SIBUR updates Sustainable Development Strategy

SIBUR updates Sustainable Development Strategy

MOSCOW (MRC) -- SIBUR’s Board of Directors has approved amendments to the 2025 Sustainable Development Strategy, said the company.

The Company maintains focus on mitigating the climate impact and developing circular economy, while also taking on more ambitious green commitments and expanding the range of diversity and inclusiveness goals.

"In 2019, SIBUR was one of the first Russian companies to adopt a sustainable development strategy. In two years, we have undergone a comprehensive ESG transformation, realising that the strategy needs to be updated in order to meet new challenges of the rapidly changing environment. Some of the targets were achieved ahead of schedule, while others need to be redefined to become more audacious. There are also some additional areas which compel closer attention and require urgent action on our side. The updated document reflects our ambitious aspirations in the realm of carbon neutrality and circular economy," said Dmitry Konov, Chairman of SIBUR’s Management Board.

One of the new goals is to make at least one SIBUR facility carbon neutral by 2025. To this end, we will improve the energy efficiency of processes and increase the share of renewables in the energy mix, introduce CO2 capture, removal, and storage technologies, and run sequestration projects. As the Company makes progress towards this goal, we will be able to test and assess the efficiency of existing and planned projects.

The updated strategy translates the goal to reuse plastic waste in the production cycle into specific figures. By 2025, SIBUR plans to facilitate recycling of at least 100 kt of polymer waste annually as part of its own investment projects and joint projects with partners. The key driver in delivering this goal will be the production of green PET granules – Vivilen rPET – containing recycled materials to be launched at POLIEF site in Blagoveshchensk in 2022. By 2030, SIBUR plans to make at least 250 kt of low-carbon products and those containing recycled or bio feedstock annually.

The green energy goal is now even more ambitious. As was previously announced, SIBUR plans to increase the share of green energy in its energy mix fivefold by 2025; however, the base year has been changed from 2019 to 2020. The calculation now factors in the launch of the Company's own solar power plant in SIBUR-Yug corporate resort in Anapa. SIBUR’s HR management and social activities are to be merged into a comprehensive diversity and inclusiveness programme by integrating the principles of diversity and inclusiveness into the Company's key by-laws and corporate practices. The goals related to the development of a methodology for assessing the product portfolio against sustainable development criteria, the approval of a human rights policy and the launch of long-term charitable projects to conserve biodiversity were delivered ahead of schedule.

In October, SIBUR closed the deal to acquire 100% of TAIF JSC, which includes Nizhnekamskneftekhim, Kazanorgsintez and TGK-16.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.)ю
MRC

OMV Acquired by MalStra LLC

OMV Acquired by MalStra LLC

MOSCOW (MRC) -- OMV Machinery S.R.L. (Verona, Italy), a division of Swiss-based Wifag/Polytype Holding AG, has been purchased by Florida-based MalStra LLC (Royal Palm Beach, Fl.). Terms of the transaction were not disclosed, said Ptonline.

Plastics packaging industry veterans Mark Strachan and Brooke Maltun are the owners of MalStra and will lead the new business to be named OMV Technologies LLC. It will be headquartered in Florida with manufacturing operations to continue out of Italy and all current personnel to be retained.

Strachan, who will serve as the CEO of OMV Technologies, has almost 40 years of experience in sheet extrusion, roll-fed thermoforming and extrusion inline thermoforming, as well as two terms as chairman of the board for the Society of Plastics Engineers Thermoforming Division. Maltun, who is currently the VP of Sales for Los Angeles-based custom thermoformed packaging maker Star Plastic Design, will serve as president of OMV Technologies.

In a release, Strachan and Maltun stressed OMV’s strengths, including the ability to offer turnkey inline extrusion thermoforming systems and technology leadership in ‘cut in place’ technology and inline rim rolling of round and square containers.

The company said it plans to continue building machines and tooling in Italy, while “beefing up” operations in Italy and the U.S. Along those lines, OMV will be opening extrusion thermoforming and product development labs, as well as a training facility, in Florida. In addition, all U.S. based parts and service will be relocated from Polytype America’s current location in New Jersey to Florida.

Maltun said the company will be hiring personnel for its headquarters is in Florida, as well as an office in Los Angeles, in addition to more sales and service personnel.

As MRC wrote before, OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
MRC

Gazprom Neft selects Lummus Technology for two fired heaters at its Moscow refinery

Gazprom Neft selects Lummus Technology for two fired heaters at its Moscow refinery

MOSCOW (MRC) -- Lummus Technology announced it has been awarded a contract from the Gazprom Neft Moscow refinery for two fired heaters, according to Hydrocarbonprocessing.

The heaters will be installed at the refinery in Moscow, and are part of the plant’s modernization to improve operational efficiency and environmental performance.

“This award is a great example of how Lummus supports its customers across their capital investment and operational cycles,” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. “We are building on CLG’s delayed coking technology with our advanced heater technology and supporting our partner in reliable operations to optimize light product yields, while delivering high run-length and energy efficiency at the Moscow Refinery.”

Lummus’ scope includes the design and supply of two fired heaters, adding to the delayed coking technology that CLG, a joint venture between Chevron and Lummus, provided in 2018.

As MRC informed earlier, Gazprom Neft could increase oil production in 2020 by 10% year on year, said the company's CEO Alexander Dyukov on Oct. 14.

Gazprom Neft (headquartered in St. Petersburg, part of Gazprom, which owns 95.68% of its shares) is one of the largest Russian oil companies. In 2015, Gazprom Neft remained one of the leaders in the oil industry in terms of key performance indicators - the level of operating profit and return on invested capital. In 2015, Gazprom Neft produced 79.7 mln tonnes of hydrocarbons, increasing production by more than 20% compared to 2014 and thus achieving the highest production growth in the Russian oil industry.

Gazpromneft - Moscow Oil Refinery is a subsidiary of Gazprom Neft. The plant's production capacity is 12.15 mln tonnes/year of hydrocarbons. The company produces motor gasolines, diesel, marine and aviation fuel, fuel oil, high-octane additives to motor gasoline, bitumen and gases for various purposes, as well as polypropylene (PP). And in 2010, Moscow Oil Refinery and SIBUR created a joint venture for PP production - NPP Neftekhimiya LLC.
MRC

SIBUR updates organisational model of its plastics and rubber business

SIBUR updates organisational model of its plastics and rubber business

MOSCOW (MRC) -- The merger of SIBUR’s and TAIF’s historical assets resulted in an exponential growth of plastics, elastomers and organic synthesis business in terms of absolute volume of production, range and applications of products, said the company.

The Company believes that this offers a great potential for further development. To that end, a decision has been made to divide the Plastics, Elastomers and Organic Synthesis Division into two standalone business units both supervised by Sergey Komyshan, SIBUR’s Management Board member and Executive Director. Member of the Management Board and Managing Director Alexander Petrov will be the Head of the Plastics and Organic Synthesis Division, while Timur Shigabutdinov, another member of the Management Board and Managing Director, will be in charge of the Synthetic Rubbers Division.

The Plastics and Organic Synthesis Division will consolidate assets with a total capacity of some 3 mtpa. The Division’s further expansion will be driven by the development of medium-tonnage chemicals, which enjoy strong demand in the Russian market. Once implemented, the respective projects will substitute imports of products such as MAN and DOTP and make a strong contribution to the growth of Russia’s non-commodity exports. In addition, the Company plans to use this business to expand the production of feedstock for high-margin products in the specialty chemicals segment, which currently has an insignificant presence in the domestic market.

Mr Petrov will also continue to supervise SIBUR’s production support function as it pursues increasingly ambitious goals – integrate procurements within the combined company, keep pace of changes and implement the existing functional initiative portfolio: import substitution, category strategies, optimisation of technical solutions, and use of digital tools.

The standalone Synthetic Rubbers Division was established in response to a more than 3-fold increase in the rubber business as a way to focus on delivering operational improvements for rubber production facilities, which today have a total capacity of around 1.2 mtpa. The Division will be responsible for developing new grades with unique consumer properties, creating customer services and offering comprehensive solutions, as well as expanding footprint across segments and geographies. With its unparalleled integrated business model, the combined company will be able to ramp up the efficiency of its rubber business by increasing the availability of feedstock, predominantly butadiene, and develop production of most popular butadiene-based rubbers going forward.

Alexander Petrov, Head of the Plastics and Organic Synthesis Division, member of the Management Board and Managing Director of SIBUR, said: "Our aim is to considerably scale up our business by relying on medium-tonnage chemicals projects focused on import substitution. An important part of that will be securing the right set of projects to make use of monomers from the new Nizhnekamskneftekhim cracker and benefit from the integration of processes of SIBUR’s traditional supply chain and its new asset perimeter. Another goal for us is to increase the presence of our products in the construction industry, partly by expanding our range of grades and partly by offering customers new solutions and replacing traditional construction materials with polymers."

Timur Shigabutdinov, Head of the Synthetic Rubbers Division, member of the Management Board and Managing Director of SIBUR, said: "The combined company boasts an unrivalled portfolio of synthetic rubbers. Our priority is to respond to customer needs by further growing the business using the expertise under our belt, cutting-edge R&D assets, and access to the latest technologies. Once all the investment projects are completed, these initiatives will make SIBUR one of the world's Top 5 synthetic rubber producers."

In October, SIBUR closed the deal to acquire 100% of TAIF JSC, which includes Nizhnekamskneftekhim, Kazanorgsintez and TGK-16.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.).
MRC

COVID-19 - News digest as of 02.12.2021

1. Dow expects Q4 earnings decrease

MOSCOW (MRC) -- Dow expects Q4 earnings before interest, tax, depreciation and amortisation (EBITDA) to be about USD150-200m lower than market consensus, said the company. The reason: higher raw material costs and lower polyethylene (PE) and co-product pricing. However, the company is seeing continued economic and supply recovery in Q4, it said. It noted “robust” end-market demand strength across industrial and consumer markets, as well as improving supply positions following weather-related outages, turnarounds and start-up of new PE capacity in the US Gulf Coast region. Nevertheless, logistics challenges continue to constrain demand, it said.

MRC