The Perm subsidiary of Russian gas and petrochemicals giant Sibur and the Perm territorial government have signed an eight-year special investment contract to set up a plant producing the plasticizer dioctyl terephthalate (DOTP). A special investment contract is a new non-financial instrument, designed to promote and support the creation of new production facilities.

The plant, which will use feedstock supplied by Sibur, will produce 100,000 t/y of the phthalate-free plasticizer and production is scheduled to start in 2019. A technology license has been signed with South Korea’s Aekyung Petrochemical, and Russian research center NIPIgaspererabotka has been selected to develop the design and engineering. Sibur said Russian contractors will be engaged for construction and commissioning works.

Russia has a shortfall of about 60,000 t/y for common plasticizers and has to fulfil its requirements by importing from Europe. The Perm project will substitute a major part of these imports and also enable plasticizer exports to other markets where demand for DOTP is growing rapidly.

Dmitry Konov, chairman of Sibur’s management board, said: “The project is yet another step down the import substitution path in Russia’s petrochemical industry. By developing advanced hydrocarbon feedstock processing, we offer our existing and potential customers, such as utility, construction and other providers, quality products and long-term collaboration.”

Sibur is building a maleic anhydride (MA) plant in Tobolsk, Russia, that will also end the country’s reliance on MA imports. A start-up date for the 45,000 t/y plant has not been disclosed.

The ZapSibNeftekhim project at Tobolsk, which consists of a 1.5 million t/y steam cracker and plants producing 1.5 million t/y PE and 500,000 t/y PP, is also expected to eventually substitute polymer imports into the Russian market. Construction on the $9.5 billion complex began in February 2015 but a scheduled completion date has not been given.