MOSCOW (MRC) -- SIBUR and Russian Export Centre (REC) agreed to promote non-commodity exports, as per the company's press release.
At the Eastern Economic Forum, Dmitry Konov, Chairman of the Management Board at SIBUR Holding, and Andrey Slepnev, General Director of the REC, signed a cooperation agreement on providing loans and insurance to support the Company’s major export-related projects. The support will involve interest rate and export transportation subsidies, as well as loans and insurance.
In particular, this will include the export support of the thermoplastic elastomers (SBS polymers) production facility currently under construction with a capacity of 50 ktpa for road construction, roofing and other purposes, plus the future maleic anhydride facility with a capacity of 45 ktpa for healthcare, fuel, packaging, and other industries.
Dmitry Konov, Chairman of the Management Board at SIBUR Holding: "SIBUR is a major contributor to the promotion of Russian non-commodity and non-energy exports. We sell our products to 80 countries for consumer goods, automotive, construction, energy, and chemical applications. Thanks to the Russian Export Centre, Russia's future petrochemicals will receive a much-needed boost for entering the global market."
Maleic anhydride is a feedstock for the production of tetrahydrofuran, tetrahydrophthalic anhydride, films and synthetic fibers, pharmaceuticals, detergents, plasticizers, maleic, succinic, fumaric and malic acids and a number of chemicals for agriculture.
Plasticizers are substances introduced into a polymeric material to give it elasticity and plasticity during processing and operation. In particular, plasticizers are used to produce polyvinyl chloride (PVC). The share of plasticizers used for the production of PVC products is about 80%.
According to MRC's ScanPlast report, demand in the Russian unmixed PVC market increased only in the emulsion segment in January-July 2019, the market of suspension polyvinyl chloride (SPVC) decreased by 7%. The growth in demand for the suspension showed only producers of plastic compounds and plasticized films. Scheduled maintenance works of two Russian producers at once did not result in a significant shortage of SPVC in the market. The growth in imports helped to avoid shortages.
SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.