We see the green trend as a long-term one

This year, Metafrax Group, one of Russia's fastest-growing chemical holdings, is completing the launch of the €1.2 billion Ammonia-Urea-Melamine (AUM) complex in the Perm region. Levon Garslyan, Deputy General Director for Strategic Development and Assessment of Investment Projects, told in the interview of Kommersant business paper how the development strategy of the group of companies is changing in connection with the launch of the new production facility.

- This year Metafrax Group is finishing the commissioning of the AUM complex, the new "heart" of the holding. Metafrax will not only become the largest domestic producer of methanol and resins. Where will the group of companies go from here?

- In recent years the main philosophy of Metafrax has been to deepen methanol processing. Through raw material integration such as methanol and formaldehyde we developed the production of resins.

With the launch of the AUM complex, followed by the construction of the second melamine plant, the group increases its production capacity to 80,000 tons and becomes the largest producer in the Russian Federation. Resin and methanol production are the two basic areas of our work, and there can be no adjustments to our strategy here. Metafrax is the No. 1 resin company in Russia and Europe and we have ambitions to stay that way. To do this we need a strong raw material base. This is the AUM complex and methanol and formaldehyde production units.

Development of these capacities will allow Metafrax to expand its geography. At the same time, it should be understood that the resin is a picky product. Like methanol, it cannot be transported several thousand kilometers. This is why we are now considering building a resin plant in the Khabarovsk Territory.

Recycling methanol is also a strategic priority. There are products based on it that are currently imported into the country. We are carefully looking at these niches and looking for new development opportunities.

Of course, the strategy is being adjusted. Thus, despite deepening the processing, we understand that Metafrax can not reduce presence on the methanol market. We have an impeccable reputation.

The fourth area of the group's development is low-tonnage chemistry. This area is fairly new to us, but it is becoming systematic.

- Metafrax Group has created a working group to implement the principles of responsible investment or sustainable development, ESG (Environmental, Social, Governance), ESG is a set of characteristics of company involvement in environmental, governance and social issues. What are your plans for these principles?

- Metafrax Group has been operating in the ESG philosophy for a long time. This is particularly evident in the environmental area. Metafrax is a chemical production and city-forming enterprise at all points of its presence. We are responsible for everything around us. One example of our commitment to ESG principles is the construction of the AUM complex. Metafrax Group has thus integrated the methanol unit with the new complex so that the gases do not escape into the air but into urea production. With the launch, the amount of CO2 emissions will be halved. This was an idea in 2016, when not many people in the world knew about ESG principles. The working group has been created only now because we realised that the ESG topic is broader and needs to be dealt with in a more systematic way.

The full interview can be found via the link.