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SIBUR and Sinopec to set up nitrile rubber JV in China

September 18/2019

MOSCOW (MRC) -- As part of the regular meeting between the Russian Prime Minister Dmitry Medvedev and the Premier of the State Council of the Peoples Republic of China Li Keqiang, SIBUR Holding (SIBUR) and China Petroleum & Chemical Corporation (Sinopec) signed a Memorandum of Understanding to cooperate in nitrile butadiene rubber (NBR) production, according to SIBUR's press release.

The parties to the Memorandum have agreed to set up a joint venture (JV) for the production of nitrile butadiene rubber with a capacity of 50 ktpa in China. SIBURs share in the joint venture will be 40% and Sinopecs 60%.

Pavel Lyakhovich, member of the Management Board and Managing Director at SIBUR, said: "This Memorandum comes as a result of the earlier negotiations between SIBUR and Sinopec around the NBR production project. We have resumed our efforts to set up a JV on the back of strong consumer demand for NBR in China, and we plan to leverage this opportunity to expand our business in the growing market. The combined expertise of SIBUR and Sinopec will help the JV gain a strong foothold in both Russia and China, as well as in other geographies."

Due to high resistance to aggressive agents, NBR is an essential material for various fuel and oil resistant industrial rubber products. It is indispensable for the manufacturing of seals, hoses and bag fuel tanks, and is also used in conveyor belts in food production. Yet another application of NBR is rubberised textile fabrics designed for aggressive environments.

As MRC wrote previously, in early September 2019, SIBUR, the largest petrochemical comples in Russia and Eastern Europe, and BASF, Geman petrochemical major, agreed to closely cooperate on sustainable development to share their best practices. SIBUR held a design session on sustainable development in the petrochemical industry. At the event, BASF shared details on its new sustainability strategy and its integration into the company's overall strategy. The participants were also presented with the company's methods of environmental impact assessment and approach to the circular economy, which embraces opportunities for chemical recycling of plastics, such as the ChemCycling project. With chemical recycling, fossil resources for chemical production can be replaced with recycled material from plastic waste.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. Meanwhile, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBURs petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, butadien, PP block copolymer, homopolymer PP, car components, toys, natural rubber, tyres, hoses, Sibur Holding, BASF, Sinopec, Germany, China, Russia.
Category:General News
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