Sibur, a subsidiary of Russian energy giant Gazprom [RTS:GAZP], is a vertically integrated company that controls the country's gas-processing and gas-chemical industry. It produces more than 100 petrochemical products and its charter capital totals 40.1 billion rubles ($1.46 billion) in 1,000-ruble denominated ordinary shares.
Sergei Komyshan, director of the company's strategy and project management department, said under the 2006 investment plan 11.3 billion rubles ($422 billion) would be invested, mainly in plastics production and organic synthesis. "Quite a large sum will be invested in tire production," he added.
He said the company was planning a Eurobond issue in early 2007 but gave few details. "The size of the issue has not been determined yet, but I think we will decide it by the beginning of 2007," Komyshan told an energy conference.
He said Sibur intended to double its petrochemical output and logistics within two or three years and to obtain up to 50% of raw materials independently from 2007. "We are set to increase the refining of accompanying gas from 12 billion cubic meters to 18 billion in 2007."
Komyshan also revealed the company was planning to invest $3.5 billion within five to seven years. "We are considering turning to capital markets to attract these funds."
Sibur Holding appeared in December 2005 after Gazprom announced it would reorganize the Sibur joint-stock company into a new entity, Sibur Holding, as the final step in "reorganization of the petrochemical business." Gazprom purchased 25% plus one share in the Sibur's holding company, and its financial arm Gazprombank bought 75% minus 1 share, giving the natural gas monopoly 100% ownership.
