Russia ups PP capacity by 40%

Production commenced at one of the world’s biggest polypropylene factories near Tobolsk in the Tyumen region of Russia this week – an event that could see the country become a net exporter of the material.

Tobolsk-Polymer, a subsidiary of Russian petrochemical company Sibur, will annually produce 500,000 tons of polypropylene - one of the key raw materials for nonwovens as well as plastics - and employ 460 workers at the plant, which took three years and $2 billion to build the plant.

More than 320 companies from 23 countries were involved, providing services and materials to the project, which is considered to be the biggest in industry history.

The new production site will increase Russia’s existing polypropylene output by 40% and make it possible to export the plastic to other countries.

In 2012, Russia produced 650,000 tons of polypropylene while consuming more than 840,000 tons.

According to IHS Chemical research agency, the domestic polypropylene market will grow by 4.2 percent through 2020. World consumption of the plastic has been growing steadily and reached 50 million tons in 2011.

In addition to meeting local demand, Sibur plans to export the plastic to Europe and China.

Almost a quarter of the propane gas used in its production is currently disposed of by flaring during the oil extraction process in Russia.

The new production site is situated close to a Sibur gas processing factory, Tobolsk-Neftekhim, which will supply over 600,000 tons of propane per year.

According to Sibur, the cost of making one ton of polypropylene at Tobolsk-Polymer puts it in the top 10 percent in terms of effectiveness among such plants worldwide.

The plant’s opening ceremony was attended by Russian president Vladimir Putin. Pic: Sibur.