Top managers of TAIF holding met with the representatives of a globally known concern Siemens in Kazan in order to discuss their common interests in upcoming ambitious projects: the construction of a new energy source and an olefin production complex in Nizhnekamskneftekhim PJSC. A reporter of Realnoye Vremya attended the meeting.
Joint work on power energy
The representatives of Siemens had a very intense programme of the visit to Kazan. At the meeting held in the headquarters of TAIF, a partner company, Willi Meixner, CEO, Power and Gas Division, Siemens AG, immediately outlined new opportunities for further cooperation.
'Thank you for having us in your office. We are satisfied with the cooperation with your Group, especially with Nizhnekamskneftekhim, in the field of compressor equipment supply' Willi Meixner said. 'It is known that compressors operate on power energy. And this is the area, where we have an opportunity to expand our common work. Our company builds power generation units and supplies equipment such as compressors, steam turbines, and generators. And your upcoming project of the development of generating capacities gives us hope for cooperation with you and ENKA.'
ENKA, a Turkish holding, whose core business is construction of industrial facilities, was presented by Siemens as a reputable partner in “turn-key” construction projects. 'Anyway, there must be only one counterparty to prevent diffusion of responsibility. This is a more efficient way of work,' Albert Shigabutdinov, General Director, TAIF PSC reacted to the offer of Siemens. He also added he is waiting for Siemens’s bid proposal for construction of a power plant in Nizhnekamsk.
'I hope bid documentation will be ready by the end of August and the tender will be announced in September. As usual, basic requirements are as follows: the lowest capital investments, utmost economic efficiency and, of course, reliability. As early as this year, we have to choose a contractor, sign a contract and start fulfilment of the project. Vladimir Busygin, Chairman of the Board of Directors, Nizhnekamskneftekhim PJSC, Deputy General Director, TAIF PJSC on Management and Strategic Development of NKNKH, and Ruslan Gizzatulin, Deputy General Director, Power Engineering and IT, TAIF PSC, Chairman, TGK-16 PJSC have been working on many details of this project for two years. It is planned to finish the project in 2019,' Albert Shigabutdinov shared the plans.
Innovative offers for future cooperation
The second big concern for TAIF’s management was the tender for selection of a general contractor to be awarded a large ethylene plant construction project consisting of four stages. Earlier, the project configuration envisaged two-stage implementation with each stage having 600,000 tpa capacity for ethylene. As before, the project capex is estimated at $9bn. The first stage will cost $3bn.
At the moment, a closed tender is being conducted. We informed every tender participant at the very beginning that we had negotiations with you. It is important that these companies include your equipment in their specifications,' Albert Shigabutdinov noted having emphasized that interface troubles occur when the equipment supplied by different vendors is used so additional adjustment of the units is required resulting in the loss of time and money. Also, one of the tender conditions is a loan in the amount of the entire contract scope taken with the involvement of an ECA.
Neither of the points mentioned above caused any disagreement in Siemens. Willi Meixner noted Tatarstan is one of the leading regions in Russia. 'People in Tatarstan are hardworking and know how to achieve results, just like in Germany,' Mr Meixner said to link a diversified holding TAIF and a German concern Siemens.
'Indeed, Siemens is very interested in TAIF’s strategic projects and we hope we will be able to offer something innovative to our partners. In this respect, it is important that Siemens is, inter alia, a Russian company that has been working in this country for over 160 years. It adopted all local traditions and the lifestyle. It assures us that TAIF and we may have a long-term cooperation. Yes, we already work together not counting the upcoming big projects. We deliver automation equipment,' Dietrich Moeller, Siemens CEO in Russia, told Realnoe Vremya after the end of the meeting.
TAIF Group and Siemens have been closely cooperating since May 2014 when an agreement at the Saint-Petersburg Economic Forum. Recently, Siemens procured equipment for the Heavy Residue Conversion Complex under construction in TAIF-NK PSC. The concern also revamped an ethylene compressor at the low density polyethylene plant and an extruder at the high density polyethylene production and processing plant of Kazanorgsintez PJSC.
Siemens’ electrical equipment is used in an innovative 388.6 MW gas turbine unit under construction at the Kazan CHP-3. At the same time, cooperation with Nizhnekamskneftekhim PJSC has been lasting for a long time, in particular, in the area of reconstruction of the electrical distribution equipment and steam turbine drives of the rotating equipment at divinyl and butadiene production units as well as other types of equipment.
Siemens, a German transnational concern founded in 1847, runs business in the field of electrical engineering, electronics, power equipment, vehicles, medical equipment and lighting, as well as specialized services in various fields of industry, transport and communications.
Its headquarters are located in Berlin and Munich. The Chief Executive Officer is Joe Kaeser. The company was founded by a famous German engineer Werner Siemens. Siemens opened its first Russian office in 1853 in St. Petersburg. Siemens LLC is the headquarter of Siemens in Russia, Belarus and Central Asia.
In these countries, the group operates in all its traditional areas of activity, while its footprint covers more than 40 cities; it is also one of the leading suppliers of products, services and integrated solutions for modernization of key sectors of the economy and infrastructure . Siemens in Russia, Belarus and Central Asia has about 3,000 employees. The sales of Siemens in Russia, Belarus and Central Asia in the fiscal year 2015 (as of September 30) amounted to EUR 1.6 billion.