ENTERPRISES OF THE PETROCHEMICAL GROUP “TAU PETROCHEM MANAGEMENT” LLC SUMMED UP THE RESULTS FOR HALF-YEAR PERIOD
During the first 6 months of 2020 the production processes of JSC “Sintez-Kauchuk” and “Sterlitamak Petrochemical Plant” were managed with the use of anti-crisis tools which made it possible not to reduce capacity, supporting the stable operation of enterprises.
The beginning of 2020 turned out to be difficult for the global economy: the unprecedented in the area of distribution COVID-19 pandemic combined with oil prices falling, closing borders and imposing a ban on movement of citizens in most countries paralyzed business activity in all industries. The isolation of cities, the shutdown of certain industries hit the country"s export market. Considering that the export share of JSC “Sintez-Kauchuk” and “SPP” accounts for about 60 percent of the manufactured products, the managers of “TAU PetroChem Management” LLC urgently had to adjust the current production management model as early as in January. The creation of a balanced product portfolio, reorientation to domestic consumers from different sectors of the economy, optimization of costs and prioritization of capital expenses made it possible to compensate for the negative effects and ensure the smooth operation of factories during 2020.
During the first 6 months’ period manufacturing of the main products - rubbers SKI, SKS, Agidol-1 crystalline, Agidol feed grade, 2,6-diTBP - remained at a fairly good level. Production and shipment to consumers of some items increased. For example, in comparison with the first half period of 2019 sales of SKI-3S rubber increased by more than twice to neighboring countries, and by 15% abroad; shipment of some types of special rubbers for the needs of the defense industry increased by 20%; despite SKS-30 ARKM-15 rubber sales slowdown in the domestic market, its export increased by more than 10 times and as a result, sales growth increased by 8%; the cumulative growth SKS-30 ARKPN rubber shipments in Russia and to foreign consumers is noted to increase by 61%. Fuel for small aircraft was in increased demand. Aviation gasoline of AVGAS 100LL grade sales increased by 37.29%, of B-91/115 grade increased by 58.22%. This is mostly due to the active promotion of fuel on the Russian market. To increase brand recognition and spread information about products, an agreement on providing sponsor support was concluded with the Regional Public Organization "Moscow Aircraft Sports Federation". The plans include participation in the 13th International Helicopter Industry Exhibition HELIRUSSIA-2020. Partnerships were also systematically expanded and the production and sales volume of IMTGFA increased with them - an increase by 10.25% against the values of the previous year. Particular attention was paid to IMTGFA grade 3 - a new product manufactured last year distinguished by its ability to be stored in a stable liquid state. After successful homologation among consumers this brand is steadily gaining popularity. Its share in the total structure of IMTGFA sales was 14% (5% in 2019). The possibility of increasing production capacity is currently being considered.
The pandemic also opened up new perspectives for logisticians who consider shifting cargo traffic today to rail transport to become today’s trend. For example, a significant increase in rail traffic was recorded in the overall structure of aviation gasoline sales. If during 7 months of 2019 541.2 tons were transported by rail, then in 2020 this figure increased to 860.96 tons. The increase was by 59%. The territory of deliveries also expanded - in addition to the main warehouse in Sterlitamak, active shipment was made from warehouses in Podolsk, Nizhny Novgorod, Klin. According to analysts the railway in the next few years will become one of the main logistics channels to ensure uninterrupted trade not only within the country but also between the Russian Federation, China and Europe (its operators do not respond to changes in demand by increasing rates and therefore this type transport seems to be the most reliable and efficient in the transportation of goods in the current circumstances).
The enterprises of the petrochemical group "“TAU PetroChem Management” LLC quickly adapted to the changing economic conditions and today they are concerned not only with maintaining the continuity of existing production processes but also with the implementation of projects that will allow the company to continue its growth. So during the crisis period, the staff of JSC “Sterlitamak Petrochemical Plant” mastered the industrial production of a new product - Agidol-3 (Mannich"s Base). Its samples were sent to potential consumers in the USA. Currently, the certification of the corporate quality management system is being completed for compliance with the new version 6.0 of the European code of practice FAMI-QS in relation to the production of Agidol feed grade.
Overcoming the current crisis has become an unprecedented challenge for the management team and production workers who have successfully countered this challenge.