Signing a long-term ethylene oxide supply agreement
SIBUR Holding and NORCHEM LLC signed a long-term agreement for the supply of ethylene oxide to the NORCHEM ™ Dzerzhinsk production site - Zavod sintanolov LLC. The agreement provides for the supply of up to 150 thousand tons of ethylene oxide in the period of 2020-2024. In 2019 Zavod sintanolov LLC completed the first stage of a large-scale reconstruction of hydroxyethylation and oxypropylation capacities, which resulted in an increase in the production of alkoxylated products by 30%. It will also significantly expand the Company's assortment, including through innovative products.
Previously Zavod sintanolov LLC signed an agreement with LLC Gazprom neftekhim Salavat for the annual supply of at least 15 thousand tons of ethylene for its subsequent processing into ethylene oxide and glycol by 2027.
Thus, taking into account the diversification of the sources of supply of the main raw materials, as well as the new signed Agreement with SIBUR Holding, NORCHEM ™ will be able to process up to 70 thousand tons of Ethylene Oxide / Propylene Oxide per year by 2024. It will be possible to efficiently load the reconstructed production NORCHEM ™ facilities, to satisfy the growing needs of the Russian market for targeted petrochemical products and ensure export sales.