14 September 2017

EuroChem, SUEK and SGK invest $17bn in their development over nine years

EuroChem, SUEK and Siberian Generating Company (SGK) invested $17bn in their development over the last nine years. This was reported by news agency TASS on Thursday. Andrey Melnichenko, the main shareholder and Chairman of the respective strategy committees of the three companies highlighted the investment figure during the signing of a social and economic agreement between SGK and the Altai region government for 2017-2019.

"Total investments for the three companies over the last nine years amounted to $17bn. Together these employ over 85,000 people and invest in several large projects," Melnichenko said. According to him, about $7bn was invested in Barnaul thermal power generation. The reconstruction of the power station in Rubtsovsk, which will provide heat to the region’s population, will be completed by May 2018.

The Regional Head, Alexander Karlin, stressed the importance of the cooperation with SGK in the development of power generation in Rubtsovsk, where SGK is reconstructing a thermal power plant for RUB 1.7bn (about $30m). "We have 19 companies in the agricultural machinery cluster, some of which in Rubtsovsk, and from this point of view, the development of thermal generation is of special social and economic importance. The city has been a leader in the development of the cereal and dairy industries," added the Governor.

“Despite the current legislation making it impossible to guarantee a return on investment, we have already upgraded 50% of the city’s power grid. From a point of view of business and investment, our people in Rubtsovsk are doing something unique, beyond the usual business project," commented Andrey Melnichenko.

Investments in 2018

Melnichenko, the main shareholder of EuroChem, SGK and SUEK, was in Barnaul for a working visit on Thursday and informed TASS that the three companies should collectively invest some $2.5 bn in 2018. "The forecast for investments in 2018 is at around $2.5bn. In 2017, we are investing about $2bn in Russia to create new industries and we will commission several interesting production plants next year," Melnichenko said. According to him, in December 2017, a large potash plant in the Perm region will be commissioned. "This is the first plant to be built in the last 25 years in the industry," Melnichenko said.

Participation in EuroChem and SUEK

Andrey Melnichenko does not plan to change his stake in EuroChem and SUEK in the near future. "No major changes in the near future are expected” was his answer to a TASS question as to whether there were any IPO plans for EuroChem and SUEK, or whether he had plans to increase or reduce his participation in these two companies.

Source: TASS
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