By: Richard Higgs
January 11, 2013
SHAKHTY, RUSSIA (Jan. 11, 10:25 a.m. ET) — A Russian investment group has launched the first stage of a project to construct a 70,000 metric ton per year biaxially oriented polypropylene films plant in the country’s Rostov region.
In early December, senior Russian federal and regional government officials joined top management of Rostov-on-Don-based Megapolis Group at a ceremony at the project site in Shakhty. The event marked the driving of the first foundation pile for the new plant.
The unit, to be run by Megapolis subsidiary business Waterfall PRO, will operate two production lines for 3-5 layer BOPP packaging film at the plant for applications including labels, food and non-food packaging.
A 5-layer production line will turn out more than 40 different oriented film products, according to the group.
On the same day, Megapolis group signed a contract with Russian petrochemicals giant Sibur Holding for the future supply of PP resin for the Shakhty facility.
The Rostov project, which is to create jobs for 250 workers, took shape when Waterfall PRO signed a formal memorandum of cooperation with the Rostov administration at the Sochi 2012 international economic forum in southern Russia in September.
The plant is in line with the Russian government’s strategy of developing the national chemical and petrochemical industry, Denis Manturov, federal industry and trade minister. said at the site.
In business since 1993, the Megapolis Group plans to invest more than 98 million euros ($130 million) in the Rostov BOPP project, according to Chairman Konstatin Kuzin, who took part in the launch ceremony.
The diversified Russian investment group also has interests and operations in the fuel and energy, textiles, property development and leisure sectors.