Business
SIBUR increases shipments to Russian market, reduces exports
SIBUR, Russia’s largest producer of polymers and rubbers, has shifted its sales focus to the domestic market due to increasing demand.
The company reported that it had increased sales of its main products in 2023, with deliveries to the domestic market accounting for 75% of total sales. Over the past ten years, SIBUR has consistently grown sales in Russia, its priority market, while reducing the share of exports in its sales.
SIBUR announced that its sales of polypropylene and polyethylene in the domestic market in 2023 grew by 11% year-on-year. The company also increased sales of BOPP films in Russia by 16%, elastomers by 8%, and plastic and synthetic products by 11%.
The main raw material for the production of polymers and elastomers is liquefied petroleum gas (LPG). Over the past five years, SIBUR has shifted its focus to producing value-added products made from LPG, increasing its internal consumption fourfold and significantly reducing exports.
SIBUR’s strategy relies on the construction of large new plants, such as ZapSibNeftekhim, to drive domestic production of goods made from polymers used in construction, medicine, agriculture, and other socially critical industries. The company collaborates with various consumer-oriented industries, developing specialised polymers to meet their needs and to replace imports that are no longer available.
Last year, polymer consumption in Russia increased by 10% to reach a record 4.4 million tons. In construction alone, polymer consumption reached 1.6 million tons, while consumption in medicine increased by 6% and in agriculture by 1.5%.
According to SIBUR, Russian polymer consumption increased the most in the transportation sector and in the production of consumer goods, such as shoes, household appliances, and toys. Polymers are used in various automotive components (compounds, batteries, fuel tanks, sound insulation) to reduce the weight of vehicles and to make them more environmentally friendly.
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