Russia’s petrochemical giants Sibur and TAIF on Friday settled the final terms of agreement for the merger of their petrochemical businesses into a single entity. As per the agreement, the TAIF shareholders will exercise control over a 15% stake in PJSC Sibur Holdings in return for the transfer of a controlling stake in the TAIF group. The merger is expected to reach completion by this year-end.
The new company, backed by synergic production facilities, an efficient feedstock distribution network and management expertise, is expected to rank among the top five global producers of polyolefin and rubber. The company’s future investment targets include promoting chemical non-commodity exports, the substitution of imports and fostering sustainability strategies.
Polyolefins are organic macromolecules derived from alkenes. The most common industrial thermoplastic polyolefins are polyethylene, polypropylene, and their derivatives. More specialized polyolefins include polyolefin elastomers which are obtained from the copolymerization of ethylene with other alpha-olefins. Polyolefin elastomers are extensively used in building automotive interiors, wiring and cables, moulded goods, adhesives, footwear, medical equipment etc.
As per ChemAnalyst, the merger will establish the new company’s competitiveness and brand name in the petrochemical sector. The company will benefit from the high productions from the combined facilities of the merging parties that will also boost the supply of polyolefin elastomer in the domestic and global market. This strategic move will also aid in improved revenue generation through economies of scale and better customer services.