03 July 2014

OSTCHEM to invest UAH 15 million in ammonia production at Cherkassy Azot

ostchemModernization of А-5 ammonia production shop PJSC Azot will allow for increase of ammonia production by 300 tons per day. Due to the repair, the enterprise will be able to reduce considerably natural gas, heat and power energy consumption. The expected annual effect of the investment will amount to more than UAH 30 million. Furthermore, introduction of innovations will help significantly reduce environmental impact of the production, as well as decrease production risks.


Azot PJSC, part of OSTCHEM holding consolidating Group DF’s fertilizer business, has commenced the scheduled overhaul project of A-5 ammonia shop. The total investment in the project will amount to UAH 15 million.


“Modernization will result in higher productivity of A-5 shop, lower prime cost of the product and essential reduction in production risks. Today’s production capacity of A-5 shop is 1700 tons/day. It is expected that the works performed in the shop will lead to the increase in ammonia production by 300 tons/day. At the same time, natural gas consumption for production of 1 ton of ammonia will be brought down from 1125 to 1095 m3/ton”, – commented Vitaliy Sklyarov, Chairman of the Board of Cherkassy Azot PJSC.


According to Sklyarov, the realization of overhaul will also allow to cut down steam consumption from 2,8 to 3,2 tons/hour, natural gas – by 500 m3/hour, and power energy – by 210 кWh/hour.


“Our preliminary estimate shows that annual effect of shop modernization will be about UAH 30 million. We execute rigidly our investment plan. Ostchem will keep introducing at its enterprises all cutting edge solutions of the chemical industry. We engage all our financial resources to invest in the development of our enterprises, production and innovations”, stressed Oleksandr Khalin, General Director of OSTCHEM.


Modernization works in A-5 are being performed by the enterprise’s repair units in cooperation with subcontracting organizations, i.e., expert enterprise DIEX LLC (Dnipropetrovsk), state-run enterprise “Cherkassy Expert and Technical Centre”, and private enterprise “К-2 service” (Cherkassy). This year the repair of A-5 is accompanied by diagnostic testing and repair of liquid ammonia storage with the capacity of 10 thousand tons.


According to the investment plan, in 2014 OSTCHEM holding will invest in Azot PJSC UAH 184 million, of which UAH 138.5 million will be devoted to capital repairs, UAH 34 million – to production upgrading, and UAH 8 million– to realization of investment programs. In April 2014 Dmytro Firtash, the owner of the Cherkassy Azot, confirmed that the plans for production in 2014 remain unchanged.


Within the framework of 2014 summer repair campaign Cherkassy Azot has already conducted A-3 ammonia shop modernization (with investments amounting to UAH 19 million). The project was developed and supervised by US company “Koch-Glitsch”.


At the moment at Cherkassy Azot operates ammonia shop А-3, carbamide shop М-2, ammonia nitrate shop М-9, and UAN shop.