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Index page
» For investors
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Construction of bottle-grade PET plant at JSC
“Mogilevkhimvolokno
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À. Project
opportunity description
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À1. Project
Name
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(à) Short
name: Ñonstruction of bottle-grade PET plant.
(b) Full name:
Construction of bottle-grade PET plant with a capacity of 120 kt/year at JSC
“Mogilevkhimvolokno”, Republic of Belarus.
(c) Brief description: The
project is aimed at purchasing of complete equipment and building of PET
(bottle grade) plant, thus increasing capacity of PET production and sales
and ensuring export growth.
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A2.
Project Status
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Pre-investment stage.
Negotiations with foreign companies aiming at a development and receipt of
their technical-and— commercial proposal are under way. An investor is required.
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A3. Organizations Involved and Their Roles
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(a) Borrower — JSC
“Mogilevkhimvolokno”, Republic of Belarus, Mogilev – 35
General Director – Sergey M.
Puzevich, Tel.: + 375 222 497412, Fax: + 375 222 322053, 322070
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À4. Project Description (approaches, aims,
components, results, stages, general financing, advantages, influence on
transition period in economics, etc.)
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The project is planned
to be implemented at JSC “Mogilevkhimvolokno” by building a new bottle-grade
PET plant.
OAO
"Mogilevkhimvolokno" has experience of building and operation of a
similar plant – since 2008 the continuous polycondensation plant with a
capacity of 80000 t/year has been operated. The project covers purchasing and
installation of equipment for PET (bottle grade) production from PTA combined
with post-polycondensation, that will ensure bottle-grade PET production
bypassing the stages of pelletizing and post-polycondensation at SSP plant.
The feedstock for the
plant shall be purified terephthalic acid. Financial and economic estimate
under the project was made in euro as on June 1st, 2009 under the
conditions of free economic zone "Mogilev".
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À5. Background/history/overall
programme/related or similar projects
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As is customary in the
world practices, polyester production development is increasingly based on
the use of PTA.
Presently the major
polyester producers, DuPont (USA) and Hoechst (Germany) (though having their
own DMT production capacities which are not in full use) are building their
new plants to operate based on PTA.
The currently
functioning polycondensation plants of OAO “Mogilevkhimvolokno” were built in
1978 and were based on UHDE (Germany) technology. Quality indices of PET
polymer produced at these plants do not comply with the world standards. JSC
“Mogilevkhimvolokno” is implementing a number of investment projects within
the period from 2004 to 2010: production of non-woven materials; production
of technical yarns including those for the tyre cord; modernization of PET and
DMT plants.
A new bottle-grade PET
plant will make it possible to reduce the consumption of materials and energy
in the polyester production process due to the modern technology to be used.
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À6.
Environmental impact summary
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The state-of-the-art
equipment and advanced technologies used will allow for a reduction of the
total amount of atmospheric emissions. Modern dust and gas collectors will be
installed on all gas emission sources. Solid wastes from PET production will
be sent to incineration with thermal energy recovery and flue gases
purification. Liquid wastes will be treated at the biological purification
plant. The purification plant sludge will be incinerated. The equipment and
know-how supplier guarantees that the harmful emissions will be within the maximum
allowable concentration limits according to the legislation of the Republic of Belarus.
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À7. Possible obstacles/ problems/ risk
assessment
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— Guaranteed products
realization both for own consumption and for export;
— Expansion of
paraxylene production by the enterprises of the Republic of Belarus.
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À8. Project implementation and recoupment
period (years)
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Project implementation period –
2009-2012, project recoupment period – 6,9 years
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À9. The branch of industry the Project
belongs to
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Chemical branch
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B. Capital Cost Items (total investment requirements
for the Project implementation)
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Â1. Project physical components
(equipment, works, services, etc.) required for the Project realization
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Â2.
Capital investments EUR mln.
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Pre-investment outlay
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0,7
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Building and installation operations
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7,6
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Equipment
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48,7
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Other
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6,1
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Total:
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63,1
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C. Source of capital available with the Project
organizers (holders, copartners, sponsors, etc.)
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C1. Source type (grant, investment, share in
capital/assets, etc.)
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C2. Amount
EUR mln
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Own funds of JSC
"Mogilevkhimvolokno"
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9,4
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D. Required Investments, Deficient Funds
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D1. Financing
gaps, type of financial assistance (credit, share in capital and other)
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Financing gap is 53,7 mln. EUR.
Type of financial assistance – crediting, direct investment.
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D2. Sources of finance
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D3.Type of financial instrument
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D4. Amount
EUR mln.
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Investor's funds
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Direct
investments,
Crediting
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53,7
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Å.
Demand (Users) and revenues
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Å1. Type of users/markets, volumes,
pricing, revenues, quantifiable benefits/savings:
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Major market for this product is
planned to be Russian Federation. The capacity of this market is currently
estimated to be over 800 kt/year. Annual increase in bottle-grade PET demand
is 10%. Today over 460 kt/year of PET is imported into Russian Federation.
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Å2. Revenues (Sales)
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Å3. Amount
EUR
mln.
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Upon
establishment of joint enterprise sales are planned for OAO
“Mogilevkhimvolokno” and Russian Federation market.
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101,8
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F. Operating and Maintenance Expenses
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F1. Components of expenditures, strategy of expenses
defrayment, production organization
For the project implementation
there are spare utility pipelines, communication networks and sources of
energy. To install a new plant a complex of new buildings is to be
constructed.
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F2. Articles of expenses
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F3. Amount, EUR mln.
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Feedstock
and basic materials
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80,5
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Process
utilities
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1,8
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Wages
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0,4
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Depreciation
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5,1
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Other
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0,6
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Total cost
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88,4
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G. Net
Income Value
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G1. Receipts E2 less operating expenses F2
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G2. Amount EUR mln.
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Under
the conditions of Free Economic Zone "Mogilev.
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13,4
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H. Source of Information about the Project
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H1. The Form has been filled by (Full name): Mr. Alexei V.
Yakovlev – Deputy Chief Engineer for Technical Development
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H2. Enterprise (Name and Address): JSC
"Mogilevkhimvolokno", Republic of Belarus, 212035 Mogilev -35
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H3. Telephone / Fax / E-mail: (0222) 49-99-82, (0222)
45-34-59, invest@khimvolokno.by
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Í4.
Date: 26.08.2009
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H5. Project departmental identity: Concern
“Belneftekhim”
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