27/08/2018

Press release: SIBUR’s site in Perm commences installation of process equipment at a new production facility

Perm, 27 August 2018. The Company’s Perm site has completed installation of two reactors at the dioctyl terephthalate (DOTP) production facility which is currently under construction.

DOTP is a key component in floor and roof coatings, wallpaper, cable compounds and other construction products used to ensure 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 covered with supplies from Europe. The Perm-based DOTP project will help 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, procurement, logistics and construction, was selected to develop the project's design and engineering solutions.

The core process equipment was scheduled to be assembled in July and August, with two out of four reactors having been successfully installed in their designed position. The reactors are supplied by the Yekaterinburg-based Uralkhimmash. In addition, a washing column and DOTP and 2-ethylhexanol treatment columns have been fully assembled. The assembly of the heat transfer medium furnace and the terephthalic acid storage silos supplied by DYK YOUNG ENGINEERING (South Korea) is also underway. Currently, three 1,000 cu m reservoirs that have been installed in the DOTP storage and loading facility are being insulated. The bulk of the equipment was produced by Russian companies.

Construction and installation works are carried out by two Perm-based contractors – GSE-Permneftegazstroy (general contractor for construction) and RSP Alexiy. So far, approximately 65% of the total works have been completed.

The Perm site team aims to wrap up the construction and assembly exercise and switch to pre-commissioning operations in December 2018. The new facility is planned for launch in 1H 2019.

Natalia Luria, Head of the Dioctyl Terephthalate Production Facility PMO:

“All the construction works under the new facility project are conducted as planned. The main task of the team is to launch the facility on time.”

Maxim Krotov, Head of Dioctyl Terephthalate Production:

“At the Perm site, we synthesise 2-ethylhexanol, the primary component in the feedstock mix. The existing infrastructure makes it possible to connect the new plant to the power supply networks with substantial savings in terms of capex. We have already built a team of experts who will oversee the pre-commissioning operations and will eventually be in charge of the new product. They are currently receiving training, including from Aekyung, the licence holder.”

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