Moving on: TAIF sums up results of 2019

TAIF Group's net income in 2019 amounted to 876,6 billion rubles

Moving on: TAIF sums up results of 2019
Photo: Roman Khasayev

TAIF Group not only did not allow a sharp decline in production volumes but also continued to strengthen its position despite the difficult economic situation in the country and the world last year. The net income amounted to 876,6 billion rubles. Taxes and duties totalling 55,6 billion rubles were paid to budgets of all levels, including 15,6 billion rubles to the consolidated budget of Tatarstan. Read about TAIF Group's production and financial-economic results, as well as important events in the Group's life in 2019, in the detailed review of Realnoe Vremya.

TAIF's share in Tatarstan's net financial result is 31%

“In difficult economic conditions, having objectively assessed the situation and taken all necessary preventive measures, in 2019 TAIF Group maintained the pace of development and production volumes, continued its progressive development, fully fulfilled all social and other obligations, and most importantly — paid taxes and duties to the budget. The results obtained are another confirmation of the stability and reliability of TAIF Group's business model, reinforced by safety margin accumulated over almost 30 years of its history," Ruslan Shigabutdinov, the director general of TAIF JSC, assessed the results of the Group's work in the interview with Realnoe Vremya.

The total volume of goods shipped and services provided in the Republic of Tatarstan in 2019 amounted to 2,877 billion rubles in monetary terms, of which TAIF Group accounts for 19%, or 539,4 billion rubles. TAIF's share in Tatarstan's net financial result is almost a third — 31%. TAIF Group's EBITDA increased by 22 billion rubles to 166 billion rubles in comparison with 2018.

“If the market conditions are bad, petrochemical companies are forced to reduce its output and try to cut costs so that investment programmes and employee salaries do not suffer. Our companies acted quite optimally in such a difficult time, in such a conjuncture. For example, TAIF's EBITDA growth (the company's profit before interest on loans, income tax and depreciation) indicates very good dynamics — this is the key indicator, from the point of view of production — a more indicative indicator than revenue and net profit. It speaks about the quality of management, that this is a fairly effective company," said Alexander Razuvaev, the head of the Information Analysis Centre (IAC) Alpari, in an interview with the journalist of Realnoe Vremya online newspaper.

Alexander Razuvaev: “TAIF's EBITDA growth shows very good dynamics — it is a more indicative indicator than revenue and net profit.” Photo: i.ytimg

“The previous year was quite difficult for the petrochemical industry. On the positive side, we can only note that oil prices were low and fairly stable, including due to that the landmark OPEC+ talks took place. Unfortunately, we can say that our international projects are not moving so well under sanctions, and last year showed this — the Nord Stream 2 project has stalled. Nevertheless, a number of companies finished the year with good results. EBITDA is one of the most important economic indicators that shows increasing profitability. So, if it grew for TAIF, we can say that the company successfully develops, increasing the financial returns of investment in the industry," Associate Professor of International Commerce of the Graduate School of Corporate Management at Ranepa Ivan Kapitonov shared his opinion with the journalist of Realnoe Vremya.

Ivan Kapitonov: “TAIF's EBITDA has increased, which indicates that the company is successfully developing, and the financial return on investment in the industry is growing.” Photo: cdn2.img.sputnik

“Behind all the success and achievements of TAIF Group, there is a huge contribution of our workforce. Thanks to the well-coordinated work of highly professional team, their conscientious attitude to their business, maximum dedication and focus on a positive result, TAIF Group annually confirms the status of one of the largest and dynamically developing industrial and investment holdings in both the Republic of Tatarstan and the Russian Federation," Ruslan Shigabutdinov said in a conversation with the journalist of Realnoe Vremya.

The contribution to the country's development — tax payments, social expenditures, environmental protection and industrial safety, as well as investments in the development of the Group's production facilities in the past year amounted to almost 157 billion rubles.

Ruslan Shigabutdinov: “Behind all the success and achievements of TAIF Group, there is a huge contribution of our workforce.” Photo: Roman Khasaev

The share of TAIF Group's investments in fixed assets in the Republic of Tatarstan — 15%

TAIF Group consistently continues to work on the implementation of projects provided for in the TAIF Group's Strategic Development Programme until 2030. It includes more than 30 investment projects in the field of oil and gas processing, chemistry, petrochemistry and energy — construction, reconstruction and modernisation of production facilities of the Group's companies. Last year, 53,3 billion rubles were invested in solving these tasks, which is 15% of the total investment in fixed assets in the Republic of Tatarstan.

In total, over the period from 1995 to 2019, TAIF Group has already invested (including investments in securities) in its own development and expansion of production capabilities of its member companies over 788,1 billion rubles (20,3 billion USD).

41% of Russian ethylene is produced by TAIF Group

The implementation of TAIF Group's Strategic Development Programme is aimed not only at meeting the needs of the Russian market for high-quality petrochemical products but also at strengthening the positions of Tatarstan and Russia as exporters of world-class quality goods.

In 2019, TAIF Group's share in Russian ethylene makes up 41%, in the total volume of plastics produced in Russia — 41% or 1,5 million tonnes, and in synthetic rubbers — 68% or 678,300 tonnes. TAIF Group accounts for 44% of the total volume of goods shipped in the field of oil refining, petrochemistry and energy in the Republic of Tatarstan in 2019.

The geography of shipping covers 57 countries of the world. At the same time, the share of export shipments in the total financial result for 2019 is only 28%. The main part of the products and services are sold on domestic markets.

From 2020 to 2030, the total investment volume in the Group's development, according to the Strategic Development Programme, should be about 1,5 trillion rubles. The large-scale modernisation will increase the production capacity of the Group's chemical and petrochemical enterprises by 2,1 times in value terms compared to the level of 2020, and the volume of processing of the main hydrocarbon raw materials in value terms will reach 774,6 billion rubles, while the share of purchased raw materials in the total structure will be only 31,5% due to lengthening and improving the efficiency of the chain of further processing.

HRCC — heading at commissioning

In 2020, TAIF Group plans to put into commercial operation the unique Heavy Residue Conversion Complex. As of the end of 2019, total investments in the creation of the HRCC facilities and the modernisation of production facilities that ensure its operation amounted to more than 110 billion rubles.

The ongoing commissioning and testing of the VCC unit confirmed that the design parameters of the HRCC are achievable. Photo: Roman Khasaev

The main raw materials for the complex are tar and vacuum gas oil. The design capacity is up to 3,7 million tonnes a year. The ongoing commissioning work on the complex and the test results confirmed that the design parameters of the VCC unit are achievable.

The utilisation level of primary production capacities of TAIF-NK JSC for processing oil and gas raw materials in the past year was 99,8%. The company improved its own indicators of the year 2018 and is significantly ahead of the national average in terms of utilisation of primary production capacities of refineries, which is 88,6%.

Against the background of a constant decline in the quality and fluctuations in the cost of purchased oil, TAIF-NK JSC, implementing modern technologies, increases the depth and volume of raw material processing. In 2019, TAIF-NK JSC processed 8,3 million tonnes of oil and gas condensate, with an increase in the volume of gas condensate processing by 4,9% compared to the previous year. In total, 8,2 million tonnes of commercial products were produced, including 5,2 million tonnes of light oil products — diesel fuel, straight-run gasoline, motor gasoline, jet fuel and technical kerosene, liquefied petroleum gases (LPG), and 3 million tonnes of heavy oil products. All straight-run petrol produced by TAIF-NK JSC, which is 1,6 million tonnes, as well as LPG, was sent to Nizhnekamskneftekhim PJSC for further processing into petrochemical products.

Net revenue in 2019 was 207 billion rubles, which is by 9,2% less than the result achieved a year earlier. The reasons for the decline in revenue are the fall in stock prices for the main types of oil refining products.

On June 9, 2020, the government of the Russian Federation approved the country's new Energy Strategy for the period up to 2035. According to the document, the federal authorities promise state support, including tax support, for the construction of new recycling facilities that ensure the production of products with high added value.

By 2035, as part of the completion of the refinery modernisation programme in Russia, it is planned to introduce more than 50 oil recycling units, which will increase the total output of light oil products at domestic refineries to 70% (from the current 62%).

TAIF Group's Development Strategy, within which it is already implementing the large-scale project unique to the world's large-capacity oil refining industry to build the HRCC based on Veba Combi Cracking (VCC) technology, echoes the objectives of the Russian Energy Strategy aimed at improving technologies for deep processing of heavy oil and oil residues. After commissioning, the HRCC will allow to achieve the maximum processing depth of tar and vacuum gas oil at a maximum of 98,6%, bringing the selection of high-quality light oil products to 98,2%.

Nizhnekamskneftekhim PJSC and Kazanorgsintez: 3,4 million tonnes of commercial products

TAIF Group is the largest producer of polymers in Russia, accounting for 47% of the total volume in the country. In the face of ever-increasing competition, rising raw material prices and lower costs of petrochemical products, TAIF Group continues to develop and strengthen its positions as one of the leading participants in the domestic and global markets.

Last year, Nizhnekamskneftekhim PJSC, Kazanorgsintez PJSC and their subsidiaries produced 3,4 million tonnes of commercial products. This includes 1,227,000 tonnes of ethylene, 1,539,000 tonnes of plastics, and 678,000 tonnes of synthetic rubbers. Capacity utilisation for the production of ethylene is 98%, and for the production of polymers — 95%. The share of polymers in the overall product mix is steadily growing with the introduction of new capacities and the modernisation of existing production facilities. Compared to 1995, polymer sales increased 100-fold, currently accounting for 78% of total revenue growth. Monomers account for only the remaining 22% of this volume.

TAIF group's enterprises consistently and systematically work on the development of new types of petrochemical products. To date, the range is represented by 587 items that fully meet the highest international quality standards and are in demand by the global market. For comparison, in 1995, only 211 brands of products were produced at the facilities that are now part of the Group, 116 of which are now obsolete and have been removed from the production chain.

The remaining 95 types of products are in demand in the markets and continue to be produced, but with improved quality indicators achieved by using new technologies on improved equipment.

Thanks to consistent and systematic work on the development of new types of petrochemical products that meet high requirements for modern materials, TAIF Group's enterprises have put into operation capacities since 1995 and mastered the production of 492 new types of products that are in demand both on the domestic and global markets. For example, in 2019, Kazanorgsintez PJSC began the industrial production of metallocene linear low-density polyethylene (LDL or LLDPE), becoming the only manufacturer of metallocene polyethylene in Russia.

At the end of the year, the net revenue of Nizhnekamskneftekhim PJSC and its subsidiaries amounted to 189 billion rubles, EBITDA — 37,3 billion rubles. Kazanorgsintez PJSC — 72,5 billion rubles and 18 billion rubles, respectively. 63% of the total revenue of TAIF's petrochemical production was generated by the sale of products on the domestic market. The annual result is slightly lower than in the previous reporting period, which is primarily due to a drop in world prices for petrochemical products.

The priority of Nizhnekamskneftekhim PJSC and Kazanorgsintez PJSC, as well as TAIF Group as a whole, is to further strengthen their positions on global markets, increase economic efficiency and environmental safety of existing and under construction production facilities.

By 2030, TAIF Group plans to invest 730 billion rubles in the development and modernisation of production facilities of Nizhnekamskneftekhim PJSC. As a result of the implementation of the planned projects, the volume of polymer production of NKNK will grow to 3 million tons per year, annual revenue will be about 347 billion rubles, and EBITDA — 114 billion rubles.

By 2030, TAIF Group plans to invest 730 billion rubles in the development and modernisation of production facilities of Nizhnekamskneftekhim PJSC. Photo: Roman Khasaev

Nizhnekamskneftekhim plans to increase ethylene production to 1,8 million tonnes per year due to the ongoing project for the construction of the ethylene complex with a total capacity of 1,2 million tonnes of ethylene per year. Currently, the work continues on the construction of the first phase of the complex — EP-600: engineering and survey works are being conducted, design is being performed, orders for the manufacture and delivery of main technological equipment have been placed, the works at the construction site have been started. For example, at the end of June 2020, the primary fractionation column DA013-01 was installed. With a height of 78 metres, a diameter of 8 metres and a weight of 640 tonnes, it arrived in Nizhnekamsk by water from South Korea. In the near future, another 17 units of large-sized equipment will be delivered to the EP-600 construction site, and 264 units will be delivered during the navigation season 2020.

On June 22, 2020, the primary fractionation column DA013-01 was installed at Nizhnekamskneftekhim. Photo: Rinat Nazmetdinov

“This is a continuation of the development of our company, an increase in the production of commercial products, deductions to the regional budget. From all sides, this project is economically and socially beneficial for the entire republic and Russia as a whole. We are considering the growth of previously manufactured products, such as polyethylene, polypropylene, and the production of new types of products," Ayrat Safin, the director general of Nizhnekamskneftekhim PJSC, who came to the construction site, told the journalist of Realnoe Vremya about the future plant.

Ayrat Safin: “EP-600 is economically and socially beneficial for the entire republic and Russia as a whole.” Photo: Rinat Nazmetdinov

Along with ethylene with a volume of 600,000 tonnes per year, it will produce propylene — 270,000 tonnes per year, benzene — 248,000 tonnes per year, butadiene — 89,000 tonnes per year, which will become the raw material for the production of polymer products (caoutchoucs, plastics).

An important component of the new Energy Strategy of the Russian Federation is that the state focuses on a cluster approach to the formation of centres for deep processing of hydrocarbons with a production core in the form of large pyrolysis capacities (from 0,6 to 1 million tonтуs of ethylene or more) and subsequent production of plastics, caoutchoucs and organic synthesis products, their processing into semi-finished products and final products for the consumer market. TAIF Group adheres to this concept throughout its activities, creating and improving a closed production chain of deep processing from raw materials to the final product. Moreover, the volume of production and the range of products are growing from year to year. A good example is synthetic rubbers.

The annual production of synthetic rubbers by 2030, according to plans, should exceed 800,000 tonnes (for comparison, at the end of 2019, Nizhnekamskneftekhim produced 678,300 tonnes of rubber, and in Russia as a whole — 996,600 tonnes). Besides, work continues on the diversification of the product line. So, last year, the work was completed on the reconstruction of isoprene production with an increase in capacity to 333,000 tonnes per year.

Methanol is the raw material for formaldehyde in the synthetic rubber production chain: methanol-formaldehyde-isoprene-synthetic rubber. In January 2019, Nizhnekamskneftekhim PJSC and Danish company Haldor Topsoe signed a contract for the provision of licenses and engineering services for the construction of a methanol production project with a capacity of 500,000 tonnes per year. The Russian institute, NIIK JSC (Research and Design Institute of Urea and Organic Synthesis Products), is engaged in the development of project and working documentation. In October, public hearings were held, at which the project was supported.

In January 2019, the management of TAIF JSC and the management of the Danish company Haldor Topsoe (the delegation from Denmark was headed by the company's president, Bjerne Steffen Clausen) signed a contract for the construction of a methanol production project. Photo: Rinat Nazmetdinov

A project is underway to build a new production of divinyl-styrene synthetic rubber (DSSK) with a capacity of 60,000 tonnes per year. The functionalised DSSK is the basis for creating environmentally friendly “green tyres” that can significantly improve the safety of motorists and their passengers due to better grip on wet roads and reduce the level of transport impact on the environment.

Last April, a benzene extraction unit was put into operation. The production capacity of benzene was increased to 265,000 tonnes per year, which allowed Nizhnekamskneftekhim to completely abandon the purchase of this raw material on the side and significantly increases the competitiveness of polystyrene produced by TAIF Group.

The benzene extraction unit will increase the efficiency of processing the available raw materials and thus avoid purchasing benzene on the side. Photo: Roman Khasaev

TAIF Group intends to invest 545 billion rubles until 2030 in the development of production facilities of Kazanorgsintez PJSC, where two blocks of investment projects are being implemented: the first is designed to increase the efficiency of existing production facilities by introducing technical and technological improvements in production processes. The second is to increase the production capacity of commercial products by creating new production facilities and reconstructing existing ones.

Thus, within the first block, the plant is being modernised to process propane raw materials by the ethylene plant, with the subsequent increase in the plant's production to 1,8 million tonnes of ethylene per year. Besides, the production of isopropylbenzene is being reconstructed to allow the use of bisphenol A, the new catalyst, in the production process of the plant. This will increase the efficiency of using raw materials and energy resources.

545 billion rubles will be invested by TAIF Group until 2030 in the development of production facilities of Kazanorgsintez PJSC. Photo: Kazanorgsintez PJSC

As part of the second block, it is planned to complete the reconstruction of the reactor block of the HDPE Production and Processing Plant, which will increase the production capacity of high-density polyethylene (HDPE) of various brands by Reactor B to 220-256 thousand tonnes per year and increase the total capacity of HDPE production to 660-720 thousand tonnes per year. Besides, it is planned to build an autoclave plant of savilen and LDPE with a capacity of 100,000 tonnes per year. In addition, it is planned to modernize the Polycarbonate Production Plant, thanks to which the production volume will grow by 30 thousand tonnes per year, and the total volume will be 100 thousand tonnes per year.

“The introduction of new technologies and new joint ventures will allow them to maintain our leading positions in the market. The strategic development programme, which was adopted by the board of directors, is currently being implemented. To date, three of the ten investment projects have already been completed. Two more are planned to be completed this year. These are projects for the modernisation of the Ethylene Plant and the production of polycarbonates with an increase in capacity to 100 thousand tonnes per year," Farid Minigulov, the director general of Kazanorgsintez, told the president of Tatarstan during the visit of Rustam Minnikhanov to the enterprise in May 2020 in the presence of the management of TAIF JSC.

Farid Minigulov, the director general of the company, told the president of Tatarstan about the implementation of the Development Strategy of Kazanorgsintez PJSC in May 2020, in the presence of the management of TAIF JSC. Photo: tatarstan.ru

As a result, by 2030, the annual production of polymer products at Kaznorgsintez will be brought to 2,3 million tonnes.

Energy sales revenue of TAIF Group companies reached 56,8bn rubles

Energy is an important component of the production of TAIF Group of Companies. The business of the Group in energy is represented by TGC-16 JSC, which includes Nizhnekamsk CHPP, Kazan CHPP-3 and its subsidiary PEST LLC, which buys and sells electrical energy and capacities, provides services to deliver thermal energy and transportation of hot water, as well as GTK LLC, which transports natural gas to enterprises of the Nizhnekamsk Industrial Hub.

Since the Group purchased and got generating capacities, the capacities have seriously been modernised, which has boosted their performance. Thermal and electrical energy generation has considerably increased.

Last year, energy sales revenue of TAIF Group companies reached 56,8 billion rubles, of which electrical energy sale accounts for 60%. It is 8,4 billion rubles more than in 2018.

All thermal energy generated by TGC-16 JSC is sold to industrial consumers and heat suppliers. The geography of the sale of electrical energy is the first pricing zone of the wholesale market. It unites power plants of the Central, Southern, Northwest, Ural, Volga, North Caucasian Federal Districts.

Main consumers of thermal energy in the capital of Tatarstan are Kazanorgsintez PJSC, Tatenergo JSC, Kazan-Spetsenergomontazh LLC, KZSSM LLC, Maysky Greenhouses LLC, Kazan ZHBI Factory LLC, Rainbow Residential Complex. In Nizhnekamsk, thermal energy is supplied to Nizhnekamskneftekhim PJSC, TAIF-NK JSC, Energoshinservice LLC, Kamatransservice shipping company JSC, KamEnergoRemont LLC and other industrial companies.

TAIF Group’s energy companies keep gradually developing. Total investments in three company’s working capitals amounted to 4,5 billion rubles. During the year, TGC-16 JSC completed reequipment of the second chemical water treatment shop in the Nizhnekamsk CHPP thanks to which it became possible to reduce the resource capacity of the technology and considerably augment its eco-friendliness.

Last March, the Kazan CHPP-3 launched storm and snow water and industrial sewage treatment facilities.

“The new system allows clearing off sewage of the enterprise from sediment and oil products. Total costs of the company were 165 million rubles. As a result, the Kazan CHPP-3 got two treatment systems at once, the first of which treats sewage contaminated with oil products, the second treats storm and snow water,” Director General of TGC-16 JSC Eduard Galeyev told Realnoe Vremya’s journalist.

Reconstruction of water pipelines in the Nizhnekamsk CHPP ended in July. In 2019, GTC LLC built High Pressure Gas Pipeline from Gas Distribution Grid No. 2 in Yelabuga (Central) to Nizhnekamskneftekhim, TAIF-NK JSC. It was already put into operation. The new pipeline will allow providing reliable gas supply to enterprises of the Nizhnekamsk Industrial Hub from two independent main gas pipelines. This will also allow excluding reserve fuel combustion (mazut) in the Nizhnekamsk CHPP in case of restrictions in the gas supply system and providing a supply of necessary amounts of up to 5 billion cubic metres to provide new development projects of the Nizhnekamsk industrial area, including enterprises of TAIF Group, with natural gas.

TGC-16 JSC plans to modernise the main energy equipment of its operating plants within the programme of Power Supply Agreement 2 through 2030. The programme includes four steam turbines — three in the Nizhnekamsk CHPP and one in the Kazan CHPP-3.

“According to the terms on participation in the power plant modernisation programme, only products of Russian origin are used to upgrade the steam equipment. Nowadays we are considering proposals to supply sets of turbines of several Russian manufacturers,” Director General of TGC-16 JSC shared in an interview with Realnoe Vremya.

TGC-16 JSC plans to modernise the main energy equipment of its operating plants within the programme of Power Supply Agreement 2 through 2030. Photo: TGC-16 JSC

According to analysis of the Centre of Analytic Research, in 2019 TGC-16 obtained an honourable status as The Best Enterprises of the Sector 2019. The award is given for a weighty contribution to the social and economic development of the region, priority in the sector as well as great results in its segment. The status proves “the company’s reliability, the enterprise’s priority of services among opponents and prestige of the employer”. After selection, TGC-16 also joined the Rating of Reliable Partners.

TAIF Group’s enterprises — Nizhnekamskneftekhim PJSC and Kazanorgsintez PJSC — also develop in power engineering.

So according to a contract on turnkey construction of a 495 MW power plant signed between Nizhnekamskneftekhim PJSC and Siemens AG in Munich in December 2017, the main and auxiliary equipment of the plant is assembled and hooked up. In 2020, Siemens AG will begin start-up and commissioning on the power plant’s construction site.

Kazanorgsintez PJSC also does works on a contract on the construction of a new 250 MW power plant signed with Siemens AG in October 2019.

“The construction of the steam and gas turbine means not only the creation of our energy capacities for further development of the enterprise. The project will allow reducing the environmental impact,” said Ruslan Shigabutdinov, director general of TAIF JSC, Kazanorgsintez PJSC board chairman and Nizhnekamskneftekhim PJSC board chairman.

Ruslan Shigabutdinov on construction of SGT-TPP: “The project will allow reducing the environmental impact”. Photo: Roman Khasayev

Network of TAIF-NK petrol stations: year-end revenue is about 18 billion rubles

The network of TAIF-NK petrol stations is one of the biggest in the Republic of Tatarstan. It has 216 petrol stations in Tatarstan and 17 outside the republic (in Samara, Kirov, Ulyanovsk Oblasts and in Udmurt and Chuvash Republics).

To make the brand of TAIF-NK Petrol Stations more recognisable, create as comfortable as possible conditions for consumers and improve the company’s financial and economic performance, integrated and detailed practical elaboration of the modernisation and rebranding of the petrol stations began in 2019. A new signature style of petrol stations complying with modern architecture and design tendencies was developed and approved in the Architecture and Urban Development Office of Kazan. Last year, 5 fully modernised petrol stations with a new design with full-fledged shops in a signature style opened last year. It is planned in 2020 to change another 32 petrol stations of the company according to the new signature style.

The network of petrol stations of TAIF Group saved a stable position in the market in 2019 and earned 17,9 billion rubles. Photo: Maksim Platonov

A competitive advantage of TAIF-NK Petrol Station LLC is that the plants sell only high-quality fuel made by TAIF Group and delivered directly from the manufacturer. In 2019, Nizhnekamskneftekhim PJSC mastered autogas production. Nowadays the main part of gas going to TAIF-NK petrol stations is supplied precisely by NKNK. Thanks to a high quality of petrol, diesel and gas made and sold by TAIF Group companies, constant work on improving the recognisability of the brand and client service, the network of petrol stations of TAIF Group saved a stable position in the market in 2019 and earned 17,9 billion rubles.

The total revenue includes also 198 million rubles from the sale of products and services via shops and cafes near the petrol stations. The success of this area led to a rise in the number of upgraded shops near petrol stations of the network from previous 47 to 60 in 2019 alone, and in 2020 it is planned to open another nine shops and cafes. For Avers, Tinkoff cardholders and users of popular apps Yandex. Navigator, Yandex. Taxi, there were launched marketing products.

TAIF Managing Company

The separation of TAIF Managing Company JSC was completed in February 2019 to improve the performance of TAIF head company with the enterprises that run a business in oil refining, petrochemistry and power engineering according to TAIF JSC shareholders’ decision.

A part of the enterprises of TAIF JSC that don’t deal with key production assets separated with it: construction and production of construction materials, IT, integrated and other services, bioplastic and lubricant production. The total value of assets of TAIF MC JSC was almost 24,5 billion rubles by late 2019.

TAIF Managing Company is planning to gradually modernise operating equipment and upgrade the car fleet in construction and production of construction materials where TAIF MC is represented by three companies: KZSSM LLC, TAIF-ST LLC and Keramika-Sintez LLC. It is considered to master new types of products and services in the future. In 2019, production revenue of TAIF-ST LLC, the key enterprise in construction at TAIF MC, was 2,972 million rubles.

The quality and optimal prices of the products made make it sought-after in the market of construction materials in the Republic of Tatarstan. KZSSM LLC made 71,8 million equivalent bricks in 2019, Keramika-Sintez LLC produced 21,3 million equivalent hollow ceramic stones.

Net profit of TAIF MC during the first year of its independent operation was 720 million rubles, the amount of taxes and duties — 62 million rubles, of which 55 million were paid to the consolidated budget of the Republic of Tatarstan. Works are done to boost the effectiveness of the business of Tulpar Air, Karsar LLC, Kekin House LLC.

50,3 billion rubles to fund socially important areas

TAIF Group allocated an amount of money that is comparable with investments in the working capital of some Russian regions in 2019 to develop and support health care systems, education and enhance qualification, solve housing issues of the Group’s workers and implement construction programmes, support culture and religion, veterans and disabled people, hold socially important events, support professional and amateur sport and so on. It is not accidental that TAIF Group in general and the companies that are part of it were in the top 3 in the rating of Tatarstan resident’s loyalty to socially important industrial enterprises of the republic. PromRating research agency did the analysis late last year. The total amount of money allocated by TAIF Group throughout its operation on social expenses that aren’t linked with its production exceeded 270 billion rubles, of which over 186 billion were spent free.

To provide its workers with social rights and guarantees, the Group of companies does its best. A decent salary and the best working conditions are explained in collective agreements. By the way, last year the collective agreements of Nizhnekamskneftekhim PJSC and Kazanorgsintez PJSC were recognised the best in a sectoral competition. The Tatarstan Republican Committee of the Russian Chemists’ Trade Union singled them out among 16 other chemical enterprises of the republic.

Major repairs and equipment with modern medical equipment of the Nizhnekamsk Polyclinic No. 1 ended with TAIF Group’s support. The Group allocated 123 million rubles for this purpose. And Nizhnekamskneftekhim PJSC purchased two special ambulance cars and two cars for brigades of practitioners and doctors of the polyclinic to go to a patient’s home. Another 113 million rubles were given by TAIF Group to create and equip a burns unit in the central regional hospital of Nizhnekamsk equipped with state-of-the-art medical equipment.

TAIF Group financed the creation of a burns unit in Nizhnekamsk. Photo: press service of Nizhnekamskneftekhim PJSC

Last year, TAIF Group continued the financing of the construction of Kul Gali hotel in ancient Bolgar and restoration of Our Lady of Kazan Cathedral.

Special is also paid to environmental issues. All big industrial companies of TAIF Group introduced a quality management system in environmental protection and adopted and consecutively implement their own programmes and take environment protection measures whose total amount in 2019 was 8,9 billion rubles.

It isn’t accidental that TAIF Group companies have become laureates and winners of Ecoleader republic competition for many years already.

Last year, Nizhnekamskneftekhim PJSC took 33 environmental protection measures. For instance, it obtained permits to establish a “sanitary and protection zone” for NKNK plants. Second-stage works on the reconstruction of biological treatment facilities receiving sewage not only from the industrial site but also from Nizhnekamsk itself ended 2019.

Second-stage works on the reconstruction of biological treatment facilities receiving sewage not only from the industrial site but also from Nizhnekamsk itself ended 2019. Photo: tatarstan.ru

Kazanorgsintez took a set of 35 environmental protection measures and was in the top 3 best Russian companies in reducing greenhouse emissions. TAIF-NK JSC, as well as other companies of TAIF Group, introducing modern treatment technologies with a level of emission that is much lower than those established by current legislation of Russia and Tatarstan in environmental protection reduced the emissions into the atmosphere by another 11,5% and discharge of sewage by 11,6% in 2019. TGC-16 JSC managed to significantly reduce nitrogen oxide emissions.

Reconstruction of a system of lakes and Swan’s urban forest near Kazan became one of the illustrative examples of large-scale environmental projects across Russia. TAIF JSC and Kazanorgsintez PJSC used the latest technology, its own materials and groundwork and managed to deepen dying lakes and refill them with water. Beautification works on the territory near the lakes continued in 2019 and early 2020.

Reconstruction of a system of lakes and Swan’s urban forest near Kazan became one of the illustrative examples of large-scale environmental projects. Photo: president.tatarstan.ru

Last autumn, Swan’s park was recognised one of the best in the nomination Eurasian Park Awards by prestigious International Large Urban Parks Awards.

Billions of rubles are invested to support amateur and professional sport. In December 2019, TAIF JSC and the Russian Football Union signed a memorandum in Moscow in December 2019. The RFU and TAIF Group will support and popularise Russian football in the Republic of Tatarstan and develop children and teenagers’ sport.

Aide to Director General of TAIF JSC Timur Shigabutdinov and RFU Chairman Aleksandr Dyukov put their signatures to the memorandum on joint efforts of TAIF JSC and RFU on support and popularisation of Russian football. Photo: Roman Khasayev

Sintez aquatic sports club received the title Project of the Year within the Tatarstan Sports Ministry’s award Athlete of the Year 2019.

This June Russia’s Olympic Committee received 30,000 medical masks from Nizhnekamskneftekhim PJSC. The handing-over ceremony had to be held online due to the complicated epidemiological situation, via teleconference.

“Thanks to the help of Nizhnekamskneftekhim, our athletes can start training. The Russian Olympic Committee has the opportunity to return to work. These 30,000 masks will be presented to the athletes who visit the ROC in the framework of interaction with their leaders, with our sports federations," sports commentator and TV host Konstantin Vybornov said.

By the way, since the pandemic, the company, which is a part of TAIF Group, has already handed over more than 200 protective masks to health care, social, public and sports organisations and establishments, sports schools and children camps for free.

“The whole world is now fighting the coronavirus pandemic. Our company that specialises in the production of over 120 types of petrochemicals, and synthetic rubbers and plastics are key, makes its contribution to preventing the spread of the coronavirus,” Aide to Director General of TAIF JSC, Vice Director General and Commercial Director of Nizhnekamskneftekhim PJSC Timur Shigabutdinov noted during the ceremony.

This year TAIF Group will celebrate its 30th anniversary. Throughout its operation, despite periodic complications of the political and economic situation in the world, the Group keeps following the adopted Development Strategy with strenuous effort and at full capacity: build new plants and modernise operating ones. Plants and production lines master new types of products that weren’t made before but Russia needs very much, production capacities increase. TAIF Group demonstrates the effectiveness of management, responsiveness and deep consideration of investment decisions that are made and readiness of its staff for greater accomplishments day after day, year after year.

By Arseny Favstritsky
Tatarstan