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SKTB Katalizator 2020 Results Overview

SKTB Katalizator 2020 Results Overview

Looking back on 2020, one may note that it was a challenging but eventful year for the Company. The COVID-19 pandemic, global economic crisis, a drastic reduction of petrochemicals consumption, and accelerated transition to a green economy led to reduced demand for petroleum products, and consequently affected the catalyst market. Total products sales decreased by 41%.
At the same time, in 2020, the number of export contracts increased, and the sales geography expanded with two more countries. Export income totaled 84% at the end of 2020. 37 contracts and specifications and 10 export ones were signed within Russia, and about 80 shipments were made. Products were exported to the United States, Saudi Arabia, China, Australia, Italy and Lithuania. Concurrently, environmental catalysts exports to the United States have doubled. Export success of SKTB Katalizator is recognized with federal and regional awards. Following the results of All-Russian Exporter of the Year Award as part of the international cooperation and exports national project, SKTB Katalizator won the third place in the category “high tech, large business”, becoming a winner of the Siberian Federal District and the Novosibirsk Region.
Last year, the state support contract signed with the Ministry of Economic Development of the Novosibirsk Region was completed subsequent to payback achieved for the investment project "Implementing CET (Catalysts, Engineering, Technologies) Technology Initiative”. State support was provided under the Law of Novosibirsk Region of 29 June 2016 No. 75-OZ "On Certain Issues of State Regulation of Investment Activity effectuated in the Form of Capital Investments in Novosibirsk Region", the state program of the Novosibirsk Region "Promoting investment and innovation activity in the Novosibirsk Region in 2015-2021 years», approved by the decree of the Government of the Novosibirsk Region of 01.04.2015 No. 126-p "On the state program of the Novosibirsk Region" «Promoting investment and innovation activity in the Novosibirsk Region in 2015-2021 years".
As a result of implementing CET project, SKTB Katalizator has obtained income tax benefits and reimbursables for purchasing new process equipment within the project in the amount of 36.4 million rubles. Since the project launch, total investments exceeded 700 million roubles (VAT included).
New research laboratories with a total area over 3000 m2 (including common facilities) have been established as part of CET. In 2021, the reconstruction of the office & laboratory building will be completed, which is about 10,000 m2 of state-of-the-art, fully-instrumented laboratories (analytical, research, quality control laboratory facilities) and office premises.
Four new catalytic laboratory-scale test units for selective oxidation, dehydrogenation and neutralization of harmful emissions have been purchased and put into operation.

• Lab-scale unit intended for studying selective oxidation comprises three reactors operating in series and in parallel to simulate several catalytic processes for the selective oxidation of a number of organic compounds to be applied in the chemical industry.

• Lab-scale units for testing light alkane dehydrogenation catalysts comprise two reactors each and are designed for studying light alkane dehydrogenation catalysts and processes to be extensively used in the petrochemical industry.

• Lab-scale unit for testing catalyst activity in the process of VOC (volatile organic compounds) complete oxidation comprises four reactors and is intended for quality control of catalyst commercial batches.
SKTB Katalizator is a regular winner of regional and municipal grants to promote company's investment and innovations activities. In 2020, the company successfully qualified to be included in the list of grant recipients as part of the government support program from the federal budget as exports transportation cost recharge in accordance with RF Government Regulation No. 496 dated April 26, 2017. Total amount of government aid allocated to SKTB Katalizator as a systemic company of Novosibirsk Region in 2020 amounted to almost 10 million rubles. Proprietary investments in company development made up over 175 mln.rubles.

8 Russian patent applications and 2 PCT international applications have been filed; 12 Russian patents and 1 Indian patent obtained, inclusive of:

• Patent for microspherical powder aluminum hydroxide with specified dispersion and process for producing thereto (Russian Federation);
• Patent for a composition for producing activated alumina and a process for producing granular activated alumina pellets on its basis (RF);
• Patent for a process for producing alumina Claus catalysts and its application in SRU (RF);
• Patent for a process for producing alumina carrier for catalysts (RF);
• Patent for a process for preparing С3-С5 paraffin hydrocarbons dehydrogenation catalyst and the device for its implementation (RF);
• Patent for a device for preparing a C3-C5 paraffin hydrocarbons dehydrogenation catalyst (RF);
• Patent for a process for producing reprecipitated alumina and a process for producing gamma alumina on its basis (RF);
• Patent for С3-С5 paraffin hydrocarbons fixed bed dehydrogenation catalyst (RF);
• Patent for a carrier for activated alumina catalyst for paraffin hydrocarbon fixed-bed dehydrogenation (RF);
• Patent for a catalyst for alkylaromatic hydrocarbons dehydrogenation (RF);
• Patent for a catalyst for paraffin hydrocarbons dehydrogenation catalyst and process for producing thereto (RF);
• Patent for a catalyst for complete oxidation of volatile organic compounds and process for producing thereto (RF).
• Indian patent for a reactor for С3-С5 paraffin hydrocarbons dehydrogenation.
Ring-shaped catalysts with reduced hydraulic resistance of the bed to VOC neutralization have been developed.

Over the past year, the medium-term objectives up to 2027 have been formulated and clearly defined. The following stages should be implemented within the framework of investment project “Implementing CET Technology Initiative: Catalysts, Engineering, Technologies”, namely:

• CET-2 (Execution period: 2020-2023). Total investments of the own budget of JSC SKTB Katalizator will amount to about 400 mln. roubles. The stage involves the following:
• Full renovation of the catalyst testing building to accommodate new equipment for testing wide range of catalysts to expand the engineering expertise in supporting processes covered by the supplied catalysts;
• Establishing production section to scale up environmental catalyst line, including monolithic catalysts.
• CET-3 (Execution period: 2021-2025). Total investments of the own budget of JSC SKTB Katalizator will amount to about 1200 mln rub. The stage involves the following:
• Construction of up-to-date manufacturing and storage facility with area of 13,000 m2 to increase production capacity for small-scale manufacturing of top-requested manganese, copper, chromium, monolithic catalysts for environmental applications.
• CET-4 (Execution period: 2023-2026). The stage involves the following:
• Complete reconstruction of catalyst manufacturing building with retrofitting of production lines intended for manufacturing the whole range of products to ramp up production.
Once all the CET project stages are completed, SKTB Katalizator will establish world-class research, technological, manufacturing and engineering center for applied catalysis.

In the context of COVID-19 pandemic, the extensive preventive measures have been taken to ensure SKTB Katalizator normal operation; specific precautions have been developed and implemented at the place of residence, on the way to or from work, at workplaces, to prevent the spread of the coronavirus in the team. Under the circumstances, the company continued to operate smoothly. The Company actually increased average staff number in 9% (up to 299 employees).

Our 2020 Achievements &Awards:

• Participant of the National Voluntary Certification Project “Made in Russia”. Certified as Russian Exporter to confirm that the Company is a bona fide manufacturer and reliable supplier of export products. In 2020, the Company successfully completed the 2nd stage of the voluntary certification "Made in Russia". The following products have passed the certification with the “Made in Russia” labelling:
- Export products: АОК-73-24, ICТ-12-40 (Z-2), АОК-78-52, АОК-71-31 (NAM);
- Export-oriented products: АОК-78-55, АОК-72-55.
• Regional and Federal winner of All-Russian Exporter of the Year Award in the field of international cooperation and exports; third prize holder of All-Russian Exporter of the Year Award 2019 in category “hi-tech, large business”.

• Winner of the All-Russian 100 Best Products of Russia Competition:
- АОК-63-32 carbon alumina adsorbent was given the Golden Mark.
- ICT-31-1 catalyst for mercaptan synthesis from methyl alcohol and hydrogen sulfide, and ICT-32-1 catalyst for conversion of dimethyl sulfide to mercaptan were given Silver Marks.
- Award for achievements in the field of quality was presented to Vitaliy Khan, CEO of JSC SKTB Katalizator.
• Winner of the Gold Mercury National Entrepreneurship Award. JSC SKTB Katalizator was given the II Prize of the regional competition stage.
• Winner of Successful Business Development in Siberia Award as manufacturer of catalysts and special-purpose equipment.
• Participant of the priority project of the Ministry of Economic Development of Russia “Support for Private High-Tech Leading Companies (National Champions Project). Annual participant of the National TechUp Rating of Russian fast-growing high-tech companies.

50th Anniversary of JSC SKTB Katalizator was one of major events of 2020. With continuous development, increasing production capacity and expanding the sales geography, the Company has become today one of the key players in the catalyst sector in Russia. The year 2020 also marked 60th Anniversary of Vitaliy Khan, CEO of JSC SKTB Katalizator. The CEO offered his congratulations to the team that significant year:

“JSC SKTB Katalizator marks its 50th anniversary! This is not only the anniversary of the company, it is our common holiday, because Katalizator is all about us, veterans, heads of departments, engineers, all the team of SKTB, who can not imagine themselves without our work!
For half a century, from the idea to the foundation of the enterprise, its development, growth, through rough ways in the times of crisis, hundreds of people have laid the secure groundwork of today's success and the future of our native SKTB Katalizator.
By choosing the right course of development, my friends, we have become a strong enterprise with world-famous products to deliver. The company develops and commercializes new types of catalysts, modifies existing ones, and rapidly creates a modern infrastructure of process lines with a focus on product diversification.
We make an important contribution to the development of local and Russian economy. Being a major exporter and taxpayer, today SKTB Katalizator is a systemic company. It became the part of Novosibirsk Region Economy Reindustrialization Program, and was included in Akademgorodok 2.0 Novosibirsk Scientific Center Development Program.
What are we wondering and dreaming about while crossing this crucial fifty-year milestone? We’ve got everything we need to move forward confidently. With the benefit of such background and resources, as we have at SKTB Katalizator, one can remove mountains. And we do it actually, my friends. And we can and we must invest all our efforts, our best abilities and skills to make for a top prosperous catalyst company with a global reach.
I wish all the employees of SKTB Katalizator group of companies to attain professional fulfillment within our company, happiness and prosperity. Let our company be for all employees the place where we would like to come cheerfully every day commited to work with the highest devotion. In the best sense of the word, may native SKTB be the second home, second family for everyone in the past and present, and well into the future, the place to display your talent and unlock potential to the fullest, being unmindful of working time.”

Author: A. Tarasenko, translated by V.Shcherbinskaya