Company overview

KuibyshevAzot is one of the leading chemical industries in Russia, formed as a group of companies running mainly two major productions of caprolactam with its derived products, and ammonia and nitrogen fertilizers. The company also produces industrial gases — nitrogen, oxygen, hydrogen and argon.

It offers textile and industrial yarns, tire cord, polyamide and blended fabrics, engineering plastic and process gases. The company was founded in 1966 and is headquartered in Togliatti.

Ownership

KuibyshevAzot is a Public Joint Stock Company, with a blocking shareholding of 27% of total shares being held by the LLC KuibyshevAzot Plus, and 20% held by subsidiaries of the group. The rest of the capital is distributed among a number of individuals and legal entities, and the company has no ultimate controlling party.

Strategic importance

At present, KuibyshevAzot is the biggest manufacturer of PA-6 in the CIS and Eastern Europe, and Russia’s only factory producing the whole possible range of polyamide. Its share accounts for 99% of Russia’s output. The company has 5091 employees.

Domestic market

The domestic market is a priority for the KuibyshevAzot, which has agrochemical warehouses, sales offices, and dealer centers located in the major agricultural regions of Russia: in Krasnodar and Stavropol Territories, in Rostov Region, as well as in the Republic of Mordovia, Samara, Ulyanovsk, Saratov, Volgograd, and Kursk Regions.

In 2016, more than half of all agricultural fertilizers were distributed through the company’s own sales network. The main domestic sales regions were Krasnodar and Stavropol Regions, Vologda, Rostov, Samara, Volgograd, Moscow, Voronezh, and Kursk Regions, and the Republic of Mordovia.

In 2016, nitrogen fertilizer sales on the Russian market grew by 4.9% to 978,100 tons.

In 2016, nitrogen fertilizer sales on the Russian market grew by 4.9% to 978,100 tons. Deliveries to domestic farmers increased by 2.9% compared to the previous year, and by 9.7% to industrial enterprises. Ammonium nitrate continues to be the fertilizer that enjoys the highest demand on the domestic market.

In 2016, 83% of the production was sold to domestic consumers, with supplies to agricultural enterprises that increased by 13.8%. Sales of urea and ammonium sulphate to the industrial sector increased by 23% and 8.9%, respectively.

International markets

In 2016, KuibyshevAzot PJSC sold 55,100 tons of caprolactam, 96% of which was exported to Northeast and Southeast Asia. In total, 73% of caprolactam produced was used for the in-house production of granulated polyamide-6.

The same year, sales of polyamide-6 amounted to 131,000 tons, 73% of which was exported to countries in Northeast and Southeast Asia, Eastern and Western Europe, the Middle East, the CIS, South America and Africa. The Chinese market accounted for 38% of export sales.

In 2016, sales of polyamide yarns increased by 8% as compared to 2015, 96% of which were supplied to the domestic market, where 22% of industrial yarns produced were processed into tire cord fabric at the production sites in Togliatti and Kursk. Sales of dipped tire cord fabric increased by 10% due to the complete switchover to production of dipped tire cord. Nitrogen fertilizer sales increased 3.8% year-on-year to 1,441,000 tons, 32% of which was shipped for export. Major export markets were Europe, the CIS, Africa, Latin America, and the Middle East.

Competition

KuibyshevAzot is the leader in caprolactam, polyamide, textile and industrial yarns production in Russia, CIS countries and Eastern Europe, but there are many competitors in nitrogen, ammonia and urea production.

Russian competitors per product, 2017

Finances

Revenues in 2017 slightly increased to 43 billion rubles thanks to the production increase of 6.7% following the start-up of the JV Linde Azot Togliatti, as well as the increase in caprolactam prices and its derivate products.

Production

„KuibyshevAzot“ is the only enterprise in Russia, which produces high-viscosity polyamide, high-tenacity yarn and tire cord fabric derived from it. Overall, the company has a variety of products in 5 different categories: caprolactam, polyamide-6, nitrogen fertilizers, gases and ammonia. KuibyshevAzot commercial trade name for polyamide-6 products is Volgamid.

Commissioning of a dipping and thermo-setting line for tire cord and industrial fabrics allowed the company to offer dipped nylon tire cord to the market, which is particularly important due to the winding-down of obsolete and worn-out plants at Russian tire factories.

Modernization plans

In 2017, a significant amount of work was carried out for the construction of new and technical re-equipment of existing production facilities.

The company pre-commissioned an ammonia production, a fifth polyamide-6 plant and compacted ammonium sulphate production, built through joint ventures with the company Trammo (USA) and the German company Linde.

The company pre-commissioned an ammonia production, built through joint ventures with the company Trammo (USA) and the German company Linde.

A universal complete line (UCL) of nitric acid was put intooperation and put into design capacity. An ammonium sulfate-nitrate production facilityis still under construction. A joint venture with the Italian company Maire Tecnimont was set up to design and build a new urea

In the polyamide production facilities, nine new Ratti twisting machines for technical yarn are being implemented. In 2017, scheduled capital repairs were carried out in the production facilities of ammonium nitrate, carbamide, weak nitric acid and ammonia.

As a result of technical re-equipment and introduction of resource-saving technologies, the company managed to reduce its electricity, heat and water consumption per ton produced. The New projects started concerning the construction of an oleum and an improved sulfuric acid production facility, as well as a universal complete nitric acid production line. The company is still working to raise its caprolactam production to 260 thousand tons.

Sales information

KuibyshevAzot is a private company driven by competitiveness and the quality of its products and services. The whole group KuibyshevAzot enjoys a very good reputation since its foundation in 1962, to its continuous development and its performance on the stock exchange.

The company expanded its partnerships, created joint ventures, commissioned new production lines on a yearly basis since the early 2000s and its management was certified according to international environmental, quality and security standards.

The company works internationally and developed its relations through a constant contact with its foreign partners. Recommendation is still an important driver for business development in Russia as well as for KuibyshevAzot. The company is eager to do business with new suppliers and partners but having a preliminary introduction as well as a reliable representative in the region is advisable to build a trustworthy relation.