Lukoil to Build Polypropylene Factory in southern Russia
MOSCOW (AP) -- Russia's biggest oil producer Lukoil said it would build a US$70 million (euro57.5 million) polypropylene plant in southern Russia and had signed a deal allowing it to use Dow Chemical technologies in production.
The plant, to be built in the Stavropol region on the Stavrolen petrochemicals complex, will have a capacity of 120,000 metric tons per year, Lukoil's petrochemicals division said in a statement.
The deal will see polymers produced using Dow Chemical's UNIPOL PP processes, which Lukoil said had the advantages of being simple, reliable and environmentally safe.
Lukoil estimated that the project will create 400 jobs in a region depressed by unrest in the North Caucasus republics to its south.
The polymers the plant produces will go largely to the domestic market, where demand is growing high on the back of a booming consumer market, the company said.
Lukoil last month announced a 44 percent jump in first quarter net profits.
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