Kstovo - Economy

Economy

Kstovo's main industrial zone is located south of the city, on the southern side of the Kudma River. It is centered around the petrochemical plants of LUKOIL-Nizhegorodnefteorgsintez (formerly NORSI-Oil and Novogorkovsky Oil Refinery), a subsidiary of LUKOIL, which is the city's main employer in the town, and, historically, the reason for the town's existence.

Some of the technological processes developed at the oil refinery have been patented in the USSR and the USA.

The "BVK" plant, which started operation in 1973 and was closed in 2003, used n-paraffins (produced by the oil refinery nearby) as feed for yeast, in order to produce the so-called "protein and vitamin concentrate" (single-cell protein) for use as animal food. The facility was originally run by the Soviet Ministry of Microbiological Industry. As of ca. 1990, it produced some 300,000 tons of its product per year. The facility also produced certain pharmaceutical products, e.g. Coenzyme Q10 (Ubiquinone-10), used as a dietary supplement.

Belgium's SolVin is working with SIBUR on building a PVC production plant "RusVinyl" in Kstovo District.

There are also a bitumen plant, a wine/liquor distillery (Russian: Мицар, Mitsar), a tire repair & recycling plant, and the usual assortment of local food industry enterprises.

A cogeneration power plant (Russian: Новогорьковская ТЭЦ, Novogorkovskaya TETs) supplies electricity into the regional electric grid (305 MWt) and hot water for heating city apartment buildings. In November 2008, the local power company announced its plans to increase the power plant's electricity production capacity to 605 MWt; the new power generation unit is scheduled to be brought on-line by the end of 2011. Plans for the construction of another cogeneration plan elsewhere in Kstovsky District, namely at the site of the abandoned Gorky Nuclear Cogeneration Plan (Горьковская АСТ) near the village of Fedyakovo, are considered as well.

The town has a large farmer's market, and a decent selection of supermarkets and retail stores.

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