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Russian Federation / NEXI to Provide Export Credit Insurance for Export of Centrifugal Compressors to PJSC ACRON


September 6, 2019

Nippon Export and Investment Insurance

Nippon Export Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide export credit insurance to Hitachi Capital Corporation (Hitachi Capital) for supporting their export of centrifugal compressors and related equipment for a urea plant in the Russian Federation. Hitachi Capital has received this order from PJSC ACRON, one of Russia’s leading fertilizer producers.

PJSC ACRON offers fertilizers and chemical materials used in the production of fertilizers not only in Russia, but in overseas markets. In their Veliky Novgorod-based production facility, a significant amount of carbon dioxide generated from producing ammonia are currently emitted into the atmosphere. However, the company is planning to collect the carbon dioxide emitted, then compress and reuse it at the urea plant situated in the same area of the facility, in order to further develop its urea production, aiming for raising the rate of self-sufficiency in fertilizer raw materials. Hitachi Capital will be exporting a major equipment required for the urea production, in a long-term deferred payment over a five-year period.

The ordered centrifugal compressors will be manufactured by Hitachi Industrial Products, Ltd. who had already delivered its machines to PJSC ACRON in 2016, for Ammonia production facility in Veliky Novgorod. Hitachi Industrial was selected to supply centrifugal compressors, in recognition of its high product quality and reliable observance of delivery deadlines, as well as a deferred payment.

Photo provided by Hitachi Industrial Products, Ltd.
(Photo provided by Hitachi Industrial Products, Ltd.)

A deferred payment is considered as an important financing arrangement which can be made by an exporter for an importer who has difficulties in procuring a purchase fund by borrowings from banks, due to administrative burden or other reasons, when it comes to transactions of a comparatively small amount.

As a governmental financial institution of Japan, NEXI will continue actively supporting Japanese exports.


Contract:
Reinsurance Underwriting Group, Underwriting Department
Phone: +81-(0)3-3512-7585

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