Ukraine’s Karpatneftekhim resumes HDPE and begins PVC production

10 July 2017 12:14 Source:ICIS News

MOSCOW (MRC)--The largest petrochemical plant in Ukraine, Karpatneftekhim, which is situated in the Kalush, Ivano-Frankivsk region, resumed production of high density polyethylene (HDPE) on 6 July after a five-year shutdown, the company’s press service said.

Karpatneftekhim fully resumed production of HDPE and started production of polyvinyl chloride (PVC) according to the representatives of the enterprise. The first start-up of polyethylene capacities was held on 9 June, but due to technical problems the work was suspended.

As Ukrainian companies reported, negotiations on July deliveries of polyethylene to the domestic market began last week.

The relaunch of production took place due to the introduction in Ukraine of the world practice of taxing petrochemical raw materials, the company said earlier. The Tax Code of Ukraine expanded the list of raw materials subject to a zero excise tax rate in the case of further processing in December 2016.

Production at Karpatneftekhim was suspended in September 2012 after the plant repeatedly reported the problems due to the debts of the state for the reimbursement of export VAT and dumping of foreign, in particular American, producers of PVC - one of the main commodity positions of the Karpatneftekhim.

Karpatneftekhim (Kalush, Ivano-Frankivsk region) - was a subsidiary of LUKOIL-Neftekhim and is the largest producer of polymers in Ukraine. The company produces polyolefins (ethylene and propylene), polyethylene, chlorine, polyvinyl chloride and caustic soda.

The enterprise’s capacities allow the production of 300,000 tonnes of ethylene, 100,000 tonnes of HDPE, 180,000 tonnes of caustic soda and 300,000 tonnes of PVC per year.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.

By Sergey Karaichentsev