Over 20 companies arrived in Kazan from the Land of the Rising Sun to participate in the Tatarstan – Japan forum. Mitsui, a trade and investment company, which is a long-term partner of TAIF Group, also investigated the opportunities of further cooperation with the local companies. During the negotiations, two holdings discussed common 'investment future' in the framework of the ambitious project of an ethylene complex construction in Nizhnekamskneftekhim along with the construction of own power energy source for the needs of NKNK. More details are provided in the article of Realnoe Vremya.
New 500 MW Capacities
Negotiations of the two partners, TAIF Group and Mitsui, started with the discussion on today's key project of the diversified holding - the construction of the Heavy Residue Conversion Complex in TAIF-NK. Installation works have been almost finished and individual testing of the equipment is underway. A number of the HRCC’s facilities are gradually prepared for start-up and commissioning. It may be stated with confidence that the complex will be put into operation on time. The commencement of the HRCC commercial operation is scheduled for the end of the year.
'And once the facility is launched, steps on further development of the complex will be taken. The project envisages many potential possibilities that won't be fully implemented at the start-up stage,' Albert Shigabutdinov, General Director of TAIF Group said to outline the strategy and asked Toyo, a Mitsui Group company, to stay focused. 'Your workers should take care of every screw,' Albert Shigabutdinov highlighted. It is to be recalled that Toyo has supplied the detailed design for the basic VCC unit and also it delivers equipment.
Further on, they talked about the construction of power generation faiclities for the needs of Nizhnekamskneftekhim with a total capacity of 500 MW and long-term plans of Kazanorgsintez development. To this end, Ikuo Kasama, Executive Director, Industrial Projects in Europe, Russia, CIS countries and Near East of Mitsui & Co said: '… we will conduct studies and offer optimal solutions and recommend companies that may be useful for you within the scope of this development plan'.
NKNK Ethylene Plant Configuration
Later, the discussion fully focused on the Ethylene Complex of Nizhnekamskneftekhim, for which the contractor selection tender is about to finish. As it has been revealed, the big project consists of four stages. The first one has a 600,000 kta capacity for ethylene, and the second stage of derivative polymers production is supposed to be put into operation simultaneously. Later on, the third stage for another 600,000 kta of ethylene and the fourth one – ethylene-derivative polymers - will be launched. And since Mitsui Group, as a rule, arranges financing and involves necessary licensors and vendors in the project, the parties touched upon the topic of the form of participation in the project.
The thing is that a consortium option was offered. Which, so far, raises doubts in the top management of TAIF, since the situation when two parties implement the project jointly makes it unclear who is responsible for the ultimate result. In addition, the consortium structure may lead to significantly higher project costs. But since such an offer was made, Albert Shigabutdinov asked to accelerate preparation of both individual and consortium-based proposals. 'Yes, I understand your position with my mind…' Ikuo Kasama told. 'But not with your soul, right?' Vladimir Presnyakov asked. As an answer, Albert Shigabutdinov cited a line from Tyutchev’s (a classic Russian poet) poem: ' Russia cannot be understood by the mind alone'.
At the end of the meeting, Vladimir Presnyakov, Deputy Director General, Petrochemicals and Oil Refining, TAIF Group asked for a list of licenses for petrochemical products that Mitsui is ready to sell or help in the organization of joint venture within the scope of possible cooperation between TAIF and Mitsui in the next 20-30 years. Ikuo Kasama assured this data would be provided.
Realnoe Vremya is preparing an interview with Ikuo Kasama, Executive Director on Industrial Projects in Europe, Russia, CIS countries and Near East.
Mitsui & Co., Ltd. (Mitsui, «Mitsui") is one of the most diversified global corporations operating in the field of trade, investment and services. Mitsui operates in many business areas and has 14 structural segments including the following: iron and steel products; minerals and metals; industrial projects; machines and equipment; shipbuilding and aerospace industries; organic synthesis chemicals; energy; food and retail products; Information Technology; financing; logistics and transportation.
Mitsui Group was founded in the XVII century by Takatoshi Mitsui shortly after Japan opened its domestic market to foreign trade after several centuries of isolation. At the moment, Mitsui has 154 offices in 66 countries, 436 subsidiaries and affiliates worldwide and more than 40 thousand employees. In the Russian market, Mitsui has been working for about 50 years. In Russia, it has 15 companies and 1,000 employees. The total investment in Russia is USD 3 billion.