The Alabuga Special Economic Zone and China National Chemical Engineering and Construction Corporation LLC (CC7) have signed a memorandum of understanding to cooperate in the implementation of the Ethylene 600 industrial park project. The signing took place during the first major international forum «Russia – China», which is taking place in Kazan.
The purpose of the memorandum is to provide a basis for cooperation between the parties and negotiations. The memorandum also sets out the terms of the agreements reached by the parties to continue and coordinate preparatory work for the implementation of projects.
«Ethylene 600» is the best petrochemical project in our country. This is a unique window of opportunity for all companies that participate in it», - Timur Shagivaleev, General Director of SEZ Alabuga, commented on the signing. - For companies engaged in medium-tonnage chemistry, this is an opportunity to reduce the payback period of projects from 15 to 5 years, because we take care of the costs of infrastructure supply. We have a great experience in this».
According to him, signing the memorandum with C7 is an important part of opening a window of opportunity for access to technology, as well as gaining competence in manufacturing and supplying equipment: «Chinese equipment manufacturers are interested in our opportunities to supply their goods to Russia. It is also construction and financing opportunities».
«Alabuga has a good understanding of the Chinese financing model. We understand how special economic zones in China are financed. That is why they are the best in the world, and we are the best in Russia and Europe», - Shagivaleev concluded.
As a reminder, «Ethylene 600» is a joint project of SEZ «Alabuga» and PJSC «SIBUR». The total investment in the project will amount to 1.3 trillion rubles, of which 140 billion rubles - investments of SEZ. The industrial park will be the only location in Russia where a unique window of opportunity has been created to provide small and medium tonnage chemical producers with access to oil and gas chemical feedstock.
In 2023, the construction of Russia's largest logistics terminal named after the great Chinese reformer Deng Xiaoping started, which will also be part of the industrial park. The area of the terminal according to the project will be 65 hectares. The length of the container yard will be 1.05 km, which will allow to perform loading and unloading operations with the whole container train at once without additional shunting operations. Deng Xiaoping Terminal will receive and send back at least one train to China every week. The first phase of the project is planned to be realized in 2024.
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