MOSCOW (June 21, 2010)—Russian synthetic rubber and petrochemicals producer Sibur Holding J.S.C. is planning to spend more than $32.5 million to expand its production capacity for butadiene-acrylonitrile rubber and butadiene.
The project is scheduled to be completed by 2014 and will take place at the company's Krasnoyarsk, Russia, synthetic rubber operation
Sibur expects to increase production of NBR by to 56 000 metric tons per year from the current level of 36,500. It will also create 40 000 tons of new butadiene capacity.
Russian analysts said the project will allow Sibur to become of one of the largest producers of NBR and butadiene in Eastern Europe and partially will restore the country's position in butadiene rubber production, which it lost during the post-Soviet era.
Despite the scale of the project, Sibur is cautious about projected growth in demand for synthetic rubber in Russia.
In addition to its Krasnoyarsk plant, the company produces synthetic rubber for the tire industry at its Togliattikauchuk, Russia, factory. However that unit still operates below pre-economic crisis levels.
Sibur said most of the new capacity at the Krasnoyarsk plant is destined for the export market. Close to 85 percent of Togliattikauchuk's production goes to Asia, the U.S. and Spain.