Results of the Year
Despite Crises Atyrau Polyethylene Pipe Plant Operations Continue
The pioneer in the production of polymer pipe products in Kazakhstan – Atyrau Polyethylene Pipe Plant – was launched by Chevron in 2003. This is the contribution of the corporation leading the development of the giant Tengiz field to the diversification of the Kazakhstani economy. Being the industry's technological leader, Chevron has brought new technologies and a work culture to Kazakhstan.
Six production lines of the plant can produce 17,000 tons of polyethylene pipes per year. They are made of high-strength pipe-grade polyethylene such as PE-100 from European and other manufacturers and are used in water supply, sewerage, and gas supply. Polyethylene pipes of APPP have always been famous for high quality, not only in Kazakhstan but also in the CIS countries.
A special laboratory was created and accredited for quality control at the plant, the only one of its kind in Kazakhstan. Since 2004, all products have been certified. At the same time, the entire quality management system was certified for compliance with the ISO 9001:2000 requirements. It was conducted in four independent international certification bodies. ISO standards were introduced, based on which the ST RK ISO standards were subsequently developed and implemented. Confidence in the high quality of products is expressed in the 10-year warranty the plant gives for all manufactured products, and this is quite a unique position in the market.
A pipe made of heat-resistant polyethylene (PERT Black) is an innovative solution for public utilities. The product is used in heating and water supply systems with a liquid temperature of up to 95°C and for transporting aggressive industrial hot products. The pipes' diameter ranges from 12 mm to 630 mm, and they can withstand pressure up to 10 atmospheres. The product is reliable in operation (service life up to 50 years), cost-effective for service organizations, and complies with the requirements of the Law "On Energy Conservation and Energy Efficiency."
As practice has shown, implementing these solutions in communal heating and water supply systems provides up to 30% of heat savings and a significant reduction in further operating costs of housing and utility enterprises.
Polyethylene pipes of water and gas supply systems are largely strategic objects for the country. The plant's products are successfully supplied to consumers inside Kazakhstan and for export. Oil-producing, mining, and industrial enterprises are also permanent partners. The plant won the "Best supplier of polyethylene pipes" nomination from ERG mining company in 2022.
In 2014, a partial modernization of production equipment was carried out at the enterprise. A new Kryosis extrusion line from Battenfeld-Cincinnati GmbH was installed, and the raw material transportation system was modernized. The modernization project allowed to increase the production capacity of APPP by 20%. Since 2020, more than 20,000 tons of finished pipe products have been delivered to the market of Kazakhstan.
Like many other Kazakhstani manufacturers, the plant has recently faced many new challenges, including COVID-19, the January 2022 crisis in Kazakhstan, and the geopolitical situation in the world that changed after February 2022. The current situation has had an enormous impact on the global economy, and the company had to solve issues it had no experience overcoming.
The complexity of logistics chains, long delays in the supply of materials, and legislative restrictions have significantly affected all stages of the production process and changed them. Most of the investment programs were curtailed, and there were changes in exchange rates, which affected the price of raw materials. The estimated costs for materials included in the projects no longer meet modern realities and require new approvals to increase. Nevertheless, the company looks forward with great optimism and conducts its business despite all crises and problems.
The management and marketing service of the plant periodically reviews the strategy for conducting sales and procurements, considering the changing situation. In particular, the terms of sales were revised. Namely, more favorable conditions were created for wholesale customers, including the provision of a credit line for them. The strategy of purchasing raw materials has been optimized – during the period of price reduction outside the season, it is purchased in large volumes to replenish inventory. Other measures are also adopted.
The results were instant. Thanks to the flexibility and the ability to make non-standard decisions, in 2021, the plant produced 9,000 tons of pipe products, which is three times the volume over the past five years. As of the end of 2022, 7,000 tons of pipe products have already been produced despite all the issues.