TOP MANAGERS TAKING QUESTIONS

The sale of products is conducted in strict accordance with the Uniform Trade Policy, drafted in accordance with the Federal Antimonopoly Service’s instructions regarding the TAIF merger.

All long-term contracts concluded with either SIBUR or any of the Tatarstan-based enterprises will remain valid and will not be up for review – the combined company will fulfil all obligations for these in full. As each contract reaches the end of its term, extensions will be considered depending on market conditions.

If you previously worked with both SIBUR and Kazanorgsintez or Nizhnekamskneftekhim, then in Q1 2022 you will be approached about consolidating all supplies into one contract. If you have products delivered from different enterprises of the combined company at the same time, we will strive to optimise logistics costs without compromising the quality of the products delivered, and will pass on any savings to you.

If you have never worked with SIBUR, Kazanorgsintez or Nizhnekamskneftekhim before and are interested in purchasing products from one of the enterprises of the combined company, you will need to contact the relevant sales manager for the products and shipping site you have selected.

Products made by SIBUR (pre-merger)

on our online store eshop.sibur.ru, on our hotline +7 495 777 5500

Products made by Kazanorgsintez

Aleksey Malkin (Head of the Product Sales Department)
malkin@kos.ru, +7 843 533 9977

Alexander Leontiev (Russia)
leon@kos.ru, +7 843 533 9476

Robert Muhutdinov (Export Markets, ECU/CIS)
muhutdinov_rn@kos.ru, +7 843 533 9975

Products made by Nizhnekamskneftekhim

Aidar Gilemhanov
gilemhanovAG@nknh.ru, + 7 855 537 7909

If you have previously worked with SIBUR, Kazanorgsintez or Nizhnekamskneftekhim, are interested in purchasing products from the Tatarstan-based enterprises and are a processor, then legal formalities for your purchase order are not as important at this stage – our top priority is to meet your product needs. You can submit a purchase order via the relevant enterprise’s sales manager. You will need to submit an application for a contract specifying the names of the required grades, order quantities, shipping details and the tentative delivery schedule, as well as the intended purpose of the products.

SIBUR’s eco-trail passes through urban forests on the outskirts of Tobolsk, 1.5 km north of the ZapSibNeftekhim site. The trail is a joint project between SIBUR and the Tobolsk Complex Scientific Station of the Russian Academy of Sciences’ Ural Branch, implemented with the support of the Tobolsk municipal authorities.

The eco-trail comprises three circular routes, totalling 4 km in distance:

• Forest and Health (2.0 km): The aim of this route is use local bioindicators (lichens, mosses, vascular plants, and some animal species) to showcase the environmental health across areas in the petrochemical complex’s immediate vicinity.

• A Portrait of the Siberian Taiga (1.0 km): Here, visitors can learn about the diversity of animal and plant species endemic to the southern taiga.

• The Jewels of the Tobolsk Flora (1.0 km): This route focuses on rare and protected species listed in the Red Data Book of the Tyumen Region. Visitors can also learn about medicinal, edible and poisonous plants and mushrooms.

The eco-trail was created in 2015. Thanks to all the extensive knowledge collected over the years since then, we can today say with confidence that ZapSibNeftekhim currently has no negative impact on the local flora and fauna. On the eco-trail, visitors can witness rapid testing for the presence of contaminants in the soil, water, and air. For the researchers of the Tobolsk Complex Scientific Station, the eco-trail is of great scientific importance. Each year, botanists, ornithologists, lichenologists, and other scientists visit monitoring areas on the trail to monitor changes in the health of its inhabitants.

As the eco-trail has scientific importance and is home to rare species, visits are only possible in group tours. You can sign up for a free tour along the eco-trail and find out how to get there at +7 3456 277 717 (the hotline of SIBUR’s Tobolsk site), on the website sibur-tobolsk.ru, or by sending your details to press@tobolsk.sibur.ru.

This question is referring to the capsule collection made of recycled plastic, jointly launched in 2021 by SIBUR and WOS, a Russian luxury clothing brand. Recycling polymers into fibre is a complicated process: post-consumer PET plastic (e.g. bottles) is shredded, formed into pellets, then melted and passed through a very fine filter. This creates filaments, but these cannot yet be used to make durable, high-quality, safe and comfortable fabric – additional materials have to be added to them by spinning or extruding them in a special way. There are not yet any manufacturers in Russia who are able to create these sustainable materials, so orders were placed with various certified suppliers in Portugal and Hong Kong. The garments were therefore produced in these countries: T-shirts and tracksuits in Portugal, raincoats in Hong Kong.

SIBUR’s environmental strategy involves introducing principles of the circular economy, a term that envisages recycling and reusing production and consumption waste, including plastic. SIBUR has already launched its first circular economy project, the upgrade of the POLIEF plant in Bashkortostan, where production of PET granules containing recycled materials is slated to start in 2022. Through this project, we expect to use around 34 ktpa of recycled materials in the production cycle.

PET is a transparent material with good collection rates; it is quite easy to recycle and feed back into production. With other polymers, such as polyethylene and polypropylene, it gets more tricky: for one, they are used in diverse applications, from food products to motor oils, and the mere fact that these products come in different colours instantly makes it more difficult to achieve good collection and recycling rates. Nevertheless, we are also making strides in this direction, having launched the brand Vivilen (from the Latin vivificus – enlivening) and currently ramping up the industrial supply of new solutions for non-food applications. In H2 2021, packaging that leverages the Vivilen solution will be used for O3’s architectural coatings and anti-viral paints under the TRIOPRO™ and M2 brands. We were the first company in Russia to offer a recycled polyolefin solution made using post-consumer resin (PCR). At this stage, the proportion of recycled polymer in our Vivilen solutions, depending on the type of final product, averages around 25% without a noticeable drop in quality or a compromise on the desired properties vs those made of virgin plastic. These then go on to manufacture plastic containers for household chemicals and other uses around the home, as well as cosmetics packaging.

Under SIBUR’s green agenda, the Company strives to make its manufacturing operations more eco-friendly, adapting the business to regulatory developments around carbon footprint. Looking at eco-friendly production, SIBUR sits in a privileged position, since it has invested heavily in new production facilities designed to meet the latest standards and using technologies that allow recycled polymers to be involved in the production cycle. For some polymers, these technologies are already available, while for others, they are in development. The Company is also upgrading its facilities to allow recycled materials to be used.

Over the past 10 years, SIBUR has invested USD 21 billion in the renovation of its production facilities and 23 billion rubles in environmental protection measures, of which more than half is aimed at improving wastewater treatment. This translated to a 30 ktpa (51%) reduction in pollutant discharge over 7 years, despite production growing at a 65% CAGR.

One of SIBUR’s top priorities is cutting our environmental footprint. The 2025 Sustainability Strategy sets out clear, specific environmental goals; for example, reducing the intensity of water consumption, pollutant discharge and emissions, and greenhouse gas emissions, while boosting the amount of waste recycled and the share of green energy used.

The consolidated company is expected to benefit from the strong synergy through the diversified feedstock base, optimized distribution and logistics, enhanced R&D and improved operational efficiency of the assets.

A broader pool of the petrochemical feedstock which will be available to the consolidated company (naphtha, ethane, LPG, APG products processed at SIBUR’s facilities in Western Siberia, resource base for AGCC) will unlock a wide range of new development opportunities for the company. A more diversified feedstock model will build the foundation for the development of new petrochemical processing operations, including specialized chemicals, most of which are imported to Russia. This is fully in a line with the shareholders’ strategic goal to facilitate long-term sustainable growth of the business and maximize the company’s shareholder value.

Both SIBUR and TAIF have solid project portfolios. The consolidated company will continue the ongoing projects. For new investment ideas, a generic mechanism for making decisions on projects with attractive economic efficiency will be developed.

The consolidated company addresses all stakeholders’ interests and follows the global industry consolidation trend. The transaction will make the newly merged business more resilient and strengthen the position of the Russian petrochemical industry in the global market.

At the same time, the local customers will get guaranteed supplies of products required for the development of further processing stages, access to more brands, including products having no domestically-produced equivalents. This will be coupled with the positive effects of optimized logistics as a result of developments in warehousing infrastructure, shorter product delivery timeframes, and a uniform approach to supporting the processing plants.

In addition, the newly established national petrochemical leader at the global scale will help increase the non-primary product exports more effectively and respond to the sanction pressure by means of joint investments in import-substituting technologies. Consolidation of operations will also ensure proper distribution of feed streams required for full capacity utilization and further development of the Tatarstan petrochemical cluster.

Nizhnekamskneftekhim and Kazanorgsintez (TAIF subsidiaries) operate in the same markets as SIBUR. Their product ranges vary but complement each other. TAIF’s petrochemical business is strongly positioned in the segments of elastomers, PC, PS and PE in Russia, while SIBUR dominates the PE, PP and special elastomer market.

The combined capacity of both companies will strengthen the leadership of the consolidated business in the domestic market and lay the groundwork for international expansion. Added competitive advantage will be established through the diversification of product and feedstock mix.