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The SIBUR group is Russia's leading petrochemicals company, with a total of 34 plants and subsidiaries producing over 100 petrochemical products.

The Company's mission is to transform natural resources into products for everyday human use without upsetting the ecological equilibrium. Its prime objectives are to maintain its leadership in Russia, to become internationally competitive in its target market segments, to generate continuous growth, and to combine commercial success with social responsibility and environmental safety. SIBUR's development strategy is focused on expanding its production capacities while reducing operating costs.

A controlling stake in SIBUR Holding Joint-Stock Company (JSC) is held by the Gazprom group, and the Company is run by a management organization called SIBUR Limited Liability Company (LLC). It has achieved strong financial results over the past few years, and its planned investment for 2007 amounts to 16.9 billion roubles.

For the SIBUR group, social investment means continuous dialogue with stakeholders and an awareness that commercial performance depends directly on how successfully social and environmental issues are addressed.

The Company's environmental policy is aimed at minimizing its environmental footprint. SIBUR has established a round-the-clock monitoring system to ensure that any technical upsets are handled promptly. By employing advanced materials and technologies and by abandoning the use of environmentally harmful components we are gradually improving the state of the environment.

The Company owes its success to the hard work of an integrated team of professionals, teamwork being the key to SIBUR's long-term development. Continued qualitative growth and prosperity will depend directly on the knowledge and skills of the Company's employees.

The SIBUR group is a dynamic and technologically advanced company that is capable of driving the long-term growth and development of Russia's petrochemicals industry.

Hydrocarbon Feedstock: SiburTyumenGas
Synthetic Rubbers
Plastic and Organic Synthesis

Logistics and Operations Support
Mineral Fertilizers :Sibur-Fertilizers
Tyres : sibur-Russian Tyres

　

　

SIBUR Holding's management structure is founded on three pillars: Head Office, Business Units and Operational Centres.

Operations are run on a product-division principle. The Company has three business units responsible for different stages of processing (conversion) of the petrochemical feedstock:

Hydrocarbon Feedstock

The SIBUR group’s feedstock segment consist of six gas processing plants, transportation infrastructure for associated petroleum gas and refined products, and one of Russia’s largest petrochemical combines - Tobolsk-Neftekhim.

Tobolsk-Neftekhim A modern plant designed for processing of NGLs and comprising:

Sep 25, 2006

SIBUR-Neftekhim has increased petrochemical production at its two sites at Dzerzhisnk and Kstovo notably this year following the modernisation that has been underway in the past 18 months. Ethylene oxide and ethylene production increased in the first eight months of 2006, with ethylene production set to surpass 230,000 tons for the full year. Ethylene capacity at Kstovo is being increased further by SIBUR-Neftekhim to allow for the building of a new PVC complex.

The principal products from these processing facilities are dry stripped gas, natural gas liquids, stable natural gas gasoline and liquefied petroleum gases.

Gas processing plants (GPPs): Nizhnevartovsky GPP, Belozerny GPP, Yuzhno-Balyksky GPP, Gubkinsky GPP, Noyabrsky GPP and Nyagangazpererabotka have been combined to form SiburTyumenGaz JSC, which manages the gas processing units and provides infrastructure support.

In Head Office, gas processing operations are overseen by the Hydrocarbon Feedstock BU, which subdivides into an operations, economics and marketing section and a development section. Within the operations section there are three divisions: hydrocarbon feedstock supply; operational management and pipeline transportation; and accounting systems.

Given the specifics of the petrochemicals business, SIBUR considers it strategically important to develop its feedstock segment, which supplies the hydrocarbons for petrochemical processing. In pursuance of this strategic objective, the Company is planning a range of initiatives to expand its existing feedstock base in West Siberia through broader collaboration with oil companies and new ventures to diversify its resource base.

SIBUR already has long-term relationships with major Russian oil companies that are key suppliers of associated gas, including a joint gas processing venture with TNK-BP.

The SIBUR group has drawn up a development programme for its petrochemicals plants that aims to boost yields from the hydrocarbon feedstock. Implementation of this programme will help to achieve the group’s strategic objective of increasing the hi-tech component of Russia’s GDP and reducing dependence on imports. But this will only be possible if SIBUR is successful in growing its resource segment - production of liquefied petroleum gases and refined products of associated gas.

The Synthetic Rubbers Directorate in Head Office is responsible for the day-to-day management and control of operations at 8 enterprises:

The SIBUR group has six polymer production companies:

Each business unit is accountable for the financial results of the operational centres it oversees and for the aggregate financial outcome across the product range.

Head Office is responsible for strategic planning, allocation of resources between business units, development of common corporate standards, regulations and policies, and control over plan and budget performance by the business units.

The relationship between Head Office and the operational centres is based on processing arrangements: the Company owns the feedstock and end products, and pays the enterprises for their processing services. The basic functions of Head Office in respect of the plants are to plan and control commodity and cash flows within the group, to market the petrochemical products, and to draw up and implement development programmes jointly with the enterprises.

This structure helps to ensure efficient management of enterprises that together form an integrated operational and technological system for the production of petrochemical products.

SIBUR is making further improvements to its management structure by setting up independent subsidiaries to handle individual products. In 2006 a sub-holding called Sibur - Russian Tyres was created to integrate the Yaroslavl Tyre Plant, the Omsk Tyre Plant, Uralshina LLC (Yekaterinburg), Voltyre-Prom JSC (Volzhsky) and the Saransk industrial rubber plant. In late 2006 the Mineral Fertilizer BU was converted into Sibur - Mineral Fertilizers open joint-stock company - a sub-holding company comprising a singe plant that specializes in this type of product - AZOT JSC.