Sibur


SIBUR is a Russian petrochemicals company founded in 1995 and headquartered in Moscow. SIBUR operates production sites located all over Russia, has over 1,400 major customers engaged in the energy, automotive, construction, fast-moving consumer goods, chemical and other industries in approximately 70 countries worldwide and employs around 26,000 personnel. In 2018, its revenue was USD 9.1 bln and EBITDA USD 3.2 bln.

History

SIBUR was founded by government decree in 1995. 38% of its shares were state owned and the remaining 62% of the company was made public.
Towards the end of 1998, SIBUR started its transformation into a vertically integrated petrochemical holding with a full production chain from the processing of raw materials through to the manufacture of finished goods. Michael Cherney, its controlling shareholder at the time, invested over $110 million in SIBUR’s business development and expansion programme. SIBUR subsequently built up assets by buying stakes in petrochemical companies all over Russia, including some 60 companies.
By 2001, Gazprom had acquired control of SIBUR with a 51% stake. In 2003, Alexander Dyukov was appointed president and oversaw a reform with a long-term growth strategy and implementation of infrastructure updates.
By September, the stock was divided between Gazprom and Gazprombank. Dyukov was succeeded by Dmitry Konov as SIBUR’s new president towards the end of 2006.
In July 2005, SIBUR founded AKS Holding to clean up the holding's debts of RUB 60 bn, with most of this amount due to the parent company. The balance sheet of AKS Holding received the shares of 26 petrochemical businesses held by SIBUR. In December 2005, AKS Holding was renamed SIBUR Holding.
In 2008, Gazprom decided that the petrochemical business was a non-core asset, and SIBUR shares were sold to Gazfond in exchange for its energy assets. Both Gazprombank and Gazfond also withdrew from the Gazprom group. In December 2010, Gazprombank began a phased sale of SIBUR to Leonid Mikhelson.
In 2011, SIBUR began exiting its non-core production assets, including its tyre and mineral fertilizer businesses, which it sold. Instead, the company focused on investing in polymer investments.
By 2020, SIBUR is planning to launch ZapSibNeftekhim on the basis of the Tobolsk Production Site which is to become Russia’s largest petrochemical complex, permitting SIBUR to double polymer production.

Corporate affairs

Ownership

By the autumn of 2011, 100% of SIBUR were owned by the company SIBUR Limited, which since 2013 is 82.5% owned by Leonid Mikhelson and Gennady Timchenko. The owners of the remaining 17.5% include SIBUR's former and current top management. In 2014 Timchenko's share was purchased by Kirill Shamalov, deputy chairman of SIBUR, increasing his share to 21.3%.
As of 28 April 2017, ownership of SIBUR was divided as follows: Leonid Mikhelson – 48.5%, Gennady Timchenko – 17%, current and former managers of SIBUR Holding 14.5%, Sinopec 10%, Silk Road Fund 10%. In December 2015, Sinopec completed a 10% minority strategic investment in SIBUR. In January 2017, Silk Road Fund closed the deal on its acquisition of 10% equity stake in SIBUR.

Operations

Midstream

The Group’s midstream segment comprises:
SIBUR’s feedstock processing infrastructure includes seven out of the nine existing GPPs in Western Siberia, five compressor stations and three GFUs.

Midstream facilities

In its petrochemicals business, the Group has been operating three steam cracker facilities, one PDH unit, two basic polymers production plants, manufacturing low-density polyethylene and polypropylene, three synthetic rubbers production plants, manufacturing commodity and specialty rubbers as well as thermoplastic elastomers, and 13 production plants manufacturing plastics and organic synthesis products, including polyethylene terephthalate, glycols, alcohols, BOPP-films, expandable polystyrene, acrylates as well as a wide range of intermediate chemicals.
SIBUR has used, amongst others, Navigator Holdings, a shipping firm owned by Wilbur Ross, U.S. Secretary of Commerce under President Donald Trump to ship LPG since 2012. In 2017 SIBUR released a statement denying that they had ever directly dealt with Ross, stating that all negotiations and meetings were held by SIBUR and Navigator management, and without any shareholders involvement.

Tobolsk industrial site facilities

Plastics, elastomers and organic synthesis facilities

– OAO Krasnoyarsk Synthetic Rubbers Plant
At the end of December 2011, SIBUR exited SIBUR-Russian Tyres, having sold a 75% stake to the company's management, and the remaining stake to the partners of Vadim Gurinov, its CEO.

Mineral fertiliser business

At the end of December 2011, SIBUR sold its mineral fertiliser assets to URALCHEM and Siberian Business Union.

Acquisitions