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SIBUR diversifies routes for polymer product supplies to China

July 27/2020

MOSCOW (MRC) -- SIBUR has diversified its export supplies of polypropylene (PP) and polyethylene (PE) to China by leveraging Russias rail transportation infrastructure, as per the company's press release.

Until 2020, the company mainly relied on sea transportation to ship its products to the region. Today, thanks to Chinas One Belt, One Road initiative, products from its Tobolsk and Tomsk sites are also supplied to Chongqing and Chengdu by rail.

Shipments by rail enable SIBUR to deliver products to customers in just 10 days compared to 30 days required for shipments by sea, while also helping to mitigate the risks of negative macro developments and expand our customer base in the central and western regions of China.

Fu Wei, Teamleader of Basic Polymer Sales, SIBUR International Trading (Shanghai) Co.,Ltd said: "The completion of SIBURs large-scale investment project, ZapSibNeftekhim, allowed us to boost supplies of PP and PE to China. By diversifying our supply routes, we are now able to meet the needs of customers all over the country and offer them high-quality products at competitive prices, to be delivered in the shortest possible time."

As MRC reproted earlier, SIBUR Holdinghas shut its PE plants for a planned maintenance on 23 May 2020. Based in Russia, the turnaround includes both old and new PE plants of SIBUR which consists of Tomskneftekhim with 270,000 tons/year of low density polyethylene (LDPE) unit, as well as ZapSibNeftekhim with a 700,000 tons/year high density polyethylene (HDPE) unit and 800,000 tons/year linear low density polyethylene (LLDPE)/HDPE swing plant. All PE plants were expected to remain off-stream for about 20 days.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

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.
Author:Margaret Volkova
Tags:PP, PE, LLDPE, homopolymer PP, LDPE, HDPE, Sibur Holding, Tomskneftekhim, ZapSibNeftekhim, China, Russia.
Category:General News
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