SIBUR Buy 50% into the Largest Russian Polypropylene Film Manufacturer

SIBUR contracted acquisition of 50% share in the charter capital of BIAKSPLEN LLC, one of the largest Russian manufacturers of biaxially oriented polypropylene film (BOPP).

BIAKSPLEN's production facilities include three plants located in Nizhny Novgorod, Kursk and Moscow Regions. The aggregate capacity of BIAKSPLEN product lines is 87 kta. In 2008 BIAKSPLEN consolidated sales reached RUR 3.9 billion.

«SIBUR participating in polypropylene processing projects increases the guaranteed sale of this polymer in the domestic market taking into account our plans on construction of large-scale production being implemented in Tobolsk,» SIBUR President Dmitry Konov said. «The Company will earn auxiliary income from advanced processing of its own raw materials».

Acquisition of new assets corresponds to SIBUR's polymer processing strategy. In 2009 polypropylene geogrid production lines with 13 million sq m total annual capacity were put into operation at plants in Kemerovo and Tula Regions. At those plants the equipment is presently being supplied and installed for production of polypropylene nonwoven geomaterials with total capacity up to 62 million sq. m per year.

For Editors

BOPP film (biaxially oriented polypropylene film) is currently the most popular material used for advanced flexible packaging designed for subsequent overprinting and lamination. Due to its barrier, optical, and physical-mechanical-properties as well as 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 light industry.

BIAKSPLEN Group (www.biaxplen.ru) is one of the main Russian BOPP manufacturers. BIAKSPLEN is the only world manufacturer to use a general-purpose extrusion line for producing nine-layer film. The plants are certified according to ISO 9001 Quality Management System.

Geosynthetics are used for construction and rehabilitation of motor roads and railways, earthwork operations, pipe laying, and field facilities and shaft construction. In particular, use of geotextiles and geogrids with high breaking load values provides strengthening of pavement due to separation and reinforcement of fill layers, uniform distribution of pressure on foundation, and improvement of water drainage. Use of geosynthetics provides a significant cost cutting for builders.