Russia’s Sibur to complete new PP plant by Q3 of 2012

15 June 2009 17:33  [Source: ICIS news]

LONDON (ICIS news)--Sibur's proposed 500,000 tonne/year polypropylene (PP) plant is now on track to be finished by the third quarter of 2012, the Russian petrochemicals company said on Monday.

Sibur said the delayed project, at the premises of subsidiary Tobolsk-Neftekhim, which is based in the Tyumen region of western Siberia, would be well positioned to export product to the European market once it comes on stream.

The company's CEO, Dmitry Konov, said Sibur had cheap feedstock advantages over European producers, while also competing effectively with Middle Eastern exporters, which he said would need to raise prices to recoup the high capital expenditure costs of polyolefins expansions in the region.

Konov said it was inevitable that some established crackers’ downstream production in western Europe would close under the pressure of cheap imports from the Middle East and Russia.

European chemicals producers were seen as more financially fragile after having severed links with oil majors, and they were less able to handle the economic downturn, Konov said.

Konov said the highly leveraged companies suffering during the financial crisis would leave holes in the market for Sibur to move into, adding that there would be good opportunities for Sibur to expand its market share in eastern Europe.

The company was currently operating its PP plants at full capacity, he said.

Separately, Sibur's planned polyvinyl chloride (PVC) plant at Nizhy Novgorod has been delayed further and was now expected to come on stream in the second quarter of 2013.

Konov said Russian PVC demand would benefit from the domestic construction sector, which was expected to show strong growth over the next decade.

“Demand will come back, but later than we thought,” he said.

Please visit the complete ICIS plants and projects database
Read Paul Hodges’
Chemicals and the Economy Blog
To discuss issues facing the chemical industry visit ICIS connect

By: Mark Watts
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index