U N I T E D C H E M I C A L C O M P A N Y SHCHEKINOAZOT
IDEAS INVESTMENTS INNOVATION CONTENTS
WHO WE ARE LOCATION HOLDING STRUCTURE MISSION & GOALS AWARDS & ACHIEVEMENTS PRODUCTS PARTNERS FINANCIAL DATA INVESTMENTS ECOLOGY SOCIAL POLICY PERVOMAYSKIY INDUSTRIAL PARK U N I T E D C H E M I C A L C O M P A N Y SHCHEKINOAZOT
Who we are Markets Shchekinoazot is one of the largest Russian Company is a member of the markets in Europe, companies in chemical industry Asia, America and it has regional offices in Europe, Asia, the Ukraine Mission To bring ultimate good to our owners and human Products society through steady increase, sustainability and responsible attitude towards the world around Methanol, caprolactam, sulphuric acid, us and to help implementing transformations ammonia sulphate, ammonia, UFC-85, which change our life. carbonic acid
Indexes 2015 Clients Petrochemical, woodworking, 440 mln USD the sales volume building, automotive, 3 500 employees textile industries 1000 clients LOCATION
Moscow Vremenniy TH SHCHEKINOAZOT Ltd M-2 JSC KHIMVOLOKNO LLC UCC SHCHEKINOAZOT
Pervomayskiy
JSC SHCHEKINOAZOT Yasenki
M-2
Tula Shchekino Shchekino UCC SHCHEKINOAZOT HOLDING Investments, Strategic & Financial management, IT STRUCTURE
JSC JSC TRADING JSC SHCHEKINOAZOT SHCHEKINOAZOT HOUSE KHIMVOLOKNO INDUSTRIAL TRANSPORT PERVOMAYSKAYA EFREMOV BRANCH SHCHEKINOAZOT & & HEAT AND Production Production CONSTRUCTION LOGISTICS POWER of methanol, Production Sales and of spunbond, COMPANY COMPANY PLANT caprolactam, of sulphuric procurement PA-6, carbonic acid acid, oleum engineering plastics
JSC INNOVATIVE LLC LLC CJSC SHCHEKINOAZOT ENTERPRISE HEXION- SHCHEKINO Ariadna Tex HOUSEHOLD SHCHEKINOAZOT SHCHEKINOAZOT LINOLEUM Production of CHEMISTRY Production of (JV) Production ropes, Production ion-exchange Production of of cords & of household membranes & phenol- Linoleum consumer chemicals electrodialysis formaldehyde goods plants resins MISSION & GOALS
Mission To bring ultimate good to our owners and human society through steady growth, sustainability and responsible attitude towards the world around us and to help implementing transformations which change our life.
Goals
1 Company`s capitalization and profit growth in long-term perspective through innovations and expansion of distribution area
2 Expansion of higher value-added goods segment
3 Strengthening the Company`s competitiveness by raising production effectiveness, building new capacities, modernization of the equipment and assimilation of new technologies
4 Meeting high standards of environmental & industrial safety AWARDS AND ACHIEVEMENTS
2002 Top Russian exporter of the Year 2003 Top Exporter of Tula region to CIS 2004 Honorary Diploma of Russian Chemists Union «For Development of Social partnership» 2004 Quality Management Certification in accordance with ISO 9001:2000 2005 Diploma of Russian Organization for Quality «Russian Quality» 2006 The Company started warning on certification of ecological management system in accordance with ISO 14001:2004Standart 2007 The President of JSC Shchekinoazot Boris A. Sokol was awarded a medal of the Order of Merit for nd Motherland 2 degree 2009 Diploma of Russian Organization for Quality «Russian quality» 2010 Quality Management Certification and recertification in accordance with ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 Standards nd 2010 The Company is declared the winner of the 2 All Russian Quality Management Contest 2010 Diploma of Russian Organization for Quality «Russian Quality» 2011 Diploma of Russian Organization for Quality «Russian Quality» 2012 Diploma of National Award «Golden Mercury-2012» 2012 Compliance Certificate of production and shipping of food-grade carbon dioxide to requirements of FSSC 22000:2011 2012 The President of JSC Shchekinoazot Boris A. Sokol was awarded with the medal «Tula Region Patron of Art» 2013 Certificate of Inclusion in the State Register «Leading industrial enterprises of Russia» 2014 Diploma and Commemorative Sign «Best Russian Exporter 2013» in the nomination «Chemical Industry» PRODUCTS Holding Products Chain
Pervomayskaya Heat and Power Plant Steam / Electric power Sulphur
Shchekinoazot Efremov Branch Sulphuric Acid Production
JSC Shchekinoazot Oxigen Oxygen Sulphuric Sulphuric production Acid Benzene Acid and Oleum Nitrogen Ammonia production Air Natural Oxygen Ammonia Caprolactam Production Gas Ammonia Ammonia water
Hydrogen Ammonium Sulphate Caprolactam Methanol Production
Gaseous СО2 Co2 production Methanol Methanol
Liquid Food-grade Solid UFC-85/Formalin Formalin CO2 CO CO2 Production 2 Phenol- Phenol-Formaldehyde Resins Production Formaldehyde (JV Hexion-ShchekinoAzot) Resins UFC-8 Formalin
PA-6 Caprolactam JSC Khimvolokno PA-6 Production PA-6 Polypropylene
Composite Materials Polymer Spunbond Production Concentrates Production Production
Composite Materials Polymer Concentrate Spunbond PRODUCTS % production in Russia
Shchekinoazot Efremov Branch Sulphuric acid & oleum 500 KTA 3 %
JSC Shchekinoazot Methanol 450 KTA 14 % Caprolactam 60 KTA 11 % Ammonia Sulphate 160 KTA 8 % UFC-85 60 KTA 20 % Carbonic Acid 60 KTA 20 % Phenol-phormaldehyde Resins 40 KTA 31 % (JV Momentive-Shchekinoazot) Formalin 60 KTA 9 % JSC Khimvolokno Nylon-6 up to 50 KTA 35 % Spunbond 3,4 KTA 5 % Polymer Concentrate & Composite materials 3 KTA 3 %
Holding is certified in accordance with System of Quality Management ISO 9001 PARTNERS PARTNERS Sales geography
Global market
Austria Republic of Belarus Hungary Germany Spain Italy Kazakhstan China Latvia The Netherlands Poland Portugal Romania Slovakia The USA Taiwan Turkmenistan Turkey Uzbekistan The Ukraine Finland France Czech Republic Consolidated proceeds dynamics Financial data
Bln Mln RUR USD
18 17,0 500 440,2 435,6 440,0 15,4 16 450 407,1 400,0 400 14 347,8 345,3 12,5 12,3 11,5 350 301,3 310,0 12 284,9 9,8 9,8 300 260,5 10 8,5 8,8 8,0 250 8 7,4 200 6 150 4 100 2 50
0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 INVESTMENTS
2017 2018 2005-2018 2016 Combined DME 99,99% methanol/ammonia 20 mln EUR production M-450/A-135 270 mln EUR 2015 2012 Hydrogen 2014 Unit Phenol-formaldehyde resins 880 35,9 млн € production expansion mln $ 2013 4 mln EUR 2010 Caprolactam Pervomayaskaya Heat modernisation and Power Plant 40 mln USD; 32,5 mln EUR Formalin 52% 2011 production Methanol 235 mln RUR 2005-2014 production M-450 2008 6,5 bln RUR 2006 2009 UFC and formalin Phenol-formaldehyde 240 mln RUR Resins 9 mln USD; Spunbond 460 7 mln USD; mln $ 2007 FDY fibers project 12 mln USD 2005
80% OF ATTRACTED INVESTMENTS ARE SUBMITTED BY STRATEGIC PARTNERS UFC AND FORMALIN PRODUCTION
In May 2006 new production of UFC and formalin started up. The project was implemented within limits of approved budget and fixed deadlines.
Production capacity 60 000 MTY – UFC 60 000 MTY – Formalin (37%)
Project Significance Investments 1 business diversification 2 production lines continuation 3 the basis for phenol-formaldehyde resins production
Current Project Status Рroduction is running stable and gaining regular profit, 240 allowing to explore new trading markets mln RUR SPUNBOND PRODUCTION
Project Creating new modern production of spunbond with capacity of 3 400 MTY Brands NanoAgrol© – non-woven fabric, high breathable water-permeable, creating diffused light, is used as a covering material for plants. TECHNOHAUT© – membranes TECHNOHAUT are used during construction as wind-and steam-isolating material Project Goals
1 enter the new prospective and fast-growing markets of eco- friendly building materials and materials for agricultural industry Investments 2 start up production of new non-woven spunbond-type material 3 expand our share of polymer processing products 4 manufacture diversification.
mln $ Current Project State 7 Production started up in 2 Q 2009 FDY FIBERS PRODUCTION
Project Сreating new production of FDY fibers with capacity of 9 200 MTY.
Project goals
1 expand manufacture of products which are goal-oriented for JSC Khimvolokno through starting up new production of FDY fibers (15-20 tex)
2 enlarge the company work experience with products of polymer processing
3 replacement of FDY fibers import Investments 4 create new production for business diversification
mln $ Current Project Status 12 Production started up in 3 Q 2009 PHENOL-FORMALDEHYDE RESINS PRODUCTION
Project JV with American Company Hexion was created. Estimated production capacity is up to 55 000 MTY.
Project goals
1 organising of highly effective eco-friendly production of phenol formaldehyde resins
2 increasing the company’s investment prospects 3 gaining best Western practice in sphere of technologies and business management
4 fast entering the domestic market of resins Investments mln $ 5 manufacture diversification
Current Project State 9 Production was launched in 2 Q 2009 ABOUT THE COMPANY HEXION
Hexion 1 the enterprise was founded in October 2010 by merging the companies Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. 2 world leader on the market of line chemical products; 3 supplies a wide range of specialised products, neccessary for industrial and consumer-oriented companies; 4 orientation on work without doing harm to environment and on observation of business-etiquette.
Brief review 1 sales turnover in 2012 – 7 billion USD; 2 company is present in Europe, Asia, America, Russia, Japan, Australia, China, India. 3 more than 180 industrial sites; 4 more than 9 700 employees working with more than 11 000 customers;
Clients Market silicium, organic plastic materials and silica, silicones, ethoxyline, phenolic and varnish 1 industrial and consumer-oriented companies; resins, forest products. 2 enterprises of automotive and marine industries; 3 companies from architectural and construction spheres, furniture trade; 4 enterprises of oil and wind industries. H H H METHANOL PRODUCTION C WITH CAPACITY O OF 450 000 MTY H Project
Establishement of modern competitive methanol production with capacity of 450 000 MTY based on the technology of the European lisensor – Haldsor Topsoe (Denmark).
Project goals
1 increasing the Company’s profitablity by means of expenditures reduction at the new plant (in comparison with the one in use) 2 expanding global domestic market share 3 adopting progressive methanol production Investments technology instead of the outdated one in use reduction of raw material and energy consumption, 4 decreasing environmental pollution.
bln Financing by «Sberbank Russia» RUR , Current Project State 65 Production was launched in October 2011 CAPROLACTAM PRODUCTION MODERNIZATION
Project 1 modernization of major workshops producing caprolactam and increasing caprolactam production up to 60 000 MTY
2 reconstruction of cyclohexane combustion workshop according to the European licenser technology
Project goals 1 production growth 2 increase of degree of equipment reliability 3 decrease of major raw materials unit consumption Investments 4 essential decrease of expenses on production unit 5 increase of products quality and its competitiveness on the basis of technological processes upgrading 6 decrease of ecological impact on the region due to reduction of emissions of atmosphere polluting substances mln $ Financing by «Gasprombank» 40 Current Project State Actions were completed stepwise in 2012-2013 HYDROGEN UNIT
Project
Construction of new hydrogen unit with capacity of 26 000 m3/h
(production of food-grade CO2 – 60 000 MTY)
Project goals
1 decreasing prime cost of hydrogen and as a consequence decreasing prime cost of ammonia and caprolactam production 2 adopting progressive resource saving and energy Investments effective technology of hydrogen production instead of the existing outdated one
3 decreasing ecological impact on environment
Financing by «Sberbank Russia»
, Current Project State 359 Production start up in 4Q 2012 mln € PERVOMAYSKAYA HEAT AND POWER PLANT
Project Purchasing Pervomayskaya Heat and Power Plant and its integration in production cycles of JSC ShchekinoAzot Installed electric power – 105 Мegawatt Installed thermal power – 774 Gcal/h
Project goals
gaining profit from project execution due to the electric and thermal 1 power prime cost decrease and as a consequence decrease of prime cost of the products from major plants 2 decreasing negative influence on the products prime cost dependence Investments (including modernization) on natural monopolies fare growth 3 switching to own production of electric and thermal power will allow to use energy resources more rationally and to plan products manufacturing
Financing by «Gasprombank» , Current Project State 325 It has been integrated into the enterprise infrastructure in 2011 mln € FORMALIN PRODUCTION
Project technical revamping of formalin with hexamine production – the first stage, formalin production
Project goals
1 production, organizing production of concentrated formalin 52-55% with amount of methanol no more than 1% on the basis of existing formalin with hexamine for phenol- Investments formaldehyde resins production to have needs in formalin covered
2 increasing rate of UFC sales to 75 000 MTY
Current state of the project 235 Running since 3Q 2013 mln RUR NEW PROJECT – TECHNICAL RE-EQUPMENT OF PHENOL- FORMALDEHYDE RESINS PRODUCTION
Project
building the second reactor at the production of phenol- formaldehyde resins and expansion of production line with 5-10 new certified products in cooperation with MOMENTIVE company.
Project goals 1 rate increase on the market of slag wool Investments 2 production of resins and expansion of access to the market of multiply plywood 3 reduction of customers needs in import of specialized resins
Current Project State
Start-up work is carried out in processing medium. Specialists set mln € the equipment, work at cycles and compositions; first resin has 4 been manufactured. H H H NEW PRODUCTION C OF 450 000 MTY OF METHANOL O AND 135 000 MTY OF AMMONIA H Project o build new methanol and ammonia production using all experience and infrastructure synergies from the first methanol plant in cooperation with Haldor Topsoe Project goals
1 increasing the Company’s profitability by means of expenditures reduction at the new manufacture 2 expanding global and domestic market share 3 implementation of progressive SWING methanol/ammonia Investments technology for company to be able to benefit from low CAPEX 4 reduction of raw material and energy consumption, decreasing environmental pollution
Financing: project lending
Planned start-up: 2Q 2018
Current Project State mnl € Project works are finished; the state expert review has been started. The industrial site is almost ready for construction. Orders for equipment are peaced (more then 85% are already completed); general contractor is begin chosen. M-450/А-135 NEW METHANOL AND AMMONIA PRODUCTION EFFECTIVENESS
Comparison natural 3 1 200 gas consumption, nm /t
1 140 1 000
800 880 859 830
600
400
200
0 M-450/А-135 METAFRAX STATOIL М-450 Best technology Best technology Current production in Russia in Europe, Norway plant of Shchekinoazot NEW PROJECT DME PRODUCING PLANT
Project
We established a Joint Venture «DME-Aerosol» with a large European holding company «PCC SE» (Germany) to organize production of high quality dimethyl ether at the production site of «Shchekinoazot»
Project Goals
1 To organize highly effective and ecologically safe production of high quality DME 2 To improve investment prospects of the company Investments 3 To obtain advanced western experience in the s phere of technologies and business organization 4 To lessen customers' import demands 5 To diversify production
Planned Capacity: 20 000 tons/year , Due Date: Q2, 2016 212 Current Project Status mnl € Basic project is ready, the orders are placed for basic equipment ECOLOGY
ISO 9001:2000, ISO 14001:2004, OHSAS 18001:2007 standards provide all the conditions needed to form
«System of Quality Managemen», «System of Ecological Managemen», «System of Occupational Safety and Healh Management»
During last 5 years air pollution was reduced by more than 25% The major strategic goal of JSC ShchekinoAzot in environmental protection is gradual decrease the impact of the enterprise activity in the environment
During 2009-2013 the budget of environment protecting activities exceeded 500 mln RUR
During 2010-2014 the budget of environment protecting activities exceeded 250 250 mln RUR mln RUR SOCIAL POLICY
«Shchekinoazot» is a traditionally backbone enterprise and the basic municipal and regional tax-payer.
The company's social expenditures in the last 4 years amounted to 142 million rubles
The realization of the company's development program is the basis for establishing new jobs for local residents, salary and tax liabilities growth.
«Shchekinoazot» participates in so called «Yasnaya Polyana Agreement», signed together with Tula Region 4 years Administration and «Yasnaya Polyana» museum-estate. A charity foundation has been established by three well- known families – the Topsoes, the Tolstoys and the Sokols – aimed to support gifted children caught in a difficult situation. «Talented Children» project is already in full play.
In 2011-2014 more than 34 million rubles were allotted for charitable aims.
In 2015 we plan to spend 50 million rubles on social 142 expenditures. mln RUR INDUSTRIAL PARK PERVOMAYSKIY
A complex with ready-to-use production, office and storage space, developed infrastructure and utilities which can be used for any manufacture
Over the park’s service life: more than 1000 work positions were established here
Total area of the industrial park is 56 ha.
Production area and storage space amounts to – 100 000 м2. 1000 17 manufacturers are located there. work positions