Sibur to provide Sinopec with patents and technologies
China’s top refiner China Petroleum and Chemical Corporation (Sinopec) has signed an agreement with Russian petrochemical Group Sibur to establish a joint venture in Shanghai, China, to produce synthetic rubber.
According to the agreement signed between Sinopec and Sibur, the cooperation will be a two-stage process, with the NBR launch first followed by the IR plant.
The NBR and IR plants are expected to have an annual capacity of 50,000 t/y each.
The final investment decision (FID) of both plants are subject to finalization based on the project feasibility study.
The feasibility study for the NBR project has been successfully completed and will shortly be filed with local regulators.
For the IR project, the feasibility study is about to begin.
Last April, Sinopec and Sibur had signed a deal to establish a joint venture in Krasnoyarsk of Russia to produce nitrile butadiene rubber (NBR).
Through the joint venture, the companies are considering expanding the Sibur’s plant current annual output of 42,000 t/y to 56,000 t/y.
The FID for the establishment of the joint venture and capital expenditure in Krasnoyarsk is expected by the end of 2012.
Sibur in brief
SIBUR is the largest integrated petrochemical company in Russia as well as in CIS and Central and Eastern Europe as measured by revenues.
Sibur is one of the top two European synthetic rubbers producers.
Sibur uses associated petroleum gas and liquid hydrocarbon feedstock from major Russian oil and gas companies.
Sibur processes them into energy products, including liquefied petroleum gases (LPGs), natural gas and naphtha and further into various petrochemical products, including basic polymers, synthetic rubbers, plastics, products of organic synthesis, intermediates and other chemicals.
Sibur is selling to over 2,000 customers in the energy, automotive, construction, retail and other industries in more than 60 countries.
SIBUR owns and operates 22 production sites across Russia and employed approximately 30,200 people.
For the full year 2011, revenues totaled RR 248.7 billion, EBITDA reached RR 86.7 billion, and profit for the year amounted to RR 62.8 billion.
SIBUR’s export sales are around 40-45%, mostly in Europe and China.
Sibur shareholding structure is as follows:
– Mr. Leonid Mikhelson – 57.5%
– Mr. Gennady Timchenko (a co-founder of the independent oil-trading company Gunvor) – 37.5%
– Former senior SIBUR managers – 5%.
Sinopec in brief
Its principal operations include:
– Upstream with oil and gas exploration and production
– Engineering and services activities with research, development and application of technologies and information.
Sinopec is China’s largest manufacturer and supplier of petroleum products and major petrochemical products.
It is the second largest producer of crude oil in China.
Its refining capacity and ethylene capacity rank No.2 and No.4 globally.
Sinopec has 30,000 service stations by which is is now ranked third largest in the world.
Sinopec Group, the parent company, is ranked the 5th in Fortune Global 500 in 2011.
Sinopec listed in Hong Kong, New York, London and Shanghai
Through this technology and financial joint venture, Sibur and Sinopec are expecting to meet the fast growing demand in Russia and in China for Nitrile butadiene rubber (NBR) used in the automobile, aerospace, oil exploration, textiles, printing sectors and Isoprene rubber (IR) used to produce tires.