Investment Portal of the Arctic Zone of the Russian Federation

ILAN expands opportunities

A resident of the Arctic zone of the Russian Federation will build an asphalt plant in Norilsk

01.12.2022 // ILAN-Norilsk is not a newcomer to the road construction market. For more than 20 years, the company has been paving and repairing highways in the Far North, providing transportation and mechanised services to companies in Norilsk and Dudinka, as well as producing road pavement mixes.

In 2022, ILAN-Norilsk LLC joined the Urals Group, a leader in transport and road construction in Western Siberia and the Far North regions. Since then, the company has been actively upgrading its machinery fleet, and plans have been made to expand its activities. And in the autumn, ILAN-Norilsk became an AZRF resident with the project 'Establishment of an asphalt concrete plant and reconstruction of a building for auxiliary production in Norilsk.' Residency in the Arctic zone would be an excellent support for the company in realising its ambitions. First and foremost, because it will enable the 'ancillary' issues to be resolved quickly, thus speeding up work on the main line of action.

'Expansion and capacity building have long been part of the company's plans. But to expand, you need to be 100% sure of your future and not make unnecessary expenditures. ILAN-Norilsk does not yet own any land—the company leases it to accommodate its facilities, with lease agreements expiring in 2024–2025. AZRF resident status has made it possible to obtain land for the construction of the plant and location of the technical base on a non-competitive basis. Solving this issue allowed us to focus on our main plans—upgrading our equipment and increasing our production capacity,' says Altyngul Kurmantayeva, First Deputy General Director of ILAN-Norilsk.

ILAN's investment project did not start from scratch. The company has been producing bitumen mixes for a long time, has crushing complexes and other equipment, and has its own gas pipeline to the production sites. The investment project involves the purchase of a new asphalt mixing plant, a modern mobile crushing complex, a trailer-based crushing unit and conveyor for it, as well as other equipment.

The total investment in the project will amount to about RUB 225 mn (RUB 17.7 mn—capital expenditure, RUB 207.2 mn—lease payments). RUB 10 mn will be spent on the construction and reconstruction of production facilities, and the rest will be used to buy equipment.

The new asphalt plant will be launched in the first half of 2023. In fact, it has already been built; what's left is the details, as they say.

'Our old plant was in operation until October and has now been dismantled. In fact, the new one is ready to be launched, but we'll be fine-tuning it in the spring: winters in Norilsk are very cold, and to do everything properly we have to wait for some warm weather,' clarifies Altyngul Kurmantayeva.

'The old plant produced 115,000 tons of asphalt concrete this year. With the launch of the new one, once it reaches full capacity, output will be 150,000–200,000 tons a year. Basically, this volume is already enough for the project to pay for itself,' says Altyngul Kurmantayeva. 'And beyond that, everything will depend on the needs of the city and MMC Norilsk Nickel. Norilsk is developing and renewing itself, our new enterprise has already received orders from the mill. So we're sure all plans will come true.'

All phases of the project will be completed by August 2027. Tax revenues to budgets of various levels will exceed RUB 1.577 bn over 10 years after the company receives AZRF resident status.