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Togliattiazot, top ammonia producer – plans for 2021

Togliattiazot (TOAZ) is one of the most important companies in the Russian chemical industry, one of the three main producers of ammonia in the country and one of the top ten world leaders. It is the only chemical plant in the world capable of producing 3 million tons of ammonia per year. The main activity of TOAZ is the production of mineral fertilizers and chemicals. Today, the plant includes seven ammonia production units and two urea units, located on more than 200 hectares of the production site.

ContentsCompany historyProduction processWork strategyStrategic prioritiesProduction stability and efficiencyMarket expansionIndustrial safety, labor protection and environmental protectionEffective management for long-term competitiveness

Since its foundation, Togliattiazot has played an important role in the development of the country's chemical industry and the welfare of the hometown of Togliatti and the entire Samara region. TOAZ is one of the five largest taxpayers in the region and also provides jobs for over 5,000 citizens. In addition to the Russian Federation, their customers are located in dozens of countries on five continents. TOAZ's capacities make it possible to supply approximately 20% of Russian market demand and 11% of world ammonia exports. Uninterrupted supply is guaranteed by a well-developed infrastructure:in addition to its own railway fleet of more than 1,400 wagons, TOAZ has access to the unique Togliatti-Odessa ammonia pipeline with a length of more than 2,000 km.

The high standards of TOAZ's corporate policy make it possible to declare that their social package is one of the best in the industry. Each employee benefits from quality medical care and spa treatments. Young specialists and veterans of the work are assured of material support. Thanks to prevention work in Togliattiazot, no occupational illness has been recorded since 2007.

TOAZ lives and thrives in Togliatti, so taking care of its native region is of utmost importance to the company. Their laboratories continuously monitor compliance with environmental standards in and around the workplace. Every day, not only employees of the company, but also residents of the city and residents of the Samara region use the social facilities of TOAZ. Modernization, technology, ecology, human capital, these are the priorities of the development of Togliattiazot. Continuous progress allowed the company to reach serious heights, becoming the largest ammonia producer in Russia.

History of the company

At the beginning of the 20th century, the scientific community in different countries began experiments on the binding of atmospheric nitrogen to ammonia as the basis of other compounds which began to be used in agriculture and the chemical industry, responding to growing fears of food shortages due to the Earth's growing population. The vast territories of the country, not very suitable for agriculture, required a large amount of fertilizer that was harmless to the soil and the environment. To solve this problem, in the late 60s of the last century, negotiations were held on the supply of equipment and the organization of domestic ammonia production. From this moment the story of Togliattiazot begins.

In 1973 an agreement was signed between the structures of the USSR and the USA on the supply of equipment. In the following years, the construction of the Togliatti plant and the Togliatti-Odessa ammonia pipeline began. In 1979, the company produced the first ton of ammonia.

Since the beginning of the 80s, production facilities have been built and put into operation in the company using the latest technological advances. The production of new products is developing in response to the needs of the country's agricultural producers and within the framework of the implementation of agreements with foreign partners, the deliveries of which are carried out through a single ammonia pipeline of a length over 2400 km. . In 1981 – 1986, the commissioning of the Togliatti-Odessa ammonia pipeline, the urea-formaldehyde resin plant and the ammonia unit No. 7 was carried out. In 1983, the first batch of liquid carbon dioxide was produced. In 1990, the ammoniacal water production unit started its activities.

The Togliattiazоt team encountered a period of change under the leadership of Vladimir Nikolayevich Makhlai who led the company in 1985. During the transition period ownership changed and further diversification of production followed. Workshops for the production of building materials are organized to meet market needs, and the chemical direction is supplemented with the production of KFK. In 1992, Togliattiazot was transformed into a limited company and started producing building materials. During this period, Vladimir Nikolaevich Makhlai was elected chairman of the board and general director of the plant. In 1998, the KFK plant began to operate.

The transition to the new millennium coincided with the 30th anniversary of the beginning of Togliattiazot's work. Overcoming the historical milestone and accelerated economic development of Russia in the early 2000s necessitated the introduction of new technologies, modernization and expansion of production capacities to meet demand in the global market. This idea was reflected in the vast modernization program adopted in 2012. In the early 2000s, Togliattiazot launched a major infrastructure project:an ammonia and urea transshipment terminal is being built on the Black Sea in the port of Taman.

In 2003, the construction of the port in the Krasnodar Territory began. In 2008, the ultraviolet disinfection unit started operating at the treatment plant. The "Modernization Program 2011-2020" was launched in 2010. The following year, Sergey Vladimirovich Makhlai was elected as the new chairman of the board. In 2012, the modernization of the 2nd and 7th ammonia units was completed.

The updating of production and the new economic realities required an update within the framework of the top management. Thus, Vyacheslav Valeryevich Suslov was appointed as the new general director of Togliattiazot, who, based on experience and best practices, was able to keep the company in the zone of a positive balance sheet and continuous modernization, both in the technical part as in the management sphere.

In 2015, the modernization of the 4th and 6th ammonia units was completed. In 2016, the first phase of the overhaul of urea unit no. 2 and ammonia units no. 2 and no. 32016 was completed. The company has launched the construction project for the third urea unit. In 2018, a major overhaul was carried out at the urea unit no. 2, including the installation of an automatic process control system, the replacement of the reactor, the replacement of the steam-water circuit of the boiler. The year 2018 is marked by the increase in the throughput of its own railways, the completion of the overhaul of the ammonia unit no. 7 and the construction of the urea unit no. 3.

Production process

Togliattiazot is the only chemical company in the world capable of producing 3 million tons of ammonia per year. It mainly produces mineral fertilizers such as ammonia, urea and KFK. In addition to the production of mineral fertilizers, the company also produces bricks, ultra-fine basalt fibers, refractory materials and consumer goods. The factory exports its products to 120 countries.

One of the vital investment projects in Togliattiazot is the construction of a deep water port for the transshipment of ammonia. There are also other economic cargoes on the Taman Peninsula (Temryuk district, Krasnodar Territory). In recent years, the company has invested huge sums of money in the implementation of the port project; most of the facilities needed for the launch have been ready for a long time. Their construction has been carried out to a high standard for environmental and safety requirements.

Togliattiazot has invested a lot of money in the development of the social infrastructure of the Temryuk district of the Krasnodar Territory, and is involved in social and charitable work. So, a gas distribution station was built in the Temryuk district, a gas pipeline was built in the village of Volna, the construction of a railway station and residential buildings for company employees was completed. The first phase of the port created new jobs and boosted the regional economy.

Togliattiazot is proud to be involved in a project providing the southern route of delivery of domestic products, not just chemicals, to international markets, which is strategically important for the Russian economy. The importance for the state of the port terminal on the Taman Peninsula has been repeatedly stated by Russian leaders.

Work strategy

Since 2011, Togliattiazot has launched a program to modernize the production tool. PJSC Togliattiazot is focusing on a long-term development program to strengthen its competitiveness in the global chemical market. TOAZ strives to achieve maximum business efficiency:it modernizes production, streamlines management processes, reduces environmental pollution and invests in human capital and the prosperity of the region.

Strategic Priorities

Remaining leading positions in the global chemical industry

Togliattiazot is one of the 5 largest producers of ammonia:the company produces almost 20% of all ammonia in Russia and about 10% in the world.

Stability and efficiency of production

Since 2012, Togliattiazot has implemented a program to modernize its production capacities. The program will run until 2022. As part of it, large-scale modernization and repair of all production facilities are carried out, including two unique isothermal tanks for storing liquid ammonia with a volume of 30 000 tons each, seven ammonia units and two urea units, biological treatment plants and railway infrastructure.

In 2017, TOAZ started the construction of the third urea production unit with a capacity of 2,200 tons per day. The project includes the construction of the unit which can reduce the level of emissions into the atmosphere through the use of modern technologies. TOAZ invested more than 9.5 billion rubles in the construction. The commissioning of the installation took place in 2019.

In 2018, the company started the construction of a new facility to produce ammonia from purge gases. Its capacity is 1860 tons per day. The project is based on a new technology for the Russian chemical industry:the purge gases from the units are used as raw materials for the synthesis of ammonia. The use of the company's own resources has significantly increased the efficiency of the installation, while the negative impact on the environment has been reduced.

The process of producing ammonia from the purge gases takes place practically without the formation of liquid and gaseous wastes. The total emissions of the new facility represent 0.27% of the emissions of the entire company. Additionally, the reduction in process steps reduced energy consumption to 8.5 Gcal per tonne of ammonia. Commissioning is scheduled for 2020.

Market expansion

TOAZ produces 20% of mineral fertilizers on the Russian market. The construction of the transshipment complex in Taman in the Krasnodar Territory not only ensures the stability of the flow of goods, but also expanded the geography of product supply.

Industrial safety, labor protection and environmental protection

The company works in accordance with the requirements of environmental legislation and seeks to provide safe working conditions for employees and to prevent any accidents. TOAZ's development strategy until 2022 includes environmental measures to reduce the negative human impact on the environment.

Effective management for long-term competitiveness

Maximum efficiency of business management is the priority of TOAZ management. Since 2013, TOAZ has been consistently implementing the transformation program, which defines the development and optimization of the company's main business processes, including budget policy, design activities, production planning and repairs, document management, compensation and incentive systems.

Source – https://london-post.co.uk/togliattiazot-history-strategy-culture-and-sport/