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Fluor to build SIBUR propylene & polypropylene plant in Tobolsk

Jan '07
SIBUR Holding JSC has chosen Fluor Company as the project management company for construction of a new propylene and polypropylene plant in Tobolsk.

In accordance with the approved project profile Fluor together with SIBUR experts will form a project group, design detailed project documentation, and find the best solutions and innovative techniques as well as their contractors.

Tender documentation for design work, materials supply and construction is soon to be prepared. In the first half of 2007 a final decision regarding the project implementation is likely to be taken with the exact investment details being defined.

According to estimates, should construction start in 2007, the new plant will come onstream in the second half of 2010. The plant estimated capacity is 450-500 KTA of polypropylene. Capital costs are forecasted at a rate of $750 mln and the cost recovery period is considered to be about 7 years.

The location of the new production site was chosen due to geographical closeness of raw material sources and availability of spare infrastructure capacity of existing SIBUR plant in Tobolsk that will allow to create processing site with higher performance.

"Expansion of plastics business is one of SIBUR strategic goals. We intend to gain leading positions in this market segment by increasing the output of basic polymers and monomers", - SIBUR President Dmitry Konov said.


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