OREANDA-NEWS. March 28, 2008. Evonik Industries AG and SIBUR Holding JSC have started a feasibility study regarding the possible construction of a facility to produce propylene oxide (PO) and hydrogen peroxide (HP) for use in the Russian market. After completing of the study the parties will take a decision on construction, determine location and capacities of the future production site.

The new plant will use the new HPPO process based on oxidizing of propylene with hydrogen peroxide. It will allow to produce PO in a low-cost and environment friendly manner. Evonik and engineering company Uhde jointly developed this HPPO process.

Evonik is the only company that can provide the whole package of technological solutions for HPPO production: the HPPO process, the necessary special catalyst and the raw material, hydrogen peroxide.

Propylene oxide is a precursor material for polyurethane which is used e.g. in instrument panels and cushioning for cars.

If the construction of the PO plant receives approval, Evonik and SIBUR will consider the establishment of a joint venture at the same location for the production of hydrogen peroxide to supply a new plant with raw material. Capacities of the new production will allow not only to supply the PO plant but to meet demands of the Russian and CIS growing markets with hydrogen peroxide for applications primarily in paper and pulp bleaching processes.

“Partnership with Evonik will allow to occupy a sizable share of polyurethane market in Russia as well as to increase technological level of the company with this unique innovative process developed by our German colleagues” Dmitry Konov, SIBUR President said.

Dr. Klaus Engel, Member of Evonik’s Executive Board and responsible for the Chemicals Business Area, explained: “We want to expand our presence with hydrogen peroxide in the region of Eastern Europe. With Sibur, we are co-operating with a reliable and experienced partner who is intimately familiar with this high-growth region.”