The opening of the festival "Secrets of Krestovaya Mount" is recognized as the kindest event of the year in Prikamye.

«Premium of Kindness» is an honorary title, that does not have a cash equivalent. It was first established in Perm Region in 2019. The project was supported by the Governor's administration and Culture Ministry of Perm Region, «Perm community», OOO «Lukoil-Perm».

The winners of the “Premium of Kindness” were selected in five nominations. Municipalities of Prikamye and regional cultural institutions could initiate their nomination. In total, more than 50 nominees were announced for participation.

PJSC Metafrax was recognized as the best in the nomination «Event» for its many years of support of the “Sunset on Krestovaya mount” project. The award - a memorial figurine, created according to the sketches of the Perm sculptor Mr. Ravil Ismagilov - was presented to the Chairman of the Board of Directors of the Company Mr. Armen Garslyan by the Head of Gubakha Mr. Nikolay Lazeykin.

 In addition to Metafrax Group, the “Premiums of Kindness” in 2019 were received by the Civil and Community Initiatives Fund «Preobrazhenie» (Solikamsk), Honorary Citizen of Dobryanka municipal settlement Mr. Mikhail Kalinin, Perm branch of the «MobileTeleSystems» Company and Perm writer and painter Mrs. Nina Gorlanova.

We would like to remind, that for the first time the theatre landscape festival " Secrets of Krestovaya Mount" was held in the summer of 2012. One of its creative components was the project “Ballet at Sunset” at the top of the Rudyansky Ridge of the Krestovaya Mount. Since then, the festival has become an annual event. In 2019 the legendary rock opera Jesus Christ Superstar was performed at its opening by artists of the Perm Academic Theatre-Theatre.

Board of Directors of "MetaTransStroy" LLC has decided to elect a new General Director of the Company.  Alexander Gerovich was appointed as head of the company. 

Alexander Eduardovich Gerovich was born in 1970.  In 1995 he graduated from Perm state technical university with a degree in "Oil and gas fields development", and in 2015 he finished career development courses through the leaders development program in Skolkovo.

His total work experience is 24 years. He started his career in "Lukoil-Perm" CJSC.  Before his appontment to "MetaTransStroy" LLC, he worked as Deputy General Director as a chief engineer of "RiD Oil-Perm" (in Perm). 

«MetaTransStroy» LLC is a part of «Metafrax Group». The company provides a full range of services in the field of industrial and civil construction, as well as services for the provision of freight, passenger and road construction equipment. The main activities are: construction of buildings and structures, installation of engineering equipment, manufacture of products made of concrete, gypsum and cement, transportation of goods and passengers as well as forwarding services.

The winners of the Federal stage of the 22nd program contest "100 best goods of Russia" were awarded on December 20th in Perm. 

The technical methanol of the A category, produced by "Metafrax" company, was recognised as the best entry in the "Products for industrial and technical purposes" category.  Anatoly Pushkarev, the head of the central industrial laboratory of the enterprise, has received the award at the ceremony on behalf of the enterprise.

"Our methanol is a product of the highest quality. The high purity grade allows it to be widely used in chemical, microbiological and pharmaceutical industry. At the same time, "Metafrax Group" is not ready to rest and is constantly upgrading its technological capacities. It is hard to imagine the life of a modern person without our products", - Anatoly Pushkarev stated.

As a reminder, PJSC "Metafrax" has previously won the 20th contest of "100 best goods of Russia". In 2019, 43 names of the goods and services from 29 enterprises of the Perm region were nominated for the Federal stage of the competition.

On December 13, the best corporate media and media projects of 2019 were announced as part of the National corporate media conference "Silver threads 2019" (Serebryanye Niti 2019), which was held in Moscow. More than 140 Russian companies took part in the competition.

The re-branding project of "Metafrax" international group of companies was announced as the winner in the nomination titled "Best special project in corporate communications". Moreover, the corporate film about "Metafrax" group of companies was awarded a diploma for the 3rd place in the "Best corporate video" category.

"Metafrax Group" has announced the start of re-branding in September of 2018. The new brand structure creation was entrusted to "Electric Brand Consultants" - a multichannel branding agency.

The presentation of the new brand took place during the Perm engineering and industrial forum, held on October 17th.

The corporate film about the history, development and future of "Metafrax", which featured Sergey Chonishvili – a theatre and film actor as well as a Honoured artist of Russia, was presented in May of this year. The corporate film could be watched on the "Metafrax" corporate channel on YouTube.

On December 13, the best corporate media and media projects of 2019 were announced as part of the National corporate media conference "Silver threads 2019" (Serebryanye Niti 2019), which was held in Moscow. More than 140 Russian companies took part in the competition.

The re-branding project of "Metafrax" international group of companies was announced as the winner in the nomination titled "Best special project in corporate communications". Moreover, the corporate film about "Metafrax" group of companies was awarded a diploma for the 3rd place in the "Best corporate video" category.

"Metafrax Group" has announced the start of re-branding in September of 2018. The new brand structure creation was entrusted to "Electric Brand Consultants" - a multichannel branding agency.

The presentation of the new brand took place during the Perm engineering and industrial forum, held on October 17th.

The corporate film about the history, development and future of "Metafrax", which featured Sergey Chonishvili – a theatre and film actor as well as a Honoured artist of Russia, was presented in May of this year. The corporate film could be watched on the "Metafrax" corporate channel on YouTube.

The development of port infrastructure for transshipment of liquid chemical cargo in Ust-Luga, Kingisepp and St. Petersburg will allow to increase the export potential of the Russian chemical industry.

Oleg Mamaev, General Director of "Metafrax-Trading" LLC, took part in the round table activities on the topic of "Development of export potential of the Perm region". The dialogue was held on the site of "Kommersant-Prikamye" newspaper in Perm and was attended by representatives of Perm region government, the Perm customs, the Perm chamber of Commerce and industry, heads of industrial enterprises, heads of small and medium-sized businesses as well as experts such as academic economists and lawyers.

At the end of 2018, the Perm region entered the top 15 regions of the country in terms of exports and took the 11th place. The scope of export from the Perm region for 8 months of 2019 amounted to 3,49 billion dollars. This is 6,37% more than the amount from the same period of 2018.

Representatives of the Ministry of economic development and Ministry of industry, entrepreneurship and trade of Perm region have spoken about the progress of implementation of the national project "International cooperation and export" in the Kama region. They have also spoken about regional projects and development programs for IT industry, higher education and tourism as well as existing support tools for industrial export and the results of the interregional export forum which was held in October of 2019 in Perm.

In his speech, Oleg Mamaev drew attention of the companies that are beginning to export to the necessity of careful planning of any export operations, taking into account various nuances, for example, ones related to the use of reserve currency or the process of customs clearance for goods. As for the proposals to the public authorities, he focused on the tasks for transport infrastructure development.

"Right now, the active development of modern ports in the Leningrad region has begun - Ust-Luga, Kingisepp, the oil terminal in Saint Petersburg. However, the lack of port infrastructure for transshipment of liquid chemical cargo still forces Russian manufacturers to rely of services of Finnish ports. And this leads to the increase in the tank turnover as well as increase in expenses and time for transportation. The creation of domestic port infrastructure would allow to significantly increase the competitiveness of Russian chemical products and create new workplaces", - Oleg Mamaev emphasised.

General Director of "Metafrax-Trading" LLC has also urged the entrepreneurs to develop a thought-out strategy for both domestic and foreign market presence.

"We should not be fixated on export only. Russian market has great capacity; you can invest into and develop our domestic consumers. This market will always support you in case of difficulties with export", - Oleg Mamaev noted. 

As a reminder, the geography of "Metafrax Group" supply includes more than 1000 consumers of chemical products from the UK, Finland, Austria, Germany, Switzerland, Japan, Brazil, Australia and more than 50 countries additionally. In 2018, almost 45% of the revenue was generated from exports of methanol and its derivatives.

Representatives of “Metafrax Group” participated in the National Industrial Forum. The event was held on the 6th of December in Moscow and supported by Russian Union of Industrialists and Entrepreneurs (RUIE) and by Ministry of Industry and Trade of the Russian Federation. The forum aim was the position building of industrial plants regarding key points for national project implementation and industrial policy of Russia in general, defining of legislation improvement vector related to state support for national industry. PJSC Metafrax has positive experience to use current mechanisms of state support. Subsidies for partial loan interest refund and subsidies for railway tank purchase were received. Costs for staff training within framework of national project “Labor productivity and local employment support” were reimbursed, two special investment contracts (SPIC) with total investment amount of more than 80 billion rubles were signed. Receiving of concessional loan in Industrial Development Fund and signing of agreement with Ministry of Industry and Trade of the Russian Federation for implementation of Corporate Competitiveness Enhancement Program (CCEP) are at the final stage. Delegates of “Metafrax Group” came to the forum with specific proposals how to improve the current legislation.

At interdisciplinary session “State support measures of industrial companies”, General Director Deputy for Economics and Finance of “Metafrax Trading” LLC Oleg Gordienko came up with proposals related to practical implementation of state support mechanisms. Particularly, he raised the question about guarantee saving of current SPICs in case of changes in local legislation, and he also proposed to develop the mechanisms, how to put updates in current CCEPs. «The current situation with global prices on methanol and other chemicals informs us that in upcoming years there will be a decrease of trading volume, including export due to the price decrease. In this conditions it’s reasonable to foresee in legislation the mechanisms of CCEP updates, considering market condition” , - said Oleg Gordienko.

Except this, he proposed to foresee a possibility of concessional loan provision for development and manufacturing of equipment pioneer batches produced as per Russian technologies, he highlighted the necessity of railway infrastructure development and construction of port terminals to perform tasks for national project “International cooperation and export”

The practical forum result will be a proposal formation for the Government of the Russian Federation, how to ensure the industrial company participation in national project implementation. The RUIE President Aleksandr Shokhin highlighted that business is looking forward to restart tools that proved the effectiveness.

«Program of company supports that implement corporate programs of competitiveness increase has been started recently, but it raised quite a big interest for business. But this institute need to be adjusted considering identified problems (technical as well as system ones) and we shouldn’t be limited by performed selection only. In general, we need to think about going beyond 2024 that is regarded as decisive year for many supporting tools”, - said Aleksandr Shokhin.

More than 800 delegates guest participated in the National Industrial Forum: Ministry of Industry and Trade of the Russian Federation management, State Duma deputies, leaders of branch unions and associations, management of federal and regional development institutes, proprietors and top-managers of leading industrial companies related to metallurgic complex, shipbuilding, chemical, telecommunication and pharmaceutical companies.

For the first time, PJSC "Metafrax" took part in the MarCom Awards international competition with the annual report for 2018 and received the highest platinum winning award in the «Print media» category.

The high evaluation by the MarCom Awards jury recognises the effectiveness of the work carried out by Metafrax in the field of annual public reporting. The annual report is an important tool for communication with counterparties and shareholders, and serves as a way of forming a positive image of the company. It is prepared while taking Russian and international reporting requirements into account as well as using the best modern design ideas. "Looking to the future" - the concept of the annual report for 2018 - reflects the company's commitment to the renewal and development of the chemical industry in Russia, as well as announces further progressive development and positive changes in Metafrax Group.

MarCom Awards, which has been held annually since 2004, is one of the largest and most prestigious international competitions in the field of corporate communications. The competition is organized by the Association of Marketing and Communication Professionals (AMCP), which has been operating since 1995 and is located in the United States.

Metafrax Group inculcates a new brand, the extensive work for its creation has been in progress for one year and half. The new brand presentation took place on October 17, during the Perm Engineering and Industrial Forum.​

Metafrax Group, the leader in chemical production in Russia and in Europe, starts inculcation of a new brand in its structure. The single brand platform and the visual language developed by agency Electric Brand Consultants will combine all the company’s business units. The new concept will allow the Group to present itself in the target markets more effectively.

Metafrax Group announced beginning of its rebranding in September, 2018. Creation of the new brand structure for the largest manufacturer of Methanol and its derivatives in Russia and in Europe that performs export supplies to 60 countries of the world was entrusted to multichannel branding agency Electric Brand Consultants.

As the project results, the new strategy and the complete brand architecture where the new mother brand that includes all the Metaftax Group sub-brands located in Russia, Austria, Switzerland, and South Korea had been developed.

«The single visual and conceptual communication will allow bringing all of our group structures to the unified standard that also includes interaction with partners and presentation in the target markets. It is important, as the companies that are part of Metafrax Group are located not only in Russia, but also in Europe and Eastern Asia. Our group rebranding is based on a deep research of industrial trends and competition environment. Therefore, we can be sure that the changes related to our brand are important to the whole industry, as they take into account on its experience», said Seyfeddin Rustamov, beneficiary owner of Metafrax Group. 

The unique philosophy has been formulated tor the single brand: «Forming of future ecological, social, and business environment via responsible development of the chemical industry». Innovations, responsibility, and stability have become the basic values, and the mission is based on a constant development and creation of propitious ecosystem for the future generations.

«This self-presentation is clear to the other marketeers and to our partners, as well as to each employee of the group, because it really reflects the group business essence and features. The values have reason behind them: the innovations are related to technological leadership in Russia and to the strong scientific developments and formulations center in Austria. The responsibility means our approach to the entire business strategy, systematic social activities, and personnel policy, patronship projects.  The stability means our flexible and balanced manufacturing policy», explained Armen Garslyan, Chairman of Metafrax Chemicals Board of Directors.

Names of the group sales, manufacturing, and service structures will be brought to a single standard. Some of them have already had their new commercial names: Metafrax Trading House, LLC was registered as Metafrax Trading, LLC, and Swiss company Metadynea Trading has been operated under its new name Metafrax Trading International.

It was decided to emphasize the main manufacturing site, PJSC Metafrax, by highlighting its significance and basic competency. Therefore, the site will get its new commercial name «Metafrax Chemicals».

«The single standard for the group affiliated undertakings is an important part of the new brand communication platform that considers the group architecture features and allows to make it better structured. The mandatory Metafrax Group wordmark is designed to enhance the sub-brands connection to the mother brand and to simultaneously highlight their historical uniqueness», noted Maria Konovalova, Head of Metafrax Group Communications.

The Electric Brand Consultants team showed the brand self-presentation in its visual language. The agency has developed three different design directions. Metafrax Group chose and proved the Living System direction. The company’s manufacturing and business processes are continuous interconnection system. When new elements appear in the chain, the group architecture is developed like a living matter and supports ecological, social, and business environment.

A dot mark has been chosen as the central element of the label as the symbol of beginning and balance. It forms a circle that is unity and integrity, and the connections between the dots represent stability and movement balance.

On October 17, during the Perm Engineering and Industrial Forum, a Three-Party Additional Agreement was signed between the Perm region Government, Gubakha administration, and PJSC Metafrax.

Earlier, the regional authorities decided to support the company in terms of expansion of the Ammonia, Urea, and Melamine Complex construction investment project. The investment project was issued for construction of the second Melamine Plant that increases the scope of investments by 19.7 billion rubles.

The Plant will be integrated into the Ammonia-Urea-Melamine (AUM) Complex that is currently under construction in Gubakha and allow increasing of melamine output at the company’s industrial site by 40 thousand ton per year, as well as creating of 59 additional skilled jobs.

Besides, Perm region readiness to provide Metafrax with tax remissions and Metafrax readiness to put the project investments in scope of 77.9 billion rubles in execution and to realize necessary activities to create and acquire the asset complex intended for production with the overall profit scope of 17.5 billion rubles during the Special Investment Contract validity period from 2020 to 2027 are specified in the Additional Agreement.

According to Vladimir Daut, General Director of Metafrax, the company decided to become one of the largest Melamine manufacturers in Europe. A least 50% of the total receipts will be supplied to Metafrax Group of Companies for internal use: «According to our estimations, today, the Russian market volume makes about 50 thousand ton per year. But we can see the high growth potential. We intend to realize a half of the produced Melamine in the market. Correlation of the internal sales and the export will depend on the current market conditions. After Metafrax will put the second Plant in operation, Russian companies are able to satisfy requirements of the internal market».

We would like to note that the Three-Party Special Investment Contract related to the Ammonia, Urea, and Melamine Complex construction had been concluded between PJSC Metafrax, Perm region, and Gubakha administration in February, 2018, during the Russian Investment Forum in Sochi.

PJSC Metafrax started the implementation of the new brand. The extensive work had been lasted 1,5 years.

Changes related to implementation of the new brand started in Metafrax group of companies. In September 2019 the record in the Unified State Register of Legal Entities was put about the renaming of LLC Metafrax Trading House into LLC Metafrax Trading. The Swiss company Metadynea Trading is called Metafrax Trading International now.

The work about creation of the new brand was started 1,5 years ago by Electric communication agency (Moscow). The unified brand is designed not only to position PJSC Metafrax in target markets in a correct way, but also to implement its own philosophy: mission, values and vision of the future.   The philosophy of the brand is the following: «The creation of eco-friendly, social and business environment through development of chemical industry”. The Company mission aims at “constant development, creation of favorable eco-system for future generations around yourself”.   Basic values of the brand are innovation, responsibility and sustainability.

Metafrax group is becoming a unified holding trademark. Company intends to use this name abroad. Industrial and service companies such as Metadynea, Karbolit etc., will have a prefix “Metafrax group” in their commercial designations.

The main industrial site of the holding PJSC Metafrax will have a new commercial designation “Metafrax Chemicals”. By this, the role and the main competence of chemical production in the group company structure will be defined.

Company starts a step-by-step implementation of the brand. The main building, workshop, wagons, storage tanks, packing etc. will be designed with a new style.

Revenue of Metafrax group of companies for the last 6 months of 2019 made up more than 29.6 billion rubles and this value is higher than for the similar period in 2018 by 3.6. billion rubles, or by 14%.

Investment amount in basic assets and not completed construction of the group made up 10.9 billion rubles, increasing results of the similar period in 2018 in 5 times.

The main investment subject of Metafrax group of companies is still the construction of Ammonia-urea-melamine complex in Gubakha, capital investments for the last 6 months of 2019 made up more than 9 billion rubles.    

According to Chairman of the Board Armen Garslyan, the revenue increase in the 1st half year is due to favourable conditions in domestic and foreign markets  and increase in the volume of production and sales. The capacity utilization of Metafrax group industrial companies in the 1st half year was close to the maximum. 

The revenue of PJSC «Metafrax» for 6 months of 2019 reached RUB 13 billion 160 million, that is exceeding by 7 %  the corresponding figure of 2018.

The budget plan for the production of the market products is exceeded by RUB 545 million, means by more than 4%. For the Ist half of 2019, the market products were produced for the amount of RUB 13 billion 639 million. - This is by RUB 1 billion 156 million, or by 9.3%, higher than for the corresponding figure of the previous year. The share of methanol in the total amount of the market products amounted to 55%. The share of exports in sales amounted to 43%.

According to the General Director of Metafrax, Mr. Vladimir Daut, high financial performance is caused by the favorable market conditions and growth of production volumes. «To fulfill all our plans and obligations, we have to perform qualitatively and strictly in the allotted time the scheduled maintenance of the methanol plant and carry out a  big scope of work for the  integration of the “Ammonia-Urea-Melamine Complex”, being under construction,  in the existing production» - commented Mr. Vladimir Daut. The General Director also said that the Company began to work out a program for the development of the enterprise for the period of  2020-2025.

In the 2^nd quarter of this year a subsidiary of PJSC Metafrax - Metadynea Trading SA has changed its name to Metafrax Trading International SA and moved from Geneva to Lugano. The company aims to increase the efficiency of its operating activities and to introduce new Metafrax products to the international market.

The renaming took place as a part of the rebranding procedure implemented by the Metafrax group. A full launch of the new brand is planned for this fall, however Metafrax Trading International (MFTI) has become a leader in this project.

In accordance with the Charter, the company does not have a general or managing director. All decisions, as it was before, are made collectively by the Board of Directors. After the name change and relocation, only membership of the Board has changed. It comprises of Leonardo Bernasconi and Marina Sivkova. With that, the authorities of the company's commercial managers have not changed. “The focus of their responsibility will be more directed to sales efficiency issues. This is especially relevant since more than 40% of the enterprise’s revenue is the export sale of products. At the moment, 9 people maintain MFTI operations,” commented Marina Sivkova.

Marina Sivkova has been working for Metafrax for about 10 years. In particular, 8 years as a director of finance and economics of PJSC Metafrax; Marina has an experience in the corporate system of the Metafrax Group of Companies. She will manage the company's current operations. Leonardo Bernasconi is one of the Laris Fiduciaria SA (Switzerland) managers with a field expertise in national and international taxation, accounting and management.

Staff changes that have taken place make it possible for the trading company to increase the efficiency of its operations, achieve more agile its development goals following the principles of integration between the enterprises of the Metafrax Group of Companies.

Consistent growth

Based on the result of sales in 2018, MFTI ranked 71st in the ranking of global chemical distributors. The rating represents the industry leaders judged by the cost of sales. ICIS Chemical Business magazine analyzes the key trends of distributors in both the global market and regional segments: in North America, Europe, Asia, Latin America and the Middle East (including Africa). Compared to 2017, the company improved its position in the global ranking by 6 points. “Improvement was reached due to the favorable price situation on the market and an active attitude towards product promotion,” comments Marina Sivkova, a member of the company Board of Directors. “Following the results of 2019, we expect to at least keep sales at the same level as last year, and we will use every effort to improve this result.” According to Marina Sivkova, more than 80% of the company's total revenue comes from methanol.

In 2018, the company's revenue amounted to € 185 million, which is 12% higher than 2017 (€ 165 million). Since the company establishment, sales have increased almost twice: in 2015 - 270 thousand tons of products per year, in 2018 - 531 thousand tons.

Promising products

In 2019, Metafrax Trading International began selling dipentaerythritol, a new product manufactured by PJSC Metafrax. MFTI, together with the production facility, premarketed the products on the European market by visiting the European Coatings Show in Nuremberg in March 2019. Dipentaerythritol production was launched in the second quarter of this year, product homologation is in progress among potential customers. “We expect by the end of this year to build a customer base - both among our strategic partners in Europe, and in North and Latin America, as well as in the Asian region,” said Marina Sivkova.

In view of the Ammonia-Urea-Melamine complex construction, as well as the implementation of a project for the construction of a paraformaldehyde production plant at the production facility of PSJC Metafrax in Gubakha, MFTI is preparing to expand its sales portfolio.

Active premarketing of melamine, urea and paraformaldehyde is already underway. Extensive connections with suppliers and customers allow for thorough preparation for the sales of new Metafrax products.

The company already supplies some of these products to customers from the third-party manufacturers, and a part is planned for supply. Thus the acquaintance with the market and preparation for entering the market with the own products in the future have started. “At the beginning of 2020, it is planned to accept a new employee to the position of a trading operator for the new products,” commented Marina Sivkova.

According to Marina Sivkova, export of a new bulk cargo amounts to tens of thousands tons for paraformaldehyde and melamine and hundreds of thousands for urea: “The volumes are quite serious. The territory of supply will depend on the conditions, we are not focused only on the nearby markets of Europe, we look at sales globally, exploring opportunities in general. We aim to enter new markets as soon as possible with good sales efficiency.”

June 6, within the framework of the St. Petersburg International Economic Forum (SPIEF), a special investment contract (SPIC) was signed on the implementation of a project for the construction of formalin and paraformaldehyde industrial plants in Gubakha.

The agreement was concluded between Perm Krai and PJSC «Metafrax» for a period of 9 years. The document was signed by the Governor of Perm Krai Maxim Reshetnikov and the General Director of PJSC «Metafrax» Vladimir Daut.

The document confirms the company's readiness to build a new paraformaldehyde production plant in Perm Krai. As part of a special investment contract, the region will provide Metafrax the right for tax benefits and preferences.

The planned capacity of paraformaldehyde plant will be 30 thousand tons per year. Moreover, the investment project involves the construction of a formalin plant with a capacity of 180 thousand tons per year. The project is worth more than 5.2 billion rubles and is scheduled to be completed by the end of 2021.

The Chairman of the Board of Directors of PJSC «Metafrax» Armen Garslian noted the importance of state support in the development of the company. “Today, the investment portfolio of Metafrax exceeds 75 billion rubles excluding VAT. The implementation of investment projects and the construction of new productions will provide additional tax deductions to the relevant budgets of the Russian Federation, Perm Krai and the city district of Gubakha, as well as contribute to the overall socio-economic development of the region,”said Armen Garslian.

Comparing to 2017, income growth made 26 % or 11,6 billion rubles.

“The high financial and economic result is primarily justified by increase in the marketable products sales and favorable pricing environment in the local and international markets. As well as the growth of foreign sales, which also had an impact to the final indicators. Income from sales of products manufactured by PJSC "Metafrax" amounted to about 50% of the Group's consolidated income. - said Armen Garslyan, Metafrax Board of Directors Chairman. We are optimistic about 2019, according to the current year results, we expect the income to remain at the 2018 level”.

The Group scope of investments to fixed assets and construction in progress amounted to 13 billion rubles, exceeding the same 2017 value by more than 2.5 times.

In 2018 the core capital investments area was Ammonia-Urea-Melamine Complex construction; more than 10 billion rubles were spent on the project. “The official start of the AUM Complex project is a landmark event in 2018. Today the project is in the active stage. First, in the middle of summer it is necessary to complete construction of the administrative building. It is necessary to begin installation work in the Central control room and commission MSDS-3 ”commented Vladimir Daut, Metafrax Director General.

Other core capital investment areas in 2018: more than 375 million rubles were invested into construction of residential houses in Gubakha (2 houses were commissioned in November 2018, 4 houses are under construction); 275 million rubles were invested in the technical re-equipment of the tank car handling point; 181 million rubles were invested in the reconstruction of water supply and sanitation system; 160 million rubles were aimed to the technical re-equipment of the pentaerythritol crystallization unit.

On April 3, in Moscow, PJSC Metafrax and Norwegian company Dynea AS signed a contract for the construction of a 55% formalin production unit in Gubakha.

The formalin plant will be integrated with the paraformaldehyde production complex (paraform) under technology of GEA group of companies. The capacity of the plants will be 180 thousand tons of 55% formalin and 30 thousand tons of paraform per year. The project is worth more than 5.2 billion rubles and is scheduled to be completed by the end of 2021.

 - The equipment production time is 14 months. The start of the plant is scheduled for the 3rd quarter of 2021, - said Vladimir Daut. - Formalin, produced at the new plant, will be used as a raw material for the paraform production. It is important that Metafrax will become the only producer of paraformaldehyde in Russia.

With the commissioning of the plant, the total production capacity of 55% formalin will be 450 thousand tons per year. The volume of internal methanol processing at Gubakha site will reach 450 thousand tons per year.

“The companies of Metafrax group in Russia and Austria totally consume over 600 thousand tons of methanol per year,” said Vladimir Daut. - As part of the company's development strategy by 2030, our internal demand for methanol will reach 800 thousand tons.

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On February 14th, in the framework of Russian Investment Forum, Metafrax and GEA (Denmark) signed a contract for the development of the project and the supply of equipment for the plant of paraformaldehyde (paraform) at the Metafrax production site in the city of Gubakha, Perm region.

During these three days - representatives of Metafrax and Metadynea Trading SA - held more than 35 meetings, discussing possibilities of cooperation including supply of pentaerythritol, dipentaerythritol, phthalic anhydride, wax polymer compounds and polycarbonates. Suppliers and customers from EU, USA, Latin America and Far East were keen to hear news about new developments at Metafrax plant in Gubakha (Russia) and to evaluate samples of new packaging.

European Coatings Show is the leading international exhibition for high-quality coatings, paints, sealants, construction chemicals and adhesives. Every second year it attracts over 1K exhibitors and over 30K visitors. According to closing report of the show, this year event attracted visitors from 124 countries and exhibitors from 46 countries.

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According to market analysts in 2018, the volume of methanol export from Russia amounted to 1.9 million t. More than a quarter of this volume - almost 500 thousand tons - was exported by Metafrax. For this indicator, the company leads among Russian manufacturers.

The total export volume of Russian methanol has increased from 2015 from 1.4 to 1.9 million tons. In its turn, Metafrax has doubled its export value for the product over the past 4 years. In 2015 the company's volume of supplies abroad amounted to 254 thousand tons, in 2016 - 353 thousand tons, in 2017 - 383 thousand tons, by the end of 2018 - 495.5 thousand tons.

According to the representative of the company Metadynea Trading Vasily Mikhailov - over the past year, Metafrax managed to achieve a leading position in the methanol export market from Russia for a number of reasons, including the increased competition on the domestic market: “A significant share of exports, as before, was taken by Finland, where the Group of companies has an efficient logistics for the accumulation and transshipment of shiploads of methanol. The company is also quite active in distribution on the local Finnish market, offering a product delivered by both rail and road.

There is growing competition in the segment of methanol delivery by sea transport, forcing to enlarge the supply of lots where it is possible. It is also worth noting the increase in export deliveries by rail, which is related to the increase of the cost of maritime logistics and the improvement of netbacks in direct sales,”concludes Mr. Mikhailov.