RusVinyl Polyvinyl Chloride Complex, Nizhny Novgorod, Russia

The European Bank of Reconstruction and Development (EBRD) sanctioned a loan of €150m

RusVinyl opened a new polyvinyl chloride (PVC) integrated plant in Kstovo, Nizhny Novgorod, Russia, in September 2014. The new plant is one of the biggest polyvinyl chloride plants of its kind in the country and has a polymer production capacity of approximately 330,000t/y.

Built with an investment of RUR60bn ($1.4bn), the plant will produce 330,000t a year of PVC suspension, 225,000t of caustic soda (sodium hydrate) and 30,000t of PVC emulsion.

Depending on the market growth and availability of raw materials and salt deposits in the Nizhny Novgorod region, the capacity of the plant will be increased to 500,000t/y.

RusVinyl - Sibur Holding and SolVin JV

"RusVinyl is a 50:50 joint venture between Russian company Sibur Holding and Belgian PVC manufacturer SolVin."

RusVinyl is a 50:50 joint venture between Russian petrochemical holding company Sibur Holding and Belgian PVC manufacturer SolVin.

In July 2010, the European Bank of Reconstruction and Development (EBRD) sanctioned a €150m loan to finance the construction of the plant.

In June 2011, RusVinyl signed a loan agreement for €750m with a syndicate of banks. The agreement also includes the loan sanctioned by EBRD.

According to the agreement, Sberbank of Russia and EBRD contributed €150m each towards the project, while BNP Paribas, ING Bank and HSBC collectively provided €450m.

Background to the polyvinyl chloride plant

The project was originally scheduled to be commissioned in 2010. However, it was delayed by two years due to the global economic downturn and doubts about the potential of the PVC market.

In June 2008 the project received priority status and tax benefits for five years from the Nizhny Novgorod regional government. The estimated cost increased from €650m ($825m) to $1.4bn.

Feedstock used at the Russian facility

The plant uses sodium chloride and ethylene as its main feedstock. The PVC plant is located close to an existing petrochemical plant in Sibur, which supplies the ethylene. The sodium chloride is sourced from Solikamsk, Donetsk and Astrakhan.

Design and construction of the PVC plant

The 130,000m² site is located in an industrial area roughly 5km south-west of Kstovo.

"In June 2008 the project received priority status and tax benefits for five years from the Nizhny Novgorod regional government."

The plant includes process buildings and facilities for vinyl chloride monomer, dichloroethane, a chlorine compressor, a cracking unit, an electrolysis unit, an oxychlorination unit and an EDC polymerisation unit. Storage facilities for caustic soda and kitchen salt are also built.

The plant was designed to meet the requirements of the EU integrated pollution, prevention and control and all EU and Russian environmental standards. Approximately 10% of the total project investment was used for environmentally friendly practices, such as reducing health hazards and improving air quality.

The plant also has process effluent treatment installations and parking areas.

Contractors involved

International engineering group Technip was awarded the contract for engineering, equipment supply and construction management of the plant. The company was also involved in the engineering and permitting activities of the plant. Globalstroy-Engineering was appointed as the general contractor for the project in December 2010.

UHDE delivered electrolysis equipment for the PVC plant in 2012. Russalt and Belaruskali signed an agreement in 2013 to supply the salt to the plant. It is delivered to the plant by sea and rail transport.

Process technology at RusVinyl's complex

Chlorine is obtained from electrolysis of sodium chlorine (brine solution) using advanced membrane technology. The ethylene and chlorine are chemically reacted to form vinyl chloride monomer (VCM) gas.

Polymerisation of the VCM molecules yields a white powder or polymer. The produced polymers are then mixed with additives for providing stability and flexibility to PVC granules. The final product is a PVC thermoplastic material.

The plant uses advanced technologies for recycling recoverable VCM. It has control technologies to reduce the discharge of dioxins, vent gases and heavy metals during VCM / EDC production. The chlorinated by-products from the plant are recovered as hydrochloric acid.

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