October 11, “Nizhnekamskneftekhim” INC put in operation a Polypropylene Production Facility 180 Ktpa.

A solemn launching ceremony was attended by Tatarstan President M. Shaymiyev, TR State Council Chairman F. Mukhametshin, General Director of “Nizhnekamskneftekhim” INC V. Busygin, General Director of “TAIF” JSC A. Shigabutdinov, managers of the Republic’s enterprises.

The Project was implemented within a very short period of time. A little bit more than three years ago, 31 July 2003 “Nizhnekamskneftekhim” INC and Italian companies “Tecnimont” and “Basell” signed a Memorandum of Understanding with regard to setting up a polypropylene production facility in Nizhnekamsk. “Basell” offered one of the most advanced process technologies – “Spheripol”, while “Tecnimont” made basic and detail engineering, equipment and material procurement. Moscow institute “VNIPIneft” was selected as a Russian designer.

In December 2003, “Nizhnekamskneftekhim” INC established a Polyolefin Plant to comprise both a polypropylene production facility and a linear polyethylene production facility as next.

Civil and erection works at the site began in September 2004. And in summer 2006, pre- commissioning started.

Loan transactions totaling US$ 132m were signed to finance the Project, they were arranged by City Group, and the biggest loan amounted to US$ 65m guaranteed by an Italian ECA SACE.    

Now, NKNK holds a license to produce more than 80 grades of polypropylene. Polyolefin Plant is going to produce a complete list of polypropylenes: homopolymers, thermopolymers, random and high impact copolymers.

This advanced type of plastic, named as “a king of plastics” is applied to manufacture domestic appliances and automobile components, biaxially-oriented film, tubular film and soft fibre film, containers, packaging items and disposable ware by extrusion, injection or blow molding and the like.

The Project’s payback period is five years. With polypropylene commercial production launched, “Nizhnekamskneftekhim” INC will become a major producer of this type of plastic in RF.

Polypropylene is the Company’s second polymer product. The first was polystyrene, which first production facility was put in operation in July 2003. At present, two PS Facilities of 100 Ktpa produce GPPS and HIPS.

The Company’s next objective in developing polymer materials is to set up EPS and ABS-plastics production at PS Plant, and polyethylene production at Polyolefin Plant.

Implementation of this program will allow to scale up the commodity output, to extend the product range, to enable a deeper feedstock processing and to raise a product added value. At the same time, “Nizhnekamskneftekhim” INC will create a source of raw materials to form a small business sector in the Tatarstan Republic.

That very same day, President of Tatarstan and his retinue took part in commissioning of two facilities of GC “TAIF”: Gas Condensate Processing Plant and Gasoline Plant.