Russia's NKNKh to complete alpha-olefins and PS projects this year

28 March 2014 17:57 Source:ICIS News

LONDON (ICIS)--Russian petrochemicals producer Nizhnekamskneftekhim (NKNKh) will complete projects in 2014 to modernise an alpha-olefins unit and to build a fourth polystyrene (PS) line with a capacity of 50,000 tonnes/year, it said on Friday.

NKNKh will also continue working on a “pre-investment study” for a new olefins complex with a capacity of 1m tonnes/year of ethylene, along with integrated polyethylene and polypropylene plants, it said without disclosing further details about the project.

In 2012, the company awarded a contract for work on the complex to US petrochemicals engineer CB&I, saying at the time that the project was expected to start up in 2016.

NKNKh also disclosed on Friday that its 2013 earnings before interest, tax, depreciation and amortisation (EBITDA) fell 42% year on year against a “backdrop of disadvantageous external factors” due to a slowdown in the growth of the global economy.

“First and foremost, this was reflected in a substantial decrease in rubber prices,” it added.

2013 was an unfavourable year for rubbers in light of the stagnant European market and growth slowdown in China," the company said.

This led to a reduction of natural rubber prices by 20% which resulted in an almost similar decrease in prices for isoprene rubber, that can be interchanged with natural rubber in most cases," it said.

Another negative was a decline in butadiene monomer prices by almost 40% which negatively affected butadiene rubber prices, it said.

By Stefan Baumgarten