In an interview with online media outlet "RBK-Perm", Oleg Mamaev, General Director of "Metafrax Trading" LLC, spoke about the situation development of the methanol market during the economic crisis and the COVID-19 pandemic, the results of the company's work and the expected measures of state support.
According to Oleg Mamaev, the company's management already took care of the situation in the commodity and financial markets in the fourth quarter of 2019.
- We were preparing for the crisis, so we applied a new sales strategy. We began to sign contracts for the supply of products not only for a year, but also for two or three years. Sales plans have become medium and long-term instead of short-term. Thus, we have secured plans for the chemical products manufacturing for the group's companies, - said Oleg Mamaev.
As a result, the approved budget targets were achieved in the first quarter of 2020.
- We have observed how the situation was developing in China, conducted analysis and forecasts about how it might affect our markets. "Metafrax Trading" is not present in China's methanol market, but since it is the world's №1 consumer, we knew that the "tsunami" would come to us too," highlighted Oleg Mamaev.
Now, according to Oleg Mamaev, the important question is what kind of support the Russian authorities will be able to provide to the business.
- We expect that the state will understand the need to preserve the industry's enterprises. The reduction of tariffs for gas and rail transportation would substantially ease the pressure on methanol producers. The support for investment projects is required in terms of subsidizing the interest rate on loans. This kind of support is mutually beneficial to all parties. Successful implementation of investment projects significantly increases tax deductions of the companies into budgets of all levels. The second one is the modernization of infrastructure and the provision of benefits to enterprises and industries that invest in infrastructure, - stated Oleg Mamaev.
The full text of the interview can be found here.