M Sintez will build plant in Alga SEZ to produce cetane improver additives for diesel fuel
Ishimbay M Sintez LLC defended its project for the production of a cetane improver additives for diesel fuels in the territory of the Alga Special Economic Zone. The application was considered and approved by the Expert Council in the government of Bashkiria. The company will soon receive official resident status and the tax benefits it entails. The project was presented by the director of the company Alexey Balyanov, a major specialist in the field of petro-chemistry.
He explained that the location of the Alga SEZ was strategically important for the future plant — the main supplier of raw materials, Gazprom neftekhim Salavat, and the sales market are located nearby. “Out of 24 Russian refineries, most of them are located nearby — the refineries of Ufa, Salavat, the central part of the country,” the M Sintez CEO said.
After reaching full capacity (Q2 2023), the company plans to occupy 30-40% of the domestic diesel additive market. 20% of the diesel additives market is imported, mainly from Poland and the USA. Another growth driver is the transition of diesel fuel to the Euro-6 standard — the cetane number increases from 51 to 55.
The equipment for the new plant will be supplied by the German company Joseph Meister, which has built more than 500 similar plants in various countries since the 70s. “The technology was chosen for reasons of reliability and safety, the stability of regimes, economic calculations,” explained Alexey Balyanov.
At the moment, M Sintez has agreed with the government of the Federal Republic of Germany the import of equipment, and soon the supplier will start manufacturing the order. According to the plan, construction should begin in the summer of 2021 on site No. 3 with a square area of 23 hectares.
The plant will need not only electricity, gas, and water but also transport infrastructure: it is planned to build railway and automobile loading and unloading racks.
M Sintez plans to produce 30 thousand tons of products per year, which will require 25 thousand tons of 2-ethyl hexanol (produced only by "GNS" and the Perm plant "Sibur") and 12 thousand tons of nitric acid.
The cost of the project is 5.57 billion rubles, of which the project — 580 million, equipment — 2.3 billion, construction — 1.7 billion, commissioning — 400 million. M Sintez will invest 1.6 billion rubles of own funds, plans to borrow 3. 9 billion rubles at Gazprombank. Germany's Commerzbank will finance the European part of the project. The transaction is insured by the Euler Hermes export insurance agency.
The company expects to receive a yield of 18% at a discount rate of 12.5%. Net discounted income for 15 years is assumed to be 1 billion rubles. In 2024, M Sintez will be able to contribute 355.7 million rubles of tax deductions to the republican treasury.
M Sintez LLC was established in March 2019 to implement an investment project. The founder of the company is "M Industry" LLC of Moscow businessman Alexei Matyushov.