OAO Ammonia starts building new Russia facilities

21 October 2008 10:05  [Source: ICIS news]

MOSCOW (ICIS news)--OAO Ammonia has started construction on new ammonia, urea and methanol facilities in Mendeleyevsk, in the Russian internal republic of Tatarstan, the company said in a statement on Tuesday.

The $1.5bn project is expected to begin operations in 2012, according to Ammonia.

OAO Ammonia and ZAO Tatgazinvest, a subsidiary of gas giant Gazprom, signed a framework agreement in December 2007 with Mitsubishi Heavy Industries and Sojitz Corporation to build the new units.

The planned production facilities are expected to produce 720,000 tonnes/year of ammonia, 700,000 tonnes/year of granulated urea, 380,000 tonnes/year of ammonium nitrate (AN) and 230,000 tonnes/year of methanol.

Russia's state-controlled Vnesheconombank (VEB) has pledged to invest $870m (€653m) in the project.

($1 = €0.75)

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By: Sergei Blagov
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