related to launching into manufacture new competitive products: hard chlorinated paraffin wax CP-66Т, hepsol HKP, deicing agents, magnesium chloride flakes. Production capacities are continuously upgraded, environmental safety is improved, infrastructure is modernized and costs are reduced. All these factors contribute to Company’s development and owing to the competitive growth the Company is capable of gaining its strength both in the international and domestic markets.

One of the major phases in the Company's history is gradual optimization of the power supply to the industrial site in the city of Volgograd and to all production facilities located at this site, since the percentage of power consumption in the cost of the main products (caustic soda and chlorine) manufactured by JSC KAUSTIK is approximately 40%. General partnership arranged on January 1, 2003 by three partners – JSC Volgogradenergo, JSC KAUSTIK and JSC Plastcard helped to solve the above issue to a certain extent and remarkably improved the economic performance of the production facilities.

In September 2007 Heat Power Plant-3 which supplies power only to the facilities of the Volgograd industrial site of NIKOCHEM Group was transferred under JSC KAUSTIK management on a lease basis.

In the end of 2011 JSC Plastcard went out of the business as a legal entity by means of reorganization through merger to JSC KAUSTIK in order to improve management effectiveness of the caustic soda, chlorine and polyvinyl chloride manufacturing facilities located at Volgograd industrial site of NIKOCHEM Group. The next step of NIKOCHEM Group business unit consolidation into the unified technological and business structure was made in the beginning of 2013 when JSC Plastcab and CJSC ECC merged into JSC KAUSTIK.

Technicians of the Company are engaged into the improvement and modernization aimed at energy saving, reliability and environmental safety growth.

Over 100 researchers of the in-house Research ad Development Center put their efforts to update and expand the product range and new technologies.

One of the key development tendencies of the Company is to create a multi-purpose chemical science park on its territory. The core idea is that various new production facilities (including those based on innovative technologies) are to be located in close physical proximity, and they can use products made by each of these facilities as a raw material for their processes and keep the maintenance costs down for the existing infrastructure due to shared operation.

Volgograd industrial site comprises repair and maintenance, research and development, IT, human recourse and design services. Favorable logistics is its distinguished feature: Volgograd is located in the center of Volga-Don transportation junction where river, sea, railway routes and motor ways of international importance cross.

The Company's strategy is to strengthen its position in the domestic and international markets. The good basis for further progress lies in full scale development of sodium chloride and bischofite deposits using state-of-the art high effective technologies followed by growth of production output and expansion of the product range.