Russia equipped to meet demands for local PP with new facility

Tobolsk-Polymer, one of the world’s largest PP production facility and Russia’s biggest investment project in the petrochemical industry, recently opened its plant in a ceremony attended by the President of the Russian Federation Vladimir Putin. The launch of the Tobolsk-Polymer facility, a subsidiary of Russian petrochemical company Sibur, will contribute to the important challenge of import substitution in Russia, where currently local PP production is not sufficient to meet domestic demand.

In 2012, PP production in Russia was over 660 kilotonnes with demand exceeding 880 kilotonnes. Average PP per capita consumption in Russia stands at 6 kg, whereas in Eastern Europe the figure stands at approximately 14 kg, in Western Europe – 18 kg, and the US – 17 kg. It is forecast that Russia’s PP consumption will grow by around 4.2% a year until 2020.

Total investment into the project was approximately US$2 billion. The project was financed by Vnesheconombank, totalling US$1.4 billion, with the rest topped up by the company itself. Leonid Mikhelson, Chairman of Sibur Holding’s Board of Directors said, “Sibur enables oil and gas producers to sell their by-products without having to build their own processing capacities. The company consistently invests in APG processing and transportation and fractionation of light hydrocarbons. Tobolsk-Polymer is an important stage of the corporate strategy of advanced processing to derive value-added petrochemical products, including basic polymers, and meet domestic demand while achieving import.”


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