SIBUR Launches Construction of DOTP Facility at Perm Site

SIBUR’s Perm site celebrated the driving of the first pile of a new 100 ktpa facility for the production of dioctyl terephthalate (DOTP), a general-purpose plasticiser.

The ceremony marking the launch of construction works at the site was attended by Magomedsalam Magomedov, Deputy Chief of Staff of the Presidential Executive Office of the Russian Federation, Maxim Reshetnikov, Perm Territory Governor, Mikhail Karisalov, SIBUR’s Chief Operating Officer, Pavel Lyakvovich, SIBUR's Managing Director, Konstantin Yugov, CEO of SIBUR’s Perm subsidiary, and other representatives of the Company's management and government authorities.

The construction project is carried out in cooperation with the Perm Territory Government as part of a special eight-year investment contract that brings additional investments to the region and creates high-productivity and high-tech jobs. Production is scheduled to start in 2019.

DOTP is a key component in floor and roof coatings, wallpaper, cable compounds and other construction products, ensuring 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 imported from Europe. The Perm-based project will 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 as the general designer to develop the design and engineering solutions. Russian contractors will be engaged for construction and commissioning works.

“The DOTP project in Perm is yet another step along the import substitution path in Russia’s petrochemical industry implemented by SIBUR”, said Mikhail Karisalov, SIBUR’s Chief Operating Officer. “After commissioning, our offering for construction segment customers will include advanced solutions conforming to European standards”.