Metafrax decides against buying foreign assets, to develop Perm territory plant instead
PERM. Dec 26 (Interfax) - Metafrax , a major Russian methanol and formalin producer, has shelved plans to acquire production assets abroad in favor of developing its own production facilities in Gubaha, Perm territory.
Metafrax shareholders voted down a motion to loan 95 million euro to a subsidiary, Metadynea Holding GmbH (Austria), at an extraordinary meeting on Tuesday.
The funds would have been used for the acquisitions, Maria Konovalova, an advisor to Metafrax board chairman Armen Garslyan, told Interfax. However, after conducting audits of the projects, shareholders decided the investment would not be expedient.
"The investment projects proposed for the Metafrax production site are currently more economically effective. We plan to concentrate on development of the Gubaha plant of the group of companies," Konovalova cited Garslyan as saying.
Metafrax plans to build an ammonia and urea complex in Gubaha and add two lines for formalin production. The program envisages spending $700 million to $800 million on the ammonia and urea plant. Metafrax is considering two capacity versions of from 400,000 tonnes to 600,000 tonnes of urea per year. Construction could get underway in 2015 and the new plant is expected to be launched in 2017-2018.
Metafrax is one of the leading Russian producers of methanol and formalin.
