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Market balance to change in Q4

July 30/2009
MOSCOW (MRC) -- Salavatnefteorgsyntez is accomplishing preparations for launch of a new HDPE unit; this is going to change the balance in the Russian HDPE market – according to MRC.
The company is planning to produce grades used in injection molding, EBM, as well as in production of films and pipes. The unit’s output capacity will be 120 kta.

As far back as in 2004, Salavatnefteogrsyntez signed a framework contract with Technimont (Italy) and an agreement with LyondellBasell on construction of a 120 kta HDPE unit.
This is going to be a second launch of an HDPE unit this year. Nizhnekamskneftekhim started a similar production unit earlier this year.

Overall HDPE output exceeded 320 kt in Russia, over the course of the six months, which was 9% more compared to the same period of the previous year, MRC’s analysts reporting. 
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