Home / Knowledge / News / Textiles / Sibur plans to cut costs & optimize business processes
Sibur plans to cut costs & optimize business processes
24
Oct '08
SIBUR, Russia's leading petrochemical company,is continuing to implement its key strategic priorities including developing existing plants and constructing new production facilities, despite the current global economic and financial instability. However, management are reviewing all elements of these plans to ensure that they are properly aligned to the current turbulent trading and financial environment.

This review recognizes that in recent months many customers are managing their cash flow more tightly and experiencing declining sales. As a result they are scaling back production with a consequent reduction in demand for products from petrochemical businesses including SIBUR. Furthermore, the cost of loans needed to finance investment projects is growing.

As has been previously reported, as result of this challenging trading environment and the closure of the international debt markets, management decided not to proceed with the MBO transaction.

In addition management are taking additional steps to address the impact of the negative trading environment . A key focus in the near future is implementing a significant reduction in costs and optimization of business processes.

Furthermore, SIBUR is also reviewing the temporary reduction of production volumes, setting new priorities for the investment programme, and tighter management of working capital.

In order to maintain a strong financing structure, the company is setting a target debt level of no more than 2:1 debt/EBITDA and a maximum level up to 2.5:1 debt/EBITDA.

“SIBUR is well placed to trade through the current challenging trading and financial environment”, SIBUR President Dmitry Konov said.

“We will continue to implement our development strategy, by investing in new projects but these will also be contingent on improvements in the economic situation and government support.”

He continued : “The company's strong market position and development potential, our sound and well balanced financing structure and the quality of our management team will enable SIBUR to achieve its development objectives including the strengthening of its leading market positions. We continue to be positive about the longer term prospects for the Russian petrochemical industry.”

SIBUR LLC

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X