TOAZ TO ALLOCATE OVER RUB 6.7 BILLION FOR CONTINUING TECHNICAL UPGRADE

ToAZ will allocate over 6.7 billion rubles for modernization and major overhaul of production facilities.

The work is planned to be done as part of a strategic upgrade program up to 2020. Since 2012, Togliattiazot has allocated over 26 billion rubles for technical upgrade and modernization of production facilities as part of this program (including over 6 billion rubles in 2016).

Scheduled repair work currently continues at the ammonia production unit No. 5. Modernization of internal equipment of an ammonia synthesis unit to reduce falls in pressure and increase reliability of equipment operation under heavy loads has become an important stage of the project. A set of reformer tubes and refractory materials in the primary reformer was completely replaced. At the final stage of major overhaul, a flare system will undergo major repairs, thermal insulation of machines and industrial pipelines will be carried out, and administration and on-site facilities will be renovated; besides, the main chemical equipment was repaired, and there expert review of process safety was conducted.

Technical upgrade will continue at the ammonia production unit No.3. It is planned to replace K601 and K602 turbines of the unit, as well as to introduce a new industrial process management system.

During the year, the second stage of major overhaul of the urea production unit No. 2 will be carried out. It is planned to replace the reactor and upgrade the control system of the unit. ToAZ completed the first stage of major overhaul in 2016. Implementation of a complete range of measures will make it possible to increase the unit's productivity and reliability of its operation.

As part of the current campaign, it is also planned to carry out major overhaul of the second isothermal liquid ammonia storage reservoir. The major overhaul provides for complete replacement of thermal barrier coating of a facility which is about 50 metres high and occupies an area of 6,000 square metres. There are two reservoirs with the total volume of 60 thousand tons at the plant site.

Victor Kazachkov, Deputy CEO for business operations of CJSC Corporation Togliattiazot: "This year the key measures forming part of scheduled repairs are related to continuing the technical upgrade program at ToAZ production capacities. This work is extremely important for increasing the efficiency of current operations and for creating a platform for implementing new large investment projects: increasing urea production and improving the performance of ammonia production units."

Apart from repairs, as part of investment program, in 2017 Togliattiazot will begin to implement the project on building the third urea production unit with the capacity of 2,200 tons per day; besides, the company will continue to develop project documents for construction of the unit for producing ammonia from purge gases with the capacity of about 1,860 tons per day.

Overall, investments in the development of the enterprise up to 2022 will exceed 80 billion rubles.