Russian petrochemicals firm Sibur Holding Joint-Stock Company is preparing plans for a new low density polyethylene

Russian petrochemicals firm Sibur Holding Joint-Stock Company is preparing plans for a new low density polyethylene complex in the country's south western region of Astrakhan.

The Moscow-based subsidiary of Russian energy giant Gazprom has already invested 236 million roubles (€6.5m) to carry out engineering design for the complex which, if given the green light, will have a capacity of up to 500,000 tonnes per year.

Sibur is undertaking a detailed assessment of commercial and technological aspects of the planned project alongside its likely raw materials supplier, local Gazprom subsidiary Astrakhangazprom.

A final decision on the scheme will be made by their parent group in due course. If approved, it is set to start up in 2012. Sibur, which also owns industrial rubber and tyre operations, plans to more than double its overall capital investment this year against its 2007 spending.

It has earmarked nearly 18 million roubles (€500,000) for its plastics and organic synthesis products division, including the construction of a 500,000 tonnes per year polypropylene plant, with supporting propylene unit in Tobolsk, Tyumen region.

The company is also preparing additional ethylene cracker capacity in Kstovo to feed Russia's first worldscale PVC plant, set to start up in the Nizhny Novgorod region in 2010. Sibur is partnering Solvay group and Solvin, the Belgian group's vinyls joint venture with BASF, in a 650 million euro scheme to construct the 330,000 tonnes per year PVC operation.