OREANDA-NEWS. Sibur LLC President Dmitry Konov and Novatek JSC Chairman Leonid Mikhelson have signed a framework agreement to form a joint venture at Tobolsk-Polymer LLC facilities, a subsidiary of SIBUR Holding JSC.

According to the agreement SIBUR would control over 50% of the JV's nominal capital.

The newly established JV is expected to specialize in dehydrogenation processing of feedstock to produce 500 KTA of polypropylene, which will then be used in downstream products. Novatek JSC would supply feedstock to the JV.

The plant's estimated capacity is set at 500 th.t/year. Currently SIBUR produces 110 th.t/yr of polypropylene.