Sibur successfully sells its Uralorgsintez LPG, MTBE production plant

Russian gas processing and petrochemicals company Sibur has successfully sold its 100% stake in Uralorgsintez production plant to Ektos, leading Russian producer of high-octane fuel components, in a deal valued at RUB22 billion.

Uralorgsintez focuses on the production of liquefied petroleum gas (LPG) and methyl tertiary butyl ether (MTBE), a high-octane fuel component, from hydrocarbons. Its hydrocarbon fractionation capacity stands at 0.91 metric tons per annum (mtpa), MTBE production capacity at 220 kilo tons per annum (ktpa), and benzene production capacity at 95 ktpa.

As part of the transaction, the companies signed a number of long-term agreements, including processing and supply agreements with guaranteed capacity utilization of Uralorgsintez’s core facilities.

The sale will not affect the collective bargaining agreement for 2017–2019, which will remain valid on the same terms and conditions, as well as the voluntary health insurance plan.

“Sibur’s main focus is on operational excellence and development of the company’s core business. The agreement with Ektos is in line with our strategy to divest non-priority businesses,” commented Pavel Lyakhovich, Managing Director of Sibur. “At the same time, Sibur will remain the key partner of the Tchaikovsky production site.”