RATM Holding intends to build a soda plant in the Novosibirsk Region

RATM Holding proposed to the government of the Novosibirsk region to assign the status of a large-scale investment project for the production of soda ash from soda-sulfate raw materials of natural origin, as well as provide assistance in the selection of a land plot for construction. The status of a large-scale investment project will allow investors to qualify for state support, in particular, they can be provided with a land plot for rent without bidding. The project itself was presented yesterday at the Investment Council of the Novosibirsk Region.

The company announced plans for its implementation back in 2018. Then "RATM Holding" announced the execution of a lease agreement for a land plot adjacent to one of the lakes of the Tanatar system (Altai Territory) - the only deposit of sodosulfate raw materials in Siberia. The holding received a license to extract natural soda from the Mikhailovskoye field until May 2049. It is planned that the production capacity in Novosibirsk will amount to 60 thousand tons of soda ash per year.

Investments in the project, excluding the cost of buying or leasing land for the construction of the plant - 1.3 billion rubles, said Sergei Lukyantsev, director for the development of glass production at Sibsteklo LLC (part of the RATM holding structure). He clarified to Kommersant that the project is planned to be implemented in three years from the date of receiving the land for construction. The payback period of the project will be seven years. Four years after the launch, the company's revenue will exceed 4 billion rubles, and the profit from sales will be about 1.5 billion rubles, said Mr. Lukyantsev. Now, according to him, the project has completed the stages of research and development, scaling up the technology, calculated the material and energy balances of the technological process. By December 2020, it is planned to complete the design of the stage of mining, etc.

It is planned to supply the plant's products to glass enterprises in Siberia: LLC Interglass (Tomsk), LLC Steklotekh (Tyumen), LLC Omsk Glass Plant. “We received letters of confirmation from them that our product meets their production requirements. Upon reaching an agreement on the price, they are ready to buy the products of our enterprise, ”said Mr. Lukyantsev. He noted that there is an opportunity to increase the volume of soda production: it can be realized by expanding the boundaries of the license area for the extraction of minerals. The main consumer of soda ash will be Sibsteklo. Now the enterprise consumes about 40 thousand tons of soda per year, which is supplied mainly by the Bashkir Soda Company and the Krym Soda enterprise.

In case of successful implementation of long-term plans, soda, taking into account delivery costs, should cost one and a half to two times cheaper than it is bought today, Mr. Lukyantsev said earlier. In addition, the launch of soda ash production will make the region more attractive for opening new glass factories, including the production of float glass, and will reduce the impact of rising soda cost on the profitability of glass container factories operating in Siberia. Sergei Lukyantsev said that prices for soda are growing at a rate of about 15% per year.

Interglass declined to comment, the telephone of the director of Steklotekh Elena Ostryagina was unavailable. The Bashkir Soda Company did not respond to Kommersant's request.

The opening of the production of soda ash from sodosulfate raw materials in the center of Siberia can become a profitable give-and-take platform for the glass industry of the district, said Alexei Antonov, chief analyst of Alor Group. “However, the announced production volumes are unlikely to cover all the needs of enterprises in Siberia. Soda ash is widely used in industry, except for glass production - from cleaning agents to its use in enterprises as an additional raw material for the production of chlorine and caustic, ”the expert notes. The production of the Siberian soda plant will be fully contracted, he is sure.

According to BusinesStat, 3.38 million tons of soda ash was produced in the Russian Federation last year (this is slightly lower than the result for 2018). Prior to that, since 2015, the market has consistently grown - by 9.9%. The main producer - Bashkir Soda Company - occupies 62% of the Russian market. Also in the top three are the Bereznikovsky Soda Plant (about 15% of the market) and the Crimean Soda Company (as of 2018, produced 489 thousand tons of soda), says Alexey Antonov.

Dmitry Baranov, a leading expert of Finam Management, does not exclude that the situation with the development of a shihan in Bashkiria may also affect the Siberian project. “Requirements for sources of raw materials for soda production and other environmental requirements may be tightened, which may increase the cost of finished products. Raw materials imported from other regions or even from abroad may turn out to be more profitable for the Siberian glass industry, ”he says. He believes that the project may need regional support to meet demand. Shikhan Kushtau in Bashkiria was to become a source of raw materials for the Bashkir Soda Company. However, the inhabitants of the republic opposed the destruction of the ancient shihan. This week, the head of Bashkiria, Radiy Khabirov, signed a decree according to which the Shikhan Kushtau was declared a natural monument of regional significance.

Source: Kommersant-Novosibirsk