Probably as a reaction to the sanctions by the European Union after Russia’s attack on Ukraine, petrochemicals group Sibur (Moscow, Russia; www.sibur.com) has announced that it intends to considerably increase its exports to China this year. At the same time, the company wants to set up its first branch in Vietnam and also build a network of warehouses.

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According to Andrey Frolov, CEO of Sibur International – the group’s trading and logistics company – the expansion of its presence on the Southeast Asian market is a priority for Sibur. The company, said Frolov, wants to become one of the major suppliers of polyethylene and polypropylene in the region within the next five years. The export of polymers to Vietnam is intended to rise this year by 30%, and to China by as much as 40%. In both cases, Sibur did not give any absolute figures.

According to a report from the World Bank, with data from 2019, Vietnam imported around 3.3 mn t of HDPE, LDPE, and PP in 2019. This was around three-quarters of the total volume processed in the country.

Vietnam itself has, according to Plasteurope.com’s Polyglobe database (www.polyglobe.net), capacities of just under 1.6 mn t/y. It produces primarily PP, PET and PVC, but for PE, the country is completely dependent on imports. That is likely to be the focus of attention for Sibur.

The first PE facility is under construction in the shape of the large Long-Son complex in the very south of the country, but a precise date for start-up has not yet been given. Construction work began back in 2008 but has been delayed several times. It nevertheless seems possible that the facility could go onstream during the course of 2022.