7 Sep 2009 14:05

Construction of PVC complex in Nizhny Novgorod passes state expertise review

NIZHNY NOVGOROD. Sept 7 (Interfax) - OOO Rusvinyl, a joint venture between SIBUR and Belgium's Solvin, has received a positive evaluation from the federal state board Glavgosexpertisa regarding the construction of a facility for the production of polyvinyl chloride (PVC) in the Kstovsk district of the Nizhny Novgorod region, Rusvinyl said in a statement.

According to the results of the state expertise review, which was conducted over 90 days, the project is in full accordance with all Russian regulations and norms.

"Federal state board Glavgosexpertisa's positive findings will make it possible to get approval for construction and, after the project's financial structure is ready, starting work on the construction of a PVC complex [that will be] able to produce 330,000 tonnes per annum. OOO Rusvinyl's first construction operations are slated to start in the first quarter of 2010," the statement said.

The international project group Technip carried out project management and processing of approval documentation for OOO Rusvinyl.

The statement also said that the project's financing was also currently being decided. For example, negotiations are currently underway with various financial institutions such as the European Bank for Reconstruction and Development (EBRD) and Vnesheconombank (VEB). Applications for project financing in order to complete the project have gone through a preliminary review by VEB and are currency undergoing detailed expert analysis at the bank.

OOO Rusvinyl is a joint venture of SIBUR Holding and Solvin (in which the Solvay group controls 75% and BASF owns 25%) for the construction of a PVC production facility in the Nizhny Novgorod region. SIBUR and Solvin's stakes in the projects' charter capital each come to 50%. Investment in the complex comes to over 50 million euro.