Antipinsky Oil Refinery to Meet Euro-5 Standards

14.12.2015

Over USD 2.7 billion has been invested in the Antipinsky Oil Refinery since its foundation 11 years ago.  The investment in the project’sWorkflow Phase III, which the hydrotreating complex is part of, totaled RUB 72 billion 
The Antipinsky Oil Refinery (founded in 2004, the only commercial-scale oil refinery in the Ural Federal District, connected to Transneft JSC’s trunk pipelines) has commissioned its diesel fuel hydrotreating complex: new gas purification, hydrogen and granulated elemental sulfur production facilities have been built. “This is not primary refining any more, we have moved to secondary oil refining using chemical processes. The refinery capacity increased from 8 to 9 million tons. It puts the Antipinsky Oil Refinery on a par with the majority of the country’s large oil refineries,” said Dmitry Mazurov, Chairman of the refinery’s Board of Directors. In 2016, the refinery will commission new capacities: the production will get rid of its semi-finished product – fuel oil – and the refining depth will increase from 54% to 97%. The transition to the production of Euro-5 compliant gasolines will take place at the fourth stage of Workflow Phase III. It implementation is scheduled for the end of 2016: the refinery will annually produce 489 thous. tons of AI-95 and 3.5 M tons of Euro-5 diesel fuel. 
Rusagro Acquires Uralbroiler 
Rusagro Group has become a minority shareholder of one of the region’s major meat producers UralBroiler CJSC (Chelyabinsk Region; 110 thous. tons of chicken and 18 thous. tons of pork per annum; member of Zdorovaya Ferma Group controlled by Oleg Kolesnikov, Deputy of the State Duma). “The agricultural holding is planning to become the main owner of CJSC’s assets within two months,” reported Rusagro. The transaction parameters have not been disclosed. The reason behind the sale is the need for investment. According to SPARC, in 2014, Uralbroiler’s revenue amounted to RUB 5.5 bn (plus 25% year on year), net debt at year end 2014 was RUB 3.9 bn. With the Chelyabinsk asset, Rusagro will enter a new segment in its business – poultry. The new owner is not going to change Zdorovaya Ferma brand. At present, the Group’s meat business comprises two enterprises — Belgorodsky Bacon and Tambovsky Bacon. The holding is also developing sugar, agricultural and fat-and-oil businesses (it owns a fat processing integrated plant in Yekaterinburg). 
Magnit Expands Logistics 
Magnit, Russia’s largest food retailer (11.3 thous. stores, revenue for 10 month of the current year - RUB 767 bn), launched a distribution center of over 48 thous. sq. m floor area in Tyumen. Investments in the project totalled RUB 1.5 bn. Daily turnover — RUB 75 million. Delivery radius — 200 km. 1.5 thousand new jobs created. The logistics center (of which the chain has 32) will serve the chain’s brand stores located in the Tyumen and Kurgan Regions, Khanty-Mansi and Yamalo-Nenets Autonomous Districts.  

Three more logistics complexes will be commissioned in the region soon: Х5 Retial Group is building a distribution center in the Tyumen Region (project cost — RUB 1.2 bn); SPS-Invest (Red&White brand) in Yalutorovsk (RUB 800 million) and the third project is being implemented by Partner-Market (RUB 1 bn).

Niche Found

A new production facility to be set up in a former open-hearth shop 
A new EUR 60 million production shop will be built at Zlatoust Electrometallurgical Plant (ZEMP, Chelyabinsk Region). The news was told to the Chalyabinsk Region Governor during his visit to the plant by its Executive Director Valery Yavetsky. According to him, the casting and rolling complex modernization project design will be developed by the Magnitogorsk State Institute for Metallurgical Plants Design, and reconstruction of Rolling Shop 3 will be commenced soon. “The plant operates in a consistent manner, in 2015, we shipped more than RUB 4 billion worth of products,” said Valery Yavetsky. Regional Governor Boris Dubrovsky expressed his hope that the new complexes would be commissioned at the plant within two to four years. He also emphasized the ZEMP’s profit should amount to over RUB 150 million in the current year, while it had a loss of RUB 300 million a year earlier: “The plant has found a niche at the special steel market”. To remind our readers, ZEMP (owned by Krasny Oktyabr Plant located in Volgograd) was established in 2013 using the facilities of the bankrupt Zlatoust  Metallurgical Plant which used to be owned by Estar Group. Since May 2015, the enterprise has been under observation instituted as part of the bankruptcy claim filed by the Zlatoust Metallurgical Plant against its successor. In October this year, the enterprise executives managed to come to an agreement with six creditors whereby it was given 5 years to repay the debts (RUB 1.7 bn). 
Chelyabinsk Tractor Plant Comes to Peru 
The Chekyabinsk Tractor Plant (ChTP, a member of Uralvagonzavod R&D and Production Corporation) has signed a dealership agreement with Vostok-SurExport-Import (Peru). The new partner will promote the plant’s highway engineering equipment in Latin America (it is already negotiating the first shipment of 3-5 units with state authorities), provide equipment warranty support and maintenance services. Bulldozers are proposed to be delivered to South America in sea containers. The tractor plant has also made an agreement with Senati (a private vocational and technical training chain), whereby the equipment produced by the Russian company will be used in the training process. Space and equipment for assembling the first bulldozers to be supplied have been provided by a Peruvian college. Its students, would-be mechanics, will assemble the bulldozers under the guidance of a Russian engineer. The Chelyabinsk Tractor Plant leaves open the possibility of organizing fully-fledged equipment assembly in Peru with its subsequent localization. 
A Second Metro to Be Built in Perm

The Ministry of Economic Development of the Perm Territory and Metro Cash & Carry (the wholesale arm of METRO GROUP,one of the world’s largest retail operators having 85 shopping centers in Russia and present in Perm since 2006) have signed a cooperation agreement. The Parties have agreed to double the share of goods produced by Kama Region manufacturers at METRO and to build a second shopping center. The total investment is estimated at RUB 1 bn. Works should be completed by the end of 2017. “As a result, we will get 200 new jobs and double the amount of tax paid bringing it up to RUB 100 million,” Leonid Morozov, head of the Ministry of Economic Development commented the meeting results. To remind our readers, at the end of November, METRO entered the market of the Khanty-Mansi Autonomous District: it opened its wholesale center of 9.2 thous. sq. meters in Surgut. The total investment amounted to about EUR 20 million.

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