Air Products to build Russia plant to supply Sibur affiliate

02 September 2010 20:08  [Source: ICIS news]

TORONTO (ICIS)--Air Products will build an on-site air separation unit with capacities of 3,000 cubic metres/hour of gaseous nitrogen and 16,000 cubic metres/hour of dry compressed air to supply Voronezhsintezkauchuk, a synthetic rubber affiliate of Russian state petrochemicals major Sibur, the US industrial gases firm said on Thursday.

Air Products would own, operate and maintain the unit, it said. Start-up was expected for 2012, it added.

The deal was first announced last month, but at the time the companies did not disclose capacity details.

Air Products said in addition to supplying Voronezhsintezkauchuk with its industrial gas requirements, it would also supply liquid product to the Russian market.

The unit will be built at Voronezhsintezkauchuk’s existing premises, on a plot of land leased by Air Products.

Voronezhsintezkauchuk is based in Voronezh, central Russia. In the first half of 2010, Voronezhsintezkauchuk produced 126,000 tonnes of synthetic rubber, according to the company. It produced 171,300 tonnes in the whole of 2009. The company exports nearly half of its output and is hoping to produce 226,000 tonnes in 2010.

The deal marked Air Products’ first with a state-owned Russian firm, it added.

“As Voronezhsintezkauchuk recognises, the benefits of on-site gas production facilities in a vast and rapidly expanding marketplace are significant and can bring substantial commercial advantages to both the customer and supplier," said Rob Mills, Air Products business development manager for Russia and eastern Europe.

Financial terms were not disclosed.

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By: Stefan Baumgarten
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