29 July 2022

German Petrushko on Titan-Polymer's contribution to the region's economy

Titan-Polymer plant is being prepared for production launch. General Director of the enterprise, German Petrushko, spoke about the moment of work start and contribution of the company to the region's economy and many other things on the air of STRBC "Pskov". 

– Mr. Petrushko, when should we expect production to start?

– The plant launch is planned for autumn. The commissioning of the plant is scheduled for November with the first product output. So, waiting won't be long now, this moment is nearer and nearer. Now the first construction phase of our common project is being completed, the body section itself is already finished, the fit-out work inside is in progress: installation of sectional equipment, commissioning work has also started. The plant is approximately 85-90% completed. I think we will be able to meet the deadline. On top of that, we have also purchased raw materials from both import producers such as Indorama (the Uzbek company Indorama Kokand Textile - ed.) and Russian producers. We are actively preparing for the launch. Now the territory is being improved, we have had a volunteer cleanup day. Our employees were passionate about participation in planting trees and shrubs. 

– As for investments, which sums can you reveal, how much has already been realized, how much is yet to come? 

– The project is quite expensive. The investment in the total project, in the first and second construction phases, is 18-19 billion roubles. At this point, we have invested more than 9.5 billion roubles in the project. 

– Speaking of products, what will it be and in which volumes?

– These are films for various purposes: medical films, the ones for electro-technical use, packaging and food films. Total output of the plant for the next year is planned at around 65,000 tons. The installed capacity depends on the product range. It can be up to 70 thousand tons per year. 

– As for marketing outlets, where will the products be supplied now? Will it be supplied within the country or abroad? 

– We initially planned for about 30% of our products to be exported abroad. We considered mainly the European community; the American market was also available to us. After sanctions, the situation has changed to some extent, so the priority is on the Russian Federation, the countries of the Near Abroad, namely the post-Soviet countries. We also consider markets in Africa and Asia, and that is, in principle, quite possible. We are now actively working on this direction. 

– Is this an import substitution project for us? 

– Certainly. 

– Are we able to cover the need for such materials? 

– Of course, we will cover it. A part of the products is definitely import substitution. As we have products that other companies do not even produce. 100% that we will cover our market. 

– Has staff, employees been recruited and are there any vacancies still available? 

– We are actively recruiting employees in various professions. The company currently employs over 200 people, and recruitment continues. This includes employees of instrumentation and automation (instrumentation and automated control systems - ed.), as well as people who work in the laboratory, main and auxiliary production for the shop, it may be supply workers, salesmen, logisticians, and so on. Recruitment is now in progress; such vacancies are being filled. 

– What is “Titan-Polymer” for Pskov region? 

– First of all, “Titan-Polymer” is a platform for cooperation links establishment, not only as a production complex, which we are currently forming. It is also a platform for business formation and its cooperation. Therefore, in economic terms, an enterprise like ours always generates approximately five other companies around it. Over the course of time, it will become a very large complex, involving not only "Titan-Polymer" but also our linked industries. We are now developing cooperation ties. We are at the stage of the first phase construction of the plant. We have engaged more than 100 companies from Pskov region, acting mostly as our service providers. These are both construction companies and companies where we purchased cables, such as Pskov cable factory. Windows and gates, as well as doors, bricks and all sorts of building materials were also purchased from local producers. I believe a great number of companies have experienced our presence here since the start of the plant's construction. They have become our direct construction partners. Now the cooperative link will only increase, as we need certain services. This includes related, secondary materials: pallets, plywood, all kinds of gasket materials. With the plant reaching full capacity, of course, our cooperation links will only get stronger. 

– Speaking of the future, of possible project extension, are there any plans?

– Of course, we consider many areas of business expansion here, including material compounding, the area that is sorely lacking in Russia.

– Give us more details.

– This is the so-called material designing with desired physical properties. Our main polymer is PET. We will fill it with different materials adding different properties, for example, affecting flammability, giving anti-flammability properties, let's say. If we add certain additives to PET, we can get biodegradable materials etc. Work in this direction is in progress, for this purpose Titan-Polymer is creating a scientific and technical base. We have already said that an engineering centre will be established to design new materials and give them special forms.

– What kind of difficulties did investors face in terms of the pandemic, for example? 

– The pandemic made, in my opinion, a serious "contribution" to the construction of our factory. People got sick. Certainly, this didn't happen only here, but also within the West, as our technology is, after all, European. Equipment suppliers are European, so as a matter of course we are in constant contact. The institutes that worked with our plant suspended their work in many areas for some time. But we did not stop working. However, we worked until the end and then tried to make up for what was lost. Of course, the pandemic is not good.

– Have the sanctions in place affected “Titan-Polymer”?

– We delivered the equipment back in 2021, so in terms of equipment delivery we made it in time. In terms of special work, when consultations were in progress etc., we also solved and overcame this issue. Some points are settled via videoconferencing. The only thing is that the sales market has to be reconsidered. There were very serious ties at the level of signing contracts with European consumers. Now we reconsider.

– Regarding the second phase - PET pellets production - tell us more about what it is, what they are for?

– PET pellets are the polymer material used to make our film. These are raw material for us, we will also produce PET pellets, which will then find application in textile industry. Exactly where, let's say, there is a gap in this direction. These are the pellets used to form various products, you see them every day, not only bottles, but all sorts of vases, medical products, threads that further find their way into automotive industry - these are our tyres and so forth.

– Tell us please about this production.

– Currently, we are in process of qualifying work with licensors and design institutes. At the moment, we are doing pre-FEED work (front end engineering design). It is necessary to ensure proper design of the plant in compliance with all technological, flameproof and environmental standards, so that it will be like the plant as we promised, one of the most modern plants. Our efforts on this project are now concentrated in this direction. We have already signed an agreement with Industry Development Fund to support our project. Now we are focused on this, and I think that by the end of the year we will have already moved into full planning of the "P" stage ("P" stage is a project aimed at passing expert review - ed.). Then we will present it to a wide review, passing the environmental expertise and so on.

– Are there plans when the second construction phase is expected to be?

– We suppose we will be ready in late 2023 - mid-2024, taking into account the equipment supply. 

– Speaking of the social sphere, in this case the districts, how do you work in this area?

– Titan-Polymer has always been actively involved in the social sphere, not only in Tyamsha volost, but also in the city of Pskov. We participated in more than 20 charitable social projects. We restored cultural center and health station in Tyamsha. "Titan-Polymer" was awarded a commemorative medal and a certificate of appreciation from the Russian President for its selfless contribution to the arrangement of the All-Russian campaign for mutual aid "#MyVmeste". "Titan-Polymer" was also awarded the status of the national projects partner due to implementation of the environmental project "Eco-Saturday". We have always led and will continue to lead an active social life, as we have to live in this region and work in this region.

– How can we make Pskov region an economically strong region? What steps need to be taken to do this?

– First of all, we need to identify the region's points of growth. And the region has enormous potential, it just needs to be realised, but this requires that we all work together and do not shy away from our core responsibilities. I believe that we are, in particular, a basic anchor resident around which business can be formed. We are already a growing point. It also seems to me that tourism industry has very serious potential in Pskov region. There are certainly a lot of issues there, but nevertheless it is an industry which can be a driving force among other things. As well as spiritual pilgrimage to temples and churches, the region has a huge number of them. And I know that people tend to come here. Agriculture is also a growing point, there are all prerequisites for that. In addition, mechanical engineering and, so far as I can see, the electrical engineering cluster that is developing in Velikie Luki are the same growing points. It is necessary to scale up the existing facilities, to help businesses with their plans and increase production volumes. Especially now, when, as it seems to me, the golden age is coming: the West is leaving and the niche needs to be filled.

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