Signing a Contract with "Fina Technology Inc" (USA) has finalized the negotiations of "Nizhnekamskneftekhim" Inc on building a polystyrene plant as part of a petrochemical complex. The importance of that event can hardly be overestimated: signing a Contract will begin a new phase - production of polymer products.

The negotiations were held in Moscow with Giprokauchuk Design Institute participating and finalized with signing a contract between "Nizhnekamskneftekhim" Inc and a group of "Fina" Companies on June 29. The delegation of "Nizhnekamskneftekhim" Inc was led by Vladimir Presnyakov, First Deputy General Director.
- In fact, not one but three last Contracts of four required have been signed - said he when arrived at Nizhnekamsk. - And the first, the most important for us, has been paid for. One should give credit to our American partners: they not waiting for the down payment under the second Contract have submitted all technical documentation on polystyrene basic engineering to us and to Giprokauchuk Design Institute. The agreed rate of the project development is so high that the Report on acceptance of technical documentation for the basic engineering should be signed this August.
The first Contract mentioned by V. Presnyakov comprises a licence obtained from "Fina Technology Inc" for a PS Plant 50000 TPA with the right to sell that product all over the world. In future, a PS output shall reach 120000 TPA. And according to V. Presnyakov, if all four Contracts are successfully implemented the first polystyrene should be produced at "Nizhnekamskneftekhim" Inc in April-May 2003.
"Nizhnekamskneftekhim" Inc have entered into two other Contracts with a subsidiary of "Fina Technology Inc" where the base company acted as a Witness and Guarantor of a big transaction with the Russian Party. One of them comprises basic engineering of a PS polymerization process in mass, the second - to purchase and supply the original process equipment to Nizhnekamsk. Financing of a long-term and very favorable project for "Nizhnekamskneftekhim" Inc shall be effected by Savings Bank of the Russian Federation and partially by Ak Bars Bank of Tatarstan, the Parties do not indicate the price for the signed Contract, but to some information, it is tens upon millions US dollars. It is important to underline the fact that PS production considering its completely undeveloped market in Russia is of a rather profitable nature. The world market price for one ton of polystyrene, which as known is used to produce a wide range of items - from plastic toys and decorative things to enclosures for refrigerators, TV sets and even automobile parts, is up to USD 960. Therefore, there is no doubt that HIPS which is going to be produced at "Nizhnekamskneftekhim" Inc will be in demand with consumers.
20 years ago, there were dreams at "Nizhnekamskneftekhim" Inc to create polymer production facilities within the Petrochemical Complex the products of which without further processing would have been in demand with consumers. Today, with a new General Director and his advanced thinking team those ideas are being put into practice.

Press Service
"Nizhnekamskneftekhim" Inc