SIBUR to ramp up trial production of thermoplastic elastomers at its Voronezh site

MOSCOW (MRC) -- SIBUR is ramping up trial production of thermoplastic elastomers (SBS polymers) at its Voronezh site in accordance with the project schedule, said the company.

Thermoplastic elastomers (TPE) are a unique material, which can significantly improve the quality of output in road construction, roof coating and footwear production, and other industries. The new capacities are set to meet demand in special segments, such as compounds and glues. Thus, in 2020 the Company’s product portfolio will include five new SBS grades, sought after in the footwear, automotive, and packaging industries, as well as in the production of household goods (e.g., hygiene products and items in close contact with food).

The company launched the investment project to increase the production of TPE for road construction, roof coating production and other industries by 50 ktpa in the second half of 2018. The project relied on available government support provided on several levels: municipal and regional support under the Special Investment Contract (SPIC) with the Government of the Voronezh Region and the Administration of the City of Voronezh, and federal support under the agreement on the implementation of the Corporate Competitiveness Improvement Programme (CCIP) with the Russian Ministry for Industry and Trade.

The use of cutting-edge technologies in line with the best global practices for project construction will ensure that TPE production will meet environmental standards. A German air purification plant makes TPE production environmentally friendly. The plant’s pollutant removal efficiency is 99%. The project's general designer was NIPIgaspererabotka, a leading Russian research centre for facility design, procurement, logistics, and construction in the petrochemical industry. Promstroi played the role of the projects’s general contractor.

In January 2020, SIBUR’s Voronezh site (Voronezhsintezkauchuk) completed the construction phase and produced the first tonne of TPE. Since then, the plant has produced 3,000 tonnes of TPE and is proceeding with the homologation of new product grades. With the current TPE output, the total design capacity of Voronezhsintezkauchuk is set to increase to 135 ktpa.

“Thermoplastic elastomers are a unique polymer product with an excellent market potential in the modern world. They are in high demand, and with our additional production capacity we will be able to meet the demand in both the Russian and foreign markets. Other advantages of our TPE investment project include excellent environmental properties of the production process and the product itself, additional tax revenue for the regional budget and an increase in exports from Voronezh Region,” said Pavel Lyakhovich, member of the Management Board and Managing Director at SIBUR.

One of TPE’s key application areas is the production of polymer-bitumen binders (PBBs), which are part of the road pavement’s top layer. PBBs help extend time between repairs and the life of pavement from 3–4 years to 7–10 years, while also improving its crack, heat, shear, water and cold resistance. Other benefits include cutting maintenance expenses almost by half, increasing the road’s surface life some 2.5 times, improving traffic safety and, ultimately, expanding road capacity – all due to fewer repairs.

Despite the unfavourable situation with the spread of COVID-19, SIBUR did not postpone the start of trial production. To minimise the risk of virus spreading and support continuous plant operation, Voronezhsintezkauchuk took all necessary preventive measures as early as in March. Preventive activities include the mandatory thermometry of plant and contractor employees, ongoing monitoring of personnel health, provision of necessary means of personal protection, and a thorough sanitisation of all office and production premises.

As MRC informed earlier, SIBUR will develop a feasibility study for the construction of a gas processing plant near Kazan by July 2020. Based on the feasibility study, the company"s shareholders will decide on the construction of the enterprise.

According to MRC's ScanPlast report, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

SIBUR Holding PJSC is the largest petrochemical company in Russia and Eastern Europe with full coverage of the industry cycle from gas processing, production of monomers, plastics and synthetic rubbers to plastics processing. The main shareholder of SIBUR Leonid Mikhelson controls 48.48% of the company, Gennady Timchenko - 17%, Kirill Shamalov - 3.88%, the current and former management of the company (including SIBUR chairman of the board Dmitry Konov and head of Gazprom Neft Alexander Dyukov) - 10.6%, Chinese Sinopec and the Silk Road Fund - 10% each.
MRC

MOSCOW (MRC) -- Due to the spread of coronavirus, two Russian polyvinyl chloride (PVC) producers adjusted their plans for scheduled shutdowns for maintenance, according to ICIS-MRC Price report.

The plants' representatives and customers said Kaustik (Volgograd) and RusVinyl revised their plans for scheduled turnarounds at their PVC production capacities. The Volgograd producer intends to start maintenance earlier than originally planned, and the Nizhny Novgorod manufacturer rescheduled the outage at a later date.

Thus, Kaustik (Volgograd) intends to carry out the turnaround at its PVC production during three weeks from 1 May. The plant's annual production capacity is 90,000 tonnes.

RusVinyl postponed its scheduled maintenance works from the second half of April to July, the exact dates of the outage have not been announced yet, but traditionally, the turnaround is carried out within two weeks. The plant's annual production capacity is 330,000 tonnes.

It is also worth noting that SayanskKhimPlast traditionally shuts its production capacities for maintenance in June-July, the plant's annual PVC capacity is 350,000 tonnes.

According to MRC's ScanPlast report, Kaustik (Volgograd) produced about 7,400 tonnes of suspension polyvinyl chloride (SPVC) in March, whereas this figure was 7,100 tonnes in February. RusVinyl produced about 29,900 tonnes of PVC in March 2020, with emulsion polyvinyl chloride (EPVC) accounting for 2,400 tonnes, which actually corresponds to the figure a month earlier. At the same time, SayanskKhimPlast produced 28,500 tonnes of SPVC in March, whereas this figure was 26,500 tonnes in February 2020.
MRC

1. Russian PVC producers adjust their plans for shutdowns for maintenance

MOSCOW (MRC) -- Due to the spread of coronavirus, two Russian polyvinyl chloride (PVC) producers adjusted their plans for scheduled shutdowns for maintenance, according to ICIS-MRC Price report. The plants' representatives and customers said Kaustik (Volgograd) and RusVinyl revised their plans for scheduled turnarounds at their PVC production capacities. The Volgograd producer intends to start maintenance earlier than originally planned, and the Nizhny Novgorod manufacturer rescheduled the outage at a later date.



MRC

MOSCOW (MRC) -- Polypropylene (PP) imports into Belarus rose in the first two months of 2020 by 9% year on year to about 17,500 tonnes. All grades of propylene polymers accounted for the increase in demand, according to MRC's DataScope report.

February PP imports into the Republic of Belarus were about 9,700 tonnes, compared to 7,800 tonnes a month earlier, local companies raised their purchasing of PP in Russia. Overall imports of propylene polymers reached 17,500 tonnes in January-February 2020, compared to 16,000 tonnes a year earlier, demand for all PP grades increased, with homopolymer of propylene (homopolymer PP) accounting for the greatest growth.

The structure of PP imports by grades looked the following way over the stated period.

February imports of homopolymer PP reached 6,700 tonnes versus 5,800 tonnes a month earlier, purchasing of homopolymer PP increased in Russia under the pressure of seasonal factors. Overall imports of homopolymer PP reached 12,500 tonnes in the first two months of 2020, up by 10% year on year.

February imports of propylene copolymers to Belarus were 3,000 tonnes versus 2,000 tonnes a month earlier, local companies increased their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian producers. Thus, overall imports of propylene copolymers reached 5,000 tonnes over the stated period, up by 7% year on year.

MRC

MOSCOW (MRC) -- Sinopec Zhenhai Refining & Chemical Company has unexpectedly shut its high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant and monoethylene glycol (MEG) plant due to technical glitches on its ethylene unit on 16 April, 2020, reported CommoPlast with reference to market sources, .

Based in Zhenhai, China, the plant has a 450,000 tons/year HDPE/LLDPE plant and 650,000 tons/year MEG plant.

Both plants are expected to remain shut for 7 days.

Meanwhile, the company's 620,000 tons/year styrene monomer (SM) plant and 500,000 tons/year polypropylene (PP) plant are running at reduced rate. A source closed to the company informed that they are currently outsourcing propylene temporarily to continue production at lower rate.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

As per MRC's ScanPlast report, Russia's estimated PET consumption decreased to about 53,890 tonnes in February 2020, down by 3% year on year. 100,830 tonnes of PET chips were processed in Russia in the first two months of 2020. February PET production in Russia dropped to 45,800 tonnes, down by 5% year on year. Russia's overall PET production fell in January-February 2020 by 13% year on year.
MRC