RESIN DEVELOPMENT STRATEGY IN PROGRESS[30.06.2021]
The implementation of investment projects for the construction of the KMMF-110 concentrated low-methanol formalin unit with infrastructure and the KMFS-220 urea and melamine-formaldehyde resin unit is ramping up at Shchekinoazot.
At present, the selection process of a general designer for project documentation is almost complete. Two licensors have been identified: the supplier of production technology and equipment for the KMMF-110 unit will be Wuxi Huali Petroleum and Chemical Engineering Co. LTD of China; a contract has already been signed with this company, and basic designing and equipment fabrication have begun; the supplier of basic engineering for resin production will be Hexion of USA. The partnering banks will be Sberbank and Gazprombank.
In September, the full basic design package from the licensors will be ready.
A business plan, financial model and schedule for the investment project have been prepared, as well as a project budget for 2021.
The implementation of the project was launched last year, and a task force was set up at the company. A resin development strategy and a detailed explanatory memorandum have been prepared. In December 2020, the Development Strategy was approved by the Board of Directors of the Hexion-Shchekinoazot Joint Venture, and a line chart for its step-by-step implementation was prepared.
In December, Governor of Tula Region Aleksey Dyumin and Boris Sokol, president of Shchekinoazot, signed a cooperation agreement for the implementation of this investment project.
In addition, an application has been sent for the inclusion of the KMMF-110 and KFMS-220 projects on the List of Projects of the Russian-Chinese Investment Cooperation Commission.
The construction of the new KMMF unit and the subsequent KFS and KMFS facilities is on schedule. A list of priority works to prepare the area for construction has been identified, and the implementation started.
A plan of organisational and technical measures to prepare the construction site has been developed and approved. As part of the implementation of this plan, projects for the redistribution of power supply, the relocation of pipelines and networks, and a tank farm reconstruction project have been developed. In accordance with the projects, bids for equipment and material procurement have been prepared.
A contractor has been selected to design a project for the demolition of buildings and structures in the construction zone; the demolition is scheduled to be up by September.
At present, the dismantling of inactive equipment is already well underway at the UFC shop site in accordance with the schedule (pictured).
The resin production development strategy is set to run from 2023 to 2027. This is a time of growing global demand for methanol, a semi-product for further conversion into formaldehyde and UFC, as well as plastics, paints, rubbers, disinfectants, acetic acid and a high-octane additive for petrol fuels.
As demand rises, so does supply. By 2030, the total capacity of methanol producers will increase many times over. The project to convert it into value-added products and resins is a breakthrough step for the company and a new opportunity on the global market. The construction and commissioning of new methanol units and increased production volumes mean new prospects for Shchekinoazot to expand its product range and finished products output.