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Evonik-Sibur review options for cooperation in the Russian Federation

31
Mar '08

Essen, Germany-based Evonik Industries AG and the Russian JSC Sibur Holding, based in Moscow, have agreed to start an exclusive feasibility study regarding the possible construction of a facility to produce propylene oxide (PO), together with hydrogen peroxide, for use in the Russian Federation. The study is to be completed in the coming months and will determine possible locations and capacities.

Sibur is considering the construction of a PO plant that uses the new HPPO process, which produces propylene oxide from hydrogen peroxide (H2O2) and propylene in a low-cost and ecologically sound manner. Evonik and the engineering company Uhde, Dortmund, Germany, jointly developed this HPPO process and are now licensing it to other chemical companies.

Dmitry Konov, President of Sibur, commented: “Possible partnership with Evonik will allow to serve the quickly expanding market for propylene oxide in Russia with this innovative process.” Propylene oxide is a precursor material for polyurethane, which is used, for example, in cushioning and instrument panels for cars.

Dr. Klaus Engel, Member of Evonik's Executive Board and responsible for the Chemicals Business Area, explained: “We want to expand our presence with hydrogen peroxide in the region of Eastern Europe. With Sibur, we are co-operating with a reliable and experienced partner who is intimately familiar with this high-growth region.”

Evonik is the only company that can provide the process technology for the HPPO process to produce propylene oxide, the necessary special catalyst, and the raw material, hydrogen peroxide, from a single source. If it receives approval Evonik and Sibur will review the establishment of a joint venture for the production of hydrogen peroxide with Evonik's own technology to supply a potential HPPO plant with the hydrogen peroxide.

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