Novokuybyshevsk, 13 August 2019. BIAXPLEN, a subsidiary of SIBUR Holding, has closed the sale of its cast polypropylene film production facility in the Samara Region's Novokuybyshevsk.

The disposal of the smaller non-core asset with the capacity of 5 ktpa will allow SIBUR to focus on its large-scale production of BOPP films and grade range expansion.

Cast unoriented polypropylene (CPP) films are used to produce laminated films, packaging for bakery and noodle products, textiles and cosmetics; at the same time, they have low cold resistance and are not used in frozen goods storage solutions.

Biaxially-oriented polypropylene (BOPP) films have found wider application in the food, perfume, tobacco, paper & pulp, and light industries' packaging. They are becoming increasingly popular around the world due to the growing global consumption of food, gradually supplanting other packaging solutions thanks to the low cost and strong barrier properties that extend shelf life.

Planeta Centre, the buyer of the asset, plans to invest in its further development. The company has extensive relevant expertise, having been producing cast films in Omsk for 10 years. The increased capacity will enable it to grow the end product market and expand its product portfolio. In the long term, SIBUR will remain the key supplier of polypropylene to the Novokuybyshevsk facility.

Marat Falyakhov, Executive Director at BIAXPLEN: “Our focus lies on the production of BOPP films and expanding the range of promising packaging types. With the NIOST R&D centre in Tomsk and the recently launched PolyLab in Skolkovo where we work with customers and their customers to develop unique solutions for very specific consumer needs, SIBUR is well-equipped to meet any demand of its customers.”

BIAXPLEN is a subsidiary of the SIBUR integrated petrochemicals company and Russia's largest BOPP film producer. It has the capacity of 180 ktpa and eight modern high-speed production lines. The product range exceeds 40 grades. BIAXPLEN has production sites in five regions and exports its products to 27 countries.

SIBUR is Russia’s leading petrochemicals company and a global industry major with a headcount of over 26,000. The Company’s unique vertically integrated business model enables it to deliver highly competitive products used in the consumer goods and automotive industries, as well as construction, energy, chemistry and other industries across 80 countries.

SIBUR does its part to reduce CO2 emissions by recycling oil and gas by-products that would otherwise be burnt. In 2018, the Company recycled 22.3 bcm of APG and thus prevented over 72 mt in emissions, which is equivalent to the CO2 an average European country would emit in a year.

In 2018, SIBUR reported revenue of USD 9.1 bn and adjusted EBITDA of USD 3.3 bn.

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