Home / Knowledge / News / Textiles / Sistema picks 98% stake in United Petrochemical for R6.2bn
Sistema picks 98% stake in United Petrochemical for R6.2bn
19
Sep '13
Sistema JSFC, the largest publicly-traded diversified holding company in Russia and the CIS, announces the acquisition of a 98% stake (resulting in effective ownership of 100%) in OJSC United Petrochemical Company from the Group's subsidiary JSOC Bashneft ("Bashneft") for RUB 6.2 billion. 
 
The value of the stake is based upon an independent appraisal carried out by an international consultant. 
 
UPC is a vertically integrated petrochemical group which owns four enterprises located in the Bashkortostan region: Ufaorgsintez, Tuimazinkoye and Shkapovskoye Gas Processing Plants and Bisphenol-A plant. In 2012, UPC generated a combined revenue of RUB 17.9 billion.
 
Ufaorgsintez is one of the leading petrochemical producers in Russia. Polypropylene and ethylene account for over 50% of its production line, while 90% of total sales are made to the domestic market. 
 
The company benefits from an established production chain with feedstock sourced from Bashneft's Ufa refineries, the Tuimazinskoye and Shkapovskoye Gas Processing Plants, which produce liquid petroleum gas and nafta from stable natural gasoline (SNG). 
 
UPC's development plans will be financed partly by its own cashflow, as well as debt financing and joint venture initiatives with leading international petrochemical companies. 
 
Mikhail Shamolin, President and Chief Executive Officer of Sistema, said, “This acquisition is a natural expansion of our energy investments. UPC is already one of the leading petrochemical producers in Russia with a reliable supply of raw materials from Bashneft's downstream operations and competitive production costs.”
 
He adds, “Combined with Russia's increasing consumption per capita of petrochemical products, UPC provides Sistema with a solid entry into an attractive and growing sector.”
 
UPC's development plans currently envisage organic growth focused on existing and new production lines, as well as commenced discussions with leading international petrochemical groups on possible joint venture opportunities".
 

Sistema


Must ReadView All

Ghana makes tax stamp compulsory on imported textiles

Textiles | On 27th May 2018

Ghana makes tax stamp compulsory on imported textiles

To curb illegal imports, Ghanaian authorities will put a tax stamp on ...

Courtesy: Vishal Mega Mart

Apparel/Garments | On 27th May 2018

Partners Group, Kedaara Capital taking over VMM

Partners Group, a private markets investment manager, and Kedaara...

Courtesy: Deckers

Apparel/Garments | On 27th May 2018

Deckers Brands sales soar 8.4% in Q4FY18

Deckers Brands, a global leader in designing, marketing and...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search