Schneider Electric offers TAIF GC to open a joint production in Tatarstan

Million of U.S. dollars for Russian market development

Schneider Electric (France) has been working worldwide since the 19 ^th century. The company offers solutions in power engineering, petrochemistry, metallurgy and software, industrial automation and equipment modernisation. The company's annual money turnover in the world is 26 billion rubles. A delegation of Schneider Electric visited one of the largest holdings of the country TAIF PJSC in order to find common points of interest, opportunities for further cooperation and plans for participatory development. New President of Schneider Electric in Russia Johan Vanderplaetse says that Russia occupies one of the main focus areas of the company.

In Russia, we deal with localisation and import substitution

'In Russia, we deal with localisation and import substitution. Development of a local production is a priority,' says Vanderplaetse. Here the president of Schneider Electric stressed that the company already invested a million of U.S. dollars in Russia.

Today Schneider Electric has six factories and three logistic centres in Russia. Kazanelectroshield and TATEC are the largest industrial licensed partners of the company in Tatarstan. The French company is going to create a service centre to assemble equipment for solar power stations in Moscow technopolis in September. Modernisation is one of the areas of the company's business. For instance, Sibur has recently signed a big contract with Schneider Electric on energy supply of its production.

'60% of all the sales in Russia come from the local production,' Vanderplaetse noted. 'Unfortunately, there is not any high-level localisation in terms of equipment and automation. This is why we are actively working on it. We want to localise our automation lines, automated process control systems, sensors,' told the head of the company.

Today Schneider Electric has six factories and three logistic centres in Russia

The corporation has good experience in localisation of automated process control systems in Kazakhstan together with KazMunaiGas. 'We think there is sense in repeating that experience in Russia,' Johan shared with people who assisted the meeting.

After the delegation told about its plans, Schneider Electric asked TAIF to share its own projects.

TAIF invests $12 billion in industrial construction development

The head of TAIF PJSC, in turn, told about projects that the Tatarstan company was fulfilling. By the way, the companies are already working together. For example, an automated process control system made by Schneider Electric was installed at Kazanorgsintez. They have worked a bit together. Moreover, the French company's equipment is used in another big and important project of TAIF – Heavy Residues Deep Conversion Complex at TAIF-NK.

'TAIF GC has a development programme that was created in detail till 2025,' told Albert Shigabutdinov. 'Taking into account today's market prices, the programme is estimated at $14,5-15 billion. $12 billion of them are aimed at industrial construction. The rest of the sum will be expended on social and public construction. TAIF's development programme from 2025 to 2030 is being refined and specified now,' the head of TAIF informed.

The French delegation offered to exam the energy equipment of key enterprises in order to reduce energy losses of the company

In his speech, the director of TAIF PJSC noted such important project as construction of generating capacities for the needs of Nizhnekamskneftekhim with a total capacity of 500 WM whose tender finishes in December. A construction project of HRDCC at TAIF-NK where the French company is already taking part was also discussed as well as long-term plans of Kazanorgsintez on ethylene production expansion to 450,000 tonnes. Albert Shigabutdinov paid great attention to the Olefin Complex. Earlier the configuration of the project presupposed a two-stage realisation, 600,000 tonnes of ethylene per year each. Now the project has been divided into four major stages. The tender for the first part ends on 1 December. The tender for the second part will be announced at the end of January 2017, which will last till this summer, and the third stage will be held from late 2017 to early 2018. And the fourth stage is planned to take place in the middle of 2018.

Having heard the projects of the Tatarstan holding, the French delegation offered to exam the energy equipment of key enterprises in order to reduce energy losses of the company. 'There are generation programmes when equipment is checked for wear. It is called predictive analysis when possible problems are forecasted,' told Schneider Electric's representatives.

Albert Shigabutdinov noted that the Group of Companies' average energy consumption was 850 MW

Albert Shigabutdinov, in turn, noted that the Group of Companies' average energy consumption was 850 MW. The number will reach 1,000 MW in the near future. 'We can exam one enterprise and look at its usefulness. If we see a result, we will continue the dialogue in this sphere,' TAIF director general replied to the offer.

Schneider Electric interested in Tatarstan polymers

Moreover, the French corporation had one offer more. The Tatarstan company was offered a cooperation on production and further service of the product if it is a participatory production.

The head of TAIF was interested and asked for a detailed description of the production with the market evaluation for the next 10 years. 'At the moment it is difficult to imagine what kind of product we are speaking about,' replied Albert Shigabutdinov. And he offered to consider an offer on purchase contract of Tatarstan polymers by the French company. 'As far as I'm concerned, the largest companies are leaving this market in Europe,' said Albert Shigabutdinov. 'Russia, Texas and states of the Persian Gulf are the world's major suppliers.'

The Tatarstan company was offered a cooperation on production and further service of the project if it is a participatory production

He told that the polymer market is very competitive. 'The closeness to the feedstock, closeness to the producer, our logistic possibilities allow us to compete in the Russian market with any producers in the sphere we work,' the head of TAIF noted.

'You have raised a topic, which is important for us, because even in Russia where we manufacture equipment in factories, we have to purchase some materials abroad,' the representatives of the French company reacted.

'I'm ready to deliver your offers to the president'

Opening of an automation centre in Zakamye where TAIF's key facilities are located was another offer of Schneider Electric. Not only students but also employees could work in the centre. By the way, before the meeting, the company signed an agreement on further cooperation with the Kazan State Power Engineering University.

In conclusion, the heads of the companies discussed a possibility of signing a cooperation agreement in 2017

'We are not a scientific and educational centre,' said the director of TAIF. But he told that the president of Tatarstan had an idea to create such a university in Nizhnekamsk. He offered the French delegation to talk to the Kazan Federal University and create a detailed construction project of the university. 'I know for sure this problem will be solved sooner or later. The preparation centre of the best petrochemists will be at the Nizhnekamsk university, while specialists in oil and gas extraction will be in Almetyevsk,' Shigabutdinov informed. He recommended them to study the potential demand for the specialities in the next 30 years, so that they will choose a correct educational programme. 'I'm ready to deliver your offers to the president,' the head of TAIF offered.

In conclusion, the heads of the companies discussed a possibility of signing a cooperation agreement in 2017.