SIBUR Begins Procuring Plant for Production of Geosynthetic Materials

Two of SIBUR Holding’s subsidiaries — Orton OJSC (based in Kemerovo) and Plastik OJSC (Uzlovaya, Tula Region) — have signed procurement contracts for equipment to be used in the manufacture of geosynthetic materials.

The Italian company O.R.v. Manufacturing S.p. A will supply two production lines for nonwoven polypropylene materials with a total capacity of up to 20,000 tpa. The Chinese company SHUNDE PLASTIC MACHINE will supply two lines for the manufacture of flat geonetting from polypropylene, with a total capacity of 3,000 tpa. Each of the SIBUR facilities will therefore have an annual production up to 10,000 t of nonwoven materials and 1,500 t of geonetting.

The supply contracts also include engineering support and staff training services.

Launch of the new plant is scheduled for summer 2009 at Orton, and for autumn 2009 at Plastik. The production lines will be operating at design capacity by 2010. In the future, SIBUR aims to supply up to 20 per cent of domestic demand for geosynthetic materials in Russia.

For Editors:

Geosynthetic materials are used in the construction and renovation of roads and railways, and in earthmoving and pipelaying operations. Nonwoven materials and geonetting with high tensile strength help to reinforce road surfaces by segregating bulk material, ensuring an even distribution of pressure on the foundation and improving water drainage.

It is estimated that Russia produced around 35,000 t of nonwoven polypropylene materials and 1,500 t of geonetting in 2007, compared to domestic demand levels of 68,000 t and 16,000 t respectively.

SIBUR’s Geotextil plant in Surgut currently produces up to 3,000 t of nonwoven materials.

Since 2007, SIBUR’s Plastics and Organic Synthesis Unit has been actively developing plastics processing as a separate business. In addition to manufacturing geosynthetic materials, SIBUR is helping to boost the demand for plastics through two major projects — a PVC plant in Nizhniy Novgorod region (RusVinil LLC) and a new polypropylene plant in Tobolsk (Tobolsk-Polimer LLC).

SIBUR is also planning a technology park around its Caprolactam plant in Nizhniy Novgorod Region in partnership with the regional Government to process PVC, polyethylene and polypropylene into end products for the building industry and the housing and utilities sector. SIBUR will provide rental premises to small enterprises, together with works infrastructure and guaranteed feedstock supplies. The regional authorities will meanwhile work on improving transportation infrastructure.