Sibur plans TPA output boost - minister
IVANOVO. Nov 5 (Interfax) - Sibur plans to increase production of terephthalic acid (TPA), including for the implementation of a project to build a synthetic fibers plant in Ivanovo region, Russian Industry and Trade Minister Denis Manturov said at a meeting in Ivanovo on October 31.
"Yesterday we spoke to Leonid Mikhelson, the main shareholder of Sibur. They are considering the possibility of increasing production by another 600,000 tonnes," the minister said.
TPA is currently produced at OJSC Polief, which is part of Sibur. Production is at 260,000 tonnes.
"Unfortunately, a volume of 200,000 tonnes is completely processed at Polief," he said, adding that that the question of producing TPA as a basis for the production of polyamide fibers still needs to be agreed on.
Russian Prime Minister Dmitry Medvedev said the new plant could also use imported TPA. "However, we still need to increase production inside the country," he said. "I would ask you to talk to our producers and see what they need to increase volumes, how beneficial is this for them."
The industry minister replied that he has already discussed this with Sibur shareholders.
If this project goes ahead the demand for TPA will be satisfied both at the new plant in Ivanovo, which is around 150,000 to 160,000 tonnes per year, and for other producers, Manturov said.
The project to build a synthetic fiber plant with annual capacity of 200,000 tonnes of polyester fiber is included in the government program on the development of industry and increasing competitiveness and in the strategy to expand the chemicals and petrochemicals sector to 2030.
Construction is estimated to cost 12.9 billion rubles. The main creditor in the project will be Vnesheconombank. Implementation will take around three and a half years.
This project is needed because there is a trend around the world right now toward using synthetic fibers and a reduction in the use of natural fibers, the minister said.
Despite the fact that in January-September 2014, clothes production grew 7.2%, there was a drop in the segments working with natural fibers. Output fell 8.1% for cotton materials, 17.9% for linen and 10.1% for wool.
Materials presented at the meeting show that output in the light industry is forecast at 512 billion rubles in 2020, compared to 292.1 billion in 2013. Investment is forecast at 16.4 billion rubles, compared to 8.6 billion rubles.