Sibur Digital
Sibur Digital is responsible for the development of internal IT competencies in the holding.
Digitalization Chronicle
2024
How to create Russian software for technological modeling to replace Western with partners. SIBUR experience is presented at TAdviser SummIT
At the TAdviser SummIT conference held on November 28, Alisa Melnikova, Director of Digital and Information Technologies at SIBUR, made a presentation on industrial software development, in which the company actively participates. She stressed that she does not aim to make a presentation of a specific solution that SIBUR would like to sell. The goal is to talk about the cooperation project in order to create an industrial IT solution.
Alisa Melnikova recalled that Russia has good IT solutions that began to be developed by Russian specialists long before the coming "cool era." Software development in Russia has always been at a high level, and the market presents products based on the best modern technologies - artificial intelligence, machine learning, the Internet of industrial things - originally of Russian origin. The industry also has many IT specialists who are excellent in technology and create competent solutions.
At the same time, there is a class of Western products that none of the vendors tried to create analogues in Russia. This is very time-consuming and knowledge-intensive, so for the time being it made no practical sense. This was the established segment of the IT market of a very mature software, stated the top manager of SIBUR. However, now this software has become inaccessible to Russian consumers, and the drama of the situation is that it is necessary to replace it very quickly.
 | We participate in the work of two industrial competence centers, - said Alisa Melnikova. - The first is the IC Neftegaz, Petrochemicals and Subsoil Use, in which 15 companies participate, the second is the IC Chemistry, where 21 participating companies. We are involved in the work of both ICCs, since we have both, and most importantly, we realized that without our participation such software cannot be created by any of the coolest IT companies, simply due to the lack of understanding of what it should be. |  |
SIBUR joined the work in three areas, which are suitable in these ICCs as particularly significant projects:
- technological modeling (the purpose is to replace Aspen), SIBUR is leading the project together with Gazprom Neft, Eurochem and Novatek;
- production process management (replacement of GE, OSI, Aveva), SIBUR together with Gazprom Neft and Eurochem;
- predictive diagnostics and reliability management system (replacement of GE SmartSignal and GE Meridium), SIBUR leads the project.
Alisa Melnikova stopped in more detail on the direction of technological modeling. These are modeling tasks when organizing new industries, plants, as well as optimizing technological regimes at existing enterprises, at production plants. Technological modeling implies not only mathematical modeling, but also physical and chemical, based on the knowledge, respectively, of the laws of physics and chemistry. This requires deep expertise and data on how these models need to be tuned, and one should not solve with mathematics and statistics what is well described in chemistry and physics.
Work on the projects began about a year ago, and a lot of time was spent on organizing a partnership. Partner companies gathered on the principle of similarity of needs, tasks for digitalization of production, namely:
- teasing bottlenecks, identifying technological constraints and risks, finding solutions to eliminate them: analyzing points at which throughput may fall (for example, a compressor or pump), creating a lack of load on the following changes and a drop in the amount of output products - modeling such situations at the enterprise;
- increasing the speed of work on the design of new production facilities: reducing the number of pilot projects in production due to digital experiments;
- maintenance of technological modes at enterprises at optimal parameters in order to increase the output of products and reduce the cost of raw materials and electricity;
- improved accuracy of optimization planning: simulation of parameters of output parameters of product flows and planning of loading of plants for different time horizons.
Alisa Melnikova also explained that the (Western) solutions that SIBUR used before brought an economic effect of about 5 billion rubles. on 50 installations. And the company would not want to abandon such decisions so as not to lose these effects.
To implement the project, SIBUR and partners - industrial companies that also want to be effective, did the following:
- combined expertise and efforts to set tasks for development;
- agreed to jointly finance the project;
- Engaged an IT company from the market, but continued to work with other IT companies to find new opportunities for cooperation.
- set out to create a platform available to the market for modeling, with the connection of the scientific community;
- decided to develop common standards for connecting models with companies from China so that they could use Russian models, and Russian companies - Chinese.
Alisa Melnikova outlined a more distant goal - to create a model development market in which all IT companies, groups, teams that want and know how to model could work. She expressed confidence that representatives of the chemical and oil and gas industries will have a great demand for modeling. If you create a common platform, you can add specific, industry-specific models to it for different industrial enterprises.
The top manager of SIBUR listed the challenges in this area:
- high science capacity of the solution, and in terms of equipment units in Russia there is no expertise yet;
- the scientific community, which is absolutely necessary in this work, is used to doing research without hard deadlines - business needs to learn to cooperate with science;
- cooperation and common approaches have not yet developed on the market, companies solve individual modeling problems on their own: if you ask each company to write functional requirements on its own, then you get a contradictory document with great redundancy;
- there is no practice of co-financing and joint software development among industrial companies with competent distribution of intellectual property on the product.
Alisa Melnikova stressed that within the framework of the project, business and IT companies managed to agree on mechanisms for working out joint requirements for the target product, while doing without numerous phased approvals, with a huge number of people over several years. The model of joint financing within the project has also been invented, she noted.
The project consists of five stages, the first three of which relate to the creation of the basic functionality necessary for all companies:
- the first version of MVP and external components (the first quarter of 2025);
- additional functionality (second MVP version, third quarter 2025);
- full version (enhancement of functionality, first quarter 2026).
And then there will be two stages of expansion, during which industry models will be developed.
The system with full functionality according to the plans should appear in 2026-2027. Alisa Melnikova, on behalf of SIBUR, urged teams, companies wishing to participate in the creation of the model, to join the project and join the work. One of the goals of the project for the future is to create a marketplace of technological models, which each interested company can come to, choose the desired model and use it. Or create a model and put it on the marketplace.
The speaker identified potential project partners: industrial companies, engineering companies engaged in the construction of industrial enterprises, and even competing vendors in this field trying to solve such problems for creating models - it will also be beneficial for them to put their models on the marketplace and get more customers. Universities and universities are also interested in becoming partners of the project in order to develop models within the framework of specialized departments.
In conclusion, Alisa Melnikova expressed confidence that in three years there will be a product that will give effects no worse than the previous Western systems gave out.
As part of TAdviser SummIT, Alisa Melnikova also received an award in the nomination "Chief Information Officer of the Year."
Summit Photo Gallery
О TAdviser SummIT
TAdviser SummIT is a place for a select circle of IT customers and suppliers, innovators and conservatives, people who participate in the management of the largest organizations in Russia. The plenary part of the conference was attended by CIO the largest companies in Russia. And dozens of expert reports were also heard in eight thematic sections after the plenary part. The main topic of the reports: improving business efficiency states and using technology. In turn, leading IT companies talked about advanced developments, many of which were presented at the TAdviser SummIT exhibition.
Sibur announced the launch of a technological modeling marketplace
On November 28, 2024, Sibur announced the creation of a specialized technological modeling marketplace. The goal of the initiative is to deploy an open SaaS platform (software as a service) that provides opportunities for the exchange of projects and models. Read more here
Sibur was the first in the petrochemical industry to switch to the Russian PCS
Sibur became the first in the Russian petrochemical industry to successfully switch to the domestic automated process control system (PCS). This became known in August 2024. The implementation of the new system took place at the Sibur-Khimprom production site in Perm. Read more here
Sibur launched a marketplace for manufacturers of polymer products
On June 27, 2024, Sibur announced the launch of an online marketplace to support the promotion of products of partners - manufacturers of products using synthetic materials. At the time of the start of the platform, it contains more than 160 product categories from more than 100 manufacturers. Read more here.
The economic effect of using AI amounted to 45 billion rubles over 6 years
The use of AI-based solutions made a decisive contribution to the overall economic effect of SIBUR's digital transformation, which over 6 years amounted to more than 45 billion rubles. The company announced this on March 13, 2024, according to Alisa Melnikova, Director of Digital and Information Technologies.
There are more than 25 production sites in the SIBUR holding, where tens of thousands of equipment are located. This makes solutions for remote monitoring, continuous analysis and decision-making both in the field of technological modes and in the field of ensuring the reliability of plants.
For example, the company uses combinations of technological and mathematical models to determine the most efficient operating modes of equipment. AI also assesses the economic consequences of the actions of operators at enterprises in real time and tells employees the best options for their actions.
Intelligent systems in SIBUR do not only technical work for a person, but also help him to make decisions and avoid erroneous actions. As a result, labor productivity and production efficiency indicators are growing. In addition, AI helps to ensure high product quality and industrial safety.
| | SIBUR's focus on AI is to help people quickly make the right decisions and prevent dangerous actions, as safety is one of our key priorities. In simple words, the task of AI is to help people determine what to do and what not to do. In 2023, SIBUR developed more than 70 new hypotheses for the use of AI. In addition to the tasks of further increasing labor productivity, we are starting to use artificial intelligence in modeling polymers to create materials with new properties and reduce the number of laboratory experiments in favor of digital ones, "said Alisa Melnikova, director of digital and information technologies at SIBUR. | |
Creation of a data center in Nizhnekamsk
On January 25, 2024, it became known that Sibur would build a data processing center (DPC) in Nizhnekamsk. Energy for this facility will be supplied by Nizhnekamskneftekhima power plant with a capacity of 75 MW. There is no official information on the purpose of the data center being created as of the specified date.
The GTU-75 power plant in question is on the balance sheet of the energy retail LLC PEST (90.1% owned by Sibur-RT JSC, 9.9% owned by Taif-NK JSC). It consists of three MS 5001 gas turbines, three General Electric 2NM/1 compressors and three ZiO-Podolsk P-110 recovery boilers.
As of the end of January 2024, a new data center is being designed: after the completion of the relevant work, Sibur will begin its construction. It is reported that two possible options for operating the site are being considered. One of them is the creation of a mining farm with the lease of computing power to users who mine cryptocurrencies. The second option is to organize the storage of large amounts of information by Nizhnekamskneftekhim and other organizations (including the Alabuga SEZ).[1]
2023
Sibur calculated the economic effect of digitalization: over 11 billion rubles for 2023
The economic effect of digitalization projects in 2023 amounted to more than 11 billion rubles, according to the annual report of Sibur, published in May 2024. Of these, the largest share falls on projects in the field of production (4.3 billion), marketing and sales (4.2 billion).
Among the specific projects with a digital component that have had a major economic effect, the report lists, for example, projects in the field of production. Thus, pilot implementations of APC (Advanced Process Control )/UCCS (system of improved process control) were implemented. And within the framework of Industry 4.0, more than 30 cases have been introduced at enterprises, mobile intelligent video surveillance is used during stop repairs. The functionality has been expanded and new areas for the implementation of the drone service have been developed.
The SPC (Statistical Process Control) tool was also implemented and the RTO (Real Time Optimization) components of foreign suppliers were prevented from stopping by developing their own statistical model of the cracking furnace, one RTO + APC system was put into commercial operation, three more were prepared for transfer in the first quarter of 2024.
All of the above projects have brought a cumulative economic effect of 3.3 billion rubles, the company says.
Another example is projects in the field of repairs and reliability. Thus, design, survey, construction, installation and commissioning works with IIoT sensors were carried out at a number of enterprises. Mobile rounds were implemented at the enterprises of the Republic of Tatarstan, a vibration diagnostics solution was launched at ZapSibNeftekhim and Sibur-Kstovo, a pilot perimeter was assessed and a decision was made on further circulation.
In addition, predictive diagnostics 2.0 was launched and measures were taken to ensure the accuracy of model aggregates at the level of more than 80%. The solution for digital work permits and the solution for mobile repairs have also been replicated.
The total economic effect of these projects is more than 1 billion rubles.
In terms of logistics, ERP integration with external warehouses was ensured, the Vendor Management system was introduced to monitor overdue receivables and payables, and a container management solution (TMS) was launched into pilot operation. The IT solution to replace Transporeon was also implemented and the EWM warehouse management system was replicated at Kazanorgsintez finished product warehouses. The economic effect as a result of these projects in the company is estimated at over 1 billion rubles.
A significant share of the economic effect was achieved due to AI-based solutions widely used in all Sibur processes. The further development of AI solutions and their implementation at all points of decision-making of the company is one of the strategic areas of digital transformation. In 2023, Sibur developed 69 new hypotheses for the implementation of AI-based solutions. This, the company believes, opens new horizons for improving the efficiency of processes due to an increase in labor productivity, speed and accuracy of making business decisions during the execution of processes, preventing deviations in the work of equipment and personnel.
Solutions using large language models (LLMs) have been added to the set of tools used. The field of application of AI was also expanded, new pilot projects began in research tasks: modeling polymers and their properties, optimizing the processes of synthesis of compounds, as well as conducting digital scientific experiments to reduce research time. Innovation laboratories have been created to quickly test hypotheses based on emerging technologies and form a funnel of new initiatives in the field of digitalization, including using AI.
Rejection of dedicated LTE networks at enterprises due to communication interruptions
At the end of December 2023, it became known that the oil and gas chemical company Sibur abandoned a large-scale project to deploy a dedicated Private LTE network at its production sites. The reason is possible communication interruptions, which is unacceptable at industrial facilities.
In December 2021, Sibur announced a joint project with MegaFon to create the largest (at that time) private Private LTE network in Russia. It was said that it would provide improved control of production processes for the gas processing, chemical, rubber and petrochemical industries. The network was supposed to cover Sibur enterprises throughout the country: these are the territories of Voronezhsintezkauchuk, Nizhnevartovsk Gas Processing Plant, Yuzhnobalksky LMUMG, Tomskneftekhim, Sibur-Khimprom and Sibur-Tobolsk. Among the advantages of Private LTE infrastructure, Sibur called speed and mobility with "full satisfaction of all information security requirements."
However, according to the results of testing the technology, the company made a choice in favor of an alternative - the development and improvement of standard 3G/4G networks. Rustam Abdrakhmanov, General Director of Sibur Connect LLC, noted that the capabilities of 3G/4G are enough for the uninterrupted operation of the company's services - taking into account the fact that most of them are designed "before the emergence of advanced communication technologies on the mass market."
Sibur also tested Mission Critical Push-to-Talk (MCPTT) communication technology. It was decided to abandon it for the reason that due to incomplete coverage of large areas or during technological work on the side of the operator, it is possible to encounter interruptions in the operation of communication facilities. For individual IT solutions, such as the industrial Internet of Things, the company uses LoRaWan networks: this makes it possible to build the network in stages as needed and expand coverage in hard-to-reach areas.[2]
Sibur sued IT company 86.6 million rubles for services not provided due to the departure of VMware and IBM from Russia
At the end of May 2023, it became known that the Moscow Arbitration Court recovered 86.6 million rubles from the Russian multi-vendor software supplier Viat LLC in favor of the Sibur group companies. The reason for the proceedings was the non-provided technical support services. Read more here.
2022
Economic effect of digital transformation - 13.2 billion rubles
In 2022, digitalization and improvements in end-to-end processes provided Sibur with an economic effect of 13.2 billion rubles, which is a third more than a year earlier. This was reported in the press service of the company in April 2023.
They also noted that projects in end-to-end production, sales and procurement processes have traditionally made the greatest contribution to IT development. The introduction of categorical procurement strategies and automation of a number of related processes allowed the company to save more than 4 billion rubles by the end of 2022.
In the end-to-end sales process (O2C), 3.5 billion rubles per year brought the scaling of digital products for cross-sales and leadership generation - finding new customers, including in new markets, the introduction of a service model, as well as the development of demand and digital channels.
Also, the traditional leaders in economic effects remain decision support systems in production, systems for improved process control (UCMS) and its online optimization (RTO), intelligent video surveillance and other products to improve production efficiency. Their introduction at the company's new sites and scaling up to other production facilities for the year brought Sibur more than 2.4 billion rubles.
According to Mikhail Tregubenko, director of organizational project management at Sibur, in 2022 the company's portfolio of organizational projects with an IT component grew by 20%, and the actual effects exceeded the planned indicators by more than 1.5 times. Despite the difficulties associated with the external situation, Sibura not only maintains high rates of digital transformation and process optimization, but also outstrips the planned indicators - both in the number of projects and in the economic effects of their implementation, he added[3]
The beginning of the use of courier robots to deliver chemical products from production facilities to the laboratory
Sibur began using courier robots to deliver chemical products from production to the laboratory. The company told about this at the end of December 2022. Read more here
2021
Economic effect of digital transformation - 11 billion rubles
On April 15, 2022, Sibur spoke about the results of the digital transformation of the group for the previous year. According to the estimates of the Russian oil and gas chemical holding, the use of information technologies and the corresponding improvement in end-to-end processes ensured an economic effect of 11 billion rubles, which is 40% more compared to 2020.
It is noted that improvements in the end-to-end sales process (Order-to-Cash, O2C) in 2021 brought Sibur about 3.9 billion rubles. The most significant projects in terms of economic effect were the implementation of a cross-sales system, monetary motivation of customers and pricing based on machine learning.
In the end-to-end production process (Plan-to-Produce, P2P), Sibur's own digital tools also provided the greatest effect. Among them: a system for increasing the efficiency of ECONS production modes, a system for improved process control (UCCS) and real-time process optimization (RTO). The total economic effect of organizational projects in production amounted to about 3 billion rubles in 2021.
The procurement process (S2P) became the third in terms of the economic effect of transformation and process improvement, which amounted to 1.5 billion rubles. Of these, 1 billion rubles is the development of categorical procurement strategies.
| | We continue to digitalize Sibur's production and business processes as the company grows and develops, "says Alisa Melnikova, director of digital and information technologies at Sibur. - We have strengthened digital competencies in key areas over the past five years, while improving internal processes, creating and implementing new solutions. This has provided us with a solid foundation for further continuous development and implementation of new initiatives. | |
Start of selection of projects within the framework of the digital transformation program together with GenerationS
SIBUR, a petrochemical company, announced on March 10, 2021 that, together with the GenerationS corporate accelerator, they had begun selecting projects as part of the corporation's global digital transformation program. The selection is carried out in areas related to the automation of internal processes and the solution of production problems. In particular, the search focus: remote briefing system for contractors and contractors; a system for identifying the potential of employees and planning their further development trajectory; online designer of educational programs; solutions for automation of legal expertise of contractual documents; "Robot scheduler" - digital assistant for scheduling meetings; gamification in corporate training; AI-based constructor for creating presentations and other solutions. Projects that have passed the selection and stage of detailed examination will move to the next stage of acceleration, which will last until the end of August. In September 2021, the 10 best projects will present their solutions to the company's management and functional customers. Participants of the first digital accelerator of the company will have the opportunity to conduct paid pilots and create a full-fledged product in 3 months, access to industry expertise of SIBUR; and will also be able to get acquainted with business processes and enter the pool of official suppliers of the company, provided that the MVP prototype is successfully tested.
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