Russia's Kazanorgsintez, NKNKh plan increased investment

19 April 2010 17:40  [Source: ICIS news]

MOSCOW (ICIS news)--Russia's biggest polyethylene (PE) producer Kazanorgsintez on Monday announced plans to increase sales this year and invest in further project development.

In 2010, Kazanorgsintez was aiming to raise its sales to Rouble (Rb) 35bn ($1.2bn) from Rb22.5bn in 2009, CEO Leonid Alekhin said after the company's AGM.

It was aiming to invest Rb 1.6bn this year to finance its projects, including a scheme to increase the C2 capacity of its Kazanorgsintez plant from 430,000 tonnes/year to 640,000 tonnes/year by the end of this year, he said.

Alekhin also said Kazanorgsintez’s financial situation had improved after the company received government-guaranteed loans totaling Rb35bn.

Based in Tatarstan, central Russia, Kazanorgsintez produces more than one third of the country's total PE output.

Last week, Russia's leading petrochemical producer Nizhnekamskneftekhim (NKNKh) also announced ambitious investment plans.

NKNKh said it would invest Rb22bn by 2014 to finance its development, including a project to increase the synthetic rubber capacity of its plant from 400,000 tonnes/year up to 750,000-800,000 tonnes/year.

General director Vladimir Busygin also pledged to start construction of a new C2 unit with a capacity of 1m tonnes/year in 2013-2014. NKNKh, also based in Tatarstan, previously announced plans to build the new C2 unit by 2015 at an estimated cost of Rb84bn.

($1 = Rb29.06)

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By: Sergei Blagov
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