Sibur boosts petrochemical exports to Europe as pandemic subsides


Sibur boosts petrochemical exports to Europe as pandemic subsides

Having recovered from the shock caused by the pandemic, Russian petrochemicals giant Sibur is now increasing its exports to Europe due to increasing demand for medical equipment - Nasdaq

Sergey Komyshan, executive director of Sibur noted that demand for petrochemicals has recovered after the pandemic, and the company expects the recently constructed ZapSibNefteKhim plant in Tobolsk to produce over two million tonnes of polymers this year, which is very close to its full capacity. These polymers will consist mostly of polyethylene and polypropylene.

According to Komyshan, the medical sector helped a lot, with increased demand for medical protective gear and packaging. This helped to offset the losses in other areas such as car manufacturing, where demand was significantly reduced. He added that demand in the automotive sector and construction has now also recovered.

We have more than doubled our supplies there (Europe), year on year, and we will continue to do so. The most pronounced rise is in Turkey where we became the second player on the propylene market

Sergey Komyshan, executive director of Sibur

A significant part of the exports went to eastern Europe, Germany, France, Belgium, the Netherlands and Luxembourg.

The ZapSib plant helped Sibur export 1.44 million tonnes of polyethylene and polypropylene in 2020, up from 400,553 tonnes in 2019. Sibur has a deal to sell up to one million tonnes of polyethylene a year to China's Sinopec from ZapSib.

Komyshan also said that the company swiftly replaced feedstocks for its production from Gazprom's plant in Urengoy, which suffered a fire last month. Gazprom almost restored supplies via a new channel by providing supplies from other regions, with gas producer Novatek NVTK.MM helping to facilitate these materials.

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