Kazan building 10 bln ruble silicon plant
KAZAN. June 18 (Interfax) - OJSC KZCK-Silicon, a subsidiary of OJSC Kazan Synthetic Rubber Plant (KZCK), started building a silicon plant in Kazan on Wednesday, an Interfax correspondent reported from the building launch ceremony
The plant is expected to cost 9.8 billion rubles, of which Vnesheconombank will lend 7.8 billion rubles. KZCK initiated the project.
The discounted payback period (DPBP) for the project is 10.8 years and the internal rate of return (IRR) is 23.6%. Average annual revenue once projected capacity is achieved is projected at 5.9 billion rubles.
Russian Industry and Trade Minister Denis Manturov said at the ceremony that establishing the plant was important for various sectors of the economy, including aircraft construction, car manufacture, aerospace and for the production of innovative civil and military products.
"The post-Soviet space has not yet had organosilicon production capacity," the minister said.
The plant will be able to turn out 40,000 tonnes of product annually, he said. "The size of the market in Russia is 50,000 to 60,000 tonnes. Need is growing faster than the general rate around the world. The development of this segment is one of the most important areas of development in the chemicals and petrochemicals industry to 2030," Manturov said, adding that the new plant will boost not only existing Russian companies, which will be able to stop importing, but also encourage new companies. In addition, as the plant reaches its projected capacity it can start exporting.
The minister pointed out that the project was being carried out as a private-government partnership. Money is being invested by private investors - KZCK and by Vnesheconombank. In addition, 850 million rubles in budget funds as part of one of the federal target programs will be invested.
The new plant is due to open in late 2015 - early 2016.
KZSK Board Chairman and Spurt Bank Chairman Yevgenia Dautova said plant capacity may later be increased to 100,000 tonnes per year.
Up to 20% of the production at the new plant will be used by KZCK to manufacture silicon materials. The company hopes to increase the efficiency of existing companies and significantly reduce dependence on imports.
