SIBUR oficially launches DOTP production at Perm site

MOSCOW (MRC) -- Dmitry Kozak, Deputy Prime Minister, Maxim Reshetnikov, Perm Region Governor, and Dmitry Konov, Chairman of the Management Board of SIBUR Holding, attended commissioning ceremony of a newly built eco-friendly dioctyl terephthalate plasticiser (DOTP) facility, as per SIBUR's press release.

Other participants included Viktor Evtukhov, Deputy Minister of Industry and Trade, Pavel Sorokin, Deputy Minister of Energy, local authorities and SIBUR’s clients and partners.

DOTP, a key component in floor and roof coatings, wallpaper, cable compounds and automotive coatings, designed to ensure their plasticity, enhanced durability, and wear and cold resistance. 100 ktpa DOTP production facility not only will cover the needs of the domestic market (estimated at 60 ktpa) but also will contribute to the non-commodity non-energy exports to Europe and other regions. Unlike phthalate plasticisers DOTP is an eco-friendly product that complies to the highest European and other international environmental standards. DOTP production facility features state-of-the-art (water and air) treatment facilities, including biochemical treatment unit for industrial wastewater (upgraded in 2018).

SIBUR’s Perm-based DOTP production facility is the single largest production site in Europe. SIBUR invested RUB 6.95 bn (net of VAT) into the project, of which 82% was sourced to the Russian suppliers and service providers.

NIPIgas, a leading Russian research centre for facility design, procurement, logistics, and construction, acted as a general designer and developed design and engineering solutions. Russian companies were the key partners in the project. Suppliers of the core production equipment included Uralkhimmash, RSP Alexiy, RPC Mediana-Filter, PHM Mach, Penzneftekhimmash, Electroprofi and others. Perm-based contractors GSE-Permneftegazstroy and SMK Delta carried out construction and installation works.

The project was supported by the Perm Region Government under a special investment contract structure to promote creation of new production facilities offering high-tech jobs.

Dmitry Kozak, Russia’s Deputy Prime Minister:

– SIBUR is a leader in chemicals and petrochemicals and is committed to exploring new technologies set to underpin the offering of competitive Russian products commercially successful around the world. Going forward, we will extend our support to such initiatives and new projects, in particular via the International Cooperation and Exports national programme with a goal to promote Russian products and facilitate introduction of new technologies. A draft law to regulate special investment contracts for new technologies envisaging extensive preferences and subsidies has already been submitted to the State Duma. It is meant to support R&D activities bound to reshape our industry landscape. I would like to thank you for your vigorous and insightful efforts aimed at developing the Russian chemical industry."

Dmitry Konov, Chairman of the Management Board of SIBUR Holding:

– DOTP is a new product for the Russian market. Along with being one of the key import substitution projects in Russia’s petrochemical industry, the Perm facility is also going to drive the growth of the country's non-commodity exports. Finally, DOTP is an eco-friendly product, which is very much in line with the industry trends.

After the commissioning ceremony at SIBUR-Khimprom, Dmitry Kozak hosted a meeting on development of the petrochemical industry.

As MRC informed before, on 25 March 2019, the Perm facility was 100% ready for commissioning, with the first batch of dioctyl terephthalate coming off the line and shipped to customers as part of the pre-commissioning pilot.
MRC

MOSCOW (MRC) -- Polish pipelines operator PERN will make it possible to restart flows of Russian oil if refinery clients jointly decide, reported Reuters with reference PERN’s chief executive.

Various possible solutions regarding how to handle the polluted oil from Russia are on the table and are being discussed by the refineries, PERN’s CEO Igor Wasilewski said.

As MRC informed before, Kazakh oil flowing via Russia to be loaded on tankers at the Baltic Sea port of Ust-Luga has been contaminated and Kazakhstan plans to seek compensation from Russian pipeline monopoly Transneft. Russia’s oil export flows have been disrupted since April, when high levels of organic chloride were found in crude pumped via the Druzhba pipeline to Ust-Luga and other European countries. Six tankers with 598,000 tonnes of tainted oil were loaded at Ust-Luga, Kazakh Deputy Energy and Mineral Resources Minister Aset Magaulov told Reuters.
MRC

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus decreased in the first three months of 2019 by 6.5% year on year, totalling about 8,300 tonnes, according to MRC's DataScope report.

According to the statistical committee of the Republic of Belarus, local converters increased their purchasing of PVC in March under the pressure of seasonal factors. Total imports were about 3,300 tonnes, compared to 2,800 tonnes a month earlier.

Thus, imports of unmixed PVC reached 8,300 tonnes in January-March 2019 versus 8,800 tonnes a year earlier, with local windows producers accounting for a decrease in demand.
Russian producers with the share of about 86% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Ukraine and Germany with the share of 8% and 4% were the second and third largest suppliers, respectively.

MRC

MOSCOW (MRC) - Imports of suspension polyvinyl chloride (SPVC) into Ukraine decreased by 44% in the first four months of this year, compared to the same period in 2018 and reached about 15,800 tonnes. At the same time, during the period under review, export sales of Ukrainian PVC increased, according to MRC DataScope.

Last month's SPVC imports to the Ukrainian market increased to 4,200 tonnes from 3,700 tonnes in March, with US K70 PVC accounting for the main increase. Overall SPVC imports reached 15,800 tonnes in January-April 2019, compared to 26,600 tonnes a year earlier.

The key suppliers of PVC to the Ukrainian market were producers from Europe, their share in total imports in the first four months of this year was about 65%. A temporary reduction in the capacity utilisation of Karpatneftekhim in January-February due to a fire in the production of ethylene did not lead to a decrease in export volumes.

PVC exports from the country exceeded 50,100 tonnes in January-April, compared with about 49,000 tonnes in the same time a year earlier.
The key importers of Ukrainian polyvinyl chloride were consumers from India and Turkey, their share in total exports for the period under review was 58% and 20%, respectively.
MRC

MOSCOW (MRC) -- Bubble wrap maker Sealed Air Corp. is acquiring Automated Packaging Systems Inc. (APS), an Ohio-based manufacturer of automated bagging systems, for USD510 million, as per Canplastics.

The acquisition will benefit the companies through “cross-selling opportunities” and “supply chain efficiencies,” Sealed Air said in a statement. “And APS will bring complementary capabilities and a history of innovation to Sealed Air."

Founded in 1962 with headquarters in Streetsboro, Ohio, APS employs more than 1,200 people, serves customers in over 60 countries, and operates seven manufacturing sites in the U.S. and U.K. In 2018, APS generated USD290 million in sales. The company is known for inventing Autobag bagging machines and pre-opened bags on a roll, and also offers three recycled film solutions under the EarthAware brand.

The acquisition is expected to close early in the third quarter of 2019.

Headquartered in Charlotte, N.C., Sealed Air makes the Cryovac food packaging and Bubble Wrap protective packaging brands. The company reported USD4.7 billion in sales in 2018 and has approximately 15,500 employees.

As MRC informed earlier, Sealed Air Corporation is investing in capacity at its Simpsonville, S.C. facility to produce plant-based food packaging.
MRC