Russian petrochemical company Sibur to launch R-PET production

New York — Russian petrochemical company, Sibur,said Sept. 2 it plans to produce green polyethylene terephthtalate granules at its POLIEF site in Blagoveshchensk, Republic of Bashkortostan, Russia.

The plant will incorporate the use of around 34,000 mt of recycled PET flakes sourced from post-consumer food packaging, according to the press release.

Sibur's head of sustainable development, Maxim Remchukov, said: "Involving recyclables in PET production is a vital part of SIBUR's 2025 Sustainability Strategy... By using recycled feedstock, the Company will help promote the circular economy, while also cutting its greenhouse gas emissions per metric ton of end products."

The announced investment project will help upgrade equipment at the existing site in Blagoveshchensk to treat and sort R-PET flakes.

This production is expected to begin in mid-2022, according to the press release.

Sibur will source R-PET locally from existing recycling centers.

The Republic of Bashkortostan currently collects 4,000 mt a year of used PET bottles, according to the press release.

R-PET clear flakes were assessed at Eur750/mt FD NWE Sept. 1, stable on day but down Eur50 since Aug. 3. The R-PET market has come under significant bearish pressure in recent weeks due to low priced virgin material and a general lack of demand in the PET market as a result of a lack of large-scale gatherings and sporting events, which has dented demand for beverage bottles.