Togliattiazot has defined its development strategy
The Board of Directors of Togliattiazot (Samara Region) has approved a new development strategy until 2025.
The strategy provides a full formal definition for the mission of Togliattiazot, which was formulated by the management and the board members as follows: “We care about land fertility and crop yield for the benefit of the whole world.” The document states that the company will strive to become a leader in the production of nitrogen fertilizers in Russia and enter the TOP five largest producers in the world.
To achieve this goal, the strategy implies an increase in output (including ammonia by about 40% to 4.15 million tons per year, and urea by more than 2.5 times to 2.53 million tons per year) and a growth in EBITDA by 3.3 times.
The new strategy of Togliattiazot outlines strategic initiatives that will allow the company to achieve the stated performance, as divided into three blocks: increasing operational efficiency, improving commercial efficiency and the production site development.
In order to increase the operational efficiency of Togliattiazot, it is planned to bring the repair function in line with best practices in terms of the frequency and duration of turnaround maintenance, to increase the labor efficiency and reduce gas consumption rate.
Changes in the sales structure in the foreign and domestic markets, as well as the improving commercial terms for the main products with key customers should help to enhance the commercial efficiency of Togliattiazot.
The following targets are stated in the “production site development” block: the construction of a urea plant No. 4, the ammonium nitrate and the urea-ammonia mixture production unit to add new products to the portfolio, the completion of the construction of a fertilizer transshipment terminal in the port of Taman and the increase in the productivity of the ammonia production units.
Investments in the development of the production capacities and the increase in production volumes will amount to 112 billion rubles (approximately $ 1.8 billion).
“The new strategy shows an ambitious vision that reflects the leadership aspirations of not only the management, but also the entire team of Togliattiazot. We believe that the stated targets for the medium term are absolutely realistic, since a lot of work has been done as a part of the strategic modernization program over the past 7 years: more than 33 billion rubles (almost $ 485 million) has been invested in upgrading the production facilities of PJSC TOAZ. The next step, as recorded in the new strategy, is the production development, product portfolio expansion, better marketing so that products of Togliattiazot become a synonym of efficient agriculture all over the world,” Petr Ordzhonikidze, PJSC TOAZ Chairman of the Board, commented on the adoption of the strategy-2025.