Deputy General Director for Production Pyotr Solovyov talks about the advantages of multidisciplinary development and modern trends in the polyester products market.
Petr Alexandrovich, today the Mogilev complex for the production of polyester fibers and threads remains the largest in Europe? Or is it already better known as a producer, for example, of biodiesel, the production volumes of which are growing almost every year?
JSC Mogilevkhimvolokno was and remains the largest producer of polyester fibers and threads both in the republic and in Europe. The company has not deviated from standard assortments; today it produces more than 6,000 tons of fiber and about 1,500 tons of technical threads monthly.
Due to various economic circumstances, the company actually abandoned some of the original fiber-thread assortments. For example, since 2006, the production of textile threads has been discontinued. This is a forced measure dictated by the situation in the domestic market for textile products. The fact is that the production of synthetic complex threads, which specialized in the production of textile threads, was a competitor of the Svetlogorsk PA Khimvolokno RUE, one of the enterprises of the concern. The decision to close the division was made in favor of this enterprise for economic reasons - the Svetlogorsk production association is today equipped with more modern equipment with a single-stage production process.
New projects are a school of trial and error. Over the past 5 years, JSC Mogilevkhimvolokno has commissioned about 10 new installations. Is the production service of the enterprise satisfied with the results and how the five-year development program is being implemented?
The success of each new project, in my opinion, largely depends on the quality of the development of the technical specifications. Our own experience of launching new installations speaks precisely to this.
Most of the installations installed at the enterprise site are operating successfully and have already reached their designed capacity. The products they produce have found their consumers. This applies to the line for the production of roofing materials, installations for the production of food polymers, preforms, methyl esters of fatty acids and biodiesel. OJSC "Mogilevkhimvolokno" today remains the only industrial enterprise in the city that produces its own electricity.
At the initial stage of work, there were problems with the installation of continuous polycondensation with a capacity of 80 thousand tons per year. They have now been eliminated - the installation is operating at full capacity.
There are questions about the operation of the composite materials production line in terms of obtaining stable profits. Practice shows that one installation with a low productivity cannot respond to demand, moreover, the composite materials we produce are semi-finished products, and to obtain maximum profits, injection molding machines are needed that make it possible to independently produce and sell the final product. Despite the existing difficulties, today the line operates mainly fulfilling orders from our own company.
The installation for the production of strapping tape is also not at 100% capacity. Its production from high-quality polymer increases its cost; The production of strapping tape from recycled materials due to its unstable quality does not allow for full loading. We hope to solve this problem in the very near future: firstly, the Mogilev plastic bottle recycler promises to improve the quality of the flakes, and secondly, after installing a modern crushing machine at the ZSV (synthetic fiber plant), which is provided as part of the project for processing polymer waste, we will have the ability to produce tape from used tape.
Currently, a new type of product for the enterprise - fire hoses - is undergoing the process of market development. It is not yet progressing very intensively, but with a progressive growth trend: for the second month now, the order portfolio for this type of product has been filled.
In general, out of 8 facilities of our enterprise, which are under the control of the Belneftekhim concern, 6 are more than 80% loaded - this is normal practice.
What is most in demand on the market today, and what type of products is the company's management betting on when planning the near future?
Today food-grade polymer comes practically from the wheels, which makes us especially happy. There are minimal fiber stocks in the warehouse. At the same time, there is an increase in the number of orders for special fibers. In recent months, the situation with the sale of technical yarn has changed dramatically - the polyester yarn plant is now operating at full production capacity. When producing 500 tons of roofing materials per month, there is practically no shipment to the warehouse. Both geotextiles and roofing materials are in high demand.
This demand situation dictates the development prospects. Analysis of the food polymer market suggests that today its consumption exceeds supply. That is why the decision was made to build a new food polymer production plant on the territory of Mogilevkhimvolokno OJSC.
The issue of expanding the production of roofing materials, but already reinforced ones, is being seriously considered. The preparatory phase of this project is already underway.
Due to the increased demand for technical thread, the enterprise's technical development program plans to modernize the polyester thread plant (polyester thread plant), aimed at a gradual increase in capacity. The possibility of returning to the previous volumes of this type of product - up to 2,000 tons per month - is being discussed.
We have huge plans to expand the range of special fibers and nonwovens. Already at the beginning of this year, two related projects were implemented to produce polymer and fiber with reduced flammability. By the end of the year we plan to launch an installation for the production of needle-punched nonwoven materials with the prospect of producing thermally bonded fabrics. Our immediate plans include mastering the cutting of short-length fibers, which will be used in paper production.
The production of bioadditives for diesel fuel brings stable profits to the enterprise. According to the state program for the production of methyl esters of fatty acids and the decision of the Belneftekhim concern, next year Mogilevkhimvolokno OJSC should produce 50,000 tons of FAME. Based on the increase in production volumes of fatty acid methyl esters, Mogilevkhimvolokno OJSC is faced with the task of increasing biodiesel production.
Traditional for our enterprise is the production of DMT (dimethyl terephthalate). Despite the fact that in recent years TPA (terephthalic acid) has been actively replacing DMT, we retain this market segment, remaining one of the three global producers over the past 5 years, the production volume of DMT, having dropped to 200,000 tons per year, remains stable . In order to maintain these positions, it is necessary to reduce the cost of produced dimethyl terephthalate as much as possible. This can be achieved through the modernization of the DMT-4 workshop, which provides for an increase in capacity to 150,000 tons per year and a reduction in energy consumption.
We plan to retain the DMT-3 workshop. Currently, two options for its further loading are being studied: production of DMT according to a toll scheme or reorientation to the production of, for example, isophthalic acid. The Institute of Petroleum and Chemistry of the Belneftekhim concern also offers its options for repurposing the DMT-3 workshop for the production of products related to the processing of petrochemical products.
As part of the program for advanced processing of the polymer that we obtain from the TPA monomer, the enterprise has mastered the production of preforms. Currently, two injection molding machines are operating at the premises of Mogilevkhimvolokno OJSC, producing preforms for bottles with a capacity of 2, 1, 5 and 1 liter. Of the 6.5 thousand tons of food polymer produced per month, we process only about 400 tons into preforms. The goal is to increase processing volumes. To do this, it is necessary to purchase another automatic molding machine and replace the old one, which produces preforms for two-liter containers, with a modern model. We plan to implement this project next year.
The polyester market has never been stable. In the last few years, it has simply surprised with its dramatic changes. In addition, the demand for products in conditions of fierce competition directly depends on their quality and cost. Starting up a power plant on the territory of an enterprise is one of the ways to reduce the cost of manufactured products. But the cost of electricity is not the only cost component. Practice shows that a systematic approach to reducing internal costs, provided for by a specially developed program, can solve the problem. Does Mogilevkhimvolokno OJSC have one?
Every year, each division of the organization develops measures to reduce costs per unit of output. Heads of departments report to the balance commission on their implementation.
We are currently working to reduce the amount of regenerated ethylene glycol, the production process of which is characterized by increased energy consumption. The task is to direct all ethylene glycol flows to the workshop for the regeneration of volatile and organic solvents of the ZOS (organic synthesis plant), and repurpose a similar workshop of the ZSP. This event will significantly reduce energy consumption.
We are also actively working to reduce process air consumption, for example, at the environmental protection plant. We continue to work to reduce specific raw material standards. Today, however, the reserve that can produce results without capital investments has almost been exhausted. Now we are moving to a new level of action in this area of activity - through modernization.
Issues on organizing the production of fiber from PET bottle flakes (flexes) are being worked out.
All of the above measures help reduce internal costs, which has a positive effect on the cost of products manufactured by the enterprise.
Introduction
Marketing activities of OJSC "Mogilevkhimvolokno"
1 Internal environment of JSC Mogilevkhimvolokno
2 External environment of JSC Mogilevkhimvolokno
Analysis of market opportunities of JSC Mogilevkhimvolokno
Marketing Mix Analysis
1 Product policy
2 Pricing policy
3 Distribution policy
4 Communication policy
Practical implementation of marketing and energy saving programs
1 Determining the goals of the enterprise for the long term
2 Analysis of the energy saving program
3 Analysis of the business portfolio of JSC Mogilevkhimvolokno and development of an enterprise growth strategy
4 Marketing analysis and control
Conclusion
List of sources used
Introduction
OJSC "Mogilevkhimvolokno" is an enterprise related to the petrochemical industry and is part of the Belarusian State Concern for Oil and Chemistry (Concern "Belneftekhim").
The production of chemical fibers and threads occupies an important place in the structure of the concern. These are polyester fibers and threads, viscose threads, viscose cord thread and polyamide cord fabric, various assortment fabrics based on polyester and viscose threads, carbon threads and fabrics, non-woven materials based on chemical fibers, acrylic fibers, etc. The capacity of enterprises for the production of chemical fibers and threads is 310 thousand tons per year. The Republic of Belarus produces almost 50% of the chemical fibers and threads produced in the CIS.
Open Joint Stock Company "Mogilevkhimvolokno" is the only large producer of dimethyl terephthalate, PET polyester granulate, incl. food products, polyester fibers and threads and the main supplier of raw materials for light industry - the largest sector of the national economic complex of the Republic of Belarus.
OJSC Mogilevkhimvolokno has a large and fairly modern infrastructure to ensure the functioning of a large production complex with qualified personnel and a system for their training. It belongs to the category of city-forming enterprises in Mogilev.
The largest processor of polyester fibers in the nonwoven materials market segment is Politex CJSC (Mogilev), which produces a wide range of nonwoven fabrics and fillers, which accounts for about 15.0% of total shipments to the market of the Republic of Belarus.
Among the enterprises of the Bellegprom concern, the largest consumers of polyester fibers are the following:
CJSC "Belfa" (Zhlobin);
CJSC JV "Sopotex" (Mogilev);
OJSC Kobrin Spinning and Weaving Factory "Ruchayka" (Kobrin).
The work of the Expedition of JSC Mogilevkhimvolokno was awarded with diplomas:
2006 forwarder-leader (“For high financial performance”) and forwarder of the year (“For high rates of development in the field of forwarding”)
2007 - diploma forwarder-leader (“For high professionalism”)
2008 - diplomas: forwarder-leader (“For high professionalism”), forwarder of the year (“For the dynamic development of freight forwarding activities”).
OJSC Mogilevkhimvolokno achieved such successes thanks to the creation of a marketing department at the enterprise, which proposes to produce new types of products in accordance with emerging needs, develop new markets for products and ensure profit.
The purpose of this course work is to reveal a set of marketing decisions on the process of coordinating the capabilities of JSC Mogilevkhimvolokno and consumer requests for polyester fiber using material collected during technological practice.
When writing the course work, the following sources were used:
Business plan of JSC Mogilevkhimvolokno for 2012;
Regulations on the Marketing Department;
Collective agreement of JSC Mogilevkhimvolokno for 2012;
Energy saving program of JSC Mogilevkhimvolokno for 2012;
1.
Marketing activities of OJSC "Mogilevkhimvolokno"
1.1 Internal environment of JSC Mogilevkhimvolokno
The head of the marketing department must have information about the economic, financial, production, social, and research activities of the enterprise. His main responsibility is to coordinate marketing functions (forecasting, sales, marketing research, etc.) and establish relationships with the heads of financial, production and other departments of the enterprise.
If the actions of various functions of an enterprise are not united by a single market strategy, the “swan, crayfish and pike” effect may occur. But for JSC Mogilevkhimvolokno there is no such problem, since market orientation is ensured by the interaction of the enterprise departments with the marketing department and the exchange of information between them, as shown in Table 1.
Table 1 - Interaction of the marketing department with the divisions of JSC Mogilevkhimvolokno
Department names Marketing department receives information transmits information 1 Commercial management Purchasing assignments; - information about concluded contracts for the supply of products. Information on market prices for basic raw materials; - minutes of meetings of procurement commissions; - information on market prices for main products; - analytical reviews and forecasts on market conditions; - copies of the protocols of the pricing commission. 2 Department of statistical analysis and support of foreign economic activity Statistical data on shipped products in the assortment for the period. Copies of the minutes of the pricing commission. 3 Planning and economic management Price list prices for the introduction of new types of products and the next revision of prices; - information on the cost of manufactured products. Information on market prices for main products; - originals of the protocols of the pricing commission. 4 Financial management Financial plan; - invoices for payment for transfer to customers. Financial plan; - memos and invoices for payment of subscription publications. 5 Department of Standardization and Certification Recorded copies of specifications for finished products, external technical regulations and amendments to them; - recorded copies of STP and copies thereof; - internal audit schedule; - report on the internal audit. Reports on the elimination of identified inconsistencies during the internal audit. 6 Department of Labor Organization and Wages Approved staffing schedule; - internal regulatory documents. Department regulations and job descriptions. 7 Central accounting Accounting data on sales of finished products for the month; - pay slips; - information about customers who are late in paying for shipped products; - information about the receipt of foreign currency funds to the account of the enterprise; - information on accounts payable and receivable for supplies; - debt of the enterprise for the shipment of products. Agreements for approval; - memos on payment for approval; - certificates of completed work. 8 Legal department Information on changes in legislation relating to the commercial activities of the association. Draft contracts for approval. 9 Information Technology Department Software and hardware department. Applications for the necessary software and hardware. 10 Transport Forwarding and Logistics Department Information on transportation costs for the delivery of the organization's main raw materials and products. Applications for transport. 11 Technical Development and Investment Department Copies of business plans for investment projects. Information on business plans for investment projects in terms of marketing. 12 Department of Economic Analysis Information about the financial results of the organization. Information for the annual business plan. The unity of actions of various services of the enterprise is ensured by the culture of the enterprise, which has a significant impact on market success, which is reflected in the collective agreement of JSC Mogilevkhimvolokno. The goal of the enterprise is to ensure a stable socio-economic position of the enterprise, to establish additional social guarantees, compensation and benefits in comparison with the legislation in the field of organization and remuneration of labor, employment of workers, labor protection, industrial and environmental safety, medical care, sanitary and resort treatment, social insurance , housing, protection of motherhood and childhood. Main provisions of the collective agreement: provide mothers raising two or more children under the age of 16, at their request, with one day off from work every month with payment in the amount of the daily tariff rate (salary); provide paid maternity leave to women employees of the Company from 20 weeks of pregnancy; the involvement of workers and employees on weekends and holidays is allowed only in cases provided for by the legislation of the Republic of Belarus, as well as in cases of performing necessary, unforeseen work; provide employees with social leave in addition to labor leave for valid reasons of a personal and family nature in the following cases: in case of marriage - 3 days without pay; during childbirth for a spouse - 1 day with payment according to average earnings; in the event of the death of a spouse, parents, children, sisters, brothers - 3 days with payment at the average salary for organizing a funeral; for internationalist soldiers - one day - February 15 to participate in Memorial Day without payment; on the first day of the school year for parents whose children are entering the first grade of school - 1 day without payment; upon reaching the age of 50 years from the date of birth - 1 day with payment according to average earnings. The successful work of the marketing department is based on the performance of specific functions and competent setting of tasks. The main tasks of the marketing department: analysis of consumer demand for the organization’s products, market research; development of annual and long-term business plans for the organization in terms of marketing; conducting marketing research on the organization’s investment projects; introduction of new product ranges of the organization to the market, search and attraction of potential consumers of products, including for newly implemented investment projects; studying the competitive environment, determining the competitiveness of the organization’s products; organizing the work of the pricing commission; study and analysis of markets for the main raw materials purchased by the organization; organizing the work of commissions for conducting procurement on the basis of competitions (tender commission), according to the procedure for drawing up a competitive list, according to the procedure for purchasing from a single source, according to the procedure for marketing research; preparation and execution of the necessary documentation for the revision of anti-dumping duties and the introduction of special protective measures; carrying out work to include the organization’s products in the List of import-substituting goods produced by residents of free economic zones of the Republic of Belarus and supplied to the domestic market of the republic. Main functions of the marketing department: compiling quarterly reports based on analyzes of the sales markets for the organization’s products in comparison with the same period last year; analysis of sales markets for the organization’s products to draw up an annual business plan in comparison with last year; organizing the marketing research process for investment projects, including the following operations: defining the problem, obtaining primary information (external and internal), analyzing secondary information (external and internal), analyzing competitors, analyzing data characterizing the market for the type of product in question, preparing a report; analysis of the competitive environment taking into account market conditions; participation in determining prices for the organization’s products and making proposals on the level of selling prices on the market of the Republic of Belarus and beyond its borders based on an analysis of competitors’ prices and prices on the world market; organizing, conducting, documenting meetings of the pricing commission; preparation of a package of documents for approval by the Belneftekhim concern of sales prices for the organization’s products below cost for sale on the territory of the Republic of Belarus and abroad in accordance with legal requirements; preparation of a package of documents and work with the free economic zone "Mogilev", the concern "Belneftekhim", the Ministry of Economy of the Republic of Belarus to include the organization's products in the "List of import-substituting goods produced by residents of the free economic zones of the Republic of Belarus and sold on the domestic market of the republic" to obtain tax and customs preferences; drafting letters, certificates, reports, etc. to the Belneftekhim concern in terms of the organization’s marketing activities; drawing up monthly reports on the implementation of the relevant points of the action plan to achieve the main indicators of the socio-economic development forecast for the organization providing information on the competitive environment for obtaining financing and opening credit lines in commercial banks; monitoring foreign tenders on websites and drawing up monthly and quarterly reports on the organization’s participation in foreign tenders; organizing work on cooperation between the organization and the International Committee of Manufacturers of Synthetic Fibers CIRFS (Belgium), processing the payment of membership fees; processing of the CIRFS customs database for the supply of the organization’s products to the CIS countries and Far Abroad; compiling weekly reports on prices for the organization’s main raw materials and products in Europe and Asia based on analytical information; organizing translations from a foreign language of analytical and pricing information on the organization’s main raw materials and products; organizing, conducting, documenting meetings of competitive procurement commissions, procurement commissions for the procedure for issuing a competitive list, commissions for purchasing from a single source, commissions for purchasing under the marketing research procedure; posting invitations to purchases on the website of the “National Center for Marketing and Price Research” and the external corporate website of the organization; registration and support of contracts for the receipt of subscription foreign publications, reports on main raw materials and products - PCI Fibers (England), ICIS (England), Platts (USA). 1.2 External environment of JSC Mogilevkhimvolokno Consumer rating. Consumers of polyester fiber are chemical industry enterprises. The list of main markets for polyester fiber and its share in the enterprise’s sales volume over the past two years is shown in Table 2. Table 2 - Analysis of priorities by market
Share in turnover 2011 Share in turnover 2010, % Growth rate, % Growth rate, % 1 Republic of Belarus 3 Russian Federation 4 Far Abroad Share in turnover for each market for 2011. calculated by the formula Share in the turnover of a specific market = (Volume of sales of goods in a specific market / Total sales of goods by the enterprise) 100% (1) The share in the market turnover of the Republic of Belarus is equal to The share in turnover for other markets is calculated similarly. The growth rate of the share in turnover is calculated using the formula where Yi is the value of the compared level of the dynamics series, %; Y i -1 - the value of the comparison base (previous level), %. The growth rate of the share in the market turnover of the Republic of Belarus is equal to The growth rate of the share of turnover in other markets is calculated similarly. The growth rate of share in market turnover is calculated using the formula ΔT = T - 100% (3) The growth rate of the share in the market turnover of the Republic of Belarus is equal to The growth rate of the share of turnover in other markets is calculated similarly. Markets in which an enterprise (organization) has been selling its products for many years and has stable demand are considered traditional. Markets that an enterprise (organization) is just beginning to enter with its product (service) are considered new. Of the listed markets for polyester fiber, the traditional ones are; Russian Federation; Far Abroad. New markets are the CIS countries. Table 2 shows that the volume of sales of polyester fiber increased in 2011 in the Republic of Belarus and the CIS by 0.6%, in the Russian Federation decreased by 3.6%, and in the Far Abroad countries by 1.4%. Competitor analysis. The competitors of Mogilevkhimvolokno OJSC for polyester flooring fiber are: - “Silon” Czech Republic; "Trewira" Germany; Wellman Ireland. The degree of popularity of competing enterprises is shown in Table 3. The reputation of goods produced by competing enterprises is shown in Table 4. The technological level of production of competing enterprises is shown in Table 5. Table 3 - Degree of fame of competing enterprises
Table 4 - Reputation of goods produced by competing enterprises
Table 5 - Technological level of production of competing enterprises
Market share reliably reflects the operation of the enterprise and its competitive position and is considered according to the formula Market share = (Sales volume of a given product by a specific enterprise / Potential market capacity of a given product) 100% (4) The market share of JSC Mogilevkhimvolokno is equal to The market share of competing enterprises is calculated in a similar way. The growth rate of the market share of JSC Mogilevkhimvolokno is equal to The growth rate of the market share of competing enterprises is calculated in a similar way. The growth rate of the market share of JSC Mogilevkhimvolokno is equal to The growth rate of the market share of competing enterprises is calculated in a similar way. The calculation results are listed in Table 6. Table 6 - Dynamics of market share occupied by competing enterprises
Names of competing enterprises Market share 2010, % Growth rate, % Growth rate, % sales, t market share, % OJSC "Mogilevkhimvolokno" Competition in the polyester fiber market is increasing as competitors become closer in size and capacity. The level of competition is regional. Table 7 provides information characterizing the competitive positions of enterprises in the polyester fiber market. Table 7 - Analysis of the competitive environment
For OJSC Mogilevkhimvolokno, the competition strategy is a risky position. The key factors of success for JSC Mogilevkhimvolokno are: High quality of service; favorable location of the enterprise; skilled workforce; warranty service; low cost; polite staff. Based on all of the above, Table 8 is drawn up. Table 8 -SWOT Analysis
Inner strengths Internal weaknesses Proven administration Competence Protection from strong competitive pressure Presence of a competitive advantage Outdated equipment No clear strategic direction Presence of internal production problems Low level of marketing activities External Features External threats Ability to attract additional buyers New technologies New markets Growth in market capacity Weakening positions of competitors Reducing barriers in markets Slower growth Negative shifts in foreign exchange rates Entry of a cheaper competitor into the market market price marketing energy saving 2. Analysis of market opportunities of JSC Mogilevkhimvolokno Shipments of polyester fiber by region (in physical terms) in 2012 were distributed as follows: Belarus - 10.6%; CIS (Russian Federation) - 16.7%; Russian Federation - 53.7%; Far Abroad - 19.0%. The market volume has decreased this year, but according to product sales plans, fiber shipments are planned to increase by 2013. The main strategic direction in the development of Mogilevkhimvolokno OJSC is a more complete use of existing capacities, increasing the competitiveness of products by improving quality and reducing costs, as well as reorienting production towards deeper and more efficient processing of raw materials. JSC Mogilevkhimvolokno is continuously working with foreign investors on the joint implementation of a number of investment projects. We are closely working with potential investors and banks to attract investments. Work is underway to introduce energy-saving projects. In 2012, it is planned to supply equipment for the purpose of reconstructing general plant power plants (air separation unit and nitrogen gasifiers) and stage-by-stage implementation of start-up complexes by 2013. The implementation of projects will increase the volume of export products from the Republic of Belarus, organize import-substituting production, and reduce production costs. 3. Marketing mix analysis 1 Product policy Polyester fibers are widely used in the textile industry for the production of fabrics mixed with cotton, linen, wool, viscose and other fibers, in the production of non-woven materials, insulating fabrics, floor coverings, artificial fur, artificial leather, and synthetic paper. However, consumers do not acquire quality characteristics, but a satisfied need. Therefore, Table 9 shows the benefits that can be obtained by polyester fiber consumers. Table 9 - Translating technical capabilities of polyester fiber into benefits for consumers
Technical capabilities of polyester fiber Benefits for consumers Standard Benefits Benefits provided by the enterprise Differential benefits 1 GOST standard 1 High quality guarantee 2 5% discount 2 Opportunity to save money and spend it on other purposes 3 Produced in a mixture with cotton, linen and wool 3 Gives wrinkle-resistance and dimensional stability The trademark of Mogilevkhimvolokno OJSC is a design that represents a compositionally resolved initial “M” - the initial letter of the city in which the enterprise is located. The initial “M” is made of a bundle of polyester fibers and rests on four stylized forgings of thread, since the main products of Mogilevkhimvolokno OJSC are polyester fibers and threads. As for the use of corporate colors, as a rule, the use of different colors facilitates the perception of information, having an emotional impact on buyers and consumers of goods. The trademark of OJSC Mogilevkhimvolokno is often depicted in blue or light blue. Packaging is a specific container or shell in which a given product is placed and which, for the most part, is properly designed. The packaging of the Mogilev Association's products is the direct container of the product and is considered the primary packaging because usually does not have additional protective functions and are not an important means of promoting a product to the market. In order for products to be moved from producer to consumer, they must be placed in special containers that allow them to be loaded and unloaded, stored and transported in the best possible way. The containers used in this case are usually called transport packaging (containers). In our case, taking into account the specifics of the products manufactured, we note that for packaging we use: DMT (polypropylene big-bags), PET (big-bags and plastic bags), fiber (bales of the same big-bags) tied with tape or wire), threads (wound onto sleeves, cops and placed in boxes or block bags), consumer goods (plastic bags, cardboard boxes).
= 10,6%
(2)
23.08.2013
On the implementation of the Collective Agreement of JSC Mogilevkhimvolokno for the 1st half of 2013
After considering the sections and provisions of the Collective Agreement of JSC Mogilevkhimvolokno for 2010-2013 and 2013-2016, concluded between the employer, represented by the general director, and the employees of JSC Mogilevkhimvolokno, on whose behalf the chairman of the trade union committee speaks, the results were summed up.
In the sections “General Provisions”, “Social Partnership”, “Production and Economic Activities of the Company”, all obligations have been fulfilled.
The employer implemented measures aimed at ensuring the further development of the organization, increasing production efficiency and meeting the main indicators of socio-economic development. The main indicators of the forecast for the socio-economic development of JSC Mogilevkhimvolokno for 6 months of 2013 have been fulfilled.
The obligations of Section 3 “Guarantees of labor rights and employment of workers” have also been fulfilled on all counts. The listed number of employees as of July 1, 2013 was 7,565 people.
Before the issuance of an order for Mogilevkhimvolokno OJSC on dismissal due to a reduction in the number of employees due to reorganization, technical re-equipment, reduction in production volumes, etc., the following measures are applied: 1) a natural reduction in jobs is used due to dismissal by agreement of the parties, the end of the contract and other reasons. In the first half of 2013, 502 people were dismissed, including 225 people by agreement of the parties and of their own free will, 119 people due to the expiration of the contract and employment contract, 46 people for absenteeism, 46 people for appearing while intoxicated. 5 people, due to health reasons - 9 people, due to layoff - 62 people, due to death - 7 people, and other reasons - 29 people. (transfer to another organization, theft, conscription into the army, conviction in the medical laboratory); 2) the possibility of transfer within the organization is used. During the first half of 2013, 71 people were transferred from one unit to another; 3) the principle of continuous professional development of personnel is implemented.
During the first half of 2013, 2,634 employees were trained, including 524 employees and 2,110 workers, 183 employees and 230 workers improved their qualifications. 132 people from among managers and specialists completed internships. 45 workers were trained for management positions. 526 workers underwent professional training and retraining.
Section 4. Work and rest schedule. All obligations have been fulfilled.
The involvement of workers and employees on weekends is carried out without violating the legislation of the Republic of Belarus in agreement with the trade union committee of the Company with the consent of the employee. In the 1st half of 2013, 491.9 million rubles were paid for work on weekends (including duty at home).
When recording working hours in aggregate, the accounting period is considered to be a calendar year. The summation of labor leaves (main and additional) is carried out in the manner prescribed by law. For the 1st half of 2013, 88,547 people/days of basic and additional leave were provided.
The time spent on duty at home on weekends and holidays during the day is equal to a working day and is compensated by payment of a daily rate (salary) or the provision of a paid day of rest (time off).
Social leave without pay in accordance with Art. 190 of the Labor Code of the Republic of Belarus is provided to employees upon written application, but for no more than 90 calendar days. The validity of the reasons for granting such leave is assessed by the employer. For the 1st half of 2013, 5,493 people/days of leave without pay were granted.
In the first half of 2013, on the occasion of the death of loved ones, three days were provided with payment based on average earnings; payments amounted to 28.4 million rubles. In the 1st half of 2013, a paid day of leave was provided upon reaching the age of 50 years from the date of birth with payment based on average earnings, payments amounted to 1.344 million rubles. Members of the voluntary squad are given an additional day of vacation.
No payments were made for work on the professional holiday Chemist's Day. For the professional holiday Chemist's Day, 786.5 million rubles were paid.
When an employee went on leave, a one-time payment for health improvement was made in the amount of 500,000 rubles. For the 1st half of 2013, the payment amounted to 1,712,350,000 rubles. By agreement between the Employer and the employee, the labor leave is divided into two or more parts, with one part being at least 14 calendar days.
To resolve individual labor disputes on the application of labor legislation with equal representation of the parties, a labor dispute commission has been created. All its members have powers of attorney of the established form. In the first half of 2013, no applications were received.
On all points of Section 5 “Payment and its regulation” the obligations have been fulfilled. The nominal average monthly salary for the 1st half of 2013 amounted to 4,352,658 rubles, for the 1st half of 2012 – 2,951,273 rubles. The growth index of consumer prices for goods and services in January-December 2013 compared to January-December 2012 was 121.7%. The growth of real wages in the first half of 2013 amounted to 121.2%.
During the 1st half of 2013, payments of all types of bonuses, wage indexation, remuneration, allowances for professional excellence, for personal branding, additional payments for leading a team (link) to workers were made, in accordance with the regulations in force in the Company, agreed upon by the trade union committee.
During labor leave, employees are paid their average earnings no later than two days before the start of the leave. During the first half of 2013, there were no cases of late payment of average wages for vacation.
Obligations under all points of Section 6 “Occupational Safety and Environmental Protection” have been fulfilled.
In the first half of 2013, three activities of the agreement on labor protection and industrial safety of the collective agreement were completed: 1) installation of ladders for servicing shut-off valves on the thermofixing furnaces of staple units in the finishing shop of the synthetic fiber plant; 2) redecoration of the women's wardrobe room in the sorting and packaging workshop of the polyester yarn plant; 3) replacement of the oiled concrete coating with a new one, in the mechanical assembly area (grinding group of machines) and the repair area of the mechanical workshop of the mechanical repair plant.
206.6 million rubles were spent on implementing the agreement’s measures on labor protection. Due to their implementation, working conditions have been improved for 174 employees, including 106 women.
The structural divisions carried out an additional 16 measures to improve working conditions and work life. 339.9 million rubles were spent on implementation, working conditions were improved for 965 employees, incl. 463 women.
In the first half of 2013, one accident was registered in the organization. The chairman of the trade union committee of the organization, V.I. Zenkov, took part in the investigation of its circumstances and causes.
The organization’s business plan provides for financing of labor protection measures, for 2013 – 12,866.4 million rubles. At the expense of the organization, periodic medical examinations of drivers and pre-trip health examinations of drivers are carried out before going on the line.
The Regulations on the procedure for awarding bonuses to managers, specialists and workers of Mogilevkhimvolokno OJSC for high achievements in the development and implementation of labor protection measures have been developed and put into effect. In the first half of 2013, 360.2 million rubles were spent on stimulating work on labor protection.
Corners (stands) on labor protection have been organized in the structural divisions of the organization, which are filled and updated in a timely manner. Information materials on labor protection, analysis of the state of injuries, circumstances and causes of accidents, statistical reports and other materials at the request of the trade union committee are submitted within the established time frame.
The organization has not registered any accidents involving employees who are in a state of alcohol, drug or toxic intoxication (poisoning), or when they commit illegal actions.
Measures for the prevention of occupational diseases and work-related morbidity are included in the Organization's Occupational Health and Environment and Industrial Safety Program and the Plant and Production Program. The implementation of activities is monitored.
Employees of the organization, when performing work related to pollution, are provided with flushing and neutralizing agents. In the 1st half of 2013, 200.333 million rubles were spent on acquisitions.
Necessary medical care is provided to employees at the Company’s health centers located on the territory. All workshops are equipped with first aid kits.
The Company's employees are provided with sanitary facilities in accordance with the requirements of SNB 3.02.03-03 “Administrative and domestic buildings”. Much attention is paid to the sanitary condition and aesthetic design of sanitary facilities. To attract attention to issues related to improving working conditions and production life in structural divisions, competitions have been announced for the best sanitary facilities, workshops, and territory.
The results of the review competition for the best organization of work on preventive work on occupational safety, health and industrial safety for the 1st quarter of 2013 have been summed up.
Competitions have been organized and held: “Best public labor safety inspector”, “Best chairman of the labor protection commission”, “Best trade union committee on labor protection”. Within the framework of common information days, thematic lectures are held in the organization’s teams.
In Section 7 “Social Protection of Youth”, three obligations have been fulfilled. The obligations under clause 7.3 have not been fulfilled.
The first job is provided to graduates of higher, secondary special and vocational educational institutions sent to work in accordance with agreements (applications) concluded between educational institutions and the organization.
In the first half of 2013, 31 people were hired, all of them young specialists and workers. Employees were provided with 3020 person/days of paid and unpaid educational leave.
All obligations of Section 8 “Social protection of older people, veterans of the Great Patriotic War, pensioners, disabled people who worked in society” have been fulfilled. For Victory Day on May 9, participants of the Great Patriotic War, former employees of the Company, and persons equivalent to them were encouraged.
One-time assistance was provided to former employees of the Company, veterans of the Great Patriotic War, and now pensioners in the amount of 100,000 rubles (157 people). The amount of payments amounted to 15,700,000 rubles. The Company's employees, veterans of military operations on the territory of other states, were thanked and rewarded in the amount of 100,000 rubles (46 people). The amount of payments amounted to 4,600,000 rubles.
The obligations of Section 9 “Social Development of the Team” have been fulfilled. Paid maternity leave is provided to female employees of the Company from 20 weeks of pregnancy. Payment for maternity leave is carried out simultaneously with the payment of wages to employees. For the 1st half of 2013 it amounted to 342.2 million rubles.
During the first half of 2013, 195 children of the organization’s employees had a rest at the Sosny sanatorium during the summer period. In other children's sanatoriums located on the territory of the Republic of Belarus, 36 children improved their health, including three in neighboring countries.
In the Sosny sanatorium, 278 employees of Mogilevkhimvolokno OJSC received sanatorium-resort treatment with a payment of 15% according to the collective agreement. At the expense of social insurance funds, 15 employees improved their health in sanatoriums of the Republic of Belarus and in neighboring countries.
Based on requests from citizens, in the first half of 2013, financial assistance was provided to employees and former employees of the Company in the amount of 4,400,000 rubles.
Section 10 “Obligations of the Employer” has been fulfilled in all respects. A scientific and technical policy is being pursued aimed at improving the quality and competitiveness of products through the development of new types of products, technical re-equipment of production and the introduction of resource-saving technologies aimed at expanding the range of products and reducing costs. The planned consumption rates of basic raw materials and auxiliary materials were reduced. The savings amounted to RUB 2,048,741,129.
Section 11 “Obligations of the trade union committee and creation of conditions for the activities of trade union bodies” has been fulfilled with the exception of clause 11.9.
Section 12 “Mechanism for implementing the collective agreement. Monitoring of its implementation has been carried out on all points.
Abridged version.
Read more on the trade union committee's internal website.
The photo is for illustrative purposes only
There were times when Mogilevkhimvolokno (MHV) was the only city-forming enterprise in Mogilev. Just 40 years ago, every fifth person working in the Mogilev economy worked at the enterprise. Today, the number of MHV employees has decreased by 5 times compared to the “stagnant” years of Soviet power. And Mogilevkhimvolokno moved from a city-forming enterprise to the rank of a budget-forming enterprise. But, with a caveat.
Economic bones of Mogilev
At the end of 2015, 562 business entities ceased to exist in Mogilev, with all the negative consequences for the city’s economy and the former employees of these entities. And if today the tax inspectorate has filed claims against 3,000 parasites (after all, someone needs to feed the authorities), then the number of “parasites” due to the fault of the same authorities should increase significantly in 2016. After all, only recently the leading enterprises of the city have laid off 4,000 workers, who simply have nowhere to go - unless to the working spaces of Russia. But the President authoritatively stated that there are no Belarusian guest workers in the neighboring state (black humor), and the disadvantaged Mogilev residents are not really welcome there. A basic calculation shows that there are significantly more unemployed people in Mogilev than the officially registered 2000. And there are 10 times more of them, and real unemployment reaches 14% of the economically active population.
Economists (those who put the various stupidities of the current “vertical” of power into a historically logical development scheme) say that a market economy is in action. And the workforce thrown out onto the streets is the result of the low competitiveness of Mogilev enterprises. I would like to remind would-be economists that business entities are formed not for the sake of competition, but for making a profit. And the ruin of business entities in most cases lies on the conscience of the destructive economic policies of the incompetent government.
Is it not on the bones of the unemployed (including through dismissal) that the economic policy of Mogilev officials will be built. In any case, the burden on the judicial enforcement authorities (there are no vacancies there) to seize funds from citizens of Mogilev (and the region too) is prohibitive.
Famous throughout Europe
“Mogilevkhimvolokno” in the 1960s was actually an all-Union construction project - the largest chemical production plant in Europe was located on 340 hectares. In the 1970s, the company employed 28 thousand people, for whom an entire microdistrict was built in the Dnieper region. 65% of products were exported to more than 30 countries around the world.
Mogilevkhimvolokno is the only producer of dimethyl terephthalate, PET polyester granulate, polyester fibers and threads in Belarus and the main supplier of raw materials for the light industry of the republic. The quality of the products is confirmed by various kinds of certificates.
In 2010, JSC Mogilevkhimvolokno was recognized as the winner of the city competition among industrial enterprises for the high performance achieved and was awarded a challenge Banner of Honor of the Mogilev City Executive Committee.
Until now, OJSC Mogilevkhimvolokno has a certain investment potential due to the availability of free production space located on the territory of the Mogilev free economic zone, which has a special preferential customs and tax regime.
From sunset to...the next investment
Unfortunately, the plant’s capacity has already lost its competitiveness, including due to the high cost of raw materials. The fact is that in Belarus at the beginning of the 2010s, only half of the MHW’s need for paraxylene was produced, the price of which at that time increased 9 times (the supplier was Belneftekhim), and ethylene glycol was not produced at all. Despite the fact that annually billions of rubles were invested in the fixed assets of the enterprise, instead of increasing production volumes, MHV began to lose ground and “slipped” into the financial abyss. In 2012, for example, production volume was reduced by 20%, and the enterprise's losses amounted to more than 100 billion rubles. The situation couldn't be worse. The City Executive Committee met halfway the management of the plant and took almost the entire social infrastructure (kindergartens) under its “wing”. This is a multi-billion dollar “reservation” for the city budget.
On the other hand, the impression was created that the MHV is constantly in a state of reconstruction. At the beginning of 2013, the need to invest $276 million in production was again announced, which was spent until 2016. But MHV, against the backdrop of frequently changing directors, never made a profit. Today, the management of Mogilevkhimvolokno OJSC again put before the Head of State the need for investment, and then by 2020 the plant will finally make a profit. The head agreed to help once again.
Revived artificial fiber plant
In 2012, Mogilev ZIV OJSC, which then employed more than 1,000 people, disappeared from the industrial map of Mogilev. And, surprisingly (economists, ay), the plant’s profit sometimes reached 2 billion rubles. The plant was very attractive to foreign investors and the main contender for privatization by a foreign owner. One of the foolish capitalists was even able to invest 5 million US dollars in production, but the deal with him never took place - the funds were returned to the investor in products, and ZIV ... practically went bankrupt. Responsibility for what happened was attributed to difficult times in the Belarusian economy as a whole, and officials remained with their positions and incomes.
Cunning bureaucrats quickly found a way out of the situation - they annexed ZIV to OJSC Mogilevkhimvolokno. At the same time, 835 people were unemployed and only 150 were employed at the MHV. It should be noted that over the previous three years, Khimvolokno has already “optimized” almost three thousand employees. And the plant itself required at least $1 billion in investment to modernize production.
And then there is the attached ZIV, which could not exist without investments in virtually new production, and workers without salaries.
But a miracle happened...it is precisely the production of polyethylene film, which was inherited by the MHV, that is profitable today. Polyethylene types of food packaging are competitive products in demand on the Belarusian market. Moreover, the demand for products allows us to increase production volumes: if six months ago the capacity for the production of cling film was 40%, today it is already 80%. In July 2016, a production profitability of 2% provided a good profit for the plant, but with the onset of cold weather, production only reached zero. However, according to expert calculations, if production capacity is fully utilized, production profitability will rise to 5%.
It should be noted that this production, profitable for the plant, was done with the mind, experience and hands of specialists and workers of the former ZIV. And with minimal participation from the country's top leadership. And as an example of the possibility of reviving a specific enterprise, if you approach the process competently...
Peter Migursky
I.G. Sabaev,
First Deputy Director of JSC Ivanovo Polyester Complex
Information about the investment project “Creation and development of industrial production of polyethylene terephthalate (PET) for textile purposes in Vichuga, Ivanovo region”
FROM THE EDITOR. The construction project in the city of Vichuga, Ivanovo region, for the production of polyethylene terephthalate for textile purposes evokes diverse, sometimes sharply critical assessments from specialists and representatives of the business community (see, for example, p. 8 of this issue of the Vestnik). At the same time, we believe that comprehensive information about the implementation progress and problems of this large-scale project will help its participants and potential partners to more clearly imagine its prospects and make the right decisions.
In this regard, we are publishing a detailed message from the First Deputy General Director of Ivanovo Polyester Complex JSC I.G. Sabaev and we invite all interested parties to the discussion.
Project management and financing
Joint Stock Company "Ivanovo Polyester Complex" (JSC "IPK") is a private specialized design company created in 2014 for the purpose of constructing a PET textile plant in the Ivanovo region.
The project is exclusively commercial without attracting budget funds. JSC IPK did not spend a penny of public funds. Moreover, the funds spent at the design stage on the development of design documentation and passing the state examination were returned to the budget of the Ivanovo region.
Sources of financing are private investment and a loan from Vnesheconombank. At the same time, the participation of the State Corporation Vnesheconombank, as a project financing institution, does not provide for the use of public money, but only funds raised from foreign banks. In June 2017, the Ivanovo Polyester Complex entered into a loan agreement with VEB. The total cost of the project is 25 billion rubles, including Vnesheconombank’s participation amounting to 19 billion rubles. The funds will be provided for a period of up to 13 years.
Prerequisites for creating a synthetic fiber plant in the Russian Federation
World production of polyester fiber is about 16 million tons, together with polyester threads this is about 60% of all fibers and threads produced in the world, including natural ones. Russia's share in production is 0.45% of world production, and the consumption of polyester fibers and threads is no more than 2 kg per capita, while in developed countries consumption is much higher (for example, in Germany - 7 kg, in China - 23 kg) . The potential for growth is obvious.
The production of polyester fiber is the first step in the technological chain for the creation of synthetic textile materials with a wide market segmentation by areas of their application. Enterprises of the Russian petrochemical industry operate in large volumes, and their interest ends in the production of bottle granulate, at best. Working with small and medium-sized enterprises, with numerous shipments of products in batches that are multiples of one Gazelle, is not very convenient for petrochemists. The textile industry involves hundreds of transactions and a deep dive into the intricacies of the market for the consumption of final textile products right up to the counter, this is a diverse range of final products using many types of raw materials in various mixture combinations to give the products the required properties and characteristics.
The creation of a modern plant for the production of polyester staple fiber and textile quality granulate in the Ivanovo region is a breakthrough project for the development of Russian light industry with the aim of replacing imported raw materials for textiles through the production of a wide range of domestic polyester staple fibers. This corresponds to the “Strategy for the Development of the Chemical Industry of Russia for the Period until 2030,” which provides for complete import substitution of polyester products, as well as the “Strategy for the Development of Light Industry until 2025,” aimed at creating a complete value chain for technical textiles.
Currently, in the structure of added value in the light industry of the Russian Federation, 15% (~0.5% of GDP) is accounted for by the production of synthetic fibers and threads. At the same time, 60% of the country’s need for them (especially for the sub-sectors of technical textiles and non-woven materials) is met through imports (see diagram).
Selecting a site for the plant
The Ivanovo region has long-standing traditions of textile production and quite a lot of experience and professional competencies in this industry and, of course, the potential for subsequent local processing of the produced staple fibers. Therefore, the creation of a domestic raw material base for the production of textile materials on the Ivanovo land is more appropriate than in places close to oil and gas processing enterprises.
The production is well located from a logistics point of view (in close proximity to railway lines and roads). Taking into account the planned freight flow, there are already agreements with the Northern Railway administration on the use of currently underutilized railway terminals and stations in the cities. Ivanovo, Vichuga and Kineshma. In terms of external infrastructure (electricity, natural gas, water), there are free volumes and capacities in the region to provide the plant with the necessary resources.
In the region, there will be no problems with providing the enterprise with technical equipment and workers. Chemical technologists and textile engineers are already being trained by Ivanovo universities, which will minimize the number of invited specialists. In addition, the terms of the contract with the supplier of the main technological equipment also provide for the education and training of the required specialists at foreign companies both in polycondensation and in the production of staple fiber.
Applied technologies and technical solutions
The Ivanovo polyester complex is a high-performance enterprise of the first stage of the technological chain for the creation of technical textiles, using the most modern technology for the production of polyester staple fibers by direct molding from the polymer melt directly from the installation for its synthesis. In this case, the cost of the fiber is almost 15% lower than with a two-stage scheme: first producing polymer granules and then molding them using extruders. Both investments (since extruder molding requires a much larger number of single lines) and energy and operating costs are significantly reduced (the stages of granulation, granule cooling, their intermediate transportation and storage, crystallization, drying and melting of PET granules are eliminated).
Polymer synthesis is carried out using the most highly efficient two-reactor technology from the world leader - Uhde Inventa-Fischer GmbH (Germany). From the synthesis unit, the PET melt goes directly to the fiber spinning line. Thus, the production process (from PET melt to baled fiber) is carried out on a continuous production line with a capacity of up to 600 tons/day. The company's largest production lines and staple units are used in production. Oerlikon Neumag (Germany). There are three such lines, and they have the maximum productivity achieved to date by world leaders (up to 225 tons/day) for each type of fiber.
Range of finished products
It is planned to produce fibers with a linear density from microfiber (0.7-0.9 denier) to high titres (15 denier), including the latest world innovations (3D crimped, self-crimped, hollow siliconized fiber, etc.). The lines have very high technological flexibility and interchangeability of components and assemblies. A unified control system ensures the implementation and control of the technological process at all stages from the supply of raw materials to the packaging of finished products. The final products are packaged bales of staple fiber weighing up to 350 kg and PET granules packed in containers (soft “big bags”) weighing up to 1 ton.
Supply of the enterprise with raw materials
The main raw materials used are pure terephthalic acid (TPA) and monoethylene glycol (MEG).
TPA will be purchased imported in the next two to three years after production starts. There is a surplus of this product on world markets (world production volume is about 60 million tons). The customs duty on its import into the Russian Federation has been reset to zero. When capacity utilization is no more than 80%, there will be no issues with import supplies. At the same time, the Ivanovo polyester complex is very much counting on expanding the TPA capacity of JSC Polyef (part of OJSC SIBUR Holding) by 100 thousand tons per year, which can cover up to 50% of the project's demand for domestic TPA. It is also possible to introduce TPA production in Kazakhstan, which would reduce the delivery time of this raw material and completely eliminate its import from foreign countries in the future.
MEG is produced in Russia in sufficient quantities and will be supplied from Russian enterprises OJSC SIBUR-Neftekhim and OJSC « Nizhnekamskneftekhim”, agreements have already been signed with them. At the same time, the Ivanovo plant is only 208 km away from Dzerzhinsk (SIBUR-Neftekhim). Auxiliary raw materials and additives used in production in small quantities (fractions of a percent of the main raw materials), initially imported to ensure warranty tests, will later be mastered by chemical production in the Russian Federation (including partially in Ivanovo, where their analogues are already produced) .
Benchmarking of applied design solutions
At the stage of comprehensive examination of the project, an in-depth analysis of similar enterprises similar in capacity to the Ivanovo plant, and built over the past 10 years in the world (China, Korea, India, Iran), was carried out, both in terms of capital costs and operating costs in relation to investments in these projects. The synthetic fiber plant project is in no way inferior to its analogues, and in some respects it is more attractive, which, in particular, allowed us to receive a positive assessment from Vnesheconombank based on the results of an examination (financial, economic, technological, marketing, environmental) carried out with the participation of independent international consultants, and attract project investors.
The production cost of 1 ton of PET in South Korea, China, and India is approximately the same, fluctuations are in the range of +/- 2.5% of the average value. The indicators of the Ivanovo project are also in this range. This is due to the fact that 92% of production costs come from raw materials, which are a commodity on the world market and are sold at the same price. Fluctuations are possible only within the framework of other costs, which amount to 8% of the fiber production cost (mainly energy costs and labor costs). Taking into account the fact that the cost of labor costs in the above countries and Russia is getting closer, fluctuations in this indicator are insignificant.
The plant's products will be competitive not only in comparison with imported fiber, but also with domestic producers of fiber from recycled materials, not to mention the high export potential of the products of the future plant - they are also expected in Europe.
Thanks to the most modern technologies and equipment from world leaders, production will have the best indicators currently achieved in the world in terms of raw material consumption and energy consumption. This will ensure the production of products at a lower cost compared to competitors.
The only enterprise in the post-Soviet space for the production of primary fiber - JSC Mogilevkhimvolokno, Republic of Belarus - was very late in modernizing its production, which was built back in 1976 using the technology of fiber production through DMT (the raw material is paraxylene JSC « Naftan», Novopolotsk). Due to less efficient technology, they cannot boast of stable fiber quality, which is confirmed by all consumers on the market (“Mogilevkhimvolokna” in the Russian market today is about 13%).
The maintenance of the existing infrastructure greatly affects the price of Mogilevkhimvolokn products, which are sometimes more expensive than imported fiber. The production modernization they planned will affect only the PET bottle production plant. However, in essence this is the creation of a new production, but with the need to maintain old, worn-out, costly infrastructure. Let’s not forget that Mogilev completely imports the main raw materials (TPA and MEG).
Two more projects for the production of PET are being implemented in the Russian Federation - “SafPet” in Nizhnekamsk and “Pure Polymer Plant « Etana» in Kabardino-Balkaria, but the final products of their production do not overlap with the plant planned for production in Vichuga, since they focus on PET granules for packaging.
Environmental aspect of the created production
During the development of the synthetic fiber plant project, increased attention was paid to environmental issues.
During the design, all necessary procedures were carried out in terms of ecology and safety, provided for by the Town Planning Code of the Russian Federation, the Law of the Russian Federation “On the Sanitary and Epidemiological Welfare of the Population”, the Law of the Russian Federation “On Environmental Expertise” and the Regulations “On Assessing the Impact of Planned and Other Activities on the Environment” environment in the Russian Federation."
Important justifications were prepared: an Environmental Assessment (EIA) and a Project to justify the size and boundaries of the sanitary protection zone. A positive conclusion on the compliance of the placement of the PET complex with the requirements of sanitary and epidemiological rules and regulations was received by the Office of Rospotrebnadzor for the Ivanovo Region, and the EIA materials, accordingly. were finalized taking into account the received opinions and comments based on the results of public discussions of the EIA materials held in 2015.
Based on the design documentation and the results of engineering surveys for the facility “Complex for the production of polyethylene terephthalate (PET) for textile purposes”, containing, among other things, an environmental section and sections of industrial, fire and other safety, a positive conclusion was issued by the FAA “Glavgosexpertiza of Russia”, confirming the compliance of the presented documents requirements of technical regulations, including environmental requirements.
In addition, due to the fact that international financial organizations were involved in financing the project, the environmental and social risks of the project were assessed by the international company Mott Macdonald (UK) for compliance with the requirements of the Organization for Economic Cooperation and Development, the European Union and the Russian Federation. Mott Macdonald's Environmental and Social Impact Assessment (ESIA) concludes that the identified environmental impacts are low or negligible.
Note that, in accordance with the clarification of the Federal Service for Supervision of Natural Resources (Rosprirodnadzor), the design documentation of the PET Complex is not the subject of state environmental assessment at the federal level, in accordance with 174-FZ.
During the inspection of compliance of JSC "Ivanovo Polyester Complex" with the requirements of legislation on environmental protection and natural resource management, on environmental assessment, and urban planning legislation, carried out in 2017 by the Ivanovo Interdistrict Environmental Prosecutor's Office, no violations of laws related to the subject of the inspection were identified.
Demand for the plant's products
The appearance of such popular products on the Russian market will give a serious impetus to the growth of the production of various synthetic materials and fabrics containing polyester fibers and threads, as products of high value-added hydrocarbon raw materials, used in various industries. For reference, today there are about 1.3 billion sq. m of polyester-containing fabrics and materials are imported into the Russian Federation, and this, with the support of the Ministry of Industry and Trade of the Russian Federation, can be gradually replaced by domestic production, but subject to the availability of the necessary raw materials within the country.
The project is extremely relevant due to the growing volume of consumption (in 2016, consumption was about 180 thousand tons, of which more than 60% was imported) in the Russian Federation of polyester staple fibers and, above all, in the production of various nonwoven materials. The greatest demand is observed in such segments as the automotive industry, industrial and civil construction, medicine and hygiene, protective textiles, where the added value is not lower than woven processing.
The plant's product range is very wide - from microfiber to special-purpose fibers, as well as textile PET granulate for the production of filament yarns. Production flexibility allows you to quickly respond to changes in market conditions and switch from one type of fiber to another in a short time.
All domestic consumers of textile raw materials and semi-finished products will be provided with high-quality and affordable raw materials at competitive prices. Already at the stage of design and investment decision-making, the Ivanovo polyester complex held negotiations with Russian and foreign buyers and consumers, as a result of which letters of interest in cooperation were received and preliminary agreements were signed in the amount of 158 thousand tons of polyester fiber and textile PET granulate per year ( which is about 80% of the plant’s design capacity). The CIS market potential is still about 100 thousand tons. IPK JSC is continuously working with potential processors of textile PET in order to meet their demand for the future. The first batches of polyester fiber and textile PET granulate will arrive on the Russian market in 2020.
Accounting
