Tatarstan could originate petrochemical machine building industry

Tatneftechiminvest Holding held a board meeting, chaired by Prime Minister of Tatarstan Rustam Minnikhanov on April 13.

The company’s General Director Rafinat Yarullin reported of Tatarstan’s oil and gas industry’s performance in the 1st quarter of 2009 and of raw-material reserves. The branch’s key manufacturers in the 1st quarter of 2009 decreased production by one third versus the 1st quarter of 2008 due to the ongoing economic crisis, total output being 72 billion rubles.

Many of the companies decreased production for the first time over the past decade. Yet, some recovery was after early February seen on Russia's chemical and petrochemical markets. The same was true for Tatarstan-manufactured oil products. In March, the industry’s key actors continued to grow. Gains in sales were seen on both the internal market and on exports.

So far, indefinitely postponing construction of petrochemical processing facilities has been a trend in Russia, said the reporter. The earlier set task of advanced processing remains unfulfilled. Tatarstan is one of the few regions genuinely implementing the strategic goals and anti-crisis measures through running the Taneko project, said the CEO.

Tatarstan’s Nizhnekamskshina producing the Kama Euro tyres is an example of being competitive through long-term projects: the reduction in the total tyre output was in the 1st quarter the smallest on the type of tyres.

Other examples of success are production of polyethylene by Nizhnekamskneftechim, and of polycarbonate by Kazanorgsintez. Besides, the Rosnano state corporation has approved financing the Tatarstan’s project Danaflex.

The Danaflex project is the very first sign in nanotechnologies developing in Tatarstan, said the Tatar premier. According to him, desperate times call for new technologies, and nanotechnologies could be highly relevant.

The head of the state-run Research Institute for Organoelement Compound Chemistry and Technology Pavel Storozhenko spoke of another long-term project, to be run by the Kazan Synthetic Rubber Plant. The project is an organic-silicone production facility, to manufacture types of silicone necessary to produce advanced equipment in various industry branches.

It is the only type of compounds incorporating organic and inorganic properties, allowing operation in the tropical climate, permafrost, vacuum and under high pressure. Rustam Minnikhanov pledged comprehensive support for the project.

Tatelektromash’s General Director Ildus Islamov reported on the prospects for launching a production facility making oil and petrochemical equipment. He said, the local plants’ production potential, if merged into one cluster, is sufficient to produce a wide range of new products. Tatarstan could through developing its oil refining business substitute the imports of production tools, effectively creating a new branch, petrochemical machine building, stated Mr Islamov.

Mr Minnikhanov proposed the idea was implemented on the Taneko base, which has a vast experience in operating large-scale production facilities. Taneko needs to be not just a plant but a management company, one that would be able to build plants. Based on the Taneko project, a large corporation should be set up that could later on be entrusted with full repair of equipment, said the local head of government.

The meeting also reviewed issues related to holding an annual shareholders meeting, scheduled to take place on 26 May.