Sibur Enters the Automotive Components Business
The Sibur Group has sold tyres through its Sibur-Russian Tyres subsidiary for the past eight years, but now it has also turned its attention to other vehicle components. In late June the group’s “Plastic JSC” operation signed a letter of intent with the Sollers group, a Russian manufacturer that produces Fiat, Isuzu and SsanYong vehicles under licence. The focus of the letter is to indentify the main direction future cooperation between these two parties could take in respect to the production and supply of automotive components.
Sollers’ manufacturing facilities have a production capacity of approximately 300,000 vehicles per year. According to this new agreement, Plastic JSC can deliver a total of 26 separate product items in an overall volume of up to 4.5 thousand tonnes per year. In the course of 2010, the two parties will determine the specific conditions of the deliveries and any necessary additional equipment will be installed at the production facilities operated by Plastic JSC. It is envisioned that the raw materials for the new production, such as polypropylene and high density polyethylene, will be supplied by enterprises affiliated with Sibur. Production of automotive components is expected to begin in the first quarter of 2011.