News Flash

Profitable decision to develop Polyef JSC - Polyester Complex

25 Oct '06

3 min read

SIBUR Holding JSC, LUKOIL-Neftekhim CJSC and Zavod Selena LLC took a fundamental decision on joint development of Polyef JSC site (Blagoveschensk, Bashkiria).

Polyef JSC is the first Russian polyester complex with capacities for terephthalate acid, polyethylene terephthalate, and polyester fibers. The history of Polyef started in September 1984 following the resolution of Council of Ministers on the complex construction. Lack of experience with such operation in Russia made the project on polyester construction complex especially difficult to execute. As the result, construction of polyester complex suffered numerous delays because of insufficient financing.

The situation changed in 2000 following a decision of Bashkortostan government to attract budgetary funds for polyester project financing. To speed up construction, the complex was put up for sale and on March 25, 2005 Zavod Selena LLC purchased 100% share holding of the enterprise on the Dutch Trading Service. Zavod Selena LLC offered 17% share holding to Bashkortostan government as remuneration for the Polyef JSC's project investment.

With over 2 billion roubles invested into the complex start-up in 2005-2006, Selena managers achieved significant results. Thus, the first production line with capacity for 115 th.t/yr of PTA came on stream in November 2005 to mark the start-up of the complex. Today, polymerization complex and PET lines are being actively built.

Meanwhile, history of complex construction made it evident that completion of Polyef and its efficient operation require that Selena collaborates with safe partners that can invest millions of US dollars into complex construction, supply necessary feedstock, and help market the produce.

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