TogliattiAzot has been a successful chemical plant for almost fifty years. The enterprise has been actively involved in Togliatti’s educational, social, and environmental life and the Samara region. Let’s discuss the details of the company’s work in different spheres.
About Public Joint Stock Company TogliattiAzot (TOAZ PJSC)
TogliattiAzot is a huge ammonia producer not only in Russia but also in the world. In fact, it belongs to the most productive three companies in the world that can produce more than 3 mln. tons of ammonia per year. The plant also produces urea-formaldehyde concentrate and a few other chemicals that are bought by all five continents. That’s one of the largest companies in Russia according to such leading international magazines.
TogliattiAzot PJSC is an environmentally, socially, and educationally responsible enterprise that significantly contributes to the Samara region’s budget. In addition to producing vital chemicals for different countries of the world, TOAZ is also involved in implementing social and educational initiatives and charity and sponsorship activities. TOAZ offers the Samara and Togliatti regions’ citizens several educational and cultural programs and develops theatrical and musical art with the financial support of reputable partners.
History of Togliattiazot
The history of TogliattiAzot took its beginning in the 1960s when many countries started experimenting with making ammonia from nitrogen. That’s a perfect basis for other chemicals that can be used in the agricultural sphere. The Earth’s population is quickly growing, but many territories of Russia aren’t good enough for agriculture; thus, they need lots of nutrients and fertilizers that would be safe for the soil and consumers. In 1973, TOAZ started to provide equipment and arrange the ammonia production. By 1979, the plant in Togliatti was constructed and launched.
From the 1980s, the company started using the latest technologies and facilities to meet inner agricultural partners’ needs from other countries. The latter is supplied with ammonia due to the unique 2400 km long pipeline built in 1981. At that period of time, the company started producing liquid carbon dioxide and urea-formaldehyde resin.
1991–2000 was the hard period for the plant since the ownership of the company changed. Vladimir Nikolayevich Makhlai became the Chairman of the Board of Directors and the CEO of the plant. TogliattiAzot diverted its production process with the addition of creatine kinase to the portfolio of chemicals. The enterprise created workshops involving construction materials.
In 2001, TOAZ celebrated its 30th anniversary and started building a carbamide and ammonia transshipment complex in Taman port. Two years later, the company initiated the construction of the Krasnodar Territory port. With the launch of the Modernization Program 2011-2020 in 2010, ammonia units No. 2 and No. 7 were modernized, and the UV disinfection unit at water treatment facilities was started.
In 2011, Sergei Vladimirovich Makhlai became the new Chairman of the Board of Directors. In 2015, Vyacheslav Valeryevich Suslov was elected the new CEO of TogliattiAzot. Mr. Suslov managed to modernize the technical and operational aspects of TOAZ. Thus, ammonia units No. 4 and No. 6 were modernized, the refrigerator storage tank was improved, carbamide unit No. 3 was constructed, and repairs of carbamide unit No. 2 was completed. As a result, the capacity of the enterprise has significantly increased.
TogliattiAzot Plant
The nitrogen plant was constructed in the 1970s under the agreement with the prominent U.S. company called Armand Hammer’s Occidental Petroleum. Thousands of workers were employed on the new chemical plant to implement the serious project for the huge construction. Thus, the construction of the TogliattiAzot Plant was announced as the All-Union Intensive Komsomol project. Many men and women from around the country arrived in Togliatti to dedicate themselves to the enterprise. These people became founders of labor dynasties who are still working on TogliattiAzot. The best construction companies in Russia provided significant assistance in the construction of the plant. Foreign specialists were involved in the process too. At that period of time, the Togliatti-Odessa ammonia trunk pipeline was built to stretch over two thousand kilometers.
TOAZ Products
TogliattiAzot produces several chemical products, with ammonia being the major one. Ammonia is used as a component in refrigerator coolants and fertilizers to increase crop yields. The chemical is also applied in the metal and plastics industries. Carbonic acid is another product made by TOAZ. It can be solidified into dry ice or used to carbonate water. It’s often used in medicine, shipbuilding, mechanical engineering, automobile construction, food-processing, and the oil industry.
Urea produced by TogliattiAzot plants is used as a protein additive to animal foods and effective nitrogen fertilizer. It’s also used in the production of adhesives, plastics, packs, artificial resins, as well as in the process of refining petroleum products. Urea Formaldehyde Concentrate (UFC) is produced in two grades: the first is used to process granular nitrogen fertilizers, while the second one is used to produce resin.
Basalt fiber and film are environmentally friendly thermal insulation materials of high quality. These are more functional than glass wool. TOAZ also produces refractory materials and fruit in cooperation with an Austrian company, “Plibrico.” Besides, the plant produces 60 million bricks annually, which are in high demand across Russia.
TogliattiAzot Ammonia Production
As mentioned, TOAZ is the only plant on the planet that can produce about three million tons of ammonia per year. The company exports its products such as ammonia, urea, urea-formaldehyde condensate (UFC), bricks, refractory materials, basalt fiber, and others to more than 120 countries of the world.
One of the vital investment projects of the enterprise is the seaport construction. The object is meant for the transportation of ammonia and other commercial cargo on the Taman Peninsula. The company has recently invested many finances in the port project, so most of the facilities are finished already. The construction of the facilities has been completed up to the highest environmental and security standards.
TogliattiAzot started producing ammonia in April 1979. In that period of time, the first unit for producing urea began its operation. In August 1983, the company started producing liquid carbon dioxide, and in October 1985, the plant began the production of urea-formaldehyde resin. There are seven ammonia units at the site, four of which were made by Chemico; АМ-76 constructed the others.
TogliattiAzot Ownership
In May 2017, Petr Ordzhonikidze was chosen as the Chairman of the Board of Directors of PJSC TogliattiAzot. Being a real professional in administrative practice, international government, public law, and institutional relations, Mr. Ordzhonikidze was also the Chairman of the Partners’ Committee at Kesarev Consulting for a certain period of time. 2003-2007 he was the head of Cassidy & Associates’ Russian office, which was the major international GR firm at that time.
Vyacheslav Suslov is currently the CEO of CJSC Corporation TogliattiAzot. In 2008, Mr. Suslov was appointed head of the Department for Telecommunications, Technical Security Equipment, and Automatic Fire Alarm. Three years later, he was elected member of the Board of Directors of OJSC TogliattiAzot. Since January 2015, Suslov has been CEO of CJSC Corporation TogliattiAzot.
TogliattiAzot Board of Directors
Before Petr Ordzhonikidze was elected Chairman of the Board of Directors in May 2017, his post was taken by Sergei Vladimirovich Makhlai from March 2011. Mr. Makhlai managed to conduct important reforms at the plant together with his new team. He actually turned TogliattiAzot into a high-capable enterprise. Over seven years of his tenure, Sergei Makhlai retained TOAZ’s position as the leading producer of ammonia of the world. Under his supervision, the plant has increased ammonia production from 2.3 mln tonnes in 2012 to 2.9 mln tonnes in 2016. Sergei Makhlai contributed to the renovation of ammonia units 2, 3, 4, and 6 and both urea units in 2015 – 2016.
Petr Ordzhonikidze became the Chairman of the Board of Directors of PJSC TogliattiAzot in May 2017. Since that time, TOAZ has completed a major construction project involving the third urea unit that can produce 2,200 tonnes of ammonia daily. TOAZ has been working on a unit that can now produce 1,860 tonnes of ammonia per day from sweeping gases. It is expected that investments in the upgrade program will reach RUB 80 bln in 2021.
TogliattiAzot Shareholders
About 71% of the company’s shares are held in trust by Togliattikhimbank. Raiffeisenbank is the shareholder of 12.96% of the Togliattiazot’s shares. Another 9.97% of the plant’s shares belong to Uralсhem. The rest of the shares are controlled by a few legal entities and individuals. Renova Group purchased up to 10% in TogliattiAzot in 2005. Three years later, the affiliated entity sold its share to Uralchem. It is unknown who possesses other minority shareholders.
In September 2015, it was announced that 51% of the company’s shares belong to Kirsan Ilyumzhinov. Two months later, TogliattiAzot canceled the agreement with Kirsan Ilumzhinov’s Credit Mediterranee SA fund.
TogliattiAzot Care
TOAZ pays a lot of attention to the social infrastructure of the Komsomolsky district because most of its employees come from this place. TogliattiAzot takes part in the development of healthcare and social aspects, financially supporting citizens in need, and is involved in the city’s social life. The company’s projects aim to enhance the social environment with Togliatti adult day care center, city Hospital, orphanages, charity funds, Rehabilitation Center, and religious institutions.
The program is known as “Chemistry of Kindness,” designed to support cultural and social initiatives, solve problems of the region, and improve the social and cultural environment. The program is maintained by non-governmental, nonprofit, and public organizations, as well as state and municipal budget organizations, charity foundations, and local self-government companies.
Grant programs for adoptive families are specially designed for families with adopted children who are often disabled. The necessary funds are given to people who take care of adopted orphans, children without parental care, and disabled children. The funds can be used to improve a child’s living space, provide them with travel and rehabilitation opportunities, buy medical equipment, etc.
TogliattiAzot Education
TogliattiAzot contributes greatly to the educational sphere of the region. Its art program, “Impulse,” provides skilled students with scholarships. The program is supported by the Togliatti Philharmonic and the charity Fund “Not Indifferent.” The scholarship fund is enriched with finances that come from ticket sales to concerts of Russian and international artists held at the House of Culture.
TOAZ program “Chemistry of Skills” was launched in July 2018 and is intended to support elderly people who wish to improve their qualifications and develop their professional skills. The program can benefit the Samara region residents looking for new job opportunities and knowledge in new areas such as computer literacy, foreign language, and basics of entrepreneurship.
TogliattiAzot Strategy
In 2011 the plant launched a long-term upgrade program through 2020. Its goal is to increase the competitiveness of the world’s chemical market. The company aims to boost its performance by enhancing management processes, upgrading production facilities, increasing human resources, decreasing negative environmental impact, and investing in the region’s development.
TogliattiAzot prioritizes its leadership positions in the chemical industry of the world as a leading ammonia producer. It produces 10% of ammonia in the world. The enterprise appreciates its current efficiency, so stability has been a vital aspect of its operation.
In 2012, TOAZ launched the production facility upgrade program through 2022. It involves the upgrade and repairs of the plant’s production facilities, such as 7 ammonia units and 2 carbamide units, 2 refrigerated tanks for liquid ammonia, railroad infrastructure, and biological treatment plants.
In 2018, the construction of a new ammonia purge gas recovery unit was launched. Its capacity is 1,860 metric tons per day. Its uniqueness consists in the fact that ammonia production from purge gas produces minimal gaseous and liquid waste. The unit started its operation in 2020.
TogliattiAzot has significantly contributed to the Russian market of mineral fertilizers. The company currently exports its products to 120 countries. With the thought about employees’ health and safety, as well as environmental protection, the enterprise works in line with the standards of environmental law. TOAZ provides its workers with safe working conditions to prevent any incidents. The company’s development strategy through 2022 involves environmental events to reduce the negative impact on the environment.
Conclusion
TOAZ is not only a leading ammonia producer in Russia and the world, but it is also a socially, educationally, and environmentally oriented company. Charity is a vital function of the enterprise, which makes it unique. Through its humanity-directed projects, TogliattiAzot makes the world better! TOAZ invests money into the development of the region, including its social infrastructure and social work. The enterprise operates with the thought about the environment and nature.
