SIBUR reports increased production in 2008 but forecasts a decrease in 2009

In 2008 SIBUR, Russia’s leading petrochemical company, increased production by 7% to 14,791 thousand tons of petrochemical products, compared to 13,883 in 2007. Production of dry stripped gas in 2008 increased 17% to 13,306 million cu m from 11,416 million cu m in 2007.

SIBUR retains leading positions in the petrochemical domestic market with regard to basic product types. The highest growth (23%) was recorded in the mineral fertilizer production segment. The 13% decrease in rubber production was due to a drop in demand in export markets, primarily from China.

SIBUR will continue to monitor the market situation and respond appropriately.

"In view of the significant deterioration of the pricing environment and a drop in demand for the Company's products in the second half of 2008, we anticipate a decrease in utilization levels in the current year”, SIBUR President Dmitry Konov said. “The Company will continue its large-scale cost reduction programme in order to improve the performance of the Group and maintain its market share".   

Figures by product types (thousand tons)*:

* Excluding performance figures of JSC SIBUR – Russian Tyres

** Excluding the establishment of JV with TNK-BP (LLC Yugragazpererabotka), production of NGLs was 2, 061 thousand tons in 2007, and 2, 025 thousand tons in 2007.  

*** Mineral fertilizers product group includes ammonia, nitrate of ammonium and urea

**** Excluding the establishment of JV with TNK-BP (LLC Yugragazpererabotka), production of dry stripped gas was 9, 284 million cu m in 2007, and 9, 686 million cu m in 2008.

Notes for Editors

Russia's SIBUR Holding is the largest petrochemical business in Central, Eastern Europe and the CIS.

The SIBUR Holding includes 34 operations ranging from the processing of gas to the manufacture of consumer products.

Current shareholder structure comprises Gazprombank – 70%, Gazfund – 25%, Treasury Stock - 5%.