Vnesheconombank and SIBUR sign credit agreement for construction

Vnesheconombank, the Russian state-run bank, has opened a $153m credit line for Tobolsk-Polymer LLC, a subsidiary of SIBUR Holding, Russia’s largest petrochemical company.

This facility is Vnesheconombank’s first tranche of its financing of the project.

The agreement to open a credit line was signed by Vladimir Dmitriev, Chairman of Vnesheconombank, and Dmitry Konov, President of SIBUR during the 8th International Investment Forum «Sochi-2009».

The funds will be used to finance the construction of a polypropylene production complex in Tobolsk (Tyumen region) with an annual capacity of 500 thousand tonnes.

Major equipment for the new plant will be delivered at the construction site during 2010-2011. The end of construction and the start of pre-commissioning work are expected in the Q2 of 2012. 

The construction of the polypropylene complex, proposed by SIBUR, is part of the «Strategy for the Development of the Chemical and Petrochemical Industry in Russia for the period up to 2015.»

The project is focused on improving the efficiency of Russia’s natural resources, ecology and environmental protection. It will also provide a boost to industries such as housing and communal services, as well as car manufacturing.

Dmitry Konov, President of SIBUR said: «We welcome the state bank’s credit funding and government’s support. The new complex will be among the largest petrochemical plants built in Russia over the last few decades. It will offer a comprehensive solution to such challenges as advanced processing of hydrocarbon resources and the technological modernisation of Russian industry».

Notes for Editors

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

SIBUR Holding includes 34 operations ranging from the processing of gas to the manufacture of consumer products. Over 100 petrochemical products are manufactured at SIBUR’s facilities.

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

Tobolsk-Polymer LLC - 100% subsidiary of SIBUR Holding LLC created for the construction of a polypropylene manufacturing complex. The complex is currently under development in close proximity to Tobolsk-Neftekhim, another existing plant and a 100% subsidiary of SIBUR Holding LLC.

Key dates of the project implementation:

January 2007:  SIBUR selected Fluor (Project Management Company) from the US to manage the project;

February 2007: SIBUR signed the agreement with the Tyumen Region Government on the joint construction of accommodation facilities for builders and personnel of the new production complex among others; 

June 2007: Start of construction of the new housing district;

August 2007: SIBUR, together with FLUOR Management Company, selected UOP (USA) and INEOS (United Kingdom) as the project licensors;

August 2007: The Tyumen Region Government and «Tobolsk-Polymer» LLC signed the investment agreement on Russian state’s support for the project implementation;  

December 2007: SIBUR selected TecnimontS.p.A from Italy and Linde-KCA-Dresden from Germany as contractors for the  initial designing, supply of equipment and management of construction; 

June 2008: Public hearings, held in Tobolsk, resulted in the project approval by the municipal administration and inhabitants of the city; 

July 2008: Start of preparatory works at the construction site, order of the major manufacturing equipment; 

April 2009:  Branan Environment together with URS Corporation, completed the  Environmental and Social Impact Assessment of the new complex in compliance with international standards and requirements of International Financial Corporation (IFC), World Bank, and European Bank for Reconstruction and Development (EBRD), as well as the  EQUATOR Principles.