KuibyshevAzot PJSC summarized operating results for 2020

09.02.2021

The impact of the coronavirus pandemic, the global economic crisis and, as a result, a drop in demand for the Company's products determined the results of the work of KuibyshevAzot PJSC in 2020. The unfavorable conjuncture of prices on world markets affected the financial performance of the enterprise. Revenue decreased by 13% to RUB 46.9 billion, net profit by 17% and amounted to RUB 3.3 billion. However, even in such a difficult period, a record output was achieved for products such as ammonium nitrate and UAN.

The production volume of the main types of products amounted to:

- ammonia – 1,048.0 K tons, including 454.5 K tons from LLC Linde Azot Togliatti, that is 96.6 % to the level of 2019;

- ammonium nitrate – 721.0 K tons (107.2 %);

- urea – 329.9 K tons (89.9 %);

- ammonium sulphate – 456.6 K tons (87.6 %);

- caprolactam – 189.7 K tons (89.2 %);

- polyamide -6 – 142.0 K tons (96.2 %);

- industrial yarn – 4.4 K tons (88.6 %);

- UAN – 239.0 K tons (142.2 %)

- dipped cord fabric – 14.7 million linear meters (76.8 %).

Despite the difficult financial conditions, in 2020 the Company managed to carry out a large amount of work on the construction of new and technical re-equipment of existing production facilities. The main efforts were focused on the implementation of investment projects of the most importance for the enterprise development, allowing counting on an increase in production efficiency and cost reduction.

Thus, in 2020, the construction of the second nitric acid line was completed, the first products were received at the production of ammonium sulfate nitrate and its commissioning is underway.

The production of sulfuric acid of K grade and improved oleum with a total capacity of 500 K tons per year has also begun in the commissioning mode. The project is aimed at reduction of the cost of caprolactam production and its supply of raw materials. Investments amounted to 8.6 billion rubles.

In partnership with the Italian concern Maire Tecnimont Group, the construction of a new granulated urea plant continues. The project provides for the use of advanced technologies that ensure environmentally friendly and safe production.

A tank farm for storing liquid nitrogen fertilizers has been built and has already been used in the process chain of the enterprise.

In 2020, works were carried out for shutdown maintenance and modernization of the complex of mineral fertilizers and caprolactam production. A large-scale scope of work was implemented at the ammonia production, including the technical re-equipment of the reforming furnace, the replacement of air coolers at the synthesis unit, as well as the repair of compressors.

At the caprolactam plant production, technical solutions were introduced to reconstruct equipment and stabilize technological processes, which made it possible to reduce consumption rates for the main raw materials and reduce the yield of non-target products.

All measures are aimed at improving the efficiency of equipment, reducing resource consumption and environmental impact.

In September, the production of polymer-composite materials (compounds) based on polyamide-6 was started at STFG enterprise in Rudolstadt (Germany), which is a part of the KuibyshevAzot Group of Companies. Investments amounted to over 3 million Euro. Production capacity - 12 K tons per year.

In total, 4.9 billion rubles were allocated for production development in 2020, and 1.8 billion rubles for the repair and renewal of equipment. Thus, 6.7 billion rubles were allocated for the development of the enterprise.

As a result of the constant upgrading of equipment, the introduction of advanced technologies, the Company managed to achieve a significant decrease in the specific consumption of raw materials and resources per ton of products (benzene by 3%, heat energy by 7.8%, electricity by 4.5%, river water by 7.2%).

In 2020, the Company received a confirmation of the compliance of its integrated management system with the requirements of international standards in the field of quality, environmental and industrial safety, labor protection.

Particular attention is paid to environmental projects and environmental protection measures. The construction of the first stage of the storm water treatment facilities of the Northern industrial hub and part of the Central district of the city of Togliatti was completed. The project is included in the federal program Rehabilitation of the Volga river as part of the national project Ecology. The construction of the second stage - biological treatment is in progress. At the production of ammonium nitrate, a project aimed at reducing emissions is being implemented - the construction of a new granulation and evaporation plant. A large amount of work has been done to modernize and reduce the environmental impact at the ammonia and urea production.

In 2020, KuibyshevAzot PJSC was recognized as the winner of the All-Russian competition called Leaders of Russian business: dynamics, responsibility, sustainability - 2019, organized by the Russian Union of Industrialists and Entrepreneurs, in the category of Best International Project. A project of a modern ammonia production facility implemented jointly with Linde AG (Germany) was presented for the competition.

The Company actively participates in the development of the territory of its presence. In Togliatti city and the Samara region, The enterprise implements social and charitable projects aimed at residents of the city and the region. KuibyshevAzot PJSC participates actively in the restoration of forests, the elimination of unauthorized landfills, the improvement of urban areas and other environmental programs.

In the context of the COVID-19 pandemic, Praxair Azot Togliatti, the joint venture of KuibyshevAzot PJSC and the Linde Group company, was able to provide the necessary volumes of oxygen to medical institutions in the Samara region and other regions.

In 2020, special attention was paid to the supporting of the labor collective, the social protection of personnel was improved, none of social programs at the enterprise was curtailed.

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