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May 23, 2014

Sibur, Gazprom and Titan form polypropylene JV

Mary Page Bailey

Gazprom Neft (Moscow;, SIBUR (Moscow; and Titan Group signed an agreement to establish a joint venture (JV) based on Omsk Polypropylene Plant (Poliom). As part of the deal, Sibgazpolimer, a joint venture of SIBUR and Gazprom Neft (each having a 50% stake), acquired a 50% stake in Poliom from Titan Group. Under the agreement, Gazprom Neft is to supply Poliom with raw materials (propane-propylene fraction from Omsk Refinery), with SIBUR to sell Poliom's products through its distribution network. This partnership will help enhance the efficiency across the entire production chain, from feedstock delivery to sales. The Omsk Polypropylene Plant (Poliom) can produce 210,000 metric tons per year (m.t./yr) of polypropylene (PP), of about 100 different PP grades. The Spheripol process developed by LyondellBasell Industries (Netherlands) is applied in the production.

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