MOSCOW (Market Report) - The largest petrochemical plant in Ukraine, Karpatneftekhim (Kalush, Ivano-Frankivsk region), resumed production oh high density polyethylene (HDPE) on 6 July after five years of 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 of the site was suspended. As Ukrainian companies reported, negotiations on July deliveries of polyethylene to the domestic market began last week.
The launch of production after five years of the shutdown 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.
As MRC previously reported, Lukoil completed a deal to sell a 100% stake in LUKOIL Chemical B.V. (Netherlands), which belongs to Karpatneftekhim in February 2017. Techinservice Limited bought from Lukoil up to 50% of Karpatneftekhim. The total amount of the transaction was USD25 mln. The second indirect owner of over 50% in LLC "Karpatneftekhim" through the Cyprus Xedrian Holding Ltd was Lukoil manager in Ukraine Ilham Mammadov.
Production at Karpatneftekhim was suspended in September 2012. Earlier, 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 producing 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