VSP Special Customer.
SIBUR is a young company. In July 2020 the company turned
25 years old. The number of employees is over 23 thousand. SIBUR production sites are located in more than 20 regions
of Russia. Highly competitive products are used in the
production of consumer goods and automobiles, construction, power industry, as well as in the chemical industry and other sectors in 90 countries around the world.

VSP Company works with SIBUR enterprises on the entire range of equipment represented by VSP
in the Russian market.

SIBUR is Russia's largest integrated petrochemical company.
In 2019, the company consisted of 32 enterprises.
Most of the production sites were put into operation in the 1940s and 1960s and became part of SIBUR under their own names in the late 1990s or early 2000s, when the company intensively increased assets acquiring existing production facilities.

What does the company name stand for?
"Siberian-Ural Petrochemical Company" was established by the decree of the Government of Russia
dated March 7, 1995.
Since December 2005 — Sibur-Holding. The names of many enterprises reflect the geographical principle, for example,
"SIBUR Tobolsk", "SiburTyumenGaz", «SIBUR-Kstovo".

SIBUR's main specialization is processing of oil and gas raw materials for the production of petrochemical materials.
The company acquires and processes hydrocarbon raw materials into plastics, rubbers and other products.
The company's business model covers three main blocks:
(1) Gas Processing and Infrastructure;
(2) Olefins and Polyolefins;
(3) Plastics, Elastomers and intermediates.

"Gas Processing and Infrastructure" provides raw materials: receiving and processing of associated petroleum gas (APG), fractionation of broad fractions of light hydrocarbons and subsequent sale of natural gas, liquefied petroleum gas (LPG) and naphtha. Raw materials are purchased from the largest Russian oil and gas companies and produced at their own facilities.
The group's petrochemical business is represented by two operating segments: "Olefins and polyolefins" and "Plastics, elastomers and intermediates", which include capacities for the production of polyethylene, polypropylene, plastics, elastomers, fuel additives and a number of other products.
The use of waste from oil-producing companies as raw materials for the production of polymers, for example, associated petroleum gas (APG), which otherwise would have been burned with the release of a large amount of pollutants and CO2, contributes to the transition from a raw material to a processing model. APG for SIBUR is a valuable raw material used in its own high-tech processing.

The presence of several segments in the group's business model, the diversification of products, provides a certain financial stability, which allows SIBUR to maintain a high level of marginality even in crisis conditions. The company is the largest producer of polyethylene, polypropylene, BOPP film, as well as a number of plastics and elastomers in Russia. SIBUR owns the largest and longest integrated infrastructure in Russia, processing about 62% of APG produced in Russia and 72% of Broad fraction of light hydrocarbons.

a balanced position in the market.
Petrochemical processing is a promising and sustainable type of business worldwide and the most growing segment in recent years. Russian giants such as ROSNEFT and GAZPROM also consider the petrochemical segment as a strategic business line.
Petrochemical products provide diversification in the market, added value for the manufacturer.
And SIBUR's focus on the needs of the market and users of products, feedback from consumers make it possible to identify promising areas for improvement in the future.

SIBUR's strong competitive position, supported also by its own raw material base, infrastructure and profitable logistics for exporting products to Asian and European markets, allow SIBUR to demonstrate consistently high performance among comparable companies in the world. SIBUR's business strategy is aimed at maintaining sustainability and competitiveness in the long term both in the domestic and global markets.

SIBUR is one of the fastest growing petrochemical companies in the world, successfully implementing a number of large-scale investment projects.
In 2019, SIBUR commissioned a new ZapSibNeftekhim production complex. The construction of ZapSibNeftekhim has been one of SIBUR's most important strategic objectives since 2015. Today, the ZapSibNeftekhim complex in Tobolsk is one of the five largest polyolefin production facilities in the world.
The largest petrochemical production in Russia with a capacity of 2 million tons of polymers per year is capable of providing a 20% increase in non-resource exports of the whole country in 2020.

Why is it so important?
The implementation of the ZapSibNeftekhim project is aimed at the development of deep processing of significant volumes of by-products of oil and gas production in Western Siberia, including associated petroleum gas, and import substitution of the most popular polymers on the Russian market.
Pyrolysis furnaces
ZapSibNeftekhim, Tobolsk, 2020-09-01

According to SIBUR estimates, Zapsibneftekhim's output at full capacity will allow replacing the existing import of polymers (about 400 thousand tons per year), including brands not previously produced in Russia. Thanks to Zapsibneftekhim, SIBUR will continue to diversify its business, combining already operating enterprises of the Tobolsk cluster.
To meet the needs of the market in connection with the coronavirus pandemic, the production of polymer brands required by medical industry and packaging solutions has been increased. In addition to pipes for housing and communal services and other products, film and packaging containers are produced from Tobolsk polyethylene, protective medical masks, skin suits, syringes are made from polypropylene.

The capacities of the ZapSibNeftekhim complex include: monomer production, Pyrolysis production, polyethylene, polypropylene production, logistics platform, energy supply.
For example, Pyrolysis provides for 1.5 million tons of ethylene, 500 thousand tons of propylene, as well as 240 thousand tons of high-marginal by-products per year (butadiene, butene-1, MTBE, pyrobenzine).
The pyrolysis plant of such a capacity is currently the only one in Russia and is in the top 5 in the world.

"With ZapSibNeftekhim, SIBUR has managed to put to life some of the best available solutions and practices. The new facility uses state-of-the-art equipment and digital technologies, including our proprietary solutions." Dmitry Konov, Chairman of the Management Board, SIBUR Holding.
The fire and gas detection system of the C5/C6 separation section at the pyrolysis plant includes intrinsically safe interfaces MTL4500 series. The MTL4500 series modules on the backplane are designed with account of requirements of Distributed Control Systems, Emergency Shutdown Systems and Fire and gas Control Systems. An important characteristic is the compliance of intrinsically safe interfaces MTL4500 and MTL5500 series with the requirements of FSM (IEC 61508 standard) — Functional Safety Management (FSM).
Better understand the tasks, better navigate the possibilities.
Eaton Electric (former MTL Instruments), the founder of intrinsically safe interfaces— is the main partner of VSP
and a provider of solutions for intrinsic safety. For more than 45 years, the company has been specializing in the development and production of equipment for intrinsic safety protection, and partnerships with VSP have been going on
for a quarter of a century.
VSP company has quite an experience in the field
of application of intrinsically safe Eaton Electric (MTL) interfaces in the petrochemical market. Almost all SIBUR enterprises use modules of the MTL4500 / 5500, MTL7700, and HART devices series.

The results of VSP cooperation with SIBUR specialists are also manifested in the work on instrumentation products — an important element of ensuring safety of the technological process. Tomksneftekhim, ZapSibNeftekhim, Tobolskneftekhim complete measurement installations with fittings, valves, manifolds and Parker Hannifin tubes; Veriflo pressure regulators are used in the production of Rusvinyl; Tobolsk-Polymer uses solenoid valves; Sibur-Neftekhim - manifolds and valves of the H series; Sibur-Kstovo - Ermeto fittings … The products of Parker Hannifin and other VSP partners-manufacturers of instrumentation products are trusted by SIBUR.

Further progressing cooperation with SIBUR enterprises
at production sites, in today's conditions, VSP employees conduct regular webinars on new developments in the field of intrinsic safety to SIBUR specialists. Taking into account the distributed geography of the company, this approach has also proved effective in strengthening mutual interest and technical awareness of the dialogue participants.

gas chemical complex.
Amur Gas Chemical Complex (AGHC) is a joint venture between SIBUR and China Petroleum & Chemical Corporation (Sinopec). It will be one of the world's largest producers of base polymers. The capacity of the complex is 2.3 million tons/year of polyethylene and 0.4 million tons/year of polypropylene.
The products produced at the complex are the basis for the production of materials used in construction, agriculture, consumer goods and housing, as well as in various industries, including food, medical and automotive, and will be supplied to the markets of Southeast Asia and China.
It is planned that the first products of AGHC will be produced in 2024-2025. These are basic polymers - polyethylene and polypropylene of various trademarks, which will be produced from natural gas components - ethane, butane, propane. The Amur Gas Processing Plant will be technologically connected with the Amur Gas Processing Plant (AGPZ) of Gazprom. Ethane fraction and liquefied petroleum gases (LPG), produced at the Amur Gas Processing Plant, will become raw materials for the AGC. Therefore, the readiness of the Amur Gas Processing Plant and the start of commissioning will be synchronized with the construction and commissioning of the fourth stage of the Amur Gas Processing Plant, not earlier than 2024.

According to experts, the complex will increase Russian non-resource exports by 4.6 trillion rubles. Its launch will almost double Russia's capabilities in the field of polymer production. Over the next five years, the construction of the GC may become SIBUR's most ambitious investment project. Logistical proximity to the Russian-Chinese border increases the chances of success.
Thus, the new AGHC will be competitive and highly efficient. Its construction will strengthen the position of SIBUR in both the Russian and international markets.

Advanced environmental solutions.
As for wastewater, emissions into the atmosphere and other factors, among the advanced environmental solutions to be used at the Amur Gas Processing Plant are a closed water circulation system, reduction of greenhouse gas emissions, the use of renewable energy sources and a number of other measures aimed at making the impact of the gas processing plant on the environment minimal. The latest technologies guarantee a closed cycle of resource usage, energy efficiency, a minimum amount of raw materials for the maximum amount of product, minimal waste generation.
Amur GHC will be implemented in the concept of digital chemistry, which will ensure the safety and efficiency of production. These will be new standards of modern petrochemistry.
POLYETH, BIAXPLEN — Efficient energy consumption.
Another promising project from the point of view of ecology is SIBUR's production of primary PET granules* with the inclusion of secondary polyethylene terephthalate in Bashkiria. This method of processing implies the "splitting" of polymers, which makes it possible to reuse polymer raw materials. Now there are two production lines at the POLYEF enterprise in Bashkiria. One of the lines is being upgraded as part of the project. The task is to fully involve secondary resources in PET production.
* PET (or PET, polyethylene terephthalate) is a thermoplastic polymer that is most common among polyesters.
"The representative of VSP held a presentation for the specialists of the plant
on Parker Hannifin solutions, on instrumentation products, in the first place.
As part of the VSP program for the development of relations with SIBUR, as the largest petrochemical holding in Russia, this presentation was the fifth in a row in 2016.
Earlier, meetings were held with SIBUR-Togliatti, Rusvinil,
SIBUR-Kstovo and SIBUR-Neftekhim.",

from the VSP News

Eurotherm Solutions
as an effective element in the import substitution chain.
One of the results of the long-term development of cooperation between VSP and SIBUR specialists was the work on Eurotherm solutions for electric load management.
POLYEF-Sibur, Sibur Tobolsk, Sibur Biaxplen enterprises, as well as other production sites of the holding, use Eurotherm power management equipment. Increasing efficiency and saving on energy costs is the real return that the user receives.
Energy intensive petrochemical production is characterized by the continuity of the process and the high cost of installations. The reduction of energy intensity in various industries is largely ensured by the introduction of new technologies and equipment. The energy saving program allows you to get an annual economic effect of at least 5% on the costs of energy resources.

SIBUR Biaxplen, a subsidiary of SIBUR Holding, is a leading manufacturer of biaxially oriented films (BOPP) in Russia with production sites in five regions of a combined capacity of over 180 thousand tons per year. The company is actively developing export of films to the EU markets.

SIBUR takes advantage of the long-term growth of the Russian polyolefin consumption market and its potential: the level of consumption of polyolefins and plastics in Russia remains significantly below the global average. Moreover, the launch of new sites makes it possible to replace imported products more actively.
The strategic rationale for the development of the production of BOPP films, started by SIBUR a few years ago, was the need to create a leading domestic manufacturer capable of offering new solutions to the underdeveloped domestic packaging market and at the same time increase the volume of polymer consumption in the country.
The situation was paradoxical: SIBUR exported raw gases, and then imported products from these raw materials to Russia: plastics, polymers, polyethylene, polypropylene.
Imported packaging materials, including BOPP film, have a certain impact on the final cost of products. BOPP production is considered safe, the material is clean and easy to process. At the same time, production processes are quite energy intensive, so effective electricity management as one of the pricing factors is of great importance.

Eurotherm (Schneider Electric) power management equipment is used at many production sites of SIBUR Holding. Increasing efficiency and saving on energy costs is the real return that the user gets.
The combination of reliability, safety and ease of operation allows us to assert that Eurotherm devices used in technological processes offer the best efficiency/price ratio in their class in the market.
In the context of import substitution, no one has cancelled the economic logic based on the analysis and comparison of the expected levels of qualitative and quantitative competitiveness.

From the VSP news: "There is no one-hundred-percent replacement task: VSP work experience."

Rational use of electricity with the help of ePower thyristors, in particular, the function of predicting electrical loads — PLM (Predictive Load Management) allows you to efficiently distribute power to the installation depending on needs and allows you to significantly reduce energy consumption.
The PLM function helps to improve the quality of power supply and effectively reduce CO2 emissions, which fully corresponds with SIBUR's desire to work according to international environmental requirements.

Interesting fact: SIBUR Ball

Plastic bottles are another story. Bottles can be used to make T-shirts, shoes, jackets, and much more. In Europe, about 60-90% of PET is processed, in Russia the process is still gaining momentum.

And an "Eco Ball" is both eco-friendly and sporty at the same time: an eco-friendly Wilson ball was created especially for VTB United League matches in the 2019/20 season with the support of the Ministry of Natural Resources and SIBUR. Recycled plastic is used for the production of the "Eco Ball": the inner part of each ball is made of a material resulting from processing of 2.5 plastic bottles of 1.5 liter.
"Internet of Things", flying drones,
3D printing, artificial intelligence it's about SIBUR.
"I sincerely believe that digitalization is 90% not about a digit as such and not about hardware. It's about how you work. First of all, about the optimal use of data that the company already has or that can be additionally obtained through digital tools," D. Konov, Chairman of the Management Board, SIBUR Holding.
What does Digitalization mean for SIBUR:
- An efficiency improvement tool;
- A way to close the gap with best practices faster;
- High-quality management decisions based on analytical data;
- The best company to work with attracting professionals.
Digital transformation.
In 2019, SIBUR developed and launched a program of transformation of all IT and digital lines of business and processes to achieve maximum results from digitalization.
Production of polyethylene,
For example, a project implemented at the Tomskneftekhim enterprise: advanced analytics provides for predictive maintenance of equipment. Project objectives:
- Prediction of failure status of the extruder;
- Identification of the root causes of failures using big data analysis.
The accuracy of the model is 85%. The reduction in losses
in case of equipment failures amounted to more than 50%.

Tomskneftekhim is one of the largest Russian producers
of polymers, polypropylene and high-pressure polyethylene. For the production of polyethylene, a technology is used with polymerization taking place in a reactor under high pressure.
SIBUR has implemented a unique digital simulation of the operation of a high-pressure polyethylene reactor.
The multimillion-dollar development and implementation costs paid off in less than a year, and now the technology
is ready for adaptation at other enterprises of the holding.
The effect of Tomskneftekhim's digital transformation in 2020 amounted to 400 million rubles.
In total, 139 combinations of various parameters of equipment operation, raw material consumption and reaction initiators were tested on the digital model of the installation at Tomskneftekhim. As a result, the optimal regime was determined, which allows to reduce the specific consumption of expensive additives by 12% without the loss of a product quality.

Remote terminals by Gecma, VSP's manufacturing partner for HMI systems, are used as part of equipment for controlling the polymerization initiation station.
Digital models are unique for each installation. Nevertheless, the experience of implementation at Tomskneftekhim makes it possible to plan and develop digital models for other industries, including large-capacity ones — for example, the sites of ZapSibNeftekhim, where digital models can be used both to optimize technological processes and to select production modes for new grades of polyethylene.
The economic effect of digitalization of ZapSibNeftekhim production in 2020 amounted to about 700 million rubles.
Digital solutions for production also include "Clearance Orders", which are issued remotely using an electronic signature - promptly and contactless. Thanks to the "Mobile Check Rounds" application, defects are detected at an early stage, and equipment reliability increases. This makes it much less likely to involve contractors in repairs. The "Remote AR Expert" tool based on augmented reality technologies is used in production facilities where shutdown repairs and other work requiring participation of external consultants are carried out.

Production of rubbers of different brands,

The Voronezhsintezkauchuk enterprise has implemented a system of color identification of different production lines for certain types of rubber.
Intrinsically safe interfaces of the MTL5500 series are used in the production of rubbers as part of the automated system of technical accounting of material flows. The MTL5500 series galvanically isolated barriers have practically laid the foundation for a new industrial standard for DIN-rail devices and meet the requirements of a specific application.

In a highly competitive business environment, it's not enough to be just a successful company in the local market. In order to go further and become a leader in the global petrochemical industry, SIBUR improves business processes and increases the level of labor productivity."
(from the SIBUR website).

SIBUR's Global Ambitions:
Reliance Sibur Elastomers Private Limited (RSEPL).
An example of SIBUR's international investment project is a joint venture for the production of elastomers with the Indian company Reliance Industries Ltd (RIL) in Jamnagar. The production capacity is 120 thousand tons of butyl rubber and 60 thousand tons of halobutyl rubber (out of the volume of butyl rubber).

SIBUR owns unique technologies for the production of rubbers and has provided the joint venture with its own production technology, the most environmentally friendly compared to the existing similar ones. In preparation for the launch, SIBUR and Reliance mutually conducted training: SIBUR sent its personnel with experience in managing the production of butyl rubber to the site in Jamnagar. In addition, Reliance personnel was trained at a SIBUR's enterprise to gain experience in managing the production.
The project is currently at the final stage of implementation.

Project objectives.
Butyl rubber or isobutylene-isoprene co-polymer is a synthetic rubber characterized by elasticity, water resistance and electrical insulation properties, from which rubbers and ebonites are obtained by vulcanization. The production of RSEPL halobutyl rubber will be focused on meeting the rapidly growing demand for these products from the largest Indian and international tire manufacturers and pharmaceutical companies.
The developed infrastructure and availability of raw materials, successful experience of cooperation create favorable prerequisites for the expansion of SIBUR presence in India.

Useful fact: VSP Partner from India

Panam Engineers Ltd. is one of the VSP partners in instrumentation products, with cooperation actively developing in the Russian market. Panam Engineers is a supplier of instrumentation products for Reliance Industries as well — the partner of SIBUR in India.

Panam Engineers solutions are also used in Russia, the company is also a supplier to enterprises and is used in projects of Hindustan Shipyard, National Oilwell Varco, Fuji Electric Japan, Honeywell, Yokogawa, Festo, Wika systems around the world.

SIBUR Special Customer: The VSP program is designed to focus on what is important.
VSP special customers represent a wide range of companies, engineering centers and end users, commercial structures — SIBUR, KINEF, Honeywell, URALCHEM, SPIK SZMA, Inkomsystem, SUER, Peton, Lukoil Group enterprises, ROSNEFT and GAZPROM enterprises...
VSP special Customers are the basis of our work, customers who form the basis of the company's business. We allocate the maximum possible resources, time and funds into the development of relations with Special Customers.
The format of VSP's work with special customers implies substantive and regular contacts using extended "tools" for the development of relations. In our experience, Program Practice allows us to achieve better results. By concentrating resources — team time, specialist competencies, program budget, ... — at one specific goal and task, we noticeably increase the effectiveness of a particular practice. And when we plan to work on extended and long-term projects, such as the development of relations with large customers, which of course SIBUR is — a focused approach, competent planning, a clear understanding of stages and final goals are vital to make work well-coordinated and effective.

VSP Company works with SIBUR enterprises on the entire range of equipment represented by VSP in the Russian market: Tobolsk-Polymer, Sibur-Khimprom, Sibur-Neftekhim, Nyagangazpererabotka, Tomskneftekhim and other manufacturers use Parker Hannifin instrumentation products, sealing and filter elements; intrinsically safe MTL interfaces and remote Gecma terminals; Emerson Micro Motion equipment; Eurotherm line of devices for energy intensive processes.