TAIF-NK: in China, we are looking for something that is not yet produced in Russia, and China is interested in our products

24 states and 57 regions of Russia

The first Russian-Chinese forum has already attracted serious attention. More than 5,5 thousand representatives of 24 countries and 57 regions of Russia have applied to participate in it. One of the most significant exhibition venues of the event is Russia China Expo, which started simultaneously with the official opening of the forum ROSTCHI: Russia and China — Mutually Beneficial Cooperation.

ROSTCHI is not just the name of the forum, but also the deep symbolism of Russian-Chinese relations and the role of Tatarstan in these processes. This was recalled from the stage during the opening ceremony by one of the honoured guests of the event — Yu Hongchi, Economic and Commercial Counselor of the Chinese Embassy in Russia:

“A Russian colleague told me: the name of the forum ROSTCHI means the following: “Ros” is Russia, “Chi” is China, and between them the letter “T” — Tatarstan.

Yu Hongchi also added:

“We hope that the forum will become a kind of bridge for creating a new platform for trade and economic cooperation between our countries, will fully meet the needs and lead to great results of cooperation.

Cooperation, the scope of which is already impressive today: in the first half of 2023 alone, trade and economic turnover between Russia and China exceeded $134 billion, with an increase of 36,5% over the same period in 2022. China's cooperation with Tatarstan also develops steadily. By the end of 2022, the trade turnover in monetary terms amounted to about $1,6 billion.

The same was said from the stage by the rais of Tatarstan, Rustam Minnikhanov:

“Today, thanks to the efforts of the heads of the two states — the Russian Federation and the People's Republic of China, there is an opportunity to work as actively as possible at the interregional level. An important task to be solved in the near future is to increase the sustainability of the production sector in the new conditions. China is a reliable partner in achieving this goal. We tried to make the forum interesting and useful for every guest. More than 40 sessions have been prepared in 11 thematic areas. We expect concrete agreements and the signing of mutually beneficial agreements between Russian and Chinese companies within the framework of the forum. And of course, we have a great desire to hold this event on this site annually. And we propose a new date for next year — November 14-15, 2024. We look forward to our Chinese partners at the second Russian-Chinese forum," he stressed.

Three times in China since the beginning of the year

The Russia China Expo exhibition occupied almost the entire second pavilion of the Kazan Expo. One of the central objects of the exposition traditionally was the joint stand of TAIF-NK JSC and another company, also part of TAIF Group, TAIF-SM PLC, the only manufacturer in Russia of a wide range of polyolefin oils under the Taif Lubricants brand.

Even before the start of the forum, specialists representing both companies did not have to be bored: representatives of both Russian and Chinese businesses were actively interested in both production capacities and the product line. It is no coincidence that the stand became one of the first places where official guests went immediately after the ceremony.

Artem Shcherbina, the deputy director general — director of commerce of TAIF-NK JSC, representing the company, briefly spoke about the production capacity of all three plants included in the complex, a wide range of products, numbering about 40 names, brands, and types. But the main focus of his report was on interaction with China. And in particular, the issues of replacement of European equipment and spare parts that have become unavailable due to sanctions.

“We have been actively implementing import substitution for the last year and a half. Our HRCC largely consists of imported equipment. In particular, due to the complexity of the technological process and high requirements for the level of industrial safety for components and parts operating at very high temperatures and pressures. We started looking for a replacement for the European component. Certainly, preference was given to domestic manufacturers. We replaced about 900 elements and parts with the help of Russian companies, but not all of them could be found and picked up in Russia. We looked: even European manufacturers do not do everything in Europe — almost all of them have factories in China. Therefore, our eyes fell on China, and since February of this year we have had three large trips of specialists of TAIF JSC and TAIF-NK JSC to the Celestial Empire. We toured the production facilities in probably 10 cities. Visited the production of valves, valve pressure equipment… And currently we have several contracts for the supply of vacuum and pumping equipment at the stage of conclusion," said Artem Shcherbina.

But this is not all. Another issue was also helped in China: with special additives necessary for the Heavy Residue Conversion Complex. We are talking about a special carbon additive, which is an important component of the production process of the unique production. Some of this additive is supplied by domestic manufacturers, and some now comes from China.

“We have purchased 200 tonnes of activated lignite for use at the HRCC. It showed its effectiveness during the pilot run, and now we plan to contract another thousand tonnes," said Deputy Director General — Director of Commerce of TAIF-NK JSC.

Bridges have been established in both directions

Mutually beneficial cooperation means only that it is beneficial for both sides of the dialogue. In the case of TAIF-NK JSC's business relations with Chinese industry, this is indeed the case. The products of Tatarstan oil refiners are in increasing demand in China. Artem Shcherbina told about this a little later — at the site of the off-site studio of Realnoe Vremya, deployed on the territory of the exhibition Russia China Expo with the support of TAIF-NK JSC.

“Historically, we have been supplying granular sulphur to China for almost 10 years. China is growing, the population is increasing, fertilisers for agriculture are required. After the HRCC — pitch coke was launched," the representative of the oil refining company told about the long-standing cooperation with the People's Republic of China.

The Chinese side's interest in TAIF-NK is not limited to these two products alone. The table for negotiations at the company's stand was practically not empty during the entire first day of the forum, and it is unlikely that it will have to be empty on the final day of the exhibition.

“Here, at the site, diesel fuel and nafta are interesting in the first place. The volumes they are ready to take very large. And we are ready to make an advance payment… But for now, the issue rests on logistics. The cost of tanker freight is quite high. It takes 7 days to get to Europe, and 35 days to get to China. Now, when there is no European market, Russian manufacturers, including us, have shifted to Latin America, Africa, Turkey, and now, it is likely, new opportunities will open up for supplies to China. Logistics is changing, there are opportunities to enter from the other side. It is clear that it will not be tomorrow, and not this year, but China's interest is huge. We are currently studying the Chinese market, they are studying us," Artem Shcherbina explained to the journalist of Realnoe Vremya.

There is another busy day of the forum ahead for personal communication, discussion of mutual business interests and exchange of contacts. It will be possible to continue the dialogue later, both remotely and within the framework of mutual visits. In November 2024, when all the participants in the processes will gather again on the Tatarstan land for the second International Forum, it will be possible to discuss together what kind of harvest of mutual benefit for the Russian and Chinese sides ROSTCHI 2023 have given.