SIBUR updates the organizational model of its plastics and rubber business

· The Company focuses on the development of medium tonnage and specialty chemicals

· Following the expansion of the rubber business, it was granted the status of an autonomous division

December 1, 2021. The merger of the historical assets of SIBUR and TAIF has resulted in exponential growth of the plastics, elastomers and organic synthesis businesses in terms of absolute production volume, product range and applications. The Company believes that this offers great potential for further development. To this end, it was decided to divide the Plastics, Elastomers and Organic Synthesis division into two independent business units, both supervised by Sergey Komyshan, Member of the Board of Directors and Executive Director of SIBUR. Board member and managing director Alexander Petrov will be head of the plastics and organic synthesis division, while Timur Shigabutdinov, another board member and managing director, will be in charge of the synthetic rubbers division.

The Plastics and Organic Synthesis Division will consolidate assets with a total capacity of around 3 mtpa. The Division’s continued expansion will be driven by the development of medium-tonnage chemicals, which is benefiting from strong demand on the Russian market. Once implemented, the respective projects will replace imports of products such as MAN and DOTP and make a strong contribution to the growth of Russian non-commodity exports. In addition, the Company plans to use this business to expand the production of raw materials for high margin products in the specialty chemicals segment, which currently has an insignificant presence in the domestic market.

Mr. Petrov will also continue to oversee SIBUR’s production support function in pursuit of increasingly ambitious goals: to integrate purchasing within the combined company, keep pace with change and implement the existing portfolio of functional initiatives: import substitution, category strategies, optimization of technical solutions and use of digital tools.

The Autonomous Synthetic Rubbers Division was created in response to a more than 3-fold increase in the rubber industry in order to focus on the operational improvement of the rubber production facilities, which today have a total capacity of around 1. , 2 mtpa. The division will be responsible for developing new qualities with unique consumer properties, creating customer services and offering complete solutions, as well as expanding the footprint across segments and geographies. Through its unprecedented integrated business model, the combined company will be able to increase the efficiency of its rubber business by increasing the availability of raw materials, mainly butadiene, and expand production of the most popular butadiene-based rubbers. popular in the future.

Alexander Petrov, Head of Plastics and Organic Synthesis, Member of the Board of Directors and Managing Director of SIBUR, said:

“Our goal is to significantly expand our business by relying on medium-tonnage chemical projects focused on import substitution. An important part of this will be securing the right set of projects to utilize monomers from the new Nizhnekamskneftekhim cracker and benefit from integrating SIBUR’s traditional supply chain processes and its new perimeter of assets. Another goal for us is to increase the presence of our products in the construction industry, on the one hand by expanding our range of grades and on the other hand by offering customers new solutions and replacing the materials of traditional construction with polymers. “

Timur Shigabutdinov, Head of Synthetic Rubbers Division, Member of the Board of Directors and Managing Director of SIBUR, said:

“The combined company has an unrivaled portfolio of synthetic rubbers. Our priority is to meet customer needs by further developing the business using the expertise to our credit, cutting-edge R&D assets and access to the latest. Once all the investment projects are completed, these initiatives will make SIBUR one of the world’s top 5 producers of synthetic rubber.

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