SIBUR Partners with Peterpipe for Polyethylene Supply

SIBUR has officially entered into a memorandum of intent for a strategic and long-term collaboration with Peterpipe CJSC, a prominent pipe producer. Under the terms of this agreement, SIBUR, the petrochemical giant, will extend special conditions to Peterpipe for the supply of polyethylene. These customized conditions are designed to expedite the return on investment for Peterpipe, subsequently paving the way for the ambitious plans to expand production further.

Peterpipe, in response to this collaboration, envisions expanding its existing production capacity for main pipeline systems catering to gas and water supply, along with electric-welded fittings, by an impressive margin of over 20%. This expansion initiative is poised not only to meet the demands of regional infrastructure projects by providing the required volumes of pipe products but also to diminish their reliance on imports.

In a strategic move in 2022, Peterpipe inaugurated a new production line dedicated to polyethylene pipes at its St. G plant. This strategic expansion contributed to a notable increase in the daily output of pipe production, reaching up to 3 kilometers per day.

Pavel Lyakhovich, a member of the Management Board and Executive Director of SIBUR, highlighted the company's vested interest in fostering the development of local polymer processing. He emphasized the commitment to systematically reduce the reliance on imports for finished polymer products. Lyakhovich also referenced SIBUR's ongoing program, the "investment afterburner," actively driving the expansion of existing capacities and the construction of new facilities.

Anatoly Ignatov, General Director of Peterpipe, emphasized the company's active involvement in the execution of the Program for Gasification of Russian Regions. He stated, "To meet the demand from consumers of our products, we are expanding the current and creating new production facilities in various regions of the country." This underscores Peterpipe's commitment to meeting the evolving demands of consumers while contributing to the broader infrastructure and economic goals of the regions they serve.

Looking ahead, SIBUR has outlined its plans for 2024, which include the development of new polymer grades, with a specific focus on polyolefins tailored to meet the requirements of the medical industry. Additionally, SIBUR aims to formulate new grades catering to the needs of the transport and oil and gas production sectors. These forward-looking initiatives signify SIBUR's commitment to innovation and meeting the diverse needs of various industries.

The collaboration between SIBUR and Peterpipe, marked by the provision of specialized conditions for polyethylene supply, underscores a synergy between two industry leaders, with the potential to reshape and advance the landscape of polymer production and pipeline systems in Russia. The strategic alignment of their goals, coupled with a commitment to innovation and sustainability, positions this collaboration as a pivotal force in driving positive change within the industry.