Solvay and SolVin, the joint vinyls subsidiary of Solvay and BASF, have signed a joint venture agreement with Sibur, an affiliate of Gazprom, to build Russia’s first world-scale, fully integrated vinyls plant in Kstovo, in the Nizhny Novgorod region.
As part of the deal, SolVin and Sibur will create a joint venture company – RusVinyl – of which each partner will hold 50 per cent. In addition, SolVin has entered into talks with the European Bank for Reconstruction and Development (EBRD), which will look into a possible EBRD involvement in the project.
Costing around €650m, the new production site, scheduled to be operational in 2010, will have an total annual capacity of 330 kilotons of vinyls resin and 225 kilotons of caustic soda.
The operation will serve the fast growing markets in the Commonwealth of Independent States (CIS) and is designed to accommodate a possible expansion which, if it went ahead, would bring the total capacity of the plant to 510 kilotons of vinyl resin and 335 kilotons of caustic soda.
The plant will be supplied with ethylene delivered from a cracker owned by Sibur which is also in Kstovo.