SIBUR to launch the DOTP investment project


Perm, 6 June 2017 SIBUR’s Perm subsidiary and the Perm Territory government signed a special investment contract to set up a new 100 ktpa facility producing dioctyl terephthalate (DOTP), a general-purpose plasticiser.

The ceremony was attended by Mikhail Babich, Presidential Plenipotentiary Envoy to the Volga Federal District, Denis Manturov, Industry and Trade Minister, and Dmitry Konov, Chairman of SIBUR’s Management Board. The document was signed by Maxim Reshetnikov, Perm Territory Governor and Konstantin Yugov, CEO of SIBUR’s Perm subsidiary.

A special investment contract is a new non-financial instrument deigned to promote and support the creation of new production facilities. The instrument is intended for the region's industrial players, which commit to creating new jobs in an investment project that will set up and develop new production facilities, or to investing a certain amount in a project that will establish production facilities to manufacturing a new type of industrial product.

The eight-year contract brings additional investments to the region and creates high-productivity and high-tech jobs.           

Production is scheduled to start in 2019.   

DOTP is a key component in floor and roof coatings, wallpaper, cable compounds and other construction products, ensuring higher strength, wear and cold resistance. In addition, as a phthalate-free plasticiser, DOTP meets the highest environmental requirements.

DOTP production will use SIBUR's feedstock and become yet another process stage along the value chain. The Russian market of common plasticisers faces a shortage of about 60 ktpa, which is imported from Europe. The Perm-based project will substitute a major part of alternative product imports and enable plasticiser supplies to export markets, where the demand for DOTP is also rapidly growing.

As part of the project, the company signed a licence agreement with Aekyung Petrochemical, South Korea. NIPIgaspererabotka, a leading Russian research centre for facility design, supply, logistics, and construction was selected as the general designer to develop the design and engineering solutions. Russian contractors will be engaged for construction and commissioning works.

“The project is yet another step down the import substitution path in Russia’s petrochemical industry,” said Dmitry Konov, Chairman of SIBUR’s Management Board. “By developing advanced hydrocarbon feedstock processing, we offer our existing and potential customers, such as utility, construction and other providers, quality products and long-term collaboration.” 

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