Sibur takes 50% stake in Russian BOPP producer Biaxplen

02 December 2009 11:12  [Source: ICIS news]

MOSCOW (ICIS news)--Sibur has acquired a 50% stake in Biaxplen, a major Russian producer of biaxially oriented polypropylene (BOPP) film, the leading Russian petrochemical holding company said on Wednesday.

The acquisition would allow Sibur to facilitate its domestic PP sales amid its ongoing project to build a new PP plant at Tobolsk, in the Tyumen region of western Siberia, Sibur CEO Dmitry Konov was quoted as saying in a company statement.

Biaxplen operates three BOPP plants in the Kursk, Moscow and Nizhny Novgorod regions of Russia, with a total capacity of 87,000 tonnes/year and combined annual sales of Roubles (Rb) 3.9bn ($134.2m, €88.9m) in 2008.

In July 2008, Sibur started construction of a new 500,000 tonne/year PP unit at the site of its Tobolsk-Neftekhim subsidiary, also based at Tobolsk.

Separately, Sibur subsidiary Sibur-Neftekhim said earlier this week that the completion of its planned ethylene capacity expansion project at Kstovo, in central Russia’s Nizhny Novgorod region, would be delayed until 2012.

In August 2007, Sibur approved the €126m project to raise the ethylene nameplate capacity of its Kstovo Petrochemical Plant from 240,000 tonnes/year to 430,000 tonnes/year by 2010.

In addition, Sibur-Neftekhim said that it expects its sales in 2009 to fall to Rb7.25bn due to decreasing revenues and pricing volatility.

The company also said its net profit could drop to Rb50m, which would be nearly 2.4 times less than its 2008 net profit.

Based in Dzerzhinsk, in the Nizhny Novgorod region, Sibur-Neftekhim also operates caprolactam, ethylene oxide and glycol plants.

($1 = Rb29.06/€1 = Rb43.86)

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By: Sergei Blagov
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