AMBITIOUS PLANS OF TOGLIATTIAZOT

The company intends to enter the TOP-5 world’s largest manufacturers of mineral fertilizers.

The Board of Directors of TogliattiAzot Public Joint-Stock Company (TOAZ PJSC), the Russia’s largest ammonia manufacturer, approved the new strategy of development until 2025. Its plan is remarkable for several reasons. Firstly, it sets forth the official mission of TogliattiAzot as follows: “We care of productivity and crop yield for the benefit of the entire world.” The strategy itself sets forth that the company will strike to become the Russia’s leading manufacturer of nitrogenous mineral fertilisers and to enter the TOP-5 world’s largest manufacturers.

Let us remind you that nowadays Togliattiazot is the leading ammonia producer in Russia and one of the three companies in the world whose capacity allows producing more than 3 million tons of this product per year. TOAZ PJSC is also one of the key urea producers in our country, producing urea formaldehyde concentrate and other chemical products that are in demand on five continents across the globe. Hence, the new company’s mission is fully in line with the modern realties and corporate opportunities. The strategy provides for the increase in the production output (incl. ammonia by 40% up to 4.15 mln. tons per year, urea by more than 2.5 times up to 2.53 mln. tons per year) and EBITDA (profit before interest and tax payable, service wear and accumulated depreciation) by 3.3 times to reach the goal.

The company classified strategical initiatives to reach the intended parameters into three modules: operational efficiency improvement, commercial efficiency improvement, and production site development.

To improve the operational efficiency, TogliattiAzot intends to bring repair operations in compliance with the best practices in terms of the frequency and duration of turnaround maintenance, labour efficiency improvement, and gas flow reduction.

To improve the commercial efficiency, TOAZ PJSC will change its structure of sales to global and domestic markets and improve the commercial terms and conditions for its core products to be sold to its key account customers.

The production site development is the most interesting module. It sets forth the below goals: build urea production unit No. 4, ammonium nitrate and urea-ammonium nitrate plants for new products manufacturing, completion of construction of the fertilizer transshipment terminal in Taman to broaden the guaranteed product distribution geography and to enhance efficiency of the sales to the global markets.

A deep-water seaport for transshipment of ammonia and bulk fertilizers on the Taman Peninsula is a unique infrastructure facility, the above-water flyover of which reaches as far as 2.5 km to the Black Sea. Experts underline that access to the Black Sea basin is crucial for development of both TogliattiAzot and the Russian economy as whole. Therefore, Taman sea port was included into the Russian governmental sea port development plan. It is worth mentioning that the company is building a port without any governmental support, and the total investments may account for over USD 300 mln.

The company also intends to build new production units in our city. According to the press service, new production units will be established at the existing plant site. They will create extra jobs and generate tax income.

TOAZ does not doubt the accuracy of its strategy. Petr Ordzhonikidze, Chairman of the company’s board of directors, commented it as follows: “We believe that we can really achieve the established indicators in a mid-term perspective since we have done a lot as part of the strategical modernization over the past seven years - we invested over RUR 33 bln. into modernization of TOAZ production facilities. The next step included into our new strategy requires production development, product portfolio broadening, and greater market presence to establish perception of Togliatti as an efficient agricultural company.”

Overall investments into developing the production facilities and increasing the production output amount to RUR 112 bln.

“In 2019, TogliattiAzot celebrated its fortieth anniversary and broke the record by achieving a production output of 3 mln. tons of ammonia,” Artem Anisimov, Head of Administration of the Komsomolsky District of Togliatti, said, “this confirms the ongoing development of TOAZ PJSC. This means it will create extra jobs and, probable, contribute into the salary increase. It is worth underlining that TOAZ is the principal employer of the city and one of five largest taxpayers of the Samara Region. The company is the most important social partner for the Komsomolsky District that contributes into the district development. Everyone is aware of the social projects implemented in 2019. For instance, the corporation provided support to several projects to improve the district part and several communal areas as part of the Support plan. It intends to rebuild the stairs to the Komsomolsky District embankment in 2020. I am sure that the new strategy will be of utmost importance for development of both the company and the entire city.”

“I feel positive about the new mission of TOAZ PJSC. The most important thing about it is that facilities need to be ramped up through technology advancement. This is exactly what they are doing now,” Andrey Kryuchkov, chief forester and environmental engineer Togliatti, said, “since 4the company’s sanitary zone is outside of Togliatti I do not believe that there may be any extra risk for the environment. As far as I know, the company duly observes the production process and even introduces the best available technologies. Nowadays, it is launching the third urea unit for production of nitrogenous fertilizers enhancing productivity and crop yield. This is important and necessary. Apart from production facilities, the company invests into treatment plants and forest recovery. TogliattiAzot is a company with a social focus.”

It is worth underlining that TOAZ PJSC is one of the main taxpayers and employers of the Samara Region providing over 5 thous. jobs. Though taxes paid by the company constitute a material portion of the regional budget, the company does not limit thereto its part in the life of the city and region.

“We consider ourselves to be the principal employer of the city and give priority to our social responsibility,” company’s management underlined, “currently, TOAZ is the only company in the city that is still maintaining its social facilities - kindergarten, house of culture, and sporting complex. Our employees and other city residents feel free to use them. Our Nadezhda recreational centre is well known in other regions. We do not doubt that the part of TogliattiAzot in the life of the city and region will increase along with the implementation of the new corporate strategy.”

https://ponedelnik.press/ambitcioznye-plany-toliattiazota/

20.01.20212021

30.12.20202020

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