Acron has obtained an approval and a building permit for a new Ammonia-4 unit with capacity of 700,000 tonnes per annum from Glavgosexpertiza (Directorate-General for State Environmental Review). With this step, one of the milestones in implementation of this investment project has been finalised; the design documentation, project schedule and construction terms for the new ammonia unit have been approved. The Group plans to invest a total of USD 420 million in the new unit.
At present, the Group’s specialists are focused on several tasks, including selecting an equipment supplier and executing contracts, developing engineering documentation for all facilities, preparing the site for construction and assembling operations. Acron is working with Russian and international equipment manufacturers, such as Dresser-Rend, Heurtey Petrochem, Hitachi, Cristof Group, GEA, Sulzer, Shin Nippon Machinery, Uralkhimmash, Tambov plant Komsomolets, Tuymazykhimmash. Start of production is scheduled for 2015.
Acron’s acting CEO Alexandr Popov comments:
“Ammonia-4 is the biggest investment project at our production site in several decades. I believe that our professional team with expertise in management, upgrade and construction and our production potential are the key factors for successful implementation of this project. We expect to build the new ammonia unit in a fairly short period of time with relatively small capital expenditures for such a large-scale project when compared to similar Russian and international projects.
“Construction of Acron’s new ammonia unit will significantly improve prospects for the Group’s development. First of all, the forecast 65% increase in ammonia capacity will allow us to increase fertiliser output using our existing production capacity and also creates the conditions for us to expand capacity and enlarge our product portfolio. The new ammonia unit will also deliver additional profit from the sale of commercial ammonia, the cost effective product of choice. Our AS BCT port terminal has the capacity to handle the required volume of ammonia transshipment for export sales.
“The key advantage of the new unit is lower natural gas consumption. Acron’s two existing ammonia units are the most cost effective in Russia in terms of average gas consumption rate (1,070 cubic metres per tonne). The average gas consumption rate at Ammonia-4 will be 927 cubic meters per tonne, which will reduce the Group’s natural gas costs and, as a result, overall production costs. It is clear that building a new, cost-effective ammonia unit is a key factor to maintain Acron Group’s competitive edge and improve the profitability of its business.”