Sibur, Moscow Oil Refinery form polypropylene joint venture

08 September 2010 09:05  [Source: ICIS news]

MOSCOW (ICIS)--Sibur and Moscow Oil Refinery have formed a joint venture to produce polypropylene (PP), the Russian petrochemical holding company said on Wednesday.

Sibur acquired a 50% stake in NPP Neftekhimiya, which is an associated company of Moscow Oil Refinery that operates a 100,000 tonne/year PP facility at Kapotnya, near Moscow, Sibur said in a statement.

Sibur did not disclose any financial details about the acquisition.

The venture will purchase propane-propylene fraction feedstock from Gazprom Neft and other suppliers to manufacture the PP, Sibur said.

Sibur and Moscow Oil Refinery will consider increasing the PP plant’s capacity up to 150,000 tonnes/year, the statement said.

“Due to [this] new partnership, Sibur is becoming the largest polypropylene manufacturer in [Russia],” said Sibur CEO Dmitry Konov.

Following the completion of a new PP complex at Tobolsk and the increase of NPP Neftekhimiya’s PP capacity, Russia is set to become a net exporter of PP, he said.

Konov was referring to the 500,000 tonne/year PP facility that is being built at the premises of Sibur subsidiary Tobolsk-Neftekhim, which is expected to come on stream in 2012.

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By: Sergei Blagov
+44 20 8652 3214

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