Russia's SIBUR begins PP imports to deal with domestic shortages

10 May 2012 16:40  [Source: ICIS news]

MOSCOW (ICIS)--Russia-based petrochemical major SIBUR announced Thursday it is beginning temporary imports of polypropylene (PP) in an effort to deal with domestic shortages.

A pilot shipment contract will amount to 500 tonnes, with subsequent increases in imports totalling up to 2,000 tonnes/month. The PP will be purchased from China, India and the Middle East, the company added.

The deficit in the Russian PP market arose following a forced shutdown of several plants unaffiliated with SIBUR - Stavrolen in Stavropol Krai, Russia, and the Lisichanskiy refinery in Ukraine - which coincided with a seasonal upturn in local demand.

SIBUR aims to begin imports in order to stabilise the domestic market ahead of the launch of its new 500,000 tonne/year PP plant being built in Tobolsk, Russia.

“It is important that we support our customers until our Tobolsk-Polymer project is put into operation. The increased production volumes at our existing sites, coupled with additional imports of polypropylene, will help to reduce the price pressure on refiners from independent traders,” said Sergey Komyshan, the head of Sibur's polymers department.

In 2011, SIBUR produced 243,200 tonnes of PP, an increase of more than 11% from 2010.

In 2006, Sibur created the entity Tobolsk-Polymer to implement and operate its new PP project. In 2007, Sibur selected Fluor Corp to act as the project management company. In December 2009, Tobolsk-Polymer and Linde-KCA-Dresden concluded an engineering, procurement and construction contract for the PP facility.

SIBUR plans to finish construction of the PP plant in the third quarter of this year, and start the plant's operation in early 2013.

By: Sergei Blagov
+44 20 8652 3214

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