2011/10/11 Sibur SIBUR and Sino

SIBUR and Sinopec plan two joint ventures and extend their cooperation

Within the framework of the working visit to China by Prime Minister of the Russian Federation Vladimir Putin, one of the world's largest energy and chemical companies, China Petroleum and Chemical Corporation (Sinopec Corp.) and Russia’s leading petrochemical holding company SIBUR have entered into a Memorandum of Extended Cooperation on the possible formation of two joint ventures for the production of butadiene nitrile rubber (NBR) in Krasnoyarsk (Russia) and Shanghai (China).

The Parties are also considering cooperating in the area of polyisopren rubber (IR) and in other areas, including the petrochemical feedstock supply and the supply of unconventional sources of feedstock to Russia and China. In addition they have agreed to hold talks about co-operation opportunities in upstream and downstream.

If joint ventures are formed, SIBUR will provide polymerization and finishing technology for two of them. The existing NBR assets of the Krasnoyarsk rubber plant in Russia will be expanded to 56,000 tons per year, and the Shanghai facility will have a production capacity of approximately 50,000 tons per year.

Commenting on the cooperation and development, Sinopec express that the two joint ventures will strengthen the friendly cooperation relationship between Sinopec and SIBUR, this is another step towards Sinopec’s commitment to service China’s rapidly growing manufacturing sector for Chinese fast increasing market demands.

“SIBUR has advanced technologies for the production of the synthetic rubber, which in partnership with Sinopec will serve the growing needs of Chinese industry”, said SIBUR’s CEO Dmitry Konov commenting on the joint ventures. “We are satisfied with the dynamics of negotiation and hope to make a deal”.

Background information:

Sinopec Corp. (www.sinopec.com) is ranked 5th by sales revenue on the Forbes Global 2000 list (2011) and 5th on the Fortune Global 500 list (2011). Sinopec Corp.'s business incorporates oil and gas exploration, oil refining, petrochemical production, mineral fertilisers, and oil and gas transportation. Sinopec Corp. is ranked No. 2 in the world in terms of oil refining capacity and No. 4 by ethylene production. The company leads the Chinese market in the production of petrol, diesel, synthetic rubber, polymers and fertilisers. Sinopec Corp. posted revenues of more than CNY 1.9 trillion (USD 273 billion) in 2010 and employed over 678,000 people. The company's principal shareholder is state-owned Sinopec Group (China).

SIBUR (www.sibur.ru) is the leading petrochemicals company in Russia and Eastern Europe. Its production chain includes gas refining, the production of monomers, plastics, rubber, mineral fertilisers, tyres and industrial rubber goods, and the processing of plastics.In 2010, SIBUR has processed more than 17.4 billion m3 of associated petrol gas and produced more than 16,5 million tons of various petrochemical products. SIBUR’s revenue in 2010 reached 239 billion roubles (over US$ 7,5 billion). SIBUR Holding CJSC's shareholders are private entities. The functions of the company's sole executive body are performed by the management company SIBUR LLC.

April 28, 2012 MarketWatch

Sinopec to form rubber JV with Sibur NBR

China Petrochemical Corp., known as Sinopec Group, said Saturday it signed an agreement with Russia's Sibur to form a joint venture to produce butadiene nitrile rubber in the Russian city of Krasnoyarsk.

Sinopec will acquire 25% plus one additional share in the rubber plant, the statement said, without elaborating on the value of the deal. The joint venture will also decide whether to boost the plant's current output to 56,000 metric tons from 42,000 tons a year.

The joint venture is expected to be established by the end of 2012, it added.

Sinopec said in October that it signed a preliminary agreement with Sibur to form two joint ventures. One was the rubber plant, while another would involve cooperating on polyisoprene rubber, petrochemical feedstock supply and the supply of unconventional sources of feedstock.

Sibur would provide polymerization and finishing technology for both joint ventures, and both companies agreed to hold talks about working together on upstream and downstream businesses, it previously said.

China's Sinopec Joins With Sibur to Produce Synthetic Rubber

Chinese petrochemical corporation Sinopec has bought 25 percent plus one share of the Krasnoyarsk synthetic rubber plant, where the company will produce nitrile butadiene rubbers in a joint venture with Sibur, the Russian petrochemical company announced Monday.

The deal is worth close to $50 million, Vedomosti reported, citing a source close to the deal.

Over 30 percent of the plant's output will be supplied to the Russian market with the rest going for export. China will receive about half of the plant's production, a representative of Sibur said.

Sinopec Corp., China's top oil refiner, on Tuesday inked an agreement with Russia-based petrochemical firm Sibur to set up a synthetic rubber joint venture in Shanghai.

The two sides agreed to set up a factory to produce 50,000 tonnes of nitrile butadiene rubber (NBR) every year. Sinopec will hold 74.9 percent of the stake, while Sibur will take the remaining 25.1 percent.

The new company will be located at Shanghai Chemical Industry Park, about 50 kilometers south of urban Shanghai.

The deal covers a license to use Sibur's NBR production technology, while experts from Sibur will participate in the construction, production and commercial operations.

Sinopec and Sibur established an NBR joint venture in Russia's Krasnoyarsk in 2013. Sinopec holds 25 percent plus one shares in that joint venture, which targets the Chinese market as a major destination of its products, mostly via Sinopec or its partners' sales channels in China.

Sibur will enable the company "to develop a highly competitive production facility in China and expand Sibur's footprint in the Asia market."

Due to its high resistance to aggressive agents, NBR is widely used in producing oil-and-petrol resistant industrial rubber products. NBR is essential in the production of aircraft fuel tank seals, fuel hoses, bag fuel tanks and aircraft window seals.

December 17, 2015

Sinopec acquires minority stake in Sibur

Sibur, Russia’s largest gas processing and petrochemicals company, and China Petroleum & Chemical Corp. (Sinopec), a major global petrochemical corporation, announced the successful completion of Sinopec’s 10% minority investment in Sibur as a strategic investor.

The successful completion of the transaction will deepen the cooperation between the two companies and create value for both. The investment will also lead to better sharing of joint expertise and resources, which will strengthen not only the market leading positions of both companies, but also the strategic cooperation between China and Russia. Sinopec will have the right to nominate a representative for Sibur’s Board of Directors as a strategic investor.

“Sinopec’s 10% minority investment in Sibur not only deepens the cooperation between the two companies, but also represents an active implementation of China’s “One Belt, One Road” policy. Sibur’s vertically-integrated upstream and petrochemicals business model is highly complementary with Sinopec’s businesses. This transaction is in-line with our objective to strategically expand our petrochemical business overseas. Our continued partnership will help diversify and secure Sinopec’s long-term sourcing of petrochemical products,” commented Wang Yupu, Chairman of Sinopec.

“The decision of Sinopec, a major player in the global petrochemical market, to acquire a stake in Sibur confirms the success of the management’s effort to transform the Company into a gas processing and petrochemical leader and comes as a recognition of SIBUR’s high growth potential. Getting Sinopec on board as a strategic shareholder will help to build the synergy required to bring SIBUR’s growth to a brand new level,” said Leonid Mikhelson, Sibur’s Chairman of the Board.

In September 2015, Sibur and Sinopec signed a strategic partnership agreement during a state visit by Vladimir Putin, President of the Russian Federation, to Xi Jinping, the President of the People’s Republic of China. The successful completion of the transaction is an important step in the development of the strategic cooperation between the two countries.

The two parties will continue the dialogue to widen the scope of collaboration. As a next step, both companies are considering the participation of Sinopec in the Amur Gas Chemical Complex construction project as a strategic partner with Sibur. Sinopec’s integrated upstream and petrochemical capabilities will make a positive impact and benefit both parties.

　