SIBUR and Netkanika agree to boost supplies of polypropylene for protective medical devices

SIBUR, Russia’s largest integrated petrochemicals company, and Netkanika, a major manufacturer of high-quality nonwoven materials, agreed to expand cooperation to provide the healthcare industry with high quality single-use personal protective equipment.

SIBUR undertakes to deliver the polypropylene grade for medicinal and hygienic use in the quantities required to fully utilise Netkanika’s capacities. This grade is perfectly suited for the production of nonwoven fabric, which is light-weight and low density (g/cm2), and at the same time durable, soft and air permeable. End products made of polypropylene-based multilayer nonwowen fabrics are characterised by a high bacterial filtration rate, air permeability and fluid resistance. Polypropylene for medicinal and hygienic use is produced at several SIBUR’s sites, including ZapSibNeftekhim.

Netkanika has quickly adjusted its production lines and production plan to maximise the output of materials used for disposable personal protective equipment such as medical masks and overalls for hospital workers.

The companies are also considering the ways to expand Netkanika’s production capacities to meet current and future demand in the healthcare industry. As part of this initiative, the partners are negotiating a long-term cooperation programme providing for SIBUR’s supply of feedstock to Netkanika on favourable terms in order to speed up the potential return on investment.

 

Sergey Komyshan, member of the Management Board and Executive Director at SIBUR, said:

“In response to the shortage of single use personal protective equipment in the market amid the pandemic we are prepared to diversify our product range to the maximum extent possible, increase the output of polypropylene grades for medical products, and boost supplies to manufacturers serving the healthcare industry. It is important to note that, apart from serving as components of protective medical devices, SIBUR’s polymers and organic synthesis products (such as polypropylene, polyethylene, PET, PVC and ethylene oxide) are widely used for the production of test tubes, drips, blister packs, disinfectants, and medical equipment. Therefore, supplying the healthcare sector is our priority.”

Rifkat Galimzyanov, General Manager of Netkanika, said:

“Today, we are entirely focused on providing a steady supply of nonwoven materials to our clients that manufacture disposable personal protective equipment, including medical masks and wear, baby and adult hygiene products. Due to a demand spike there is a shortage of such materials in the market, which we are prepared to mitigate by engaging additional production capacities.”

 About SIBUR:

 

SIBUR is Russia’s leading petrochemicals company and a global industry major with a headcount of over 23,000. The Company’s unique vertically integrated business model enables it to deliver highly competitive products used in the consumer goods and automotive industries, as well as construction, energy, chemistry and other industries across 80 countries.

 SIBUR does its part to reduce CO2 emissions by recycling oil and gas by-products that would otherwise be burnt. In 2019, the Company recycled 22.6 bcm of APG and thus prevented over 72 mt in emissions, which is equivalent to the CO2 an average European country would emit in a year.

 In 2019, SIBUR reported revenue of USD 8.2 bn and EBITDA of USD 2.6 bn. Over the past ten years, SIBUR has implemented a number of large-scale investment projects worth ca. RUB 1 tn. The Company allocates at least 70% of its annual EBITDA to fund the investment programme while maintaining a well-balanced leverage.