COMPANY HISTORY

Initially Hydrogas was a project group of a prominent defense industry enterprise that specialized in the manufacture of rocket engines, and the history of the Hydrogas Company started as the history of a team. In 1990 the new developments department was assigned a new project - to make an analogue of a German hydrochloric acid moving pump for the Novolipetsk Metallurgical Company. Thus a new enterprise was born that was later to become the Hydrogas Company. The project was completed successfully, in many respects thanks to the managerial abilities of S. Aksenov, V. Bondarenko, V. Kozlov - the future managers of Hydrogas.

In a few years the team grew into the company, where the oldest member was just 33 years old. It was the time when the key corporate values were formed, and the company is now proud of its corporate culture which can be stated in just a few words: warm interpersonal relationships and constant striving for perfection.

Several years later (1994) a number of company members including Dmitriy Markov realized that further development of the conversion industry clashed with the company development strategy. The only way out was to organize a new independent enterprise, and Hydrogas spun off from its corporation to become an independent corporate entity. It seemed next to impossible to begin a new company from scratch, however, determination and the will to move forward appeared to be enough to set up one of the most successful pump manufacturing companies in Russia. The Hydrogas Company was registered legal person on 18 January 1996.

The main advantages of the new company were the knowledge and skill of the staff acquired while designing complex rocket engines and working in electronic engineering. Shortly after its establishment, Hydrogas managed to innovate, design and build new chemical-resistant pumps and valve, highly competitive with their foreign counterparts. New production methods and engineering developments allowed the company to develop the unique technology of heavy coating.

1 February 1996 was the first working day of the new company. Conceived out of necessity, born in arms of innovation and inspired by sheer will and determination, the company developed products having no analogues in Russia. Not a company to sit on its laurels, Hydrogas expanded its product line and reached an unprecedented growth of 150% a year, which made the management make a difficult choice: either to remain a small innovation enterprise or to develop into a big industrial company with a view to capture a large share of the market and diversify the production. Despite the volatile economic situation in the country, the management went for the second option.

At that time the Elmash Company, once having been one of the leading electronic engineering companies employing 2.5 thousand people, was on the verge of bankruptcy. The company`s main produce included water purification systems and equipment for chemical and electronic industries, which made it a perfect base for the Hydrogas Company. In April 1998 the two companies merged.

The new company threw its facilities into overcoming the economic crisis. The company was restructured and renovated, new managers were invited and new, more efficient marketing strategies were implemented. The main activities the company was involved in during 1996-1998 were advertising and exhibitions. The first exhibition the Hydrogas Company took part in was ?Tekhnohimiya-98? which was held in St. Petersburg in 1998. This was the first time the company presented its lined canned pumps and valve. Since then, the company has taken part in all major national and international exhibitions.

The company`s main customer has always been the Novolipetsk Metallurgical Company. Working with this company provided Hydrogas with invaluable experience in winning customers, as the company had to compete with recognized western manufacturers.

1990s were a time of political and economic turmoil that would test the values of Hydrogas. During the 1997 recession when Russia experienced its worst economic crisis, the Hydrogas Company was faced with lean economic times and tough decisions. As the country was implementing mass layoffs, the Hydrogas management`s main concern was for the welfare of the company`s employees and they ultimately decided against any layoffs. The management creatively reallocated resources and used the workforce to make internal improvements such as refurbishing and repainting the Hydrogas plant. As Russia slowly crawled out of recession, Hydrogas began to expand its operations and product lines improving business and adding to its reputation. At the same time the company started to refine its manufacturing processes and eventually hired a number of distributors. This decision allowed Hydrogas to focus on its strengths: engineering, design and production. The company started manufacturing water purification systems using such methods as reverse osmosis, nano- and ultrafiltration, as well as deionization and other technologies . As the company`s success and growth continued, the old building proved inadequate so more buildings were constructed to house the operations.

The company today

Today the Hydrogas company is a leading pump and system manufacturer in Russia, situated in the industrial zone on the left bank of Voronezh city. It occupies about 50 thousand square kilometers incorporating a world-class manufacturing facility. Hydrogas has a fully equipped laboratory, test facilities, quality control department, molding centre, research&development department and customer satisfaction department.

In the recent years the company has been developing rapidly with the annual growth up to 55%. The company is stable, has no debts, the salaries are higher than on average in the industry.

Nowadays, much attention is paid to marketing. All innovation work is based on the market analysis and customer demands, which make it absolutely necessary that the marketing department be comprised of multi-disciplined experts with higher technical education able to provide a high level of technical expertise. This has enabled the company to significantly reduce response times. Sales are organized through our qualified distribution network, and to act as our agent one has to receive a full technical training in the company. Thus, our commitment to excellence goes beyond the product line by being dedicated to keeping our customers, distributors and employees constantly educated and updated on the leading developments in technology.

No wonder, therefore, that the company has a reputation of being a quality-manufacturer, as we are customer focused and internally driven to listen to your market needs.

The Hydrogas Company serves a diverse group of industries including power engineering, metallurgical, chemical, oil-producing and nuclear industries, as well as defense and marine service industries, specializing primarily in high-quality pumps for toxic and hazardous liquids (such as hydrochloric acid). Our produce is in high demand, as the company?s previous defense industry affiliation has enabled us to produce western quality pumps at significantly lower costs than our western counterparts. This is probably the reason why our export rates are constantly growing.

Hydrogas is continually developing products from inception through final product release and customer service. We are manufacturing more than 1.5 thousand products which can be classified into four main groups: commercial and industrial water purification systems, pumps, valve, and automatic control and checkout systems. All the produce complies with all local and state sanitary and safety regulations, and can be used in explosive and fire-hazardous industries. A number of products have been awarded the certificates of various national and international contests and exhibitions, including the most prestigious Russian contest ?Russia?s 100 Best Products?. Not surprisingly, Hydrodas qualifies for the ISO 9000 and TUV CERT designations, maintaining the tradition of quality that began more than 40 years ago. Our pumps are intrinsically safe by design, offering a wide range of material and elastomer options, giving you the optimum solution for your process.

Our computer software programs assist in selecting the best pumps and systems along with providing pump drawings and specifications. These programs help save valuable time in the selection and evaluation of pumps and systems.

Hydrogas has the infrastructure, knowledge base, and intellectual capital to exceed customer expectations worldwide. Not only does our facility house state-of-the-art equipment, but our staff also have a broad wealth of practical experience. These components, along with our outstanding customer service program will keep your Hydrogas pumps and systems at peak performance for years to come and guarantee the success of our customers and ourselves.

Dear Colleagues!

Our company, Hydrogas, is one of the best chemical engineering companies in Russia, and we are happy to present our serial products highly praised by the end-users. Apart from that, the company produces chemical equipment for special applications. We are open for cooperation with everyone working with toxic, explosive or hazardous liquids.

CEO

Dmitriy V. Markov

All the produce complies with all local and state sanitary and safety regulations and qualifies for the ISO 9000.

Hydrogas is continually developing products from inception through final product release and customer service. Our complex quality control system enables us to develop and manufacture high-quality products that will stay at peak performance for years to come.

The plant occupies about 50 thousand square kilometres incorporating a world-class manufacturing facility. Hydrogas has a fully equipped laboratory, test facilities, quality control department, molding centre, research &development department and customer satisfaction department.

Our computer software programs assist in selecting the best pumps and systems along with providing pump drawings and specifications. These programs help save valuable time in the selection and evaluation of pumps and systems.

Product line includes about 1400 equipment items, which allows for manufacturing of all kinds of billets, processing, machining, and testing of the produce.

Test facilities are made up of test desks and fully equipped laboratories that enable us to control the products? quality at every phase of production.

Activities of R&D department in 2004:

Production of polymer material with increased chemical durability (Teflon, Solef, etc)

Production of combined magnetic clutch shields

Manufacture of friction bearings and face seals (silicon carbide)

Design and production of semisubmersible oil pumps

New developments of 2004:

Hermetic submersible pump with magnetic clutch (dust-ignition-proof construction)

Chemical and hermetic unit construction pumps with smaller size and weight

High lift two-stage pumps AH and GH series

Deionization systems for water purification