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17.10.2019

Perm Region and Merafrax Signed an Additional Agreement to the Special Investment Contract related to the AUM Project

Perm Region and Merafrax Signed an Additional Agreement to the Special Investment Contract related to the AUM Project

On October 17, during the Perm Engineering and Industrial Forum, a Three-Party Additional Agreement was signed between the Perm region Government, Gubakha administration, and PJSC Metafrax.

Earlier, the regional authorities decided to support the company in terms of expansion of the Ammonia, Urea, and Melamine Complex construction investment project. The investment project was issued for construction of the second Melamine Plant that increases the scope of investments by 19.7 billion rubles.

The Plant will be integrated into the Ammonia-Urea-Melamine (AUM) Complex that is currently under construction in Gubakha and allow increasing of melamine output at the company’s industrial site by 40 thousand ton per year, as well as creating of 59 additional skilled jobs.

Besides, Perm region readiness to provide Metafrax with tax remissions and Metafrax readiness to put the project investments in scope of 77.9 billion rubles in execution and to realize necessary activities to create and acquire the asset complex intended for production with the overall profit scope of 17.5 billion rubles during the Special Investment Contract validity period from 2020 to 2027 are specified in the Additional Agreement.

According to Vladimir Daut, General Director of Metafrax, the company decided to become one of the largest Melamine manufacturers in Europe. A least 50% of the total receipts will be supplied to Metafrax Group of Companies for internal use: «According to our estimations, today, the Russian market volume makes about 50 thousand ton per year. But we can see the high growth potential. We intend to realize a half of the produced Melamine in the market. Correlation of the internal sales and the export will depend on the current market conditions. After Metafrax will put the second Plant in operation, Russian companies are able to satisfy requirements of the internal market».

We would like to note that the Three-Party Special Investment Contract related to the Ammonia, Urea, and Melamine Complex construction had been concluded between PJSC Metafrax, Perm region, and Gubakha administration in February, 2018, during the Russian Investment Forum in Sochi.