Rustam Minnikhanov: ‘It is hard to overestimate TAIF’s role for Tatarstan and Russia’s development’
The share of TAIF Group in all oil refining, chemistry, petrochemistry, energy is 44%, it also holds 33% of the total financial result of the republic’s enterprises in 2021
TAIF Group recently summed up its financial and economic performance in 2021, a brief result of its history — from 1995 to 2021 and talked about interim results of its operation in the first half of 2022. Realnoe Vremya already wrote about it. In August, Tatarstan President Rustam Minnikhanov gathered the management of TAIF Group via teleconference to discuss the implementation of the programme of Group’s Strategic Development through and the tasks for the near future. Read more in Realnoe Vremya’s report.
“TAIF Group’s investment programme has a strategic meaning”
Throughout the activity of TAIF Group, the total contribution of its companies in the country’s development is not only investments in the company itself but also in environmental protection, process and occupational safety, tax payments, social expenditures most of which are not repayable exceeded $60 billion. Director General of TAIF JSC Albert Shigabutdinov told the Tatarstan president about it.
“The results achieved both in production and financial and economic indicators is a consequence of intensive uninterrupted development, modern and effective actions in borrowing money and the stock market, billions of investments in projects aimed to expand production capacities with the latest technologies introduced in Group’s companies,” noted Albert Shigabutdinov.
“The investment programme of TAIF Group is projects that have a strategic meaning not only for the Republic of Tatarstan, but also these are nationwide projects,” Rustam Minnikhanov agreed with him and added: “It is hard to overestimate TAIF’s role for the development of our republic, the Russian Federation.”
Development Strategy implementation: according to plan
Tens of large-scale programmes in all areas of the activity of Group’s companies have been implemented throughout its operation: current plants have been modernised, new plants have been built, they often don’t have analogues in Russia and in the world.
TAIF has not only always kept to its schedule but whenever possible accelerated the schedule of investment programmes. Last year, the amount of money invested in key funds of TAIF Group amounted to nearly 82 billion rubles (to compare, in 2019, the sum was 53,3 billion rubles, 78,4 billion in 2020). 91% of this money was spent on gas and oil refining, petrochemistry, chemistry and energy.
“TAIF Group’s investments totalled 81,7 billion rubles. It is about 19% of all major investments across our republic,” the Tatarstan president specified the numbers.
A series of big projects of TAIF Group successfully ended last year. Some of them are underway today. Rustam Minnikhanov noted that he carefully following the successes of Group’s companies:
“First of all, I would like to pay attention to the new olefin facility project EP-600 in Nizhnekamsk, the DSSR rubber project with a capacity of 60,000 tonnes a year ended last year, the expansion of polycarbonate production at Kazanorgsintez and of course the construction of new energy capacities in Nizhnekamsk and Kazan. The big step in launching the Heavy Residues High Conversion Facility at TAIF-NK last year is also noteworthy.”
The test launch of the Heavy Residues High Conversion Facility at TAIF-NK JSC is indeed became an important event not only for TAIF Group, Tatarstan and Russia. The official start of the planet’s first and unique big VCC-based facility (Veba Combi Cracking) is a milestone for the oil refining sector in the whole world, it is a living evidence of the possibility of economically profitable refining of tar with the biggest production of high-quality light oil products.
“The amount of results achieved at TAIF-NK in the conversion rate of light oil products and the Nelson Index in 2021 demonstrated the technological complexity and uniqueness of the project implemented by the company with its own innovations and solutions based on production and research competences,” the director general of TAIF JSC stressed.
In 2021, the production of high-quality oil products at TAIF-NK JSC reached 80,7%, while the Nelson Index was 11,2. This is the best result among all Russian oil refineries.
“Moreover, the Nelson Index is calculated not considering the production of polymer lubricant materials and oils, while the Heavy Residues High Conversion Facility in 2021 operated just in test mode,” Albert Shigabutdinov emphasised in his speech.
“You have named the numbers achieved. In fact, the Heavy Residues High Conversion Facility is the latest complex. And our key task is to start its industrial use, full workload and reaching installed efficacy numbers: the crude oil conversion rate to 98,6%,” noted Rustam Minnikhanov.
Rustam Minnikhanov: ‘We are always open to your proposals’
In 2022, with the new team (Editor’s note: in June 2022, TAIF MC JSC — the main company of TAIF Group — returned its historical name TAIF JSC), TAIF Group continues active development and hard work on increasing the economic efficacy. And this is done considering that they have to work amid a growing sanctions pressure on Russia.
“The economy is being recalibrated. Producers have to create new logistic chains to supply products and components, consider possibilities of import substitution, have to work with changing ruble rate, prices for energy resources and other external factors,” the Tatarstan president also agreed that there were problems. He also agreed that when looking for optimal solutions to these problems, businesses and authorities will have to work together.
The key task the management of Group sets to itself is to provide the regular load of plants and stability of production processes allowing making high-quality liquid products. Keeping the course for higher economy and efficacy of production processes, masking new product types and outlets is an important task too.
“We are ready to provide all the necessary assistance to solve the problems related to the implementation of projects for the production of new types of goods,” Rustam Minnikhanov highlighted.
Addressing the director general of TAIF JSC, the Tatarstan president focused on the tasks that have a special meaning:
“I know that today you carefully keep track of the efficacy within the united company, the implementation of our investment projects. The situation regarding Gemont made us very sad. Nevertheless, we both put as much effort as possible to save the EP-600 project. Mr Shigabutdinov, I address you, your colleagues, this project is a dream of our republic, a dream of our first president Mr Mintimer Shaimiyev, my dream, your dream. A lot has already been done, and we need to complete this project together of course. There are many other areas you actively work in too. For us it is very strategically important projects. We are always open to you in work mode — for all your proposals. We will keep working on close contact for the good of both TAIF and the republic.”