SIBUR to account for 55% of Russia PP production in mid term: Moody’s

16 October 2013 12:30  [Source: ICIS news]

LONDON (ICIS)--SIBUR’s share of Russia’s polypropylene (PP) production will rise to around 55% in the medium term from 37% in 2012 with the launch of its Tobolsk-Polymer plant, Moody’s said on Wednesday.

The production complex – Tobolsk-Polymer’s 500,000 tonnes/year of PP capacity is back integrated into a 510,000 tonne/year propane dehydrogenation (PDH) unit – will help lift the proportion of revenues SIBUR derives from basic polymers to around 12% in 2015 from 8% in 2012, according to the debt ratings agency.

“The launch of Tobolsk-Polymer plant will close the gap in the Russian polypropylene market between supply (estimated at around 660,000 tonnes in 2012) and demand (estimated at over 880,000 tonnes in 2012) while the remainder will be exported to other Commonwealth of Independent States (CIS) countries and overseas.

"Moody's expects that at 100% utilisation rate the facility will generate annual revenue of around $600m in mid-term, resulting in a total increase in the company's revenue of around 15% compared with 2012 (Rb270bn ($8bn)),” it said.

SIBUR’s PP plant in Tobolsk was commissioned by Russian premier Vladimir Putin on Tuesday.

Moody’s said it viewed the launch of the Tobolsk-Polymer plant as credit positive for SIBUR and for Russia’s Tyumen region in western Siberia.

($1 = Rb32.27)

By: Nigel Davis
+44 20 8652 3214

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