Sibur has sold its 100% stake in OJSC Plastik (Uzlovaya, Tula Region, Russia) to the group of private investors. The deal value totalled RUB 575 million.
Production of geosynthetics (geogrids and nonwoven geotextiles), spinned off as OOO Plastik-Geosintetika (a joint venture between Sibur and Leader Innovations Closed-End Venture Capital Fund) in 2010, was not included in the transaction and continues to operate as part of Sibur Group.
"Sale of OJSC Plastik is in line with the company's strategy of focusing investment resources on its key production assets, with more favourable geographic location and lower production costs," Dmitry Konov, Sibur's CEO, said. "We look forward to cooperation with the new OJSC Plastik's owner, who is committed to further development of the asset's core business."
OJSC Plastik's asset base includes production of styrene (with a capacity of up to 60 ktpa), expandable polystyrene (with a capacity of up to 11 ktpa), ABS plastics (with a capacity of 23 ktpa), and separators and phenolic plastics (with a capacity of 6.38 ktpa). It also operates the lines producing parts and components for the automotive industry and machine building, safety products for workers in the mining and construction industries, and household products for a wide range of consumers. Products of OJSC Plastik are sold on the domestic market and also exported to Western and Eastern Europe, CIS, and partially to Asia.
The new investors are bringing in a carefully designed strategy of further business development and growing its petrochemical asset base.
In the medium term, Sibur plans to partner with OJSC Plastik for production of styrene under an ethylbenzene processing agreement, with OJSC Plastik among the buyers of the manufactured product.
Sibur sold OJSC Plastik