News
- 13.04.23
Maxim Turchin: "Difficulties of the moment and unique opportunities for development
Maxim TurchinImport substitution has become the number one topic and the key task of the "new economy". Maxim Turchin, Technical Director of Magnezit Group, tells about how Magnezit Group overcomes the difficulties of the moment and continues its development with a focus on import substitution in the context of economic sanctions.
? Maxim Yurievich, Magnezit Group has been actively implementing an import substitution program for not the first year.
— I should say at once that under the new conditions none of the products manufactured by the enterprises of Magnezit Group has been suspended. It was not quite easy, taking into account the fact that at the end of February last year many ties were severed: in terms of supplies of various materials, as well as supplies and maintenance of equipment. But this whole situation with the sanctions was a unique opportunity for the development of domestic companies, our long-standing and new partners. Colossal work has been done, and it continues: today, import substitution is being carried out in all areas.
The transition to domestic resources continues in terms of supplying technological materials required in the production of refractory products. It should be noted that our relations with the alternative companies are being built constructively. We set our requirements for specific products, functional additives, where physical and chemical parameters are specified. The logistics department actively searches for suppliers. If we see that some indicators do not meet our requirements, we work through these issues, talk closely on this topic, tell them what exactly we need. Some things work out right away, some things — through trial and error.
? What is the situation with the supply of new equipment, including for process automation?
— In the conditions of import substitution we renew the equipment. In particular, we bought a drilling rig made by a domestic company Mashinostroitelny Holding. We cooperate with Spidermash Group when replacing German presses with Russian-made equipment. We have good relations with Remmashholding, their specialists are involved not only in equipment production but also in project documentation development. Partly we buy Korean and Chinese equipment. For example, in China we buy mining equipment for the Magnesitovaya mine — loaders and dumpers. At the same time, we negotiate with our Chinese partners to ensure that the equipment is serviced taking into account the supply of components, so that there is a warehouse of spare parts.
There are advances in the supply of components and spare parts for imported equipment that is already in operation. We are replacing these with domestic ones. We purchased a 3D scanner for the repair department, which allows us to quickly and accurately take the dimensions of components. On the basis of these data by our design bureau we can prepare design documentation and place orders at domestic enterprises, including Satka (we continue cooperation with Repair-Mechanical Enterprise). A striking example of this is burner lances of high-temperature shaft furnaces. This imported equipment is a consumable item. Using a scanner we made design documentation on them and placed orders at RMP and KZGO (Kiselevsky plant of mining and shaft equipment). There are no claims to the manufactured burner lances, they work efficiently.
We continue to automate processes. In this regard created irreducible stock of components and spare parts allowed us to work without emergencies. We have imported some of the automation equipment and some of it is undergoing tests. In this regard, we also work a lot with domestic producers, as well as from China and Korea. As for the software, there are good domestic developments in this area.
? And the consumers of Magnezit Group’s products? Have they also changed the vector of demand in the direction of import substitution?
— They understand the situation and are also working on import substitution. Last year we hosted delegations of serious metallurgical holdings. They faced serious problems with the supply of quality refractories from China, as well as logistical problems, they came to us and other domestic companies. The metallurgists were interested whether we could meet their needs, they saw that there were such opportunities, that we had the raw materials, new modern high-tech production facilities and qualified employees. We are ready and able to meet their needs. As a result, today we are working on a number of extensive programs on new areas of cooperation with such metallurgical holdings as NLMK Group, Severstal, Oskol Electro-Metallurgical Plant named after Ugarov and others. And, above all, in terms of import substitution of refractory products.
However, we must admit that for a number of positions, especially for oxide-carbon and periclase-spinel products of standard quality, the situation in the market is difficult. There is blatant dumping by Chinese producers in the face of shrinking domestic demand in China and supplies of European raw materials. And this is despite the fact that exports of similar products from Russia are banned by EU countries. Therefore we are working together with our consumers to strengthen ties and create stable production chains that ensure stable demand. But we can also think about supporting the domestic market by using customs duties and non-tariff regulatory measures at the state level.
?How does the state support measures help in this difficult situation?
— The most important tool of support for domestic enterprises is government grants, which we have successfully used and received reimbursement of incurred costs for the production of new products and compensation of part of the cost of interest on loan agreements. Two drying cabinets were paid for and installed under the grant we received for scientific research work, and a high-temperature laboratory furnace will soon be delivered to the company. In addition, we are currently offered to compensate the costs of logistics, to participate in a number of other programs of state support. Projects for grants are prepared by the Department of Scientific and Technical Information and Rationalization and the specialists of the United Consulting Center. They also monitor information on this topic.
? What difficulties have been caused by the absence of supervision from Europe during the launch of new facilities?
— We already have experience of launching facilities without Europeans. And the capabilities of domestic specialists allow launching complex equipment. For example, we are very satisfied with the work of RTSoft Company (Ekaterinburg). The level of their specialists is not at all lower than in Europe, and in some ways it is even higher.
We also had our own experience in supervising the installation, which we had before last February. We commissioned the second multi-hearth furnace for calcination of crude magnesite at the Record complex in 2021 without participation of German specialists. We can say that we completed the turnkey commissioning of the facility in terms of mechanics, electrical equipment and APCS systems, except for the gas cleaning equipment filter. After that, we launched the X-ray sorting system in Razdolinsk using our own specialists as well.
? Did the company have to adjust its plans for the near future? And what are they in different areas?
— The plans are huge. They are set for the long term. We can clearly say what range of products we will build up and what new products we plan to produce, how we will continue the technological modernization program.
We managed to do a lot before the sanctions were announced. We built entire complexes, in fact, automated plants: «Avangard» — for the production of fused powders; «Record», where by means of complex sequential processing of raw materials the production of high-quality dense-baked powders was established; «Progress» — the complex of unburnt products, «Impulse» — the complex of burnt products. All implemented technical solutions work, show high technical and economic indicators and at the same time meet all international standards of environmental safety.
We have impressive plans to develop our raw material base. We are planning to reach the design capacity of Magnesitovaya mine with the construction of new mine workings of level +100 by 2025. At the Nizhne-Priangarsk production site it is planned to commission a unique deposit «Talskoye». Its development will allow meeting Magnezit Group’s demand for the highest quality raw materials in the next 100 years. Today the project is under the state expertise, the detailed study of the design and estimate documentation is in progress, and next year we plan to begin implementation of the mining and infrastructure works.
Also at the Voskhod production complex of the Group’s Nizhne-Priangarsk production site we are planning to launch new raw materials processing facilities. A third shaft furnace for calcined raw material roasting and a new module for fused periclase production, consisting of two ore-thermal furnaces and accompanying infrastructure, will be built.
At the Satka site the rotary kilns fleet is to be modernized with a fundamentally new system of preparation and firing in the unit. It is also planned to upgrade the tunnel furnace fleet along the lines of the already implemented project at the Impulse complex. Not only the furnaces will be upgraded, but also the mass preparation systems, including modern mixing equipment and multi-component batching lines. Pressing equipment will be increased and automatic sorting and packing systems for finished products will be installed.
It is also planned to increase the production of high quality products for the steel vacuum degasser; to build a modern department for the production of shibboleth steel casting with the principally new range of products; to increase the production of carbon-oxide products up to 180 thousand tons per year (120 thousand tons at present) by installing additional facilities and upgrading the stock preparation line. In the department of innovative products it is planned to increase capacity for production of concrete with increase in output of vibro-cast products.
The plans are, of course, being adjusted. This difficult time for all of us is doing us good, we are not standing still. Design documentation is being prepared, new connections are being established. I have no doubt that time will pass, and European suppliers will reopen. But will we need them? Domestic materials work and are also cheaper, which reduces the cost of the final product. Even if at first our manufacturers are not able to satisfy all our requests, but these are temporary difficulties, and we are overcoming them quite successfully.
