New pet production facilities in Russian Federation...

Blagoveshchensk (Bashkortostan Republic) in the Southern Urals is the site of a new PET manufacturing facility being built and operated by local company OAO Polief. There is currently no PET production within the Russian Federation although figures from OAO Polief indicate that consumption by Russian converters reached 340 thousand tonnes in 2002. Start-Up Phase 1 comprises terephthalic acid (PTA) and PET production plants with output capacities of 230,000 tonnes and 120,000 tonnes respectively. The plants are largely funded by the Bashkortostan Republic. The PTA plant is currently undergoing start-up trials and construction of the PET plant is well advanced.

The first PTA production train is expected to go into full production by the end of the current year. Startup of the second PTA production train and production of textile and bottle grade PET is scheduled for 2004. The Phase 1 plants are expected to employ some 2,400 personnel.