Address by Director General

Dear colleagues,

Today the aim of development of the chemical industry in Russia is to ensure the necessary volume, quality, and range of chemical products in accordance with the demand on the national and international markets through the modernisation of existing and establishment of new enterprises on a modern technical basis.

We at Shchekinoazot are successfully solving these problems. We have come a long way in our development by relying on a scientific approach, modern technology, and effective use of our human resources.

It has never been easy to be an innovator or pioneer.  But this is the path that Shchekinoazot and the famous team of chemists from Shchekino have chosen for themselves!

Shchekinoazot celebrated its 63rd birthday in May 2018, and in just two years we will celebrate the 65th anniversary of our company!

This serious date as a mirror reflects our focus on results, ability to overcome difficulties, work as a united team, and most importantly our desire to develop, improve, and conquer new heights. 

Historically, the company has known victories and difficulties, breakthroughs and times of overcoming obstacles. In the Soviet era the factory became famous thanks to the Shchekino economic experiment, the main postulate of which was: fewer staff—more products. Working isn't about staff size; it's about ability. In fact, the Soviet centrally planned economy used market mechanisms for the first time. Then there were the hard 90s and no-less-difficult 2000s, when the country tried to become part of the market-driven economy, and the former business ties and mechanisms of sectoral cooperation were broken down.

Initially, we managed to keep the company afloat and then began to actively develop and modernise it.

Today Shchekinoazot is one of the leading chemical companies in Russia in the market of basic and industrial chemicals as well as consumer goods.

The main products of Shchekinoazot are: methanol, caprolactam, liquid and solid (dry ice) carbon dioxide, food carbon dioxide, urea and formaldehyde concentrate, ammonium sulfate, heterogeneous ion-exchange membranes, household chemicals, ammonia and formalin (37% and 47%).

The stable quality of the manufactured products is guaranteed by the quality management system based on ISO 9001:2008.                                            

The number of employees exceeds 3,000.

Since 2005 the company has been implementing an investment programme aimed at modernising existing production facilities and creating new ones using modern high-tech and energy-efficient technologies.

 Over the past 13 years we have implemented 16 investment projects, and the investments have amounted to USD 882 million.

A significant project in Shchekinoazot's history was the construction of the most advanced methanol production plant in Russia, which served as the basis for future processing plants. The plant was officially launched on 20 March 2011. It has an annual capacity of 450,000 metric tonnes of methanol. The technology implemented in the project was provided by the world-class licenser Haldor Topsøe. Shchekinoazot and Haldor Topsøe have been in a productive partnership since 2007.

We currently operate a hydrogen plant that was designed and constructed using technologies, equipment, and catalysts provided by Haldor Topsøe.

Today Shchekinoazot's industrial platform includes operating production plants for urea-formaldehyde concentrate and low-methanol concentrated formaldehyde, high-tenacity yarn, and spunbond. We are successfully developing a joint venture with the American company Hexion for the production of phenol-formaldehyde resins.

The project of technical renovation of the formaldehyde production with urotropine increased the quality of the product and the sales volume of urea-formaldehyde concentrate.

In 2013 the technical capacities at the caprolactam production plant underwent a major upgrade. This increased the quality and competitive capabilities of the product on the market. The introduction of advanced technologies in the cyclohexane oxidation shop ensured the reliability of equipment, lowered the consumption rate of raw materials and energy.

I cannot emphasise enough the importance of the tasks solved by our energy department. For the first time in our history they managed to fulfil the energy needs of the industrial platform with just our own generating capacities.

In recent years we have built four new state-of-the-art installations that will be put into operation in 2018: the methanol/ammonia M450/A-135 complex and new treatment facilities as well as industrial installations for producing sulfuric acid and perfume-quality dimethyl ether (a joint venture with PCC SE).

All these enterprises have an enormous importance for Shchekinoazot and will determine the development of the enterprise for years to come! 

Launching the methanol/ammonium complex will allow the company to increase its annual output by more than two times as compared to the previous one. We use the excellent technology of our trusted partners, the Haldor Topsøe company. A unique technical plan, a new combination: more methanol and less ammonium, 450,000 and 135,000 tonnes per year.

The modern installation of sulfuric acid, which is a raw material for the production of caprolactam, will allow the company to completely switch over to a product that will be produced here on the industrial site of the enterprise, which is economically profitable.

The perfume-quality dimethyl ether isn't produced in Russia but is in great demand among industrial enterprises. The project will provide 100% import substitution of this product in Russia.

A modern membrane technology is being used in new treatment plants. Their capabilities will enable the operation not only of the projects implemented today but also of future new production facilities. 

We will further strengthen the company's position with launching several production facilities: methanol-500, nitric acid and ammonium nitrate, urea, and ammonium. These are Shchekinoazot's development plans! We are really counting on these projects! Today we are talking about achieving real success for Shchekinoazot.

Developing ourselves, we also contribute to the development of our partners.

Thanks to our experience, skills, and knowledge, we can offer our clients the best solutions in the field of chemistry: for oil and gas production, transportation and processing, car, electronic, pharmaceutical, agrochemical, paper industries, water purification, textiles, construction materials, industrial, and consumer products.

We offer reasonable prices and optimal supply conditions for chemical products and are open for mutually beneficial business offers.

The main advantage of our plants is their advanced production facilities and well-developed transport infrastructure. Thanks to our convenient location right in the centre of Russia, we can provide stable and timely supplies to clients in Europe and countries of the Asia-Pacific Region, thereby guaranteeing secure long-term export agreements.

The company's strategic goals today are to grow the share capital and profitability through the introduction of innovative technologies, diversification of activities, learning and adopting the production of items with high added value and expanding production capacities. Our technological processes meet the highest environmental and industrial safety standards. This, combined with our successful social policy, helps us to carry out our mission: through consistent growth, development, and a responsible attitude to the environment we strive to make a positive contribution to society and make our world a better place for living.

For many years Shchekinoazot has been one of the largest tax payers in the region, helping to secure social stability.

We would be happy for you to become one of our long-term partners.

Yours sincerely,

President of Shchekinoazot

Boris A. Sokol