Kazanorgsintez to ramp up revenue to 100 billion rubles

Kazanorgsitnez has produced a record-breaking volume of polyethylene in the history of the enterprise

Kazanorgsintez to ramp up revenue to 100 billion rubles Photo: Oleg Tikhonov

One of the five budget-forming enterprises of Tatarstan, the petrochemical company Kazanorgsintez, is to increase revenue to 100 billion rubles by 2021. Such figures at the annual meeting of shareholders of the company were announced by President of Tatarstan Rustam Minnikhanov. In 2017, the company's revenue amounted to 72 billion rubles, and the production of polyethylene reached 726,513,000 tonnes — it is the maximum volume in the history of the enterprise. Read the details about other achievements of Kazanorgsintez in 2017 in the material of Realnoe Vremya.

Record-breaking production rate of polyethylene

The results of the company's activities in 2017 were presented at an annual meeting of shareholders of Kazanorgsintez PJSC. Director General of Kazanorgsintez Farid Minigulov told that over the past year the output volume exceeded 1 million tonnes, including of polyethylene — 726,513 tonnes — the record-breaking figure in the history of the enterprise.

Kazanorgsintez produced more than 1 million tonnes of commodity output last year

The capacity utilization rate increased from 92% to 94% in 2017, and the volume index was 101,7% compared to 2016. At the same time, a reduction in ethylene supplies, despite the increase in its own production by 22,842 tonnes compared to 2016, did not allow the maximum use of existing capacity of the enterprise of polyethylene production. In 2017, the revenue from the sale of commercial products amounted to 72 billion rubles, which is by 3,4 billion rubles, or 4,5%, below the level of 2016.

The director general noted that the main market for Kazanorgsintez's products is the domestic market — 79% of the revenue, the share of exports is 21%. The company modernizes logistics processes and seeks to cooperate with the largest number of foreign partners. In 2017, the export of Kazanorgsintez products in real terms increased by 16,8% compared to 2016, providing revenue of more than 15 billion rubles.

Major market for Kazanorgsintez's products is domestic market — 79% of the revenue, share of exports is 21%

In 2017, the company resumed cooperation with Georgia and established the supply of products to Croatia and Armenia. Later, at a press conference, Farid Minigulov added that in 2018 it is planned to increase exports by 23-24% due to sales of polyethylene and polycarbonate.

Kazanorgsintez is one of the five major budget-forming enterprises of Tatarstan. Tax payments to all levels of the budget amounted to 8,6 billion rubles in 2017, including 5,46 billion rubles were transferred to the consolidated budget of the Republic of Tatarstan.

More than 440 million rubles were allocated for environmental protection in 2017

Kazanorgsintez improves the quality of products annually, increasing the range of products. Last year, polyethylene compositions designed for the production of ampoules for pharmaceutical industry were developed at the high-pressure polyethylene plant on the technological installation Tyson. The company developed a new brand of low-pressure polyethylene at the low-pressure polyethylene plant to meet the demand of automakers in the material for production of fuel tanks.

Kazanorgsintez continues the programme of modernization of production and commissioning of new ones. 7,8 billion rubles were allocated to finance capital construction projects, as well as to replace and upgrade equipment in 2017. The ethylene plant is working on the construction of four new pyrolysis ovens, three of which are scheduled for launch at the end of 2018. The second stage of the basic warehouse of hydrocarbon raw materials for storage of propane-butane fraction was put into operation. The modernization of the reactor C with its equipment with a system of recovery of waste gases was carried out at the plant for the production and processing of low-pressure polyethylene. Two-circuit water circulation system of polymerization reactor cooling was constructed.

Costs on environmental protection in the reporting year amounted to more than 440 million rubles

Against the background of production successes, Kazanorgsintez still pays attention to the environment, industrial safety and health. ''The current costs on environmental protection in the reporting year amounted to more than 440 million rubles, which is by 7,2% more than in 2016. The costs on labour protection exceeded 549 million rubles, which is by 24,8% more than in 2016. The costs on measures to ensure industrial safety amounted to more than 2 billion rubles, which is more than last year by 41%,'' Farid Minigulov told the shareholders.

Board of directors of Kazanorgsintez PJSC was elected in the number of 11 people

After reports on the results of company's activities, the shareholders approved the annual report and financial statements of Kazanorgsintez for 2017, as well as approved the distribution of net profit. Thus, it was decided to accrue and pay dividends on the shares of Kazanorgsintez PJSC in the amount recommended by the board of directors: for preferred shares at the rate of 0,25 rubles per share; for ordinary shares at the rate of 4,253 rubles per share.

The shareholders elected the board of directors of Kazanorgsintez PJSC in the amount of 11 people. On the basis of a special right, which ''the golden share'' gives, representative of the state Rinat Sabirov, assistant to the President of the Republic of Tatarstan, was appointed to the board of directors.

Share of non-raw materials in Tatarstan exports increased from 52% to 54%

Speaking to the shareholders of KOS, Rustam Minnikhanov called the company one of the largest petrochemical enterprises in the Russian Federation and leading domestic producer of polyethylene. ''In 2017, Kazanorgsintez met and exceeded its planned targets. In the reporting year, the company was operating in a complicated market environment, which was due to a drop in prices to 15%. As a result of hard work with suppliers of raw materials, the best indicators in the history of Kazanorgsintez have been achieved, as well as record-breaking figures of production in physical volumes,'' Rustam Minnikhanov said.

''KOS is one of the top five leading budget-forming enterprises of the republic,'' Minnikhanov said

Due to the growth of sales, the company managed to neutralize the negative effect of price jumps. The president also highlighted a high share of added value — 42% in the volume of revenue, which is one of the best indicators in the region. The competitiveness of Kazanorgsintez is evidenced by the growth of exports. Due to the development of petrochemical products, the share of non-oil exports of Tatarstan is growing. Over the past five years, the share of non-raw materials in Tatarstan's exports has increased from 52% to 54%.

''Today KOS is among the top five leading budget-forming enterprises of the republic. It is a leader in the stock market of our country in terms of dynamics of capitalization growth. Largely due to developing enterprises such as Kazanorgsintez, Tatarstan maintains a positive growth of the economy,'' said the head of the republic. Chemistry and petrochemistry remain the main points of economic growth and the priority of the Strategy 2030.

''We assess the development of Kazanorgsintez positively''

After the annual meeting, media representatives had an opportunity learn more about the prospects of development of Kazanorgsintez until 2025. Answering the question of the correspondent of Realnoe Vremya, Rustam Minnikhanov assessed the economic results of the enterprise in 2017.

''We assess the development of Kazanorgsintez positively, but we cannot be satisfied with what has already been achieved,'' Rustam Minnikhanov said

''With all the difficulties: the conditions of polyethylene market, access to raw materials — the growth of the company's capitalization shows how effective and promising it is. We assess the development of Kazanorgsintez positively, but we cannot be satisfied with what has already been achieved. We have been presented a serious programme of development of the enterprise until 2025. By 2021, Kazanorgsintez is to approach revenue of at least 100 billion rubles. There is no doubt that they will cope with this,'' Minnikhanov said.

Kazanorgsintez is to approach revenue of at least 100 billion rubles by 2021

Ethylene production is to increase to 650,000 tonnes by 2021, and of polyethylene — nearly 1 million tonnes. The programme will be financed by the standard scheme for TAIF — 15% will be own funds and 85% will be borrowed. Such figures at the press conference were announced by Director General of TAIF PSC Albert Shigabutdinov.

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By Ekaterina Gumarova. Photo: Oleg Tikhonov
Tatarstan