Belarus Mulls Chinese Loans for Grodno Azot Investment Program
OREANDA-NEWS. July 08, 2010. The Belarusian government has instructed Belneftekhim concern and OAO Grodno Azot to work out mechanisms to take Chinese loans to finance the development program of the company, a source in the administration of the country told.
OAO Grodno Azot requires USD 1.3-1.5 billion for its development program until 2016.
The program aims at decommissioning outdated productions and launching new ones in order to enhance the competitiveness of the producer and reduce costs.
The program includes over 10 projects.
A priority task is to phase out productions of methanol, carbamide and nitric acid and instead build an integrated production of ammonia and methanol.
This will lend the producer flexibility in adjusting its production pattern depending on the demand. Ammonia production will range from 455,000 tonnes to 700,000 tonnes annually.
As a result of the upgrade, nitric acid and carbamide-ammoniac compound output will increase 60%.
Investments in modernization and upgrade in the next few years will reach USD 1.066 billion, according to Grodno Azot specialists.
To support existing productions, about USD 360 million will be required.
The producer is in talks over financing possibilities with companies from
OAO Grodno Azot was established in 1963.