Russia's Sibur starts up new PP plant in end-'12, eyes Asia sales

19 May 2011 12:20  [Source: ICIS news]

GUANGZHOU (ICIS)--Russian producer Sibur plans to start up its new 500,000 tonne/year polypropylene (PP) plant in western Siberia by late 2012, and sell 20% of the facility’s output to Asia, a company executive said on Thursday.

“Approximately 40% of the production would be sold outside Russia, and half of that would go to Asia, mainly China,” said Oleg Makarov, vice president for planning, logistics and sales support at Sibur, at the sidelines of the 2011 ChinaPlas Exhibition in Guangzhou.

Sibur’s current PP capacity is 235,000 tonne/year in Russia, with facilities located at Tomsk and Moscow.

Makarov said he is bullish on China’s demand for polymers. He estimates that the country’s PP demand will grow by up to 10% annually, while its PE demand growth will be 5-7% over the next five years.

China is one of our focuses which contributed more than 14% of our total $7bn sales last year,” the Sibur executive said.

But competition in China’s PP market has been intensifying, as new domestic capacities come on stream, he said.

“Competition would be very high in the next two to three years, mainly after 2013. But we are ready to compete on the Chinese market, as well as in western Europe,” Makarov said.

Sibur is also keen on the Indian market, with a plan to build a 100,000 tonne/year butyl rubber(IIR) plant at Jamnagar. The plant, which is slated to start operation in 2013, will serve the growing demand of local tyre producers in India, he said.

Currently, around 75% of production from Sibur's 40,000 tonnes/year nitrile rubber (NBR) plant in eastern Siberia is exported, with China as the major destination, Makarov said.

ChinaPlas, the biggest annual plastics event in Asia, runs from 17-20 May.

By: Fanny Zhang
+65 6780 4359

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