Sibur's rubber business grows 3-fold, develops separate division

MOSCOW—Sibur Holding's rubber business has more than tripled in growth over recent months, so it's time to make some room.

The Russian petrochemicals company will establish a standalone synthetic rubber division, according to its Dec. 1 announcement, which will deliver "operational improvements for rubber production facilities."

The new business emerges from Sibur's plastics, elastomers and organic synthesis division and has a total capacity of 1.2 million tons per annum of rubber and elastomer products.

"The division will be responsible for developing new grades with unique consumer properties, creating customer services and offering comprehensive solutions, as well as expanding footprint across segments and geographies," said Sibur.

The division will be responsible for developing new grades with unique consumer properties, creating customer services and offering comprehensive solutions, as well as expanding footprint across segments and geographies," Sibur said.

The creation of the rubber division follows a Sept. 27 merger of petrochemical assets between Sibur and Russian energy group TIAF.

The new unit combines Sibur's existing rubber assets with those of TAIF, which includes major rubber and materials producer Nizhnekamskneftekhim (NKNK), with the capacity to produce 800 kilotons per annum of elastomers.

"The combined company will be able to ramp up the efficiency of its rubber business by increasing the availability of feedstock, predominantly butadiene, and develop production of most popular butadiene-based rubbers going forward," said Sibur.

Timur Shigabutdinov, member of the management board and managing director, will oversee the synthetic rubbers division.

"Our priority is to respond to customer needs by further growing the business using the expertise under our belt, cutting-edge R&D assets and access to the latest technologies," said Shigabutdinov.

Once all the investment projects are completed, he added, the initiatives will make Sibur "one of the world's top five synthetic rubber producers."

The remaining plastics and organic synthesis division will be led by Alexander Petrov, member of the management board and managing director.

Sergey Komyshan, Sibur's management board member and executive director, will supervise both divisions.