Sibur Holding, PJSC

SIBUR is the largest integrated gas processing and petrochemical company in Russia with full coverage of the industry cycle from gas processing, production of monomers, plastics and synthetic rubbers and plastic processing.

Aktivs

The data below are current for January 2019.

• A gas processing and petrochemical company with a unique business model focused on the integrated operation of two segments: fuel and energy and raw materials
• Diversified product portfolio, customer base and sales geography
• Polymers, plastics, synthetic rubbers, organic synthesis products, LPG

• Production at 22 own production sites
• Exports to 80 countries
• 27,000 workers
• First place in Russia in terms of APG processing volumes

Board of Directors

Main article: Sibur Board of Directors

Performance indicators

2023: Russian market share growth in sales to 75%

In 2023, Sibur increased sales of the main types of products in Russia. Moreover, the share of supplies to the Russian market increased to 75%, the company said at the end of January 2024.

From the materials of the group it follows that in 2023 the consumption of polymers produced by Sibur in the Russian Federation demonstrated a record growth of 10% to 4.4 million tons. Sales of Sibur polypropylene and polyethylene in the domestic market increased by 11% compared to 2022 due to increased demand from Russian processors. Sales of BOPP films increased by 16%, elastomers - by 8%, plastic and organosynthesis products - by 11%.

Sibur has increased sales of the main types of products in Russia

The largest increase in the consumption of Sibur polymers in 2023 was shown by the transport industry. Sibur has developed new brands of polypropylene, polyethylene, ABS, polycarbonate and rubbers for processors from the transport industry with the potential to supply more than 90 thousand tons per year. Also, the demand for polymers from manufacturers of consumer goods increased by 7% against the background of increased volumes of Russian production of shoes, household appliances and toys.

The demand of the construction industry for polymers exceeded 1.6 million tons per year. In addition, in 2023, there was an increase in polymer consumption in agriculture and medicine - by 1.5% and 6%, respectively, the company said.

It is noted that the joint programs of Sibur and customers, such as import substitution of polymers, expansion of processing capacities, as well as replacement of traditional solutions with polymer ones, brought about 4% of this growth - in 2023, 330 programs were implemented with more than 270 partners in the equivalent of 176 thousand tons of products.

Since 2021, Sibur has consistently increased sales in the domestic market, which is a priority for the company, by reducing export sales, and continues to stimulate further growth in local polymer processing and reducing imports of finished polymer products, the company's press service added.[1]

Areas of activity

The companies of SIBUR Group operate in two key segments: fuel and raw materials and petrochemical. The fuel and raw material segment includes:

• Collection and processing of APG, which is purchased from the largest Russian oil companies;
• Transportation, fractionation and other types of processing of liquid hydrocarbons produced by SIBUR Group companies or purchased from major oil and gas producers;
• Marketing and sale of fuel and raw materials, including natural gas, liquefied hydrocarbon gases, naphtha, a wide fraction of light hydrocarbons, methyl tert-butyl ether and others.

SIBUR Group sells fuel and raw materials in the domestic and international markets and uses some of the volumes as raw materials for its own petrochemical segment.

The petrochemical segment of SIBUR Group includes the processing of part of fuel and raw materials into various petrochemical products, including base polymers, synthetic rubbers, plastics and organic synthesis products, semi-finished products and other products

Information Technology

Main article: Information Technology in Sibur

Company history

2024: Construction begins on new headquarters on Yakimanskaya embankment

Petrochemical holding "Sibur" began construction of its new office in the center of Moscow. The press service of the capital's Urban Planning Policy and Construction Complex announced this on February 21, 2024.

The chief architect of Moscow, Sergei Kuznetsov, noted that the office is located in a landmark place for the Moscow center - at the intersection of Yakimanskaya embankment and Bolshaya Yakimanka Street - and is a reconstruction of the trade and public complex, which has been located here since 2014, but has never been fully operated.

The project is based on the idea of ​ ​ creating a concise and vivid image of the modern office of a large company. The building received an interesting silhouette, articulated due to terraces coming from the rounded corner, as well as due to a contrasting combination of facade materials. Massive horizontal belts made of natural stone are combined with folds of stained glass glazing, and the rhythm of the latter decreases floor-by-floor, strengthening the perspective effect in combination with the terraces, "said Sergey Kuznetsov (his words are given in a press release).

The headquarters of the oil Sibur will be located in the building of the former elite complex Negociant, which the holding bought from Otkritie Bank in 2022. Only the value of the transaction was not named. Nikoliers partner Stanislav Bibik, in a conversation with Vedomosti, suggested that it could have amounted to about 4.5 billion rubles. For five years, the Negociant stood abandoned until it was bought by Sibur.

The total area of ​ ​ the future office complex, which will be occupied by the country's largest oil and gas chemical company, will be 26.7 thousand square meters. m By February 21, 2024, the builders completed the analysis of the old structures of the empty Negociant complex and began preparations for the construction of the building according to a new project.^[2]

2023

Sibur sold TAIF to an energy company TGK-16

Sibur sold TAIF to the TGK-16 energy company. This became known on May 2, 2023. The financial terms of the transaction were not disclosed. Read more here.

Redemption of Solvay's stake in RusVinyl

In early March 2023, it became known that Sibur bought out a 50 percent stake in Solvay in the joint manufacturer of polyvinyl chloride RusVinyl (Nizhny Novgorod Region). The companies agreed on the final terms of the deal, Sibur said. Read more here.

2022

Resignation from Dmitry Konov's shareholders

In November 2022, information appeared that Dmitry Konov ceased to be a minority shareholder of SIBUR. This was reported to Interfax by Konov himself, who previously owned 2.59% in the company. According to him, he does not have the right to buy back this share.^[3]

Sinopec refuses to invest $500 million in a new gas chemical plant in Russia

In March 2022, amid a special operation Russia on the To Ukraine Chinese oil company Sinopec, it suspended negotiations with Sibur on investing up to $500 million in a new gas chemical plant in Russia, reports. Reuters

Establishment of SIBUR Connect Subsidiary

On March 23, 2022, the SIBUR oil and gas chemical holding created a subsidiary of Sibur Connect LLC, which will combine the competencies for the implementation of large IT infrastructure and communications projects of SIBUR. Read more here.

2021

Mubadala bought a 1.9% stake in Sibur

On December 8, 2021, it was announced the sale of a 1.9% stake in Sibur to a sovereign investment fund from. UAE Mubadala For the latter, this is the largest investment in Russia.

The terms of the deal were not disclosed. According to Interfax, they were agreed before Taifa joined Sibur, which ended at the end of September 2021. As part of this transaction, the combined company was valued at 1.9 trillion rubles. Based on this estimate, 1.9% of Sibur is worth 36.1 billion rubles.

The merger deal will strengthen Sibur's position in the polyolefins and rubbers markets, increase the volume of capital projects aimed at increasing the value of the business, and provide additional operational synergy, Mubadala said.

Sibur's experience in implementing large-scale investment projects and increasing profitability for shareholders speaks of the first-class level of the company's management team. The merger of Sibur and Taif strengthens the company's position in the market with the potential for additional growth due to synergy and new opportunities for development. We are confident that Sibur has all the possibilities for a successful transition to a low-carbon economy and to create long-term returns for investors, "said Faris Sohail Al Mazrui, head of the Mubadala Investment Company investment platform in Russia and the CIS.

This is not Sibur's first connection with Mubadala. In 2015, the sovereign fund invested in the logistics terminal of the Russian company in Ust-Luga. In addition, Mubadala took part in debt financing for the construction of a new plant of Zapsibneftekhim in Tobolsk.

In December 2021, the Emirati Fund named Sibur the largest integrated petrochemical company in Russia and one of the fastest growing companies in the global oil market.^[4]

Withdrawal of NIPIGAZ from the holding

SIBUR removed the engineering company NIPIGAZ from the holding. This became known on October 1, 2021. Read more here.

Merger with TAIF

At the end of April 2021, the two largest oil and gas chemical companies in Russia - Sibur and TAIF - announced a merger. Under the terms of the agreement, a company will be created on the basis of Sibur Holding PJSC, in which the current shareholders of TAIF JSC will receive 15%. In exchange, they will transfer a controlling stake in TAIF (50% plus 1 share) to the new company, and the remaining shares in them can also be redeemed by the combined company. Read more here.

Mikhelson sold 6.25% of Sibur shares to Sogaz

Leonid Mikhelson, the main shareholder and chairman of the board of directors of Sibur, sold a 6.25% stake in Sogazu. As a result, the share of effective ownership of shares of the largest petrochemical company in Eastern Europe in the billionaire decreased from 48.48% to 42.23%. Mikhelson's share in the authorized capital of Sibur also decreased to 27.83% from 34.08%.

Sogaz became a shareholder of Sibur by purchasing Trust 3 LLC, which owns 6.25% of the company. The financial side of the transaction is not disclosed. The deal was concluded on March 16, 2021, it was reflected in the SPARK-Interfax system.

According to the press service of Sibur, as a result of the transaction, there are no violations of the covenant and other restrictions at the level of PJSC Sibur Holding or in relations between the company's shareholders. Mikhelson remains the main shareholder of Sibur and will continue to head its board of directors, the company emphasized.

In addition to Mikhelson and Sogaz, Sibur's shareholders are:

• Gennady Timchenko (17%);
• China's Sinopec and the Silk Road Foundation (10% each);
• Kirill Shamalov (3.9%);
• the current and former management of the company (including the management of Sibur Dmitry Konov and the head of Gazprom Neft Alexander Dyukov) - another 10.6%.

Sibur also revealed that the businessman owns shares in the oil and gas chemical holding through his 100% subsidiaries: Trust LLC.

In February 2021, Leonid Mikhelson said that at that time there was "not the worst time" for the Sibur IPO.

I count by macro parameters, in connection with the exit from COVID-19. I see how everyone sank - and Exxon, and BP, and Shell - and how the world-class oil and gas chemical companies hardly sank. Not a bad time [to have an IPO], "he said.

The billionaire did not specify the possible size and timing of the placement.^[5]

2019

Environmental and Digital Development Cooperation Agreement with 3M

SIBUR and 3M on May 30, 2019 announced the conclusion of an agreement on cooperation in the field of product development and polymer processing at the PoliLab research center of SIBUR.

As is known, polymers such as polyethylene and polypropylene are among the most common synthetic materials, which, due to their durability, strength, environmental friendliness and other advantages, are used in construction, utilities, automotive, medicine, food industry and other fields. The purpose of the PolyLab center is to expand the possibility of efficient use of polymers both in the production of already existing products on the market and in the creation of innovative product solutions necessary for the technological development of such industries as medicine, light industry, automotive, construction.

In particular, one of the goals of the Center will be to develop the use of secondary materials and realize the potential of polymers in a circular economy. To do this, on the pilot lines of the Center, samples of developed grades of polypropylene and polyethylene will be processed into pipes, medical products, films, food packaging, canisters and other products, which will allow us to deeper study the properties of the polymer material and its impact on the quality of the final product for further improvement of materials and increase production efficiency.

According to the document, SIBUR and 3M will cooperate in the development of new grades of polyethylene and polypropylene, including those planned for production at ZapSibNeftekhim. In particular, the parties agreed to develop new solutions to optimize the processing capacity of polymer brands and improve the environmental properties of SIBUR products to increase their recyclability.

The agreement also provides for the organization of joint educational events for SIBUR customers dedicated to polymer processing technologies based on PolyLab demonstration equipment. The parties plan cooperation in the field of labor protection and industrial safety, as well as the exchange of experience in introducing modern digital technologies into production and research activities, including Big Data.

Ex-CIO Gazprom Natalya Borisenko went to work at Sibur

In the fall of 2019, Natalya Borisenko got a job at Sibur, taking the position of advisor to the managing director in the company. Read more here.

2018

2017

In 2017, SIBUR's revenue amounted to $7.8 billion. US, Adjusted EBITDA - $2.9 billion UNITED STATES.

2016

APG processing capacity - 24 billion cubic meters per year

As of the end of 2016, APG processing capacity amounted to 24 billion cubic meters per year. The holding has 26 production sites, and the number of personnel is 25 thousand people.

Investing more than 600 million rubles in R&D

SIBUR invested more than 600 million rubles in R&D. As part of the 2017 investment project, the company does not plan to reduce investments in this area. The investment program focuses on two areas of R&D ̶ the development of new products and technologies, as well as improving operational efficiency due to changes in technological processes.

The head of SIBUR Dmitry Konov noted that the company is expanding its product line both by attracting ready-made solutions from the market and by developing its own technologies. Optimization of the "development plan" of the petrochemical and gas processing market in Russia is one of the strategically important issues for the country's industrial and economic growth.

The development of domestic equipment and technological solutions through scientific research plays a crucial role in the framework of the program approved by the Ministry of Industry and Trade until 2030. Progress in this area largely depends on the involvement of experts from government agencies, vertically integrated companies, as well as service, scientific and analytical organizations.

Agreement to sell a 10% stake to the Silk Road Fund

In 2016, an agreement was signed to sell a 10% stake in the Chinese Silk Road Fund.

2015

In 2015, the company had its first foreign shareholder - in December, a deal was closed on the entry of the Chinese corporation Sinopec into the capital of SIBUR as a strategic investor with a 10% stake.

Revenue in the first half of 2015 amounted to $3.2 billion, EBITDA - $1.1 billion. The number of large consumers was 1,400. The products are shipped to 75 countries around the world.

2014

Development of existing assets. Completion of construction of new facilities and infrastructure of global capacity: Tobolsk-Polymer, RusVinyl, Purpe-Tobolsk product pipeline and other projects. The start of the implementation of the largest project in the history of Soviet and Russian petrochemicals - ZapSibNeftekhim. In 2014, the structure, the founder and owner of which is the deputy chairman of the board of SIBUR Kirill Shamalov, acquired a 17% stake in SIBUR, the beneficial owner of which was previously Gennady Timchenko. Structure of SIBUR share capital as of September 5, 2014: Leonid Mikhelson - 50.2% Kirill Shamalov - 21.3% Gennady Timchenko - 15.3%, current and former management of SIBUR (with the exception of Kirill Shamalov's share) - 13.2%.

2013

The main shareholders of SIBUR reduced their stake in the company to 82.5%, and the share of current and former management increased to 17.5%.

2011

Sale of Sibur - Russian Tires and mineral fertilizer business assets

At the end of December 2011, Sibur completely parted with control over Sibur - Russian Tires, selling 75% of the shares to the company's management, and the remaining shares to the partners of the company's general director Gurinov. Also, assets in the mineral fertilizer business were sold to Uralchem (Perm Minudobrenii) and the Siberian Business Union (Kemerovo Azot and Angarsk Nitrogen and Fuel Plant). Investments from the sale of non-core assets, along with profits from core activities, were directed to polymer projects.

Sibur Limited - 100% shareholder of Sibur

In November 2011, Sibur Limited became the 100% shareholder of Sibur, the ultimate beneficiaries of which are the shareholders of Novatek: Leonid Mikhelson and Gennady Timchenko. The beneficiaries of the remaining 5.5% of Sibur Limited's authorized capital were Sibur managers Dmitry Konov, Mikhail Karisalov, Mikhail Mikhailov, as well as Deputy Chairman of the Board of Directors Alexander Dyukov.

In September 2011, after receiving permission from the FAS, Leonid Mikhelson's structures bought shares, and his share exceeded 50%.

Sale of non-core assets

SIBUR sold assets previously identified as non-core - tire business and mineral fertilizer business. Leonid Mikhelson (controlling shareholder), Gennady Timchenko, as well as current and former heads of SIBUR Alexander Dyukov, Dmitry Konov, Mikhail Karisalov, Mikhail Mikhailov become shareholders of the company.

Purchase of 100% shares of Acrylate

July 28, 2011 bought a 100% stake in Acrylate, the only Russian manufacturer of acrylic acid and its esters.

2010

Sale by Gazprombank of 50% of SIBUR to the structures of Leonid Mikhelson

On December 23, 2010, Gazprombank announced the sale of 50% of the company to structures, Leonid Mikhelson co-owner and chairman of the board of the gas company Novatek"."

Purchase and consolidation of Novatek's polymer business

In the fall of 2010, Sibur"" acquired and consolidated with Biaxplen "polymer business" Novatek"- the production of polymer film in. Samara region

In 2013, the main shareholders of Sibur reduced their stake in the company to 82.5%, and the share of current and former management increased to 17.5%.

Start of phased sale of SIBUR to Leonid Mikhelson

In 2010, the phased sale of SIBUR to entrepreneur Leonid Mikhelson began.

2009: Purchase of a 50% stake in Biaxplen

On December 2, 2009, Sibur acquired 50% in Biaxplen, the largest Russian manufacturer of BOPP film and the largest consumer of polypropylene.

2007: Gazprom's sale of SIBUR shares to Gazfond

Expansion and modernization of existing production facilities, optimization and improvement of efficiency. SIBUR shares owned by Gazprom were sold to Gazfond as part of an exchange for energy assets owned by this structure.

Within the Group, three business areas remained, combined into three directorates: hydrocarbons, synthetic rubbers, as well as plastics and organic synthesis. Tire business and enterprises related to the production of mineral fertilizers were transferred to specially created holdings with great operational independence. The implementation of the investment program until 2015 was launched, designed to provide the company with growth.

2006: Appointment of Dmitry Konov as President of SIBUR

Alexander Dyukov was appointed head of Gazprom Neft. The new head of SIBUR, Dmitry Konov, continued SIBUR's development program as the leader in the gas processing and petrochemical industry in Russia.

2005: Establishment of AKS Holding with subsequent renaming as SIBUR Holding

As part of the completion of the vertical integration, AKS Holding was founded by a number of legal entities in July 2005, to which the assets of AK SIBUR were transferred (shares of 26 petrochemical enterprises).

In December 2005, AKS Holding was renamed SIBUR Holding. The owners of SIBUR were Gazprombank (75%) and Gazprom (25%).

2003: Appointment of Alexander Dyukov as President of SIBUR

Alexander Dyukov, who previously held senior positions at the St. Petersburg Commercial Seaport and the St. Petersburg Oil Terminal, was appointed President of SIBUR in early 2003.

Under his leadership, work began on a serious reorganization of the company and the formation of a long-term growth strategy, the current solvency of SIBUR was restored, the company's debt was systematized and settled.

2002: Debt Restructuring Settlement Agreement with Creditors

SIBUR is unable to service its financial liabilities, pay interest and repay debt. The main creditor initiated bankruptcy proceedings in March 2002. Gazprom has begun active work on debt restructuring. The process of negotiations with creditors regarding the terms of debt restructuring lasted more than six months and ended on September 10, 2002 with the signing of a settlement agreement.

According to some reports, the decisive factor in this was force pressure and the subsequent arrest of the then co-owner of Sibur, Yakov Goldovsky. After the transfer of Sibur shares to Gazprom, Goldovsky was released.

2001

Attempt to dilute Gazprom's stake in SIBUR Management Company

At the end of 2001, the company's management, led by Yakov Goldovsky, attempted to dilute Gazprom's stake in the company's authorized capital by conducting an additional issue of ordinary shares, and previously tried to remove Sibur's petrochemical assets from the company's legal control.

Asset build-up

Intensive growth of assets and construction of a system for managing financial and production flows. As a result, almost 60 Russian enterprises fell into the perimeter of the company. Almost all acquisitions of that period were made at the expense of borrowed funds received from Gazprom or commercial banks under the guarantee of Gazprom.

1998: Transformation

During 1998-2001, the company incorporated a significant part of Russia's petrochemical assets and became the country's largest petrochemical holding company.

The transformation of the SIBUR structure into a vertically integrated gas processing and petrochemical group, covering the full production cycle - from deep processing of raw materials to the release of final products, has begun. The integration was based on the production cooperation of petrochemical enterprises of the former USSR.

In 1998, the company was privatized, Gazprom became the largest shareholder of the holding, but real control over production and economic activities passed to Yakov Goldovsky's Gazoneftekhimicheskaya Company.

1995: Formation of the Company

SIBUR was registered on March 7, 1995 as the Siberian-Ural Oil and Gas Chemical Company (AK SIBUR OJSC). It included the enterprises of Sibneftegazpereperabotka (today - the gas processing plants of SiburTyumenGas), the Perm gas processing plant (today part of Sibur-Khimprom) and the NIPIgazpererabotka design institute. 38% of the company's shares for three years were secured in federal ownership.

Notes