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.

Russian chemical company Metafraks on Thursday secured a 13-year credit line from Russia’s third-largest lender Gazprombank worth 700 million euros ($830 million), an adviser to the company’s board chairman said.

Metafraks, one of the top three producers of synthetic resins in Europe, plans to invest the proceeds in the construction of a new plant which it expects will take company revenues above $1 billion, Maria Konovalova, adviser to board chairman Armen Garslyan, told Reuters.

The new ammonia, carbamide and melamine production plant will allow the company, which currently produces only one of the base components of synthetic resins - methanol - to become self-sufficient in raw materials, Garslyan told Reuters in an earlier interview.

Synthetic resins are used in the production of glue, plastic and PVC windows, among other products.

The new plant will cost 950 million euros and is expected to be built near Russia’s Ural mountains by 2021, Konovalova said.

Equipment for the new plant will be supplied by Swiss company Casale SA, based on an agreement reached in early October. Casale will also manage construction.

Metafraks is controlled by businessman Seyfeddin Roustamov and had a revenue of 41.7 billion roubles in 2016.

Reuters YEKATERINBURG, Russia

Metafrax employees took active part in the donor initiative that had been carried-out in community center Energetik in the last days of November.  In two days, specialists of the blood transfusion unit had taken about 60 liters of blood from 120 donors.  With this, all of the blood types had been prepared, including the rarest type - IV with negative Rh factor.

It should be noted that about 50% of the initiative participants are Metafrax employees, a lot of them are honorable donors. The medical personnel have also noted that young people (younger than 30 years old) took active part in the initiative, 43 persons came to the blood transfusion unit.

- It is recognised that each donation when they take standard 450 mL of blood from a person can save live to two of three patients. – Commented Andrei Roznin, Medical Director of City Clinical Hospital No. 4. – The most serious patients of the inpatient facility - M.V.A. injured, women during the mogitocia, people who need advanced procedure - need blood transfusion.  Nobody has invented any blood and its components substitutes. And we highly appreciate help of donors, unselfish allies of doctors who help them with their work. In the name of our medical stuff I’d like to say thank you to all Gubakha residents for their mercy and response.

“Peterburgskaya Politika” foundation presented its November rating of event of the social and political life of the Russian regions.

According to the last autumn month results, the foundation experts evaluated Perm krai as a region with mild stability, keeping regions with positive dynamics – Moscow and the Moscow Oblast, Nenets Autonomous Okrug, Yaroslavl, Arkhangelsk and Rostov oblasts – in the nearest positions.

Along with opening of the new air terminal building of Bolshoye Savino airport in Perm krai, the foundation experts called the signing of contract between Metafrax and Swiss company Casale the main event of the social and political life of the region. The contract with the Swiss licensor includes engineering, equipment delivery and construction management of the large chemical complex Ammonia-Urea-Melamine in Gubakha.

The AUM Complex is the largest investment project of chemical holding Metafrax. The project is included in the Group development strategy until 2030.

The units daily capacity will make 894 ton of Ammonia, 1672 ton of urea and 120 ton of Melamine. The project cost makes more than 950 million Euro. The complex construction is scheduled for realization within 36 months.

Publishing house Kommersant had awarded the most affluent persons – heads and owners of the Perm Region IT, energy, housing, finance, food industry companies - with the “Hard Signs”. Armen Garslyan, Metafrax Board of Directors Chairman, had got into the number of nine award winners gaining the “Hard Sign” “For the industry development and leading it to a new level”.

- The year of 2017 is significant for the paper. This is the anniversary, and you have already been able to read breaking news in the pages of the Kommersant newspaper and in the electronic version for 15 years. The names of our honorary Hard Sign award winners have been mentioned in our newspaper for all these years. – Noted Lyudmila Koshechkina, director of the publishing house, during the ceremony.

Because the professional business, Armen Garslyan could not take part in the ceremony, but he said thank you and congratulated the newspaper via the video speech.

- I think that the Hard Sign is, in the first place, sign of confidence, sign of firm decisions. We have been together with Kommersant for 15 years. You like “biting”, and it’s good, it keeps us in bright-eyed and bushy-tailed condition. The paper that can openly write, without looking back to other people’s decisions, deserves recognition and respect. There’s a big hard sign in it. Thank you for the award, I think, we will work together for decades. – Noted Armen Gayosovich in his speech.

The “Hard Signs” award was founded by the publishing house in 2014, that times, the nominees used to be defined by polling of different economy spheres companies managers. Since 2015, the winners are selected by the Kommersant-Prikamye editorial office.

According to the 2017 results, Russian National Quality Organization awarded Antonina Mudraya, Head of Metafrax Methanol Production Service Laboratory with title “Russian Quality Leader”. With the RNQO honorary diploma, Antonina Grigoryevna was awarded with the medal “Russian Quality Leader”. One more company specialist – Larisa Paschenko, Head of Process Control Service – was awarded with the badge of honor “Quality Master”.

- To maintain the leading positions at the chemistry market, the company emphasized the high quality production output. Some laboratories are focused on the production efficiency increasing, quality features and consumer properties improvement of the finished products. The other laboratories implement acceptance control of the finished products that provides customers with the authentic analytic information during the finished product shipment. Thanks to professionalism and responsibility of all the laboratories employees, our production meets all the Russian and international standards. – Noted Anatoliy Pushkaryov, Head of Metafrax Central Production Laboratory.

The first RBK Business Forum that had gathered about 300 guests at its discussion site took place in Perm. Metropolitan speakers, local experts, industrialists, representatives of the authority and business were learning how to make money from the newest digital technologies and whether the authorities shall help business with the digitalization.

The forum started with the workshop for small and medium practices managers “Effective Profit Increasing Models in the Modern Digital Reality”. Ilya Kusakin, Sales development Director of Black Star label, and Indi Gogokhia, manager of marketing communication surfing agency Genius Code, lecturer of the MSIIR.

“Digital economy is when you count your money better and in detail”. – That is how the RBK forum participants described the current effects from the “digit” implementation. The manufacture digitalization will cause the expense decreasing, that is either can be measured in several percent or provides a very significant effectiveness growth.

According to the opinion of the forum speaker, Armen Garslyan, Metafrax Board of Directors Chairman, large companies can feel the “digit” implementation better. The digitalization of all elements of the process chain has already changed industrial business.

Digital economy is a trend. Several years ago, we had to choose whether Metafrax should use the “digit”. And we made our choice. We had started to manage our assets via the “digit”, implemented new work practices to our production processes having the basic parameters and tracking all the output stages using computer technologies. Today we develop 3D models, are able to manage any production stage, it allows us to optimize our expenses essentially and to regulate our business processes.

I’m sure that some companies that don’t digitalize their business will crush and can’t be developed in the modern economy. Therefore, the state should invest in the digital economy. In any case, our company is ready to support small and medium practices. – Commented Armen Gayosovich.

Summarizing the forum results, the participants had come to conclusion that successful result of the digital transformation is a divisible profit increasing. There are not so many examples in the country, and the Perm Region has every chance to become the pioneer. 

At a time of gross profit growth, the group's investments increased by 90%. Consolidated revenue of the group for the year is forecasted at the level of 41,700 million rubles. 

The revenue of the “Metafrax” Group for 6 months of 2017 was more than 21,617 million rubles, which is higher by 93 million rubles for the same period in 2016 or by 0.4%. 

Gross profit amounted to 7,941 million rubles, with an increase of 609 million rubles or by 8.3% compared to the first half of 2016.

In January-June, the volume of investments in fixed assets and not finished construction of the Group amounted to 2,988 million rubles, which is by 1,418 million rubles or 90% higher than in the same period last year.

The main investment object of PJSC "Metafrax" in January-June 2017 was the construction of a complex for the production of ammonia-urea-melamine in Gubakha on the industrial site of PJSC "Metafrax", for which more than 1.8 billion rubles were allocated. About 460 million rubles the company invested in the renewal of the rolling stock of methanol tanks. To build a new plant for the production of formalin on the industrial site of OOO “Metadynea” in Orekhovo-Zuevo there were about 180 million rubles invested.

The forecasted volume of capital investments of the group for the second half of 2017 is estimated as 10.5 billion rubles.

The value of the non-current assets of the Group as of June 30, 2017 was 27,039 million rubles, which is higher by 5,356 million rubles as of the beginning of the year or by 24.7%. The increase was due to capital investments and advances for the purchase of fixed assets.

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

- We think that the growth of gross profit is caused primarily by a favorable price conjuncture in the export markets of methanol. The export contract price for methanol grew throughout the first half of the year and increased significantly in the second quarter compared to the same period last year. Following the results of 2017, we expect the Group's revenues to remain at the level of 2016 - according to our calculations; the consolidated revenue of the Group in accordance with IFRS for 2017 will be about 41,700 million rubles.

The Group of companies will continue to increase the volume of capital investments approved by the Program of Technical Re-equipment, Reconstruction and Development until 2020.

Business magazine Expert published results of the annual Federal TOP 400 Largest Russian Companies Rating in terms of realized production. According to 2016 results, Metafrax Group of Companies took the 266^th place. Comparing to the 2015 values, the company’s sales had been insignificantly decreased by 0.4%, the company’s scope of realization had reached 41.69 billion roubles, net profit had reached 4.1 billion roubles.

According to 2017 results, the company’s experts expect profit values to remain on the 2016 level. 

– Pursuant to our calculations, the consolidated profit of the Group, according the IFRS, will make 41.7 billion roubles in the end of 2017. – Said Armen Garslyan, Metafrax Board of Directors Chairman. 

Besides the point, Metafrax can be called a permanent TOP 400 participant, starting from 2015, the company has got into the rating for the third time showing the stable central positions. 

According to 2016 results, 43 constituent entities of the Russian Federation had taken part in the rating.  The Perm Region was represented by four companies, two of them were related to chemical industry. In the general leaderboard, the number of chemical production manufacturers is less than twenty.  Petroleum industry is traditionally the largest sector of the rating, the share of such companies is 29.4% of the overall revenue and 33.4% of the overall revenue of this year selection.

In 2016, the overall revenue of the 400 largest Russian companies made 65.4 trillion roubles that is higher than the TOP400 revenue in 2015 by 6.5%. The rating companies cover more than 40% of the Russian economy.

This year, one more value appeared in the leaderboard - number of employees. In 2016, 1700 employees had been working in Metafrax Group of Companies.

On the 1^st of  November, in framework of AUM complex construction in Gubakha the special contract signing ceremony between PJSC “Metafrax”, JSC “NIIK” and LLC “Uralenergostroy” was held. Aleksandr Lysov, the complex director, was introduced to the public. Before the AUM complex construction, he had worked as a Chief mechanic.

The contracts with EPCM-contractors were signed by PJSC Metafrax General Director Vladimir Daut, from “NIIK” by General Director Oleg Kostin, from “Uralenergostroy” by Deputy Head of Perm subsidiary Sergey Lozhkin.

Thus, all commitments of all project participants for today, including technology licensor Swiss company Casale SA, are met.  This company has been cooperating with PJSC “Metafrax” for more than 20 years and has proved itself as a reliable partner.

As Vladimir Daut pointed out, it’s the first project in “Metafrax” of such a big scale for the last 30 years.

-Our project is unique in terms of technological and ecological points of view. This complex will be integrated with our current methanol production, therefore it’s planned to produce ammonia and urea with technology that includes the use of residuals: purging gases from methanol production and CO₂ from reformers It will allow to reduce emissions and to increase energy-efficiency of the future complex, - he said.

Oleg Kostin, JSC “NIIK” General Director said that the project passed examination and the construction license is granted. The subsurface utility engineering will be started in the middle of November. “NIIK” will involve about 1500 workers, including region residents. The contractor area of responsibility includes construction of off-site facilities and support infrastructure.

LLC “Uralenergostroy” is a unique contractor specialized in energy block and atomic station construction. It was a general contractor of Beloyarskaya atomic station. Viktor Suruda, General Director assured all ceremony  participants of qualitative work. The company will construct basic technologic units of the AUM complex.

Federiko Zardi, CEO of “Casale” assured all ceremony participants that the Swiss company designs the most modern, reliable and environmental friendly units. “Casale" is the only one licensor of technological process for ammonia, urea and melamine in the world.

Armen Garslyan estimated sum of the signed contracts at 33.5 billion dollars, the total project value is more than 950 million euros.

-For the last year, our specialists worked a lot with banks and project financing. We are in the last stage of negotiations and going to sign a credit contract with one of the leading Russian banks this year. It’s planned to aquire a loan for construction financing: 27 billion rubles or, in other words, more than 280 million euros. Total volume of budget revenues at all “Metafrax” levels will increase from 2 to 4 billion rubles,-he said.                                                   

Alexey Chibisov,  Deputy PM of Perm Krai, Minister of industry, business and trade called the AUM project as the biggest private investment in chemical branch of our region. The new production will influence small business development, infrastructure renewal and formation of comfortable urban environment. The agreement with JSC “Russian Railways” about reconstruction of rail communication between Solikamsk and Perm for traffic capacity increase. More than 11 billion rubles will be invested in the project. The company promises to restore the 5^th railway on Ugleuralskaya station. The regional government engages a medical care of involved specialists and enforcement of law. Taking into consideration ecological standards for new production, Alexey Chibisov expects positive influence on tourism.

The new production site will give 400 working places. Future workshop managers have been already involved in the project management at different levels. 114 students study in Perm, Kazan, Ekaterinburg universities under the contract with PJSC “Metafrax”. Ural Chemical and Technological College trains operating personnel.

The AUM complex is the biggest investment project of “Metafrax” holding. The project is included in the development strategy of “Metafrax” group until 2030.

The AUM complex will be located at industrial site in Gubakha.  Feasibility study is developed by Jacobs Consultancy. “Casale” acts as a process licensor and BEP developer. The AUM complex should be put into operation in the 1^st half of 2021.

It’s planned to use the production for personal consumption, internal and external markets.  The expected useful life of the plant is 30 years.

_________________

PJSC “Metafrax” is an internationally famous standard-bearer of the Russian organic chemistry market. It is the biggest chemical production exporter that has the overall export share of approximately 40%. The delivery geography of the company includes the head company JSC Metafrax (Gubakha, Perm Region), Metadynea, Ltd. – formaldehyde and synthetic resins production (Perm and Moscow regions), Metadynea Austria - formaldehyde and synthetic resins production (Krems, Austria), JSC Karbolit - synthetic resins and plastic production (Moscow Region). According to IFRS, the joint profit of the Group of Companies Metafrax exceeds 40 billion rubles.

The companies produce methanol, formaline, pentaerythritol and urotropine, urea-formaldehyde concentrate (UFC), synthetic resins, packaged and granulated polyamide, sodium formate, etc. Company’s annual investments to the production revamping and modernization make more than one and half billion rubles. http://www.metafrax.ru/

NIIK is a leading Russian engineering company that offers its customers cost-effective solutions in designing & engineering, takes a proven, process-driven approach to product innovation, development of technologies, undertake procurement services, provide feasibility analysis and achieve excellence in managing construction projects. http://niik.ru/

LLC "Management Company "Uralenergostroy" was created in 2003 as a progressive model of the construction of large energy facilities in the market conditions. "MC "UES" became the successor of cases, experience and traditions of the largest in the USSR construction and installation trust "Uralenergostroy", which build 30 power plant and many other industrial and social facilities of the Urals and Western Siberia. http://www.uestroy.ru/

CASALE is a privately owned Swiss Company, wholly owned by CASALE HOLDING, with headquarters in Lugano (Switzerland). The world leader in licensing and development of own technologies in ammonia, methanol, urea, melamine production and synthesis. The company has subsidiaries in Russia, the USA, Canada, Brazil, India, Iran, Pakistan and Indonesia. https://www.casale.ch/

PJSC “Metafrax”, one of the major Russian chemical companies, and “Casale”, a leading technology licensor in syngas and fertilizer production, are pleased to announce the signature of a contract for engineering, equipment supply and construction management of a large chemical complex, to be implemented in Gubakha, Perm region (Russia).

Under the terms of the contract, Casale will act as Technology Licensor and EPCM contractor for the realization of the entire project, which consist of the following units, based on Casale proprietary technologies and know-how:

One new 894 MTD ammonia synloop, using A2000 C^TM technology, operating on pure hydrogen and nitrogen feedstock.

One new 1672 MTD urea plant, incorporating Split Flow^TM and Full Condenser^TM technologies.

One new 120 MTD melamine plant, using LEM^TM technology.

The new complex will be completed by a PSA unit for the recovery of hydrogen from the purge gas of the existing methanol plant, to be utilized as feedstock for the new ammonia synloop, and a Carbon Dioxide Recovery (CDR) unit, designed according to MHI technology, which will recover 1200 MTD of CO₂ from the methanol plant reformers, to be utilized as feed for the urea plant.

All these features make the project a unique example of a closely integrated production chain, starting from methanol up to urea and melamine.

The Complex construction is slated for realization in 36 months.

The project is a result of PJSC Metafrax’s business strategy, initiated twenty years ago, which, in a series of steps and always adopting “Casale” technologies, has boosted the methanol plant capacity from 2500 MTD to 3375 MTD (+35%). The latest step consisted in debottlenecking the methanol plant’s front end by installing a new POX unit section in parallel to the existing reformers.

This project is another milestone in PJSC Metafrax’s history of continuous improvement of its position in the European market whilst, for “Casale”, it is testimony of its new position of global contractor, brought about by Casale’s recent acquisitions, which have broadened both its portfolio of technologies and its engineering skills.

Mr. V. Daut, General Director of “Metafrax” commented: “We decided to proceed in partnership with “Casale” because we saw a big advantage in having one single licensor for ammonia, urea and melamine, – in combination with their deep knowledge of our existing methanol plant. We believe that, with its big experience in all kind of revamp, “Casale” will realize optimal technical solutions for integrating the new units of the Complex into our existing methanol plant”.

“We are very proud to have been selected by one of the most prestigious chemical companies in Russia to help them fostering their growth through widening their product mix and toward becoming one of the most important players in the Russian market”, said Mr. Federico Zardi, CEO of “Casale”.

The analytical center “Expert” introduced a rating Top-400 of the biggest Ural and West Siberian companies of total sales revenue in 2016. More than 40 companies of the Perm region were in the rating, representing machine engineering, metallurgical, chemical and wood processing branches.

The Group of Companies “Metafrax” was on the 62^th position in Top-400, moving down by one position relative to its own targets in 2015. At the end of 2016, the volume of sales according to IFRS amounted to more than 41 billion rubles and net profit value was 4 billion rubles.

“Metafrax” took the 3^rd position among chemical and petrochemical companies in the rating.

The rating Top-400 of the biggest Ural and West Siberian companies was complied by the analytical center on the federal rating method basis “Expert-400” allowed by PwC.

Companies of virtually all economic sectors of the Sverdlovsk Region, the Chelyabinsk Region, the Kurgan Region, the Orenburg Region, the Tyumen Region (including the Khanty-Mansijsk Autonomous District and the Yamalo-Nenets Autonomous District), Perm Krai, the Bashkortostan Republic and the Republic of Udmurtia are presented in the rating. The company’s position is defined by ranging of sales revenue, works and services in 2016.