Biaksplen is Planning to Increase BOPP Film Production

Moscow, May 17, 2010. Biaksplen, the largest Russian manufacturer of biaxially oriented polypropylene film, is planning to increase its production and to come into the markets of Kazakhstan, Turkmenistan, and other countries of Central Asia as the Company’s managers have told at a press conference.

BOPP film (biaxially oriented polypropylene film) is the most popular material thus far that is used for up-to-date flexible packaging designed for subsequent overprinting and laminating. Due to its barrier, optical and mechanical-and-physical properties as well as to high thermal resistance, flexibility and strength, polypropylene film is used extensively for packing of goods in food processing, perfume manufacturing, tobacco industry, pulp and paper sector, and consumer goods industry.

Construction of a new BOPP film production line of 35 thou tpy in capacity is planned for 2010 at Tomskneftekhim, SIBUR’s site in Western Siberia. That will allow to reduce logistical expenses on raw material supply taking into account that SIBUR’s company in Tomsk produces over 100 thou tpy of polypropylene.

«Since BOPP film world market has been growing by 10% on average in recent years, and the Russian demand thereof has even more potential, it is natural to investment in the business development,« — Sergey Merzlyakov, the Chairman of the Board of Directors of Biaksplen, has told.

Today Biaksplen is SIBUR’s largest polypropylene consumer. The petrochemical holding company is planning to increase polypropylene capacities by 500 thou tpy by 2012 at the expense of a complex under construction in Tobolsk. The state-of-the-art equipment in Tobolsk will allow to produce polypropylene of the highest quality unmatched in Russian or CIS market.

«When the Siberian line is put into service, Biaksplen will be the largest BOPP film manufacturer in CIS with total production capacity of 130 thou tpy», — Anton Matvienko, the General Director of Biaksplen, has told. The Company will substitute import of BOPP films to Russia in full and will occupy export markets of Central Asia and China with its product.

Development of Biaksplen agrees with the Russian economy development strategy aimed at transition from the raw material model to manufacture of high value-added innovation products. The innovation products include polypropylene-based synthetic paper that is more cost-effective and durable than the conventional one. Furthermore, Biaksplen is currently certifying BOPP film for tobacco products, which is not produced in Russia at the moment.

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Biaksplen group of companies (www. Biaksplen.ru) is one of the main BOPP manufacturers in Russia. In December 2009, SIBUR acquired 50% share in the charter capital of Biaksplen LLC.

Its plants are certified according to ISO 9001 Quality Management System. Biaksplen’s production facilities include three plants located in Nizhni Novgorod Oblast, Kursk Oblast, and Moscow Oblast with 87 000 tons of film in aggregate capacity.