Thursday on the website gov.ru published a draft presidential decree, which gives the Ministry of defence and its subordinate organizations to implement a scrap collection company “Translom” ferrous and non-ferrous metals, as well as decommissioned military equipment at market value without an auction. Now the document is at the public hearing.
To do this, “Translom” engaged in the disposal of decommissioned rolling stock of Russian Railways, being the largest player in this market. The company with the capacity to handle and process more than 250 tons of scrap per year, also takes care of its transportation, including in remote regions.
From the explanatory notes to the decree of the President that in 2017, the defense Ministry plans to get rid of 230 thousand tons of scrap metal (the proportion of ferrous and nonferrous metals in the party unknown. -). In this case, considering the average price in 2016 on the market of ferrous scrap at 9.5 thousand rubles per ton, the first year of the contract can bring “Translaw” 2,2 billion rubles of revenue. And judging from the price of ferrous scrap in March (12 thousand rubles per tonne), “Translom” not able to get 2.8 billion rubles.
2014 auction for the sale of recycled military equipment for the Ministry of defense held the Russian auction house (RAD). They evoked great interest in the industry. At the end of 2016 in the auction for sale of 4 tons of scrap ferrous and nonferrous metals was attended by nine candidates, who made 49 steps up the price three times up to 90 thousand rubles per ton — nine times higher than the market. For three years the auction house has held more than 700 public auction, and the total amount of transactions on all “iron” lots amounted to RUB 2.9 billion, the report said PLEASED. Information about how many in the sold out party fell on the share of non-ferrous scrap,. and how many black, could not be obtained.
Savings for the Ministry of defence
In recent years, the Ministry has accumulated a large number of scrap metal: in addition to not utilized car and motorbike left a legacy APC and T-54, told a source in the defense Ministry.
“To get rid of stuff and build storage for the new equipment — legacy it is necessary to saw. It costs very expensive. It is possible to spend budget money, and can give the traders”, — he explained, stressing that until the appropriate legislative mechanism.
Without the involvement of third parties the government will have to allocate the Ministry of defence of the 50 billion rubles for the disposal of obsolete equipment, explained the source in the defense Ministry. The same amount is mentioned in the explanatory note to the presidential decree. If the project is yet to be signed by the President, the defense Ministry can even earn on the implementation of obsolete equipment, explained the source.
Until the end of 2020 must be disposed of 9.9 thousand units of armored vehicles, 21.5 thousand – missile and artillery weapons, and about 7 million small arms, more than 150 million pieces of ammunition, 140 thousand missiles military purposes, for almost 2 thousand planes and helicopters, said in the explanatory note to the document.
The former structure of the RZD JSC “Translom” since October of last year belongs to partner, assistant to the President, former Minister of transport, Igor Levitin, to Alexey Zolotarev. The company, working with scrap the Railways, revenue in 2015 amounted to 13.5 billion rubles, according to Spark.
Sources of “Kommersant” bind “Translom” with the interests of the family of Rotenberg. Arkady Rotenberg belongs to “Pipe metal”, and his son Igor — 50% NSK, LTD specializing in the production of precious and nonferrous metals and processing of scrap of all kinds. The “Translom” and “Kronos” — the loggers scrap the Railways, where Igor Rotenberg in 2004 and 2005 he was Vice-President and head of the asset management Department (in particular, scrap metal).
CEO “Translam” Sergey Astakhov connected with Rothenberg denies, saying that the owner of 100% of a Zolotarev. According to him, the organization does not win all the tenders of the defense Ministry: “Here at the scrap of precious metals lost in the last month,” says Astakhov. To the question whether the company plans to receive a large lot of black and non-ferrous metals of the Ministry of defence, he replied: “Plan not to and win it”. In addition, “Translom” recently lost an auction on the Shchelkovo plant for the recycling of precious metals (one of the largest refining companies in Russia). “The great interest of the us to the plant was not, so we weren’t fighting,” explained Astakhov.
A source in the scrap collection industry notes that “Translom” has won and continues to win all the tenders Railways for disposal of decommissioned cars. Despite the fact that the company has changed the owner, it de facto continues to be close to the Railways.
Competition with Rostec
Earlier, the President allowed the Ministry to transmit his written off but forbidden to free sale, the property of “Rostechnadzor”. Have goskorporatsiey a subsidiary of the national ecological operator (neo), involved in recycling of scrap.
The question does not arise now the misunderstanding between the players, a source in the defense Ministry replied that between “Translatum” and “Rostec” will be split by contracts. “The first will go to scrap metal recycling, second — recycling technology,” he said. This is also informed by the head of lomozagotoviteli group “North” Ildar Neverov. “Translom”, will, in the first place, to utilize color and black scrap metal, and “assistance” — precious metals, he explained, noting that under the “equipment” can mean “as a precious metal, both black and colored.”
But on the scrap market “a daughter” “Rostec” I don’t know. In the industry doubt its competence and have the necessary experience. “As long as neo was not included in the community of scrap processors, I believe that this is an unexpected decision”, — said the Director of the Association of scrap processors “COURSE.KOM” Victor kovševnyj. Now, according to him, companies, professional recycling scrap of precious metals, and their total to 15 in the industry (and are not included in “rostec” and his “daughter”), the principal amounts to buy from the defense Ministry.
The market of electrical and electronic scrap, according to his forecast, will grow 65 times by 2025, due to environmental fees and regulations for disposal. “Companies such as Hewlett-Packard or Samsung will be forced to give large amounts for disposal therefore, the market has great potential,” said Victor kovševnyj, assessing the market in 90 thousand tons. “This is a labor-intensive and high-tech market, companies working with scrap precious metals are required to be licensed, including the assay office”.
The representative of the FAS said that the Agency has not received complaints about the choice of the Ministry of defence as the sole counterparty “Translam” and neo. In March, FAS upheld the complaint “daughter of” Rostec “the Russian auction house” who committed to the auction for the sale of products recycling, belonging to Russia, the two parties that have not made payments. “The Russian auction house” ordered to cancel the auction and conduct a new one.
It is necessary to share
Analysis of the market of scrap ferrous and nonferrous metals showed that “Translom” is the only specialized organization with in Russia branch network, its own production facilities with the ability to pre-cutting, harvesting and transporting scrap in the required quantities and minimum terms, stated in the explanatory Memorandum.
However, interviewed experts believe that the contract with the defense Ministry could fight other players. Competition could be vertically integrated companies related to steel plants, said the head of the Group “North” Ildar Neverov. “For example, scrap collecting division “Severstal” or “Novolipetsk metallurgical combine”. What is the reason “Translam” — guessing everything,” he said.
Military scrap was implemented to a small circle of companies, because for its utilization requires special equipment and a license. For example, some military scrap disposed of by the explosion, said the head of analytical Agency on the market of scrap Oleg Maslennikov.
“Readily available scrap in the country is becoming less, so the system disposal of scrap accumulated at the facilities of the Ministry of defence and other state-owned companies is an important task for the industry raw material supply”, — said the Director of the Association of scrap processors “COURSE.KOM” Victor kovševnyj. He said that before selling the scrap of the Ministry of defense was carried out under opaque schemes and often brought losses to both sides. “The stated positions, which actually was not too big on lots of equipment scattered throughout the country. In addition, the winner of the tender was often a professional player for resale of the lot,” explains Director of the Association of scrap processors.
Kovševnyj and the interviewee in a large company sector expect “Translom” share won lots with other industry participants. “We expect that “Translom” will share volumes within the Association on TRACK.COM, and more than 100 holding companies from Kaliningrad to Vladivostok,” — said kovševnyj. Source in scrap processing, the company expects “Translom” will sell scrap to major buyers and processors”.
Agree with him and CEO of the company “Ecosystem” Andrew Chugunkin. He notes that “Translom” more acts in the market as a trader. “This branch network [referred to in the explanatory Memorandum] — she’s not really them. They just use the facilities of other companies. For example, in Vladivostok the “Translam” nothing, but there are companies with which the organization can negotiate,” — said the Chugunkin.