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The combined company will bring Russia into the top five leaders in the world market for polyolefins and rubbers.

At the opening ceremony of the merger of the petrochemical businesses of Sibur Holding PJSC and TAIF JSC

Russia, possessing large-scale reserves of hydrocarbon raw materials, intends to occupy a significant share in the rapidly growing world market of petrochemical products. The volume of investments in petrochemicals over the next 10-15 years may reach 2.6-4.6 trillion rubles (40-70 billion dollars), this will create 9 thousand new high-tech jobs, said Deputy Prime Minister Alexander Novak during the opening ceremony merger of petrochemical businesses of Sibur Holding PJSC and TAIF JSC.

Alexander Novak recalled that the development of non-resource exports and bringing them to $ 250 billion by 2024 is one of the key tasks for the economy in the near future, which was outlined by the President of Russia in the decree of May 7, 2018 “On the national goals and strategic objectives of the development of the Russian Federation for the period up to 2024 “. “It is the energy companies and the fuel and energy complex that can make a significant contribution to the achievement of these results by expanding the production of petrochemicals, one of the most dynamically developing industries not only in Russia, but also in the world. The volume of investments in petrochemicals could reach 40-70 billion dollars (2.6-4.6 trillion rubles) over 10-15 years, which will create 9 thousand high-tech jobs. Petrochemicals can bring from 9 billion to 18 billion dollars of additional non-resource exports per year due to the production of 8-16 million tons of products. Now the growth rates of petrochemicals are up to 1.5 times higher than those of the world economy. In these conditions, it is necessary to accelerate the innovative development of the industry, to introduce the best approaches to work in all links of the production chain, ”he stressed.

The state promotes the development of the industry and increases its profitability. So, in March, the Russian Government approved the rules for concluding agreements with petrochemical enterprises within the framework of the reverse excise tax on ethane and liquefied petroleum gas, recalled Alexander Novak.

“This should give an additional impetus to the development of the industry, which, with a deeper use of resources, gives a higher added value. Our country should also take leading positions in world markets, ”the Deputy Prime Minister emphasized.

In addition, the consolidation of efforts to develop business by pooling the resources of the largest domestic industry players can be a response to the continuing high competition in world markets, the Deputy Prime Minister noted. “I am confident that the agreement reached between the two largest industry players will become a driver for the development of the entire domestic petrochemical industry, contribute to the expansion of opportunities for the development of a product line and the creation of new chemical materials. The powerful petrochemical clusters in the Russian Federation created by the companies as part of the implementation of the Strategy for the Development of the Chemical and Petrochemical Complex for the Period up to 2030, as well as the implementation of ongoing large-scale investment projects, are a reliable basis for the creation of the world’s largest producer of polyolefins and rubbers on this basis. In this regard, I am sure that the potential of the combined company fully meets the task of increasing the sustainability of traditional Russian energy by creating a qualitatively new segment of oil and gas chemistry, competitive on world markets, “added Alexander Novak.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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