ANTON SILUANOV AND ALEXEI DYUMIN TOUR SHCHEKINOAZOT[06.03.2019]
On March 5, heads of federal and regional ministries and departments toured Shchekinoazot.
Anton Siluanov, Russian First Deputy Prime Minister and Minister of Finance, visited the region and the Shchekinoazot company. He was accompanied by Alexei Dyumin, Tula Region Governor, heads of other regions, members of the Tula regional administration, General Director of JSC Russian Export Center Andrey Slepnev and Senior Vice President of JSC REC Alexey Kozhevnikov, leaders of the banking sector, representatives of the Russian business community, etc.
Shchekinoazot was represented at the meeting by its President Boris Sokol, Finance Director Andrey Tokarev, Deputy Director for Technology and Implementation Sergey Levin. They were also accompanied by Technical Director Vyacheslav Kurganov, Deputy Director and Project Manager Oleg Makarov, HR and Social Development Director Irina Podchufarova, Deputy General Director for Production Vitaly Ponomarenko, Deputy General Director for Development and Quality Eduard Savosh.
Anton Siluanov held a meeting on the importance of supporting entrepreneurship initiatives, the development of small and medium businesses and export potential, the implementation of national projects to support employment and improve productivity. He visited companies involved in the implementation of export acceleration and improvement of productivity programs. The Minister had a meeting with heads of neighboring regions and Tula Governor Alexei Dyumin. They discussed issues related to the implementation of national projects.
Acting at the instruction of the President and the Prime Minister of the Russian Federation, Anton Siluanov visits different regions to discuss issues relating to the practical implementation of national projects with the regional leaders. Tula Region was the first region visited by the Russian First Deputy Prime Minister.
The tour of Shchekinoazot was one of the items of his business program.
The honored guests toured Shchekinoazot’s Hall of Labor Fame, which showcases both the historical aspects of the enterprise and its present day activities, including projects launched in 2018 and those still at the development stage.
The guests watched a film about the company, timed to the launch of new productions facilities.
Boris Sokol made a detailed presentation of plant’s development stages. In particular, he spoke about the development strategy of the plant which was focused on getting out of the crisis first and then steadily moving forward.
“There are three big stages in this strategy: rebirth, stabilization, diversification,” said Boris Sokol. “We have just completed the second stage of the program, and we have moved to the third one.
Over the past 13 years we implemented 16 investment projects and invested over $882 million in production.
At the first stage (2005–2013), we started the production of: urea formaldehyde concentrate, phenolic resins, spunbond, FDY, methanol with a capacity of 450,000 tons per year, hydrogen, formaldehyde. The production of caprolactam was modernized. The site was provided with electricity generated by the company ? we bought Pervomayskaya CHPP from PJSC Kvadra. Program investments amounted to $440 million.
And we were able to move forward ? towards stabilization and growth. In 2013–2018, the company continued to implement investment and modernization projects. We expanded the production of phenolic resins and spunbond and also launched an ammonium sulfate granulation line. We started modern high-tech production of methanol and ammonia, sulfuric acid and perfume quality dimethyl ether. We also brought sewage treatment plants into operation as an important component of the company’s environmental safety and the basis for our new projects.
Investments at this stage amounted to $440 million.
At the moment we’re working on the implementation of the third-stage projects (diversification). We’re going to invest another $900 million in the development of the company before 2023. The most important projects of this stage are the production of methanol-500, nitric acid and ammonium nitrate, ammonia and urea.
All Shchekinoazot projects, aimed to increase regional export potential, fully comply with the Russian President’s Decree No. 204 dated May 7, 2018 “On the National Development Goals and Strategic Objectives of the Russian Federation in the Period until 2024.”
Following the main provisions of the President’s Decree, Shchekinoazot is increasing its non-resource exports. By 2024, the company’s exports will reach $760 million, which is 2.5 times higher than in 2018.
...We’ve already started working on the fourth stage of the investment program ? active development of the industrial site in Efremov.
With the support of the administration of Tula Region, Shchekinoazot plans to develop a large gas processing cluster in Efremov as part of PSEDA. The company is considering different projects related to the construction of high-tech manufacturing plants for the production of monoethylene glycol, acetylene, polyvinyl chloride, ammonia, urea, methanol and other substances. The would-be projects are expected to demonstrate the following key figures: 2.4 million tons of products per year, over $2 billion in investments and over 1,500 high-performance jobs.”
Boris Sokol thanked the federal and regional authorities for supporting the company’s development projects.
During the meeting, OJSC Shchekinoazot, JSC Gazprombank and JSC Russian Export Center (REC) signed a memorandum of intent in the presence of Anton Siluanov and Alexei Dyumin. The parties identified key areas and forms of mutually beneficial cooperation related to the construction of an ammonia and urea plant (with a planned production capacity of 525,000 and 700,000 tons per year, respectively) in the settlement of Pervomaisky, Shchekino District.
The document was signed by Boris Sokol, Alexei Belous and Andrey Slepnev.
The project budget is $550 million.
The launch of new production facilities strengthens the company’s standing on international and national markets of mineral fertilizers.
Earlier, during the Russian Investment Forum in Sochi, a syndicated loan agreement was signed between VEB RF, Gazprombank and Shchekinoazot. As part of project financing, a project for the construction of the third stage of methanol production facility at Shchekinoazot in Tula Region (with a capacity of 500,000 tons per year) will be funded.
The project is worth 22 billion rubles. The decision on the participation of VEB.RF was made by the Supervisory Board of the development corporation in December 2018. VEB.RF will contribute up to 4.5 billion rubles in the syndicated loan. Gazprombank will contribute 10 billion rubles. The planned financing period is 12 years. The syndicated loan from financial partners will be used to pay for construction and installation works and purchase equipment produced in Russia.
After the launch of the Methanol-500 production unit, the company will become the largest producer of this substance in Russia. The project complies with the President’s Decree issued in May on the development of non-resource product exports.
It is one of the first syndicated loan agreements signed as part of project financing.
The honored guests expressed satisfaction with the large-scale production development processes at Shchekinoazot and gave recognition for the contribution to the development of the economy. They also toured the plant’s facilities.
During his visit to Shchekinoazot, Anton Siluanov held a working meeting with heads of major export-oriented enterprises in the region. Heads of exporting companies, including Shchekinoazot, participated in the event.