TOGLIATTIAZOT BOARD APPROVED INVESTMENT PROGRAM UNTIL 2029
Board of Directors of Public Joint-Stock Company “Togliattiazot” (PJSC TOAZ) approved the updated Investment Program for 2019-2029, which amounts to 39 billion rubles (over USD 590 million). The Program includes strategic investment projects, which are currently in progress. For the period of 2012-2018 TOAZ invested over 33 billion rubles (over USD 500 million) into the program of upgrade and development.
Among the project included in the Program are:
Construction of Urea Production Unit No.3 with a capacity of 2,200 tons per day.
In 2015 Togliattiazot started FEED development for the new large-scale project “Construction of Urea Production Unit No.3”. In 2018 construction and installation works were started. To the present moment a series of preparatory works has been completed: the pit was excavated and the foundation is being constructed for under the cooling tower, the site was cleared, the pit excavated and works has started for pile foundation construction for under Substation No.3, works for installation of the in-house concrete distributing station (CDS) are completed, its commissioning is currently in progress. The startup of the new construction facility is planned for the second half of 2021. The total invested amount in the project exceeds 25 million rubles (over USD 378 million), the production capacity is 2,200 tons per day. The project is implemented with involvement of the Swiss Export Risk Insurance (SERV) agency.
Upgrade of biological treatment facilities.
Biological treatment facilities of PJSC TOAZ provide services not to the plant only but also receive runoffs from enterprises of the northern industrial hub of Togliatti and from residential users of Komsomolsky district of the city. Togliattiazot carries out their regular upgrade, understanding the importance of increased treatment quality of waters returned to the Saratovsky water storage basin and considering the possibility for partial return of treated runoffs to the production cycle. The project for BTF upgrade worth over 5 billion rubles (more than USD 75 million) is considered as one of priority projects by the Company’s management.
By now PJSC TOAZ started development of feasibility studies for the construction of a plant-owned water conduit. Provided the feasibility study results are positive, the water conduit can become an important strategic facility not only for the Company itself, but also for the entire northern industrial hub of Togliatti. The new water conduit is considered to be one of the options for unloading the existing water intake and drainage capacities of SIBUR Togliatti LLC, which will ensure stable operation of enterprises in the northern industrial hub with the possibility for further increase of production capacities.
In addition, over 1.5 billion rubles (USD 22.6 million) are planned for implementation of infrastructure projects. Thus, in 2019 it is planned to sign a contract for development of design and estimate documentation for technical re-equipment of water treatment facilities with the use of a reverse osmosis water treatment system and the possibility to use wastewater of AVK LLC (“Avtograd Vodokanal” – the enterprise that provides water supply to Avtogradsky district of Togliatti), which will reduce negative impact on the ecology of the Volga River. Moreover, wastewaters from AVK LLC will act as a backup source of water supply, which guarantees stable operation of the enterprise in case of emergency situations.
Ensuring stable supplies.
To ensure the stability of shipments within the framework of the rail car fleet upgrade PJSC TOAZ will purchase 200 hopper cars – mineral wagons – from Barnaul Wagon Repair Plant JSC. According to the signed contract, rail cars of 19-9950-01 model will be delivered by the end of the second half of 2019. In addition, the possibility for leasing another 200 hopper cars is being considered. The new rolling stock will be primarily used for transportation of additional production volume of the enterprise upon completion of construction of Urea Production Unit No.3, as well as for replacement of overage transport fleet. Investments for this direction will amount to over 2 billion rubles (over USD 30 million).
According to the approved investment program, TOAZ plans to invest more than 8 billion rubles (more than USD 120 million) to continue the program of upgrade and renewal of existing ammonia and urea production units. In 2012-2018, under the strategic program of upgrade approved by the Board of Directors of PJSC Togliattiazot in 2011, over 33 billion rubles (over USD 500 million) were invested in the renovation of existing production facilities.
Currently, the management of PJSC TOAZ together with consultants is developing a long-term strategic development program of the Company, based on the results of which the vector of the company's development for the following 5 years will be defined, and, as a consequence, the volume and timing of further implementation of a number of large-scale projects will be defined as well.
“Togliattiazot remains committed to upgrading existing production capacities in order to further increase efficiency, competitiveness at the global level and environmental safety in the region. At the same time, we continue to develop new investment projects that will allow TOAZ to reach a new level of development and expand its presence in the domestic and global markets,” said Petr Ordzhonikidze, Chairman of the Board of Directors of PJSC TOAZ.
“In 2020-2021 the peak of TOAZ investment cycle will be reached. As a result, this year the Company’s management took special care in approaching the process of updating the investment program and long-term financial model, which will allow us to plan the Company’s financial resources for implementation of large-scale projects in the near term. Togliattiazot looks to the future with optimism and plans to actively develop production capacities and infrastructure of the production site. We have a strong belief that these steps will allow the Company to maintain stability for many years,” said Nikolay Neplyuev, Chairman of the Investment Committee of the Board of Directors of PJSC TOAZ, Deputy General Director and Director for Economics and Finance of Togliattiazot Corporation CJSC.
Togliattiazot, a leading producer of ammonia and urea in Russia and one of the major employers in Togliatti, has started a vaccination campaign against a new coronavirus infection (COVID-19) for its employees on a voluntary basis.
Togliattiazot , a leading producer of ammonia and urea in Russia and a backbone enterprise in Togliatti, will adjust the salaries of its employees by 5 percent in accordance with Article 134 of the Labour Code of the Russian Federation and as part of its obligations under the collective agreement dated 1 February 2021.
PJSC TOAZ updated records in the output and shipment of the core products.