Russia: Business Deal Sibur, Gazprom Neft to Develop Polypropylene Production in Russia
Sibur and Gazprom Neft under its joint venture firm ‘Sibgazpolimer’ signed an agreement with the Titan Group to acquire 50 % stake in one of Russia's largest polypropylene facilities, Poliom. Sibur now aims to develop the facility’s polymer range whereas Gazprom Neft is expected to develop its petrochemical production.
Russia – Sibur and Gazprom Neft have consolidated 100 % of the authorised capital in Poliom, a polypropylene plant in Omsk. Sibgazpolimer, a joint venture of the two companies, has signed an agreement to acquire a 50 % stake in Poliom from the Titan Group.
After completing all corporate and registration procedures, Sibgazpolimer has become the sole member of Poliom, which is to be operated jointly by Gazprom Neft and Sibur.
Launched in 2013, Poliom is one of Russia's largest polypropylene facilities. In 2014, Poliom became the basis for a JV of Gazprom Neft (25 %), Sibur (25 %) and the Titan Group (50 %). Its annual capacity is 218 kt of advanced products with a mix of some 100 grades. It sources propane-propylene fraction, its key feedstock, from Gazprom Neft’s Omsk Refinery, while Sibur helps distribute its end-products in Russia and the CIS.
The facility is certified for compliance with international standards and applies best R&D solutions and technologies to ensure waste-free production. In 2014, Poliom became the basis for a JV of Gazprom Neft (25 %), Sibur (25 %) and the Titan Group (50 %).
“Sibur is committed to developing its polymer business as the demand in Russia and all over the world keeps growing ahead of the global economy. Thanks to their superior qualities, synthetic materials are well on the way to replace their traditional counterparts, while also offering new opportunities in transportation, healthcare, robotics and other areas.
Following the build-up of our stake in Poliom, we will focus on its development in addition to product distribution. Sibur has unique expertise to expand the facility’s polymer range and meet the demand of various processors through streamlined solutions. I would also like to thank the Titan Group for our long-lasting and successful cooperation,” said Sergey Komyshan, Sibur’s Management Board member and Executive Director.
“Increasing the stake in Poliom is an important milestone in Gazprom Neft’s long-term strategy focused, among other things, on developing the petrochemical production. By integrating oil refining and petrochemical assets into our business, we will be able to use the feedstock from our refineries more efficiently to make high value-added products, while also boosting our competitive edge both domestically and internationally through stronger technology ties with Sibur,” commented Levan Kadagidze, Head of the Commercial Directorate at Gazprom Neft.
“The Titan Group’s vast expertise in building complex industrial facilities and its technological and organisational excellence have made the Omsk polypropylene plant an enticing and valuable asset for Russia’s majors – Gazprom Neft and Sibur. Poliom has robust process control systems so its products are fully in line with the standards of the world’s top polymer goods manufacturers.
The Titan Group is going to continue developing its industrial assets, one of the projects being production facilities that will increase the hydrocarbon refining depth and produce a range of organic synthesis products with a view to substituting the respective imports. Gazprom Neft and Sibur are going to remain our strategic partners both on the existing and new projects,” said Mikhail Sutyaginsky, Chairman of the Board of Directors at the Titan Group.
This article is protected by copyright. You want to use it for your own purpose? Contact us at support.vogel.de (ID: 46037106)