OREANDA-NEWS. December 3, 2007. The Board of Directors of JSC SIBUR Holding has reviewed Management forecasts on the Company’s investment plans for the period 2007 – 2012. Total capital outlay on core investment programmes is forecast at 134.4 billion roubles.

The Company’s key projects, aimed at boosting SIBUR’s resource base, are as follows: construction of Phase 2 of the Yuzhno-Balyk gas processing plant, of new gas processing plants in the vicinity of Vyngapurovskiy village (Yamal-Nenets Autonomous District) and Yuzhno-Priobskoye field (Khanty-Mansiysk Autonomous District), and of rail loading racks at Noyabrsk (YNAD) and Nyagan (KMAD). In addition, there are plans to increase the capacity of the central gas fractionation unit at Tobolsk-Neftekhim and build a marine terminal for transshipment of LPG at Ust-Luga in Leningrad Region.

Development plans in the plastics sector include the construction of a propylene and polypropylene plant in Tobolsk, the possible expansion of the pyrolysis unit and a new PVC facility in Nizhniy Novgorod Region, a polystyrene plant at Sibur-Khimprom in Perm Region, and modernization and construction of new plastics production units at Tomskneftekhim.

In the tyre sector there are plans for a new metal-cord freight-vehicle tyre production facility and a wider range of light freight tyres at the Yaroslavl site by Sibur - Russian Tyres’s subsidiary company LLC Yaroslavl-Investments. At the Kemerovo plant, one of the ammonium nitrate facilities is to be converted to production of porous nitrate. Upgrading work and construction of new process facilities will continue at the company’s rubber manufacturing plants.

“Implementation of the investment plans will reinforce SIBUR’s dominant position on the Russian market”, stated Aleksandr Dyukov, Chairman of the SIBUR Holding’s Board of Directors. “Our strategy is to focus efforts on in-depth processing of light hydrocarbons and production of high-value polymers”.