Nizhnekamskneftekhim to invest $3bn in expanding

ERJ staff report (EPN)

Nizhnekamsk, Russia -- Russian petrochemicals manufacturer Nizhnekamskneftekhim (NKNH) will resume plans build a new ethylene production complex, with capacity of one million tonnes per annum. Plans for the complex were put on hold last year in favour of expansion of synthetic rubber capacities.

Vladimir Busygin, general director of NKNH, says total investment in the project is estimated at $3 billion (Euro 2.5 billion).

NKNH will provide 30 percent of the required investment and borrow the remaining part. The company is currently in talks with Russia's largest banks, including Sberbank and Gazprombank.

The project, scheduled for completion in September, will increase ethylene capacities at NKNH by up to 1.6 milion tonnes per year.

Meanwhile, the company also plans to invest about 9-10 billion rubles (€360-400 million) in facilities to produce ABS plastics (capacity of 60 000 tonnes per year) as well as all types of rubber.

The company has already signed a five year rubber supply agreement with Michelin, Goodyear, Continental, Pirelli and Bridgestone.

Overall, the company intends to increase its rubber capacities to 750 000 tonnes by 2014 and up to 1 million tonnes by 2020.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Article from European Plastics News (a Crain publication)