Kazanorgsintez

OJSC Kazanorgsintez is located in Kazan, the capital of the Republic of Tatarstan, Russia. Kazan is located on the Volga, about 800 km east of Moscow. The production complex is located about 15 km northwest of the city center.

The creation of OJSC Kazanorgsintez dates back to the end of the 1950s. The first batch of products was released in 1963. The territory of the enterprise is 4.2 km2 (a single industrial site). Since its foundation, the company has been operating without interruptions. The company employs more than 7,000 people.

Structure

The enterprise consists of the following facilities with a common transport, energy and telecommunication infrastructure:

• Ethylene Plant (including phenol and acetone production);
• Low Pressure Polyethylene Production and Processing Plant (LDPE);
• High pressure polyethylene (HPH) plant;
• Organic Products Plant;
• Nitrogen, Oxygen and Cold Plant;
• Plant for preparation and execution of overhaul;
• Auxiliary industries.

Products

The main types of products produced are: ethylene, high and low pressure polyethylene, ethylene oxide, phenol-acetone and polyethylene pipes.

The main types of raw materials for the production of products are: ethane, propane-butane, benzene, the delivery of which is carried out by pipeline and rail. There is an ethylene pipeline connecting OJSC Kazanorgsintez with other ethylene producers.

Every year OJSC Kazanorgsintez produces more than 1 million tons of chemical products and is the largest producer of low and high pressure polyethylene, gas pipeline polyethylene pipes, phenol, acetone, cooling liquids, chemicals for oil production and drying natural gas. The range of commodity products includes over 300 different brands. Products are shipped by rail and road. Over 20% of the products produced are exported.

Performance indicators

2024: Revenue growth of 5.4% to ₽104,9 billion

PJSC Kazanorgsintez, which is part of the SIBUR holding, increased revenue by 5.4% to ₽104,9 billion in 2024. This became known in March 2025. At the same time, the company's net profit according to international financial reporting standards (IFRS) decreased by 33% and amounted to ₽10,6 billion against ₽15,9 billion in 2023.

According to Interfax, sales of polyolefins increased in the revenue structure - by 12.7% to ₽75,8 billion. At the same time, sales of plastics and organic synthesis products decreased by 6% to ₽19 billion. More than 99% of the company's consolidated revenue comes from sales within Russia.

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Фото: Freepik

Operating profit of Kazanorgsintez decreased by 31.9% to ₽13,5 billion amid an increase in operating expenses by 14.6% to ₽91,4 billion. Profit before tax decreased by 34.8% to ₽13,9 billion.

EBITDA decreased by 17.7% to ₽25,8 billion and EBITDA margin decreased to 24.6% from 31.6% a year earlier. Such dynamics indicate a decrease in the efficiency of the company's operating activities in 2024.

Aktivs of the company in 2024 increased by 9.1% to ₽182,3 billion. Including the value of fixed assets increased by 14.6% to ₽147,5 billion, which indicates ongoing investments in production facilities.

The decrease in financial indicators of Kazanorgsintez in 2024 is partly due to the temporary shutdown of one of the polyethylene synthesis reactors for modernization. As the general director of Tatneftekhiminvest-holding JSC Rafinat Yarullin reported in August 2024, in the first half of the year the company's financial results were "limited" precisely because of this modernization. At the time of his application, commissioning was completed at the facility.

Kazanorgsintez is one of the largest producers of polyethylene and the only producer of polycarbonates in Russia. The company has been a member of the SIBUR holding since October 2021. The company plays an important role in the oil and gas chemical complex of Tatarstan, and its activities are coordinated by Tatneftekhiminvest Holding JSC^[1]

History

2023: Lawsuit against Siemens for 9.1 billion rubles due to an undeveloped object

At the end of February 2023, it became known that Kazanorgsintez requires Siemens to return 9.1 billion rubles in advance due to an undeveloped facility. We are talking about a construction project for the needs of the chemical plant of a combined-cycle gas plant with a capacity of 250 MW (PSU-250). Read more here.