Evropeyskaya Elektrotekhnica recognizes the successful production of ZapSibNeftekhim, which it helped to build up over 6 years

Evropeyskaya Elektrotekhnica recognizes the successful production of ZapSibNeftekhim, which it helped to build up over 6 years

July 9, 2020. Moscow — The team of Evropeyskaya Elektrotekhnica Group of Companies (hereinafter, the Company or Group), a leading company in the Russian engineering market, recognizes the success of one of its major customers — PJSC SIBUR.

By yearly June 2020, Zapadno-Sibirsky Neftekhimichesky Kombinat (ZapSibNefteKhim, the town of Tobolsk) — Russia's largest petrochemical cluster — produced the first 500,000 tons of polyethylene. The production began in October 2019 and took less than a year. To date, all commissioning works at key ZapSibNefteKhim facilities have been completed. Upon reaching the full capacity in H2 2020, the plant will produce 1.5 mtpa of this polymer.

Evropeyskaya Elektrotekhnica delivered a wide range of equipment and materials required for the plant construction:

• panel electrical equipment (in-house production, according to the NIPIGAS project);

• lighting products;

• explosion- and moisture-proof Roxtec cables’ penetrations;

• cable support systems;

• cabling and wiring products;

• 4 large flares (for the production of polyethylene and propylene, as well as for off-plot facilities).

Ilya Kalenkov, General Director of PJSC Evropeyskaya Elektrotekhnica, commented on the event: "ZapSibNefteKhim is a tremendous project. It is important and crucial not only for Russian, but also for the world's petrochemical sector. The project was launched in September 2014, and throughout the whole six-year construction period we delivered considerable volumes of engineering systems and process equipment with success.

SIBUR proceeds with the plant development and works on its further expansion. We continue to supply equipment and materials for the new construction and repairs, and sincerely wish Russian chemists progressive and trouble-free operation, as well as robust implementation of the planned investment programs. The experience and market opportunities of our Company will contribute to the appropriate assistance in SIBUR's both ongoing and promising industry-wide initiatives.

FOR REFERENCE:

ZapSibNefteKhim is a major state-of-the-art petrochemical cluster in Russia and one of the five largest global investment projects in the petrochemical industry. It will be a leader in Russia's petrochemical sector in terms of polymer production, including alpha olefins, which are intramolecular comonomers utilized for making polyethylene. 

ZapSibNefteKhim's distinctive features:

• production of over 30 polyethylene grades;

• the project envisages for the development of deep processing of significant volumes of Oil&Gas by-products in Western Siberia, including associated petroleum gas. At full capacity, the plant will consume 2.7 mtpa of LNG and around 300 ktpa of ethane;

• the cluster comprises:

- a pyrolysis plant with a capacity of 1.5 mtpa of ethylene (by Linde AG, Germany), 500 ktpa of propylene and 240 ktpa of high-margin by-products (butadiene, butene-1, MTBE, and pyrolysis gasoline),

- four lines for the production of various polyethylene grades with a total capacity of 1.5 mtpa (by INEOS, UK);

- a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands);

• the cluster will enable for import substitution of the most popular polymers in the Russian market. Polyethylene and polypropylene will also be exported to European countries and China;

• as it reaches the design capacity, the cluster will replace up to 95% of base polymer imports;

• project investment totaled USD 9.5 billion, where 57% (USD 4.45 billion) came from SIBUR.

SIBUR steps up the project to increase the capacity of ZapSibNefteKhim and ensure the production of higher volumes of polyolefins — a growth of 10%, to 2.2 mtpa, which requires investments of RUB 65 billion.

About Evropeyskaya Elektrotekhnica Group of Companies

• Evropeyskaya Elektrotekhnica Group of Companies (MOEX: EELT) offers comprehensive solutions in the field of engineering and technological systems for industrial, construction and infrastructural purposes: low and medium voltage distribution equipment, low current systems, lighting systems, industrial electric heating systems and equipment for the Oil&Gas and petrochemical industries.

• As a Russian joint-stock company with high corporate governance standards and financial sustainability, the Company's Mission is to improve people's quality of life with its entrepreneurial vigour and engineering competencies.

• The Company was founded in 2004 and unites a distribution center, engineering departments, an electrical laboratory and specialized production facilities. The company is one of the largest electrical equipment distributors in the Russian Federation and an industrial partner of leading companies on the international engineering market.

• The Company's logistics capabilities include delivery (including non-standard and oversize load) to customers throughout Russia, including hard-to-reach Northern areas, as well as to Central Asia, North Africa and the Middle East.

• The Company has its own production of the following equipment:

• Complete transformer substations;

• Medium voltage units;

• Low voltage panels of up to 6,300A (including metro solutions);

• Electric lighting systems;

• Industrial electric heating systems;

• Cabling and wiring products.

• Areas of application of the Company's competences:

• Oil&Gas industry;

• Electric power sector;

• Peaceful atom,

• Steel and mining industry;

• Engineering;

• Transport infrastructure, water supply and sanitation.

• Evropeyskaya Elektrotekhnica's customers include major Russian companies: Rosneft, Gazprom, NOVATEK, LUKOIL, Sibur and Nizhnekamskneftekhim. Supplies were successfully implemented for the following projects: Power of Siberia, Yamal LNG, Smolensk NPP, Data Center of Sberbank of Russia, the Domodedovo, Sheremetyevo, and Pulkovo Airports, etc.

• New areas of Company activity starting from 2018 include development and production of the following:

• Modular equipment for the Oil&Gas and petrochemical industries (Company subsidiary ROG-Engineering, Ufa, Republic of Bashkortostan, Russian Federation);

• Industrial specialized solutions for metro substations (currently being consolidated into the Group's structure: Metrotonnel, Moscow, Russian Federation);

• Industrial electric heating systems.

• Key financial indicators of PJSC Evropeyskaya Elektrotekhnica (IFRS):

The personnel headcount is around 350 people. Since September 2017, common shares of PJSC Evropeyskaya Elektrotekhnica are traded on the Moscow Exchange with trading code EELT.

In June 2018, the company was named Import Substitution Leader at the Leader of Competitive Sales annual national awards, in which 450 domestic suppliers from various industries took part.

Contacts:

PJSC Evropeyskaya Elektrotekhnica

Tel.: +7 (800) 600-71-18

Mailing address: 1 Lyotchika Babushkina Street, Building 3, Moscow, 129344

For more information, please contact:

Stanislav Martyushev

Director for Corporate Communications and Investor Relations

PJSC Evropeyskaya Elektrotekhnica

Tel. +7 (495) 660-71-18 ext. 164

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