NIZHNEKAMSK, RUSSIA (Sept. 17, 8:35 a.m. ET) – Nizhnekamskneftekhim (NKNH), one of Russia's largest petrochemical producers, plans to launch production of ABS polymer in November, according to director general Vladimir Busygin.
The 60,000 metric ton-per-year plant cost an estimated at 4.3 billion rubles ($140 million). After the launch, NKNH will the largest producer of ABS in Russia and will reach its design capacity by 2013.
The implementation of the project is expected to fully meet and possibly exceed the annual demand for ABS in Russia. ABS imports mainly come from South Korea, and in particular from Samsung and LG Chem.
Currently, the annual demand for ABS in Russia is estimated at 70,000-80,000 metric tons, but, according to analysts, in the coming years, it could rise to 140,000-150,000 metric tons, thanks to the ongoing boom in car production in the country.
ABS is also produced in Russia by Plastik company, which is part of Sibur Group.
NKNH also plans to continue the development of another major project, a 1 million metric ton ethylene plant. The company is holding negotiations with potential lenders and has already set aside a construction site for the plant.
Busygin also said that next year NKNH expects to post sales at the same level as 2012, which is forecast to reach 125 billion rubles ($4.1 billion).