Marubeni plans to form PET and PTA plant JV in Russia


marubeni

Japan-based investment agency Marubeni is planning to form a joint venture (JV) with the government of Tatarstan to build a polyethylene terephthalate (PET) and purified terephthalic acid (PTA) production plant in Russia.

Marubeni proposed several joint petrochemical projects with the state investment agency Tatneftekhiminvest Holding on 30 January 2012.

The company's representatives told Tatarstan president Rustam Minnikhanov that they want to start joint petrochemical schemes in the semi-autonomous Russian republic, backed by Japanese bank finance, according to the Tatar state news agency.

Minnikhanov has reportedly instructed the management of Tatar investor Taif Group, the Ak Bars bank and polymers and chemicals company Nizhnekamskneftekhim to discuss Marubeni's plans in detail.

As part of the petrochemical business partnerships, the Japanese firm also has collaboration agreements with Russian-based oil and gas giants Gazprom and Rosneft.

Marubeni is seen as a leading investor with Gazprom in a planned Far Eastern petrochemicals complex in the city of Nakhodka and aims to be the main investor in the construction and chief buyer of its future output.

During the first 11 months of 2011 in Tatarstan, the oil and gas sector's total income raised to €19.4bn ($25.2bn) with profits of up to €3.5bn ($4.56bn), while €1.17bn ($1.5bn) was invested in the Tatarstan petrochemicals sector, according to a review report.

Kazan, Tatarstan-based Tatneftekhiminvest, is the state investor in the republic's oil company Tatneft and polymers producer Kazanorgsintez.

Marubeni has longstanding business and investment deals with Russia and the CIS countries, forming its first office in Moscow in 1968.

It now has nine bases in four countries, including Russia, Ukraine, Kazakhstan and Uzbekistan.

CIS regional chief executive Shoichi Ikuta said: "Marubeni is seeking to identify and promote medium to long-term projects centred on resources and energy, and to expand its existing commodities trade."

Image: Marubeni plans to build a PET and PTA production plant in Russia by forming a JV with the government of Tatarstan. Photo: J o.