Sibur, TAIF finalise petrochemicals merger 

Moscow –

Sibur and Russian energy group TAIF have finalised a previously announced merger of their petrochemical assets to create the world’s fifth manufacturer of synthetic rubber and polyolefin products. 

According to Sibur, the new combined company will support “Russia’s leadership in the chemical, petrochemical and oil & gas sectors while making the country’s products more globally competitive.”

The deal, it added, will bring economies of scale, higher production efficiency and better sales processes while offering opportunities for optimisation of feedstock flows to make higher value-added products locally. 

The companies offer “highly complementary product portfolios and expertise”: combining, in particular, TAIF’s rubber/elastomers, polystyrene and polycarbonates capabilities with Sibur’s in the base polymers, synthetic rubber, thermoplastic elastomers and PET arenas.

Following the completion of all ongoing investment projects, Sibur expects the new combined company to be among the top five producers of polyolefin and synthetic rubber globally. 

TAIF chemical and petrochemical product portfolio comprises 581 commodities, including synthetic rubbers and various grades and types of polyethylene, polypropylene, polycarbonate, and styrene plastics.

The group's assets include major rubber and materials producer Nizhnekamskneftekhim, with the capacity to produce 800 kilotonnes per annum (ktpa) of elastomers, and polyethylene manufacturer Kazanorgsintez.

TAIF’s share in Russia’s 2020 total output of rubbers and plastics was 64% and 28%, respectively.