The China National Chemical Engineering Corporation (CNCEC) has recently partnered with Aeon Corporation, led by Russian billionaire Roman Trotsenko, to construct a methanol plant in Volgograd.
This joint venture, marked by the signing of an engineering, procurement, and construction contract, was announced during the St. Petersburg International Economic Forum. The project holds significant importance for both companies and the nations of Russia and China, as emphasized by the executives involved. The methanol plant, set to become the anchor project in Volgograd’s Khimprom special economic zone, aims to contribute to the region’s chemical industry and is expected to generate over 800 jobs.
During the St. Petersburg International Economic Forum, Aeon Corporation’s subsidiary, GTM One, represented by CEO Bakhtiyor Kasimov, and CNCEC’s international division, represented by Managing Director Bao Guangdong, signed an engineering, procurement, and construction contract. The agreement solidifies CNCEC’s role as the technology partner for the methanol plant project. Roman Trotsenko, Chairman of Aeon Corporation, highlighted the significance of CNCEC’s involvement, emphasizing the importance of the contract for both companies and the broader cooperation between Russia and China.
The methanol plant in Volgograd is poised to be a prominent undertaking, with an estimated cost exceeding 80 billion rubles. The project is centered within the Khimprom special economic zone, which was established by the government in October 2022. This initiative aims to facilitate the development of various chemical plants, including methanol production facilities, bioprotein manufacturing, crop protection chemical plants, and acetic acid production units. The completion of the methanol plant will mark a crucial step towards creating a chemicals cluster in the region.
In 2019, Industrial Technologies LLC (Promtekh) acquired the production facilities of the bankrupt Volgograd plant Khimprom for 103.2 million rubles. Since 2021, preparations have been underway to repurpose the acquired facilities for the construction of the methanol plant, which will have an annual production capacity of 1 million tonnes.
Volgograd Polymer LLC, the parent company overseeing several entities established for specific projects within the chemicals cluster, has taken the lead in driving the methanol plant project. GTM One, on the other hand, has assumed the role of the management company responsible for overseeing the entire cluster.
According to Roman Trotsenko’s statement in April 2019, the methanol plant is scheduled to commence operations in 2023. The completion of the plant within this timeline is expected to contribute significantly to the region’s economic development.
Once operational, the project is estimated to generate more than 800 jobs, providing employment opportunities and fostering economic growth in Volgograd and its surrounding areas.