Company extends the resins production

The biggest Russian resins producer «Metafrax» intends to increase its capacities in Russia almost by one third, by investing 2,5 billion rubles and covering of more than the half of domestic market. The Сompany considers, that additional volumes will be demanded in the stably growing construction and timber-processing sectors. And experts note, that considering the decreased prices for methanol and urea it is more profitably to process this raw material domestically, than export abroad.

The Board of Directors of «Metadynea» (is included in «Metafrax Group») decided middle of October to extend enterprise capacities for formaldehyde resins production in Orekhovo-Zuyevo by 200 thousand tons. By this means the capacity of the production site will increase to 600 thousand tons. These resins are used as a binding component both in construction and in the timber processing.

According to the information to the “Ъ” media outlet by the Head of Metafrax, Mr. Armen Garslyan, the project cost is estimated in 2,5 billion rubbles. According to his information, as a result the capacities of the Company for resins production in Russian Federation will increase by 30% from the current 600 thousand tons, and totally for the Group – by 20%, including Austrian production, reaching 1,3 million tons.

Mister Garslyan explained, that currently the Company covers about 40–45% of the domestic resins market. Start up of new plants will allow to increase this share to 50–55%.

In addition to this, as informed Mr. Garslyan, the Company began construction of the third formalin plant at the Moscow – area site. It is scheduled to finish the project with the price about 1,7 billion rubles, within 2,5 years. Also the group is going to increase formalin production at one more c «Metafrax» production site — in Gubakha.

According to the words of Mr. Garslyan, the Group intends to start ammonia, urea and melamine production in December 2021, that shall ensure the resins capacities of «Metadynea» with own raw materials. The design capacity of the enterprise will allow to produce up to 575 thousand tons of urea, 308 thousand tons of ammonia and 40 thousand tons of melamine per year.

It was explained by Metafrax, that the Company intends to sell additional volumes of resins both on the domestic market, where it has competition with JV «Gexion- Shchyokino-Azot», «Аkron» and «Kronoshpan», and for export.

They said, that the wood boards production (plywood, OSB), that is the main consumer of phenol- and urea-formaldehyde resins, demonstated quite high growing speed in the recent years (about 3% per year) specially in the segment of oriented standard boards (ОSB). «We can expect the recovery of the branch and new growth turn in the future, when the epidemiological situation in the world will stabilize, specially considering the last state initiatives to empose full ban for unprocessed timber export from RF, starting from 2022», was explained by «Metafrax».

Head of “Rupec” Mr. Andrei Kostin highlighted, that the extension projects of «Metafrax» production correspond with the needs of furniture and construction markets. The expert reminded, that the mortgage lending rate, decreased over the last years. supported the construction speed. Also the initiative of the President, Mr. Vladimir Putin, regarding export regulation of unprocessed timber will be beneficial for the timber processing branch. «It is obvious, that Metafrax keeps in view to cover the potentially perspective demand in future. Additionally, taking into account the price reduction for methanol, it is more profitable to process it domestically to the more deep derivatives, than to sell abroad as a raw material»,— pointed out Mr. Kostin.