Add Press Release

OOO «Europlastic» 11/12/2006

Europlastic and polymer plants of Nizhnekamskneftekhim announce startup of polypropylene production

Moscow–based Europlastic, which is the exclusive distributor of the polystyrene and polyolefin plants of OAO Nizhnekamskneftekhim and the LDPE plant of OAO NefteKhimSevilen (Kazan), hold a press conference on 29 November to mark the 3rd anniversary of Nizhnekamskneftekhim’s polystyrene plant, the startup of polypropylene production at Nizhnekamskneftekhim and also the 15th anniversary of NefteKhimSevilen.

The press conference participants included Director General of Europlastic Sergey Arbuzov, director of Nizhnekamskneftekhim representation in Kazan Anvar Gilmutdinov, deputy chief of the production engineering department of Nizhnekamskneftekhim’s PS plant Lifkat Nuriev, chief engineer of the company’s polyolefin plant Vadim Gaifiev, Head of the supply and marketing department of NefteKhimSevilen’s PE plant Rinat Khusainov.

Director General of OOO Europlastic Sergey Arbuzov opened the press conference. He told about Europlastic's plans for future. The company has opened its representative office in Ukraine (Europlastic–UA, Kiev), and intends to add polypropylene to polystyrene deliveries to that region next year. The company is going to establish a subsidiary in St. Petersburg (Europlastic–SPb) on January 1, 2007 and another one in the Urals. Since its foundation, Europlastic has sold over 200,000 tonnes of polystyrene, 50,000 tonnes of polyethylene and other polymers valued at 10 billion roubles (nearly $380 million). «Supplies are made through the company’s warehouses following our proven logistic pattern, which optimizes delivery periods, minimizes costs and preserves product quality during delivery. We are able to provide our clients and suppliers with services that meet West European standards. The primary goal of the company is to establish a distribution network across the CIS to enable deliveries of polymers and accompanying products to our customers in the shortest time possible and on best terms. We are proud to have a professional team that operates based on best practices of leading global manufacturers and distributors, »Arbuzov said. Today, Europlastic faces the task of introducing a new product, polypropylene, to the market. On 11 October, OAO Nizhnekamskneftekhim opened a polypropylene plant with a capacity of 180,000 tonnes per year. Three years ago, Nizhnekamskneftekhim signed a memorandum of understanding with Tecnimont and Basell on the construction of a PP plant in Nizhnekamsk. Basell offered its up–to–date Spheripol process and Tecnimont performed basic and detail engineering, supply of equipment and materials. The Moscow–based VNIPIneft R&D institute was selected as a Russian building designer. With the PP production startup, Nizhnekamskneftekhim became the largest Russian manufacturer of the polymer. Nizhnekamskneftekhim plans to manufacture several dozens of polypropylene grades. The branded range of Nizhnekamskneftekhim's PP products is intended to substitute imported material. However, initially common PP grades will be manufactured to help balance PP supply and demand in Russia. The next speaker at the press conference, Director of Nizhnekamskneftekhim representation in Kazan Anvar Gilmutdinov congratulated the audience on behalf of Director General of Nizhnekamskneftekhim Vladimir Busygin and presented a souvenir. «Vladimir Busygin asked me to say that he is satisfied with the cooperation with Europlastic. The company has been operating in the PS and PE market for 3 years. Now it is introducing a new product, polypropylene. Today, the market features a very tough competition, but Europlastic does its best and keeps abreast. The requirements put forth by our top management are high, so to cooperate under these conditions is hard but honorable, » Gilmutdinov said.

Vadim Gaifiev, deputy chief engineer of Nizhnekamskneftekhim’s polyolefin plant told about the PP grades manufactured by the facility and explained the advantages of the Nizhnekamsk facility over other PP manufacturers, including those in Ufa, Lisichansk and Moscow (MNPZ). The technology used in Nizhnekamsk is based on a two–level polymerization and degassing unit capable of manufacturing a wide range of products. Deputy chief of the production engineering department of Nizhnekamskneftekhim’s PS plant Lifkat Nuriev spoke about the PS resins made by the facility, which include general purpose and high-impact grades. Since its opening, the facility has manufactured and marketed over 200,000 tonnes of polystyrene, out of which 10,000 tonnes have been exported. Initial estimates peg the production of PS in 2006 at 105,000 tonnes. The total Russian PS and ABS output in 2005 amounted to about 370,000 tonnes. Despite the growth of PS prices, Europlastic accumulated orders that exceed the current capacity of the plant, with all polystyrene sold under contracts. PS products made by Nizhnekamskneftekhim enjoy demand in international markets, including China, Turkey, Poland, Serbia, Bulgaria, Italy, Germany, and many other countries. Our specialists are working on improving product quality, expanding the product portfolio and strengthening cooperation with the scientific and technical center of Nizhnekamskneftekhim and OOO Prom–plast 14 (St. Petersburg). A number of measures have been planned to improve production technology, including the introduction of substance initiator to get high stability products. Head of the supply and marketing department of NefteKhimSevilen’s PE plant Rinat Khusainov described the EVA copolymer manufactured by the plant. This material possesses such unique properties as frost resistance, high elasticity, low processing temperature. It is an essential feedstock for manufacturing adhesives, hot melts, corrosion resistant coatings, and laminates. The speaker also described the basic development directions of the plant. One of them is to increase the output of EVA copolymers, currently estimated at 7,000 tpa, to meet the growing demand from Russian consumers.

At the end of the press conference the participants answered numerous questions asked by journalists representing over 15 special publications.

OOO Europlastic was established in May 2003. The company is an exclusive distributor of the polystyrene and polyolefin plants of OAO Nizhnekamskneftekhim and the LDPE plant of OAO NefteKhimSevilen. Since November 2006, Europlastic has been supplying polypropylene. The company operates state-of-the-art warehouses in Sergiev Posad and Lobnya with a combined capacity of over 4,000 tonnes of different grades of polystyrene. Europlastic has an office in Ukraine (Europlastic–UA, Kiev).