Delegations from Metafrax, Metadynea Switzerland and Metadynea Austria have totally held more than 100 meetings during 7-10 October in Vienna.

Most of meetings were held at the meeting room, organized in one of the most trendy Viennese hotels – Grand Ferdinand. Spacious restaurant space was converted into traverse point of multinational and regional businesses, allowing to present Group activities through banners, roll-ups, printed and video production.

Apart from discussing day-to-day business issues, Companies managed to meet

major suppliers and consumers of methanol, hexamine, pentaerythritol and phthalic anhydride,
logistics partners, including shipowners, brokers and transhipment terminal operators,
licensors and contractors,

discussing main market-drivers and trends, which may affect the Group activities in the coming years.

All these meetings have underlined continued proactive Metafrax position on the European chemical market and should help the group to continue its growth both on domestic and worldwide markets.

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EPCA is the European Petrochemical Association, the quality network for the global chemical business community in Europe.

Provides platforms to meet, exchange ideas, transfer knowledge and support learning, and serves as a think tank for its members and its stakeholders.

Operates for more than 700 member companies from 54 different countries.

Metadynea LLC, a subsidiary of PJSC Metafrax and one of the leaders of the Russian market of synthetic resins launched Formalin-2 production plant in Orekhovo-Zuevo. The new capacities will allow to provide necessary volumes of formalin to the company’s Moscow region plant and to increase the efficiency of the enterprise’s operation.

On October 2, a ceremonial launch of the new unit Formalin-2 took place at the production site of Metadynea LLC in Orekhovo-Zuevo. Production is designed to produce 55% formalin in the amount of 91 thousand tons per year, which will fully meet the internal needs of the enterprise in this type of product. In terms of 100% formalin, the plant capacity reaches 54 thousand tons annually.

The total project budget amounted to 1,205 billion rubles. The construction of the Formalin-2 plant has become one of the largest projects of Metadynea, implemented at its own expense.

The project started in 2015. In December 2017, a report was received on the compliance of the object with the requirements of technical regulations and project documentation, and in May 2018, permission for commissioning was received. The equipment on the site is produced by Johnson Matthey Formox AB, which is one of the leading Western suppliers of technologies for the production of formaldehyde.

“The new plant on Orekhovo-Zuevo production site has successfully passed all the tests. The design capacity of 280 tons of 55% formalin per day has been achieved, and the quality of the products corresponds to the warranty values. This gives us the opportunity to cover the internal demand for formalin by 100%, reduce logistics costs and thus offer consumers even more competitive products,” said Igor Spassky, General Director of Metadynea LLC.

“The capacity utilization of Metafrax and its subsidiaries is approaching the maximum level, so we are actively working to expand them. The increase of the volumes of its own formalin production in the Moscow region will make the site less dependent on the market situation and will serve as a guarantee of its stable operation. Metadynea is already included in the list of the largest producers of synthetic resins in Europe, and the launch of the new production will help to consolidate and strengthen the company's position,” said Armen Garslian, Chairman of the Board of directors of PJSC Metafrax.

Metafrax Group took the 72^nd position in the rating of the largest exporters of Russia according to the results of 2017, published by the business paper “Expert”, having doubled its position: the Group was on the 153^rd position by the end of 2016. The Group was ranked second among the enterprises of the Kama region.

The group's exports in 2017 reached $ 391.6 million, the share of exports in revenue exceeded 50%. For comparison, the export volume of Metafrax Group in 2016 amounted to 77.8 million dollars.

"In 2017, the methanol export situation was favorable, which allowed us to increase export sales and attract significant third-party volumes. We learned to respond more quickly to fluctuations in both the domestic and export markets, and also achieved some success in optimizing our logistics, which allowed us to minimize unforeseen expenses and make export parity more predictable. As for macroeconomic factors, export is favored by  overall economic growth, increased consumption of some of the products derivatives (in particular, for methanol - the consumption of formalin, MTBE, olefins, DME, acetic acid ", - said Vasily Mikhailov, a representative of Metadynea Trading company.

PJSC Metafrax, the largest Russian producer and exporter of methanol and its derivatives, starts the rebranding procedure. The renewed brand of the company will be presented in July 2019, a full-fledged launch of the brand is planned for the autumn of 2019.

Metafrax started the rebranding procedure. The contract for services rendering is signed with the multi-channel strategic communications agency Electric Creative.

The need for rebranding in the company is explained by the rapid expansion of business. The company is already the largest producer of methanol, pentaerythritol and hexamine in Europe. In addition, the subsidiary company Metadynea is on the list of the largest producers of synthetic resins in Europe.

The group's turnover is growing due to active investment policy, increasing production and sales, expansion of the assets portfolio. The revenue of Metafrax group has increased 3.5 times since 2011: from 13.2 billion rubles to 45 billion rubles by the end of 2017. It is planned that by the end of 2018 this figure will approach 50 billion rubles.

A large number of subsidiaries (both acquired and created «from scratch») presents the structure of Metafrax group. As a result, at the moment, the group includes 15 companies based in Russia and abroad. The group continues its active expansion to foreign markets: in 2017 the share of exports in the turnover of companies of the group exceeded 50%. Export deliveries are provided in 60 countries of the world.

- The decision to launch the project was approved by the Board of directors of the company in April. Today the project is fully launched, - comments Maria Konovalova, PR advisor to the Chairman of the Board of Directors of PJSC Metafrax.

At the initial stage of rebranding, it is necessary to develop a general concept for the project. To do this, a study of industry trends and competitive environment, interviews and other preparation works will be conducted. At the end of this stage, which is scheduled for the end of 2018, the brand name should be formed, and, taking into account the diversified business of the company, the architecture of the brand family as a whole.

- At the research stage, we will analyze Russian and foreign markets, business portfolios of companies of Metafrax Group, which will help us to understand the architecture of the family of brands. After the analysis, we will proceed to the creation of a positioning strategy and a brand platform. And only after that we will proceed to the stage of visualization and design, - says Beso Turazashvili, CEO of the agency Electric Creative.

The next stage, which is planned to complete in July 2019, will focus on the visualization of the brand: detailed design of the brand, the creation of a brand book, the development of a communication concept, and the creation of a brand website.

Maria Konovalova, PR advisor to the Chairman of the Board of Directors of PJSC Metafrax, was appointed the head of the working group on the rebranding project. The managing team for the project also includes members of the Board of Directors and top managers of the company.

Additional Information:

PJSC Metafrax is the flagship of the Russian market of organic chemistry with a worldwide reputation. It is the largest Russian exporter of methanol with a total export share of about 40%. The company's geography includes 60 countries.

The chemical division of the group of companies includes the head enterprise - PJSC Metafrax (Gubakha, Permsky Krai), Metadynea LLC - production of formaldehyde and synthetic resins (Permsky Krai, Moscow region), Metadynea Austria - production of formaldehyde and synthetic resins (Austria, Krems), JSC Karbolit - an industrial park of the "brownfield" type (Moscow region).

Trading companies of the group: Trade House Metafrax (Perm, Russia), Metadynea Trading SA (Geneva, Switzerland), SamyangMeta Ltd (Seoul, South Korea).

According to IFRS total revenues of GC Metafrax exceeds 45 billion rubles.

Group enterprises produce methanol, formalin, pentaerythritol and hexamine, urea-formaldehyde concentrate (UFC), synthetic resins, polyamide, sodium formate, etc.

Electric Creative:

BESO TURAZASHVILI - Founder and CEO of the multi-channel strategic communications agency Electric Creative. He graduated from New York University (NYU), built a career in branding in Wolff Olins in London and Dubai before moving to Moscow. Among his clients are VTB Arena Park, Dubai International Airport, Hyatt Group, Nestle, Dr. Reddy's, Cyient, Synterra Group, Sirius and others.

The proceeds of the Group of Companies Metafrax for 6 months of 2018 reached 26 billion rubles which is 20% higher than in the same period in 2017.

The main direction of capital investments was the construction of the "Ammonia-urea-melamine" complex, the volume of investments in which in the first half of 2018 amounted to about 1 billion rubles. By mid-August, the site of the AUM complex in Gubakha received equipment worth 13.5 million euros.

105 million rubles invested in the technical re-equipment of the crystallization unit for commercial pentaerythritol; 102 million rubles - technical re-equipment of the railway tank car treatment station; 94 million rubles is aimed at the reconstruction of the water supply and disposal system. The projected volume of capital investments of the group for the second half of 2018 is estimated at 10 billion rubles.

Armen Garslyan, Chairman of the Board of Directors of PJSC Metafrax:

"The growth in revenue is due to favorable market conditions. The production sites of the Group's enterprises operate at full capacity. In addition, the sales strategy is focused on different markets - the company reacts swiftly to their fluctuations and has achieved some success in optimizing logistics. All this allows to minimize unforeseen expenses. We expect that by the end of 2018 the consolidated revenue of the group will reach 50 billion rubles".

On August 23-24, the strategic session of the Metafrax Group was held for the first time in Demidkovo (Dobryanka, Perm Region).

Top managers of the companies-members of Metafrax Group and functional heads of the departments, including representatives of the Group’s foreign assets, gathered for the corporate forum MetaTeamEvent.

Metafrax Group actively increases production turnover, enhances commercial activity, expands the geography of its presence. Therefore, the purpose of the strategy session was to improve the coordination of the group’s enterprises, including their long-term development plans.

The extensive agenda of the two-day event included presentations with an analysis of the activities of all companies, including those recently included in the Group - the Korean company SamyangMeta and the Engineering and Technology Center of Metafrax.

“To me it also was a kind of team building session which will improve the internal communication a lot,” – says Dr. Ralph Peter Theuer, Managing Director of Metadynea LLC (Austria). According to him, the strategy session gave a general overview of the Group, and it was possible to get a better understanding what the different group companies are doing and focusing on.

Maxim Batuev, General Director of Karbolit, agrees with him: "First, I saw and made acquaintance with all the executives; secondly, I got an understanding of the trends and the dynamics of the development of the Group, and third, the session allowed me to identify some bottlenecks and hotspots in general".

On the second day of the work, the participants of the strategic session discussed key aspects of the current and prospective activities of the GC Metafrax: industrial security, legal, financial, personnel and corporate issues, PR, branding, security issues.

According to Simon Vikhnin, Director of Legal Affairs of PJSC Metafrax, it is a very rare opportunity to gather such a wide representation of interested executives: "A unique opportunity for the management to hold meetings and discuss issues they usually do not have enough time for at official events. The key issue is feedback and concrete implementation of the proposals based on the results of the session."

Following the results of the strategic session, a decision was made to expand and improve the efficiency of commercial activities and budgeting, and to create an information and analytical system. Another notable part was the presentation of the project to create a single brand of the Group of companies. The decision to start the project was previously made by the Board of directors of PJSC Metafrax.

According to the General Director of PJSC Metafrax, Vladimir Daut, such forums will become regular for the coordination of general plans and full understanding of corporate goals: "In the future, we plan to hold such meetings in different territories with a program of joint meetings and round tables, as well as the involvement of outside experts."

The companies of the Group are faced with the tasks of preserving sustainable development rates, developing optimal mechanisms for making internal decisions, optimizing business processes and increasing efficiency. "We must solve all thorny issues and eliminate the problems of our interaction in order to solve common problems," said Armen Garslyan during the discussion. "All the issues that are not resolved here and today will be brought to the nearest meetings of the Board of directors, working groups and committees, they will be properly assessed and a clear procedure for further actions will be defined”. The next strategic session is planned to be convened in six months.

Closing the first outbound strategic session, the Chairman of the Board of directors underlined that the Group of companies is growing, and the coordination tasks are becoming more complicated. "Therefore, at the end of the meeting, we should work out a common methodology for solving organizational, legal, communicative and economic problems," – said Armen Garslian. "All our efforts are aimed at improving the efficiency of production activities and business processes."

On August 19, 2018, from Italy the ammonia reactor weighing 230 tons was delivered to the construction site of Ammonia-Urea-Melamine Complex, Metafrax. The total value of the equipment delivered under the investment project is 13,5 mio.Euro. Before the end of 2018, all Long Lead Item will be delivered for future industrial complex.

On June 04, the cargo ship “Modulus 4” with the ammonia reactor manufactured by LUIGI RESTA (Margera, Italy) departed the port, and on June 16, the cargo entranced to the port of Rostov-On-Don. The next route stage is “Transkama” terminal in Nizhnekamsk, from where the reactor was sent on the flatcar to Ugleuralskaya station.  On August 19, the reactor was delivered to the construction site of AUM Complex. During 77 days the cargo covered more than 6000 km by water, railways and road.

Vladimir Daut, Director General of PJSC Metafrax, said that the large equipment is delivering according to schedule and that before the end of this year we shall receive all the Long Lead Items for AUM Complex. The manufacturing period took near two years under supervision of the Project Licensor (Casale, Switzerland). Transportation of the large equipment is very complex process, and, firstly, due to specialties of the roadways and bridges.

Are you attending EPCA - The European Petrochemical Association annual meeting, this year taking place in Vienna during 7-10 October?

Our group of companies will be represented by colleagues from Metafrax, Metadynea Trading SA and Metadynea Austria GmbH.

Feel free to contact us to reserve time slot for a meeting.

It's now a second time Metadynea Trading SA has been ranked by "ICIS top 100 chemical distributors" and this year we have got 77th place in the global ranking.

ICIS also ranked us as:

32nd in Middle East/Africa

49th in Europe

68th in Asia

90th in North America

On 5-th of July, the Limited Liability Company "Engineering and Technology Center "Metafrax" (LLC "ETC "Metafrax") was registered.

PJSC "Metafrax" has singled out the expertise of investment projects in a separate structure. The new subsidiary is headed by the director for technical development of Metafrax, Nikolay Ilyukhin. The main kind of its activity is related with the development of projects of buildings and structures, the creation of architectural objects.

- There's a great amount of demanded work, - explained Nikolay Ilyukhin. - The company will provide services in the field of oil and gas production; engage in planning of cities and territories. As well as landscape architecture and consulting, perform engineering surveys, engineering and technical design, manage construction projects, and carry out construction supervision and author supervision.

This year congress took place during 26-29 June in historical building of former stock exchange (Beurs van Berlage) in the centre of Amsterdam.

For the first time this congress was co-organized by Federation of Associations of Technicians for Industry of Paints
in European Countries (FATIPEC), The Oil & Colour Chemists Association (OCCA) and Coatings Science International (CoSI). It gathered more than 400 R&D experts in coatings industry from many multinational and mid-size companies from all over the world.

4-days congress was full of sessions (3-4 sessions on different topics were held simultaneously), topics were mainly dedicated to technical aspects of paint, paint raw materials as well as the most recent progress in coatings science and technology.

“This was a first-time experience of such kind for Metafrax Group, the only pentaerythritol manufacturer in Eastern Europe. It was very useful to meet and talk face-to-face with experts, who take final decision, which raw materials shall be used in currently developed products”, says Vasily Mikhaylov, representative of Metadynea Trading, marketing subsidiary of Metafrax Group.

“This event was very inspiring, as it broadened my horizon of understanding, in which finished goods our raw material is used and how important is to meet certain criteria for particular consumers - manufacturers of paints and coatings”, says Vadim Dik, deputy head of pentaerythritol and hexamine production units. “Launch of dipentaerythritol unit, which is expected still this year - requires discussion of numerous technical aspects with the users, this congress is a very well-represented platform for meeting many existing and prospective customers at a single place”, so Mr. Dik.

Perm summarizes the results of Women in Art, an educational project that was organized within Diaghilev Festival with the support of Metafrax PJSC and its beneficiary owner Seyfeddin Roustamov. One of the project participants got the chance to implement her creative project on the big stage the next year.

The goal of Women in Art was to support girls who chose artistic occupations considered as non-traditional for women. The educational project covered such arts as opera and symphony conducting, production, and playing percussion instruments and clarinet. The Festival enabled the participants included in that project group to work hand in hand with many reputed artists and laureates of international competitions, among them Teodor Currentzis, Artistic Director of Perm Opera and Ballet Theater.

Program attendees had the opportunity not only to learn from the eminent masters, but also to develop their own projects. Metafrax paid particular attention to one of the presented designs: Fine Chemistry Project of Elena Frolova, a student of the production faculty from Moscow. Now, her creative project got a real chance for implementation with the assistance of Metafrax.

Seyfeddin Roustamov:

- Our company operates in the chemical industry, so we focused on how musical projects and experimental operas associated with all sorts of chemistry, such as human relationships, love, and philosophy, are born. We examined every project, and were impressed by Elena Frolova’s creation. Now she can implement her project and present it to the public in 2019.

Women in Art project ended with an open-air concert where the participants and other students engaged in the Festival’s educational program demonstrated to Perm audience their artistic skills and shared their inspiration for art. After the concert, Metafrax representative awarded Elena Frolova with the diploma for the best project and gave her a grant for implementing her creation during the next Diaghilev Festival.

According to the preliminary data, the net profit earned by the company for the 1st quarter of 2018 was 2.37 billion rubles. - this is by 1.06 billion rubles higher than in 2017. Net profit growth exceeded 80%.

For the 1st quarter of 2018, PJSC METAFRAX produced marketable products in the amount of 6.18 billion rubles - this is by 1.4 billion rubles, or 29.2%, higher than the corresponding indicator of the previous year. The proceeds from sales of finished products, works and services reached 6.09 billion rubles, which is by 1.3 billion rubles, or 27.1%, higher than the corresponding indicator of the previous year. The share of exports in sales was 52.3%, versus 43.2% in 1Q of 2017.

In connection with the increase in methanol prices in northwestern Europe, in the first quarter the group of companies "Metafrax" increased the export of this product and exported over 130 thousand tons abroad.

Metadynea Trading SA (Geneva, Switzerland), the affiliated company of PJSC Metafrax, and Sunghong Co., Ltd. (Korea) have established the joint venture SamyangMeta Ltd.

The enterprise was registered in Seoul (South Korea) on February 1, 2018. The Trading Company should strengthen the trading positions of group of companies “Metafrax” in the territory of East Asia, and first of all in Korea.

This refers to gain in sales of hexamine and pentaerythritol in the above area. First 200 tons of the products will be delivered by a trading company in Seoul, in April. In the future it is planned to expand the sales geography to other countries of East Asia.   

Today the group of companies “Metafrax” delivers about 2 000 t of hexamine and about 1 000 t of pentaerythritol to the Asian countries. In the future, the annual turnover will reach 4 000 t of hexamine, 2 000 t of pentaerythritol and 15 000 t of methanol. At the same time, the company is considering possibility to deliver the product from Korea to the European market through the joint venture.    

Management of “Metafrax” leaves open that new production facilities will be created on the base of joint venture. Armen Garslyan, Chairman of the Board, PJSC “Metafrax” comments, “Europe is intelligible and comfortable for us in terms of doing business, moreover Metadynea Austria, the affiliated company of “Metafrax”, is operating there. We enter to the Asian market together with a local company, which is not only a trader, but also it has its own production facilities. It is a good top-grade market. If the sales go well, then in the future the joint venture SamyangMeta can build a new plant in Korea or in Russia”.  

 Alexander Maksimov, the member of the Board of a new created joint venture, adds, “For culture and historical reasons, members of the Asian business prefer do business through their agents. We believe that in the person of Sunghong we have acquired a reliable and long-term partner who will help us to open not only the market in AP Region, but also it will contribute to “Metafrax” brand awareness in the region. Even today we deliver the products to Japanese world-known companies. I am sure that the main effect from the present collaboration will be the greatest in our future”.   

 
Eric Sungwoo Park / Management Planning Director of Samyang Chemical Group:

“Samyangmeta is our valuable access key to Russia and Europe as well as to go beyond our limited supply capability. Also we believe this JV is your key to Asia including Japan and Korea which are the world’s number 2, 3 natural gas importers. Therefore the Korean and Japanese market situation is too low manufacturing and high demand regarding gas chemicals such as methanol, ammonia, urea, melamine etc. Samyangmeta will create numerous opportunities in technology, investment and marketing and finally realize mutual benefits of Metafrax and Samyang Chemical.”

For reference

Limited Company «SamyangMeta Ltd.» (Seoul, Korea)

Established: 01.02.2018

Members: Sunghong Co., Ltd. (Seoul, Korea) (50%) and Metadynea Trading SA (Geneva, Switzerland) (50%).

     - President – Yongseok Sohn

     - Vice-president - Ralph Peter Theuer

Sunghong was established in 2004. In 2005 a regional representative office was established in Shanghai. In 2006 an agreement of methanol supply was signed with  Mitsubishi Corporation (Japan). Total turnover in 2017: KRW 54 billion (more than USD 50 million) Main products: chemicals, minerals. Sunghong is an affiliated company of Samyang Chemical Group.

Samyang Chemical was established in 1974; its head quarter is located in Seoul (South Korea). The group of companies includes 12 affiliate companies in total over various business based on the chemical industry. Total turnover in 2017: KRW 222,5 billion (more than USD 200 million)

Metadynea Trading SA (Switzerland, Geneva), a trading company, was established on November 14, 2014, it is included in group of companies “Metafrax”. The company arranges the sales of product produced by PJSC “Metafrax” to international markets, particularly methanol, pentaerythritol, and hexamine.

The sales geography includes more 50 countries in the world; the company disposes of storage facilities in Finland, Holland and Poland. It is dealing with buffer warehousing in Spain and the USA. The annual turnover in 2017: EURO more than 165 million. 

On March 20, within the framework of the scheduled meeting of the Board of Directors, top managers of PJSC Metafrax visited the construction site of the Ammonia-Urea-Melamine complex in Gubakha. Among other facilities of the complex, members of the Council inspected the foundation of urea prilling tower.

Сoncrete pouring into the base of the tower with the participation of the governor of the Perm region Maxim Reshetnikov and the leadership of Metafrax began on March 2. On March 19, specialists of the general contractor of the project - the company "Uralenergostroy" completed erection works of the base plate. Totally almost 2,000 cubic meters of concrete are laid in the basement. The urea prilling tower will be the tallest structure of future plant, its height will be almost 100 meters.

According to information by head of the construction of the AUM Complex Alexander Usynin currently at the construction site employs more than 150 people. Delivery the cast formwork for the construction of body of the tower to be in April, the construction should be completed in July of this year.

Currently work is underway to lay underground water supply and sewerage system. In the summer preparation of warehouses for temporary storage of equipment will begin.

The format of visiting boards of directors in the group of companies "Metafrax" operates upon a permanent basis. Recently, top managers visited the site of "Metadinea Austria" in Krems, near Moscow "Metadinea" in Orekhovo-Zuevo.

The investment project of AUM is included in the list of priority activities of PJSC "Metafrax", approved by the Board of Directors for 2018.

On February 15, 2018 in the course of the Russian Investment Forum held in Sochi, a three-party special investment contract on construction of ammonia-urea-melamine (AUM) industrial complex was signed in presence of Denis Manturov, the Russian Federation Minister of Trade and Industry.  This Contract has been concluded for 10 years between PJSC “Metafrax”, Perm Territory and Administration of Gubakha. Maxim Reshetnikov, the Governor of Perm Territory, Vladimir Daut, Director General of PJSC “Metafrax” and Nikolay Lazeikin, Head of Gubakha have affixed their signatures to the Contract. 

Armen Garslyan, the Board Chairman of PJSC “Metafrax” has emphasized that construction of a new industrial complex jump-starts the territory development: new jobs are creating; the company is constructing housing, infrastructure, and social objects.

Vladimir Daut, Director General of PJSC “Metafrax” said that the company has already invested 8,4 bln. rubles into pre-construction activities. The top-manager has also said that 3 000 people will be engaged in construction works, and budget revenues to municipality from subcontractors will make up tens millions rubles. During terms of the special investment contract, the tax liabilities of the company will be increased by 1 bln. rubles.

 The investment project for AUM construction is essential for Gubakha town. Nikolay Lazeikin, Head of Gubakha, put emphasis the investment and contribution of entire company and new project into development of the town. According to him, apart from new housing and infrastructure, the small and medium business is rapidly growing in Gubakha.

 According to the special investment contract, by 2021 PJSC “Metafrax” will construct a new ammonia-urea-melamine production complex from methanol purged gas. The total investments into the project including the own and borrowed assets will make up more above 58 bln.rubles, excluding VAT.

PJSC Metafrax concluded several insurance contracts for the chemical complex construction in Gubakha. The company tends to foresee all the risks.

The PJSC Metafrax Ammonia-Urea-Melamine (AUM) production complex construction project in Gubakha went to the new phase. Signing of several insurance contracts precedes the beginning of construction of the one of the biggest plants in Perm Region, which cost is EUR 950 million. The main purpose of the contracts is to mitigate the risks that arise during such a large-scale complex construction.

In December, 2017, the company signed the 1st insurance contract. In the document concluded for five years, insurance for all kinds of work to be implemented during the complex construction is provided. In addition to three years of the AUM construction, two additional years of the guaranty period insurance are included into the contract.

As it was noted by Oleg Gordienko, member of PJSC Metafrax Board of Directors, the guaranties cover absolutely every kind of work: engineering, construction, equipment procurement, storage and erection work. “Besides, we provided the liability insurance for the third parties that can visit the complex construction site. It is referred to delegations, journalists, experts, etc.” – Added Mr. Gordienko. The project is insured for 58 billion rubles, VTB Strakhovaniye, one of the leading insurance companies is selected as a partner.

The equipment for the AUM complex will be delivered to Gubakha from European countries, Japan and India. Its cost is more than EUR 300 million.

The AUM construction general contractors have insured their responsibility. The contract was signed with Insurance Company Allianz, the world leader in this type of insurance.

For your reference

The AUM complex will become one of the largest projects in Perm Region in decades. Its total cost is EUR 950 million. About 3000 employees will be involved into the construction. The complex construction will be finished until 2021. However, the first batch of ammonia will be produced in 2020. The project development, equipment procurement and construction management are implemented by Swiss company Casale.

“Concrete production for the Ammonia-Urea-Melamine complex will be started in the middle of February”. – Reported representative of LLC "Management Company "Uralenergostroy", general contractor of the project, during the visit of Vladimir Daut, General Director of PJSC Metafrax, to the AUM plant construction site. The company management, Aleksandr Lysov, Director of AUM plant, and representatives of the second general contractor, OJSC NIIK, inspected main objects and sites of the constructed complex. 

The concrete will be produced at the newest Liebherr ready-mix unit, assembled at the AUM complex site. The unit is compact and highly efficient. Its capacity will be up to 1 100 cubical meters of concrete per day. Its heating system allows to produce concrete even in winter conditions.

In January, 2018, the assembly of the construction headquarter prefab buildings, where the work places for the AUM managers and employees are organized, is over. About 150 people will work there, the buildings have comfortable offices, a conference room and a meeting room, a kitchen, lavatories and shower rooms.

“The work is carried our according to the schedule. At the time being, 140 people are involved into the AUM construction: they are employees of two general contractors – Uralenergostroy and NIIK. In a month, due to extension of the construction work scope, more than 100 people will join them. In general, during the peak of construction, more than 3 thousand people will work at the site”. – Informed Vladimir Daut, General Director of PJSC Metafrax.

Vladimir Aleksandrovich had inspected the main areas (terraces), where the Ammonia, Urea and Melamine units will be situated, as well as areas for the general contractors for the complex construction.

“The construction site had been prepared for the entire year of 2017, its area is more than 20 Ha. At the time being, the underground communications are laid in order to start the next stage of construction in summer - assembly of the equipment and building steel structures foundations”. – Commented Aleksandr Lysov, Director of AUM plant.

For your reference:

The Ammonia-Urea-Melamine complex construction is a new phase of the company development, it is included into the Metafrax group development strategy until 2030. Such large projects haven’t been realized since the methanol plant start-up. 

On January 24 the company Metafrax held an action for potential donors of the bone marrow. The blood for the genetic analysis and data inclusion in the National Register was handed over to employees of the company and members of their families.

In 2018 the program of development for the bone marrow donation in the Perm region is supported by Seyfeddin Rustamov, beneficial owner of Metafrax company, under the patronage of the “Dedmorozim” fund and the Russian relief fund “Rusfond”.

A total of 153 employees of the company "Metafrax" handed over the blood, representing all the departments and organization units. The active participation in the preparation of the donor action was taken by the trade union and youth organizations.

About 1 000 of potential donors are planned to be involved in the territory of the region during the year.

The Swiss design company Casale obtained a license for the technology of carbon dioxide recovery by Mitsubishi Heavy Industries. The technology developed by Mitsubishi under the name KM CDR Process will be used in manufacturing of AUM Complex products. That technology involves the use of an foremost absorption solution, which allows reducing energy costs.

"Carbon dioxide, formed during the production of methanol, will be used for the synthesis of urea on the AUM complex. As a result, we get a reduction in harmful emissions from the main production and increase the efficiency of obtaining a new product, "- said the Director of AUM Complex, Alexander Lysov.

The contract between PJSC Metafrax and Casale for the engineering, equipment supply and construction management of the AUM complex was signed in November last year. Under the terms of the contract, the Swiss company will act as licensor and EPCM contractor for the project.