Bashneft, a leading Russian oil producing company has signed a joint venture (JV) agreement with Petrochemical Holding GmbH, an Austria-based company, for production of ethylene and other petrochemicals.
Yakov Goldovsky, who heads the Austrian company, had earlier been the head of another leading Russian petrochemical company Sibur.
The new company to be established under the JV will be called United Petrochemical Company. While a majority stake of 75 percent in the company will be owned by Bashneft, the other 25 percent stake will be with the Austrian firm.
The new venture is expected to have an annual production capacity of 300,000 tons of ethylene, besides other petrochemicals. For the purpose, new capacities will be set up in Ufa and Nizhny Novgorod, besides expansion of Bashneft's current facilities in Dzerzhinsk city, Russia's main petrochemical production centre.
The project would also involve processing of all petrochemical raw materials produced at Bashneft's refineries, which is currently estimated to be around 25 million tons each year.
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