Recently, Toyo Engineering Corporation (TEC, President Toshihiko Hirose) was awarded subcontract for Modernization of Yaroslavl petroleum refinery in the Russian Federation by a consortium of Mitsui & Co., Ltd. of Japan and Thyssen-Krupp AG of Germany.
As reported in the media, the contract for the Modernization project of this refinery has been awarded to a consortium of Mitsui & Co., Ltd. of Japan and Thyssen Rheinstahl Technik GmbH of Germany by JSC "Slavneft-Yaroslavnefteorgsintez" of Russia. Export credit of Japan Bank for International Cooperation. had been committed several years ago. But, changes and confusion in the political structure and legislation in Russia caused substantial delay in governmental clearance. TEC has been collaborating with Mitsui & TRT consortium as an engineer through the negotiation stage, that results in this award of major portion of the project.
Outline of the contract awarded to TEC are as follows;
| 1) | Plant Owner : JSC "Slavneft-Yaroslavnefteorgsintez", Russia (Location : 280 kilometers northeast of Moscow) |
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| 2) | Facilities: Design and Equipment Supply for visbreaking plant (1.5 million-t/y capacity) and hydrocracking plant (2.1 million-t/y capacity) |
| 3) | Project Schedule: 2003 for delivery of equipment, beginning of 2005 for completion of plants |
In the former Soviet Union, TEC enjoyed numerous contract awards for large hydrocarbon projects, including a series of fertilizer plants. After the breakup of the Soviet Union, however, new orders in Russia, the most potential market of former Soviet Union, have been very sluggish, while TEC being awarded new orders in Central Asian countries, like Uzbekistan. The reasons behind is the turmoil in the political and industrial sectors for transit to a market economy, including banking crisis took place in 1998. In fact, this is the first large-scale contract TEC has received from Russia since that time.
Thanks to the steadiness of the present government and the stable oil prices since last year, the Russian industries are rapidly revitalized, and it is envisaged that investment in hydrocarbon processing filed will resume. On the occasion of this new award, TEC intends to enhance its marketing activities in the Russian market.