Russian Fertilizer Enterprises Expand Nitrogen Fertilizer Project

The fertilizer company of the Russian petrochemical giant Sibur recently announced that it will invest twice as much as last year for project construction in 2011. At the same time, it will increase equipment production capacity to further expand its business and enhance its competitiveness. It is estimated that the production of synthetic ammonia will be increased from 1.58 million tons/year last year to 1.6 million tons/year, an increase of 1.3% over the same period of last year; the total nitrogen fertilizer output will be increased from 255 million tons/year last year to 2.7 million tons/year, a year-on-year increase of 5%.
It is understood that Sibur Fertilizer Company produced a total of 1.58 million tons of synthetic ammonia and 2.55 million tons of nitrogen fertilizer in 2010, an increase of 7% and 4% respectively compared with 2009 production. At the same time, the company also produced 97,400 tons of caprolactam in 2010, a year-on-year increase of 6%. According to the related person of Sibur fertilizer company, in the past five years, the company's total output of synthetic ammonia and nitrogen has increased at an annual rate of 14% and 11% respectively.
In order to further increase production and enhance the operational efficiency of equipment, the company has formulated a long-term project investment plan, including the maintenance of key production equipment and optimization of production technology. The relevant person in charge of the company said that the primary task and the main purpose of the investment plan is to reduce production costs and improve production and ecological security. It is understood that Sibur Fertilizer Company is composed of Azot JSC Fertilizer Plant in Kemerovo State, Minudobreniya JSC Fertilizer Company and Angarsk Azotno-Tukovy Zavod LLC Fertilizer Company.
According to a company related person, last year, as a key year for the modernization of the company's equipment, they took out 730 million roubles (equivalent to US$24.9 million) in funds, and included the transformation of ammonia, caprolactam and nitric acid production equipment into planning and put Kemeruo on. The first task is to rebuild the synthetic ammonia production equipment in Vaud. After the transformation, the production equipment saved 6 billion cubic meters of natural gas, and thermal energy consumption also decreased by 15% year-on-year. It is understood that, under the vigorous implementation of the equipment transformation, the consumption of natural gas used by Sibur Fertilizer Company for the production of synthetic ammonia in 2010 has decreased significantly, which is a decrease of 2% compared with previous years.
In the company's expansion plan in 2011, the production of synthetic ammonia in Kemerovo alone will be increased by 16,000 tons/year on the basis of the original, and ammonium nitrate production will be increased by 45,000 tons/year on the original basis. Secondly, Minudobreniya JSC's equipment will be rebuilt to increase urea production. At the same time, equipment updates for Angarsk Azotno-Tukovy Zavod LLC Fertilizer Company are also included in the plan.

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