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Maire Tecnimont forms JV to build new urea plant in Russia

| By Mary Bailey

PJSC KuibyshevAzot, one of the leading companies of the Russian chemical industry, and Maire Tecnimont S.p.A. (Milan, Italy; www.mairetecnimont.it) jointly announced the incorporation of a joint-venture (JV) to develop, build, finance, maintain and operate a green-field urea plant, to be implemented in Tolyatti, in the Samara region of the Russian Federation. KuibyshevAzot will hold 68% of the JV, and Maire Tecnimont, through its fully owned project-development company, MET Development, the remaining 32%. Total investment cost for the project is preliminarily estimated to be around €160 million. Maire Tecnimont’s equity contribution is preliminarily estimated to be around €11 million, taking into account financial leverage and expected contributions from third parties.

The urea plant will have the capacity of 1,500 metric tons per day (m.t./d) and will utilize Urea 2000Plus Pool Reactor technology by Stamicarbon, Maire Tecnimont’s fully owned subsidiary, while the granulation unit is based on Stamicarbon’s fluid-bed granulation technology. The plant will be realized and integrated within KuibyshevAzot’s key industrial site in Tolyatti, in the Samara region. Both parties have already started the Basic Engineering and Project Documentation works (BE&PD) under the coordination of Tecnimont, Maire Tecnimont’s main EPC contractor, in collaboration with Stamicarbon and Russian Design Institute JSC NIIK.

Aleksandr V. Gerasimenko, General Director of PJSC KuibyshevAzot, commented: “A new urea plant project implemented in Tolyatti together with our Italian partners will allow KuibyshevAzot to attract state-of-the-art technologies to the company’s industrial site, increase output of the product demanded by consumers and strengthen the company’s position in the mineral fertilizer market.”

Pierroberto Folgiero, Chief Executive Officer of Maire Tecnimont Group, commented: “This is a significant step forward in our industrial strategy which confirms the reliable value proposition of an integrated company such as Maire Tecnimont, offering not only technology and EPC best in class expertise, but also project development capabilities. We are very keen to strategically cooperate with a prestigious industry leader such as KuibyshevAzot in one of our core business areas, fertilizers.”