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Operations

SIBUR Group operations are managed along product-division lines. The corporate centre includes three divisions based on common operational processes and products:

• Hydrocarbon Feedstock Division

• Synthetic Rubbers Division

• Plastics and Organic Synthesis Division

Each directorate is responsible for the financial results of its constituent manufacturing centres and their overall financial performance.

The Company’s non-core businesses have been spun off into independent companies:

• SIBUR Russian Tyres - for the tyre and industrial rubber plants

• SIBUR Mineral Fertilizers - for the mineral fertilizers business

The SIBUR Group’s central role is designed to provide the business divisions with some key centralized functions including:

• Strategic planning
• Allocation of resources
• Common corporate standards
• Regulations and policies
• Financial planning and budget performance

The SIBUR Group operates an internal market of processing agreements, within which the group owns the raw materials and end products while each business unit charges a fee for processing services.

This structure allows group management to plan and control the commodity and cash flows within the group, market petrochemical products, as well as create and implement development programmes with each enterprise. This in turn encourages the dynamic and more efficient management of the different enterprises, forming an integrated operational and technological system for the production of petrochemical products.