Moscow, Russia - July 13, 2005
The Dow Chemical Company and LUKOIL-Neftekhim announced today that LUKOIL and Dow's subsidiary, Union Carbide Chemicals & Plastics Technology Corporate, have signed a license agreement for Stavrolen to use UNIPOL™ PP process technology from Dow for a new polypropylene plant at Budennovsk, Russia. Construction of the plant, which will have a capacity of 120 KTA, is scheduled for completion in 2006. Stavrolen will also use the proprietary UNIPOL™ UNIPPAC™ Advanced Process Control package from Dow, which is designed to seamlessly integrate with plant automation and company enterprise resource planning (ERP) Information Systems.
"We're extremely pleased that LUKOIL-Neftekhim will incorporate our proprietary UNIPOL PP process and UNIPOL UNIPPAC Advanced Process Control technology for the Stavrolen polypropylene plant in Russia," said John Yimoyines, vice president of Dow Technology Licensing. "Our UNIPOL PP process is recognized by engineers and manufacturers around the world for its proven technology, simplicity of operation and low capital investment."
LUKOIL-Neftekhim will use UNIPOL PP process technology from Dow to produce impact-resistant and low-temperature polypropylene and also its various modifications used in medicine and agriculture. The polypropylene produced will be supplied to Russian chemical plants where fiber, thread, tubes and other consumer goods will be manufactured.
"As a result of the expansion of the Stavrolen petrochemical complex, LUKOIL-Neftekhim group will considerably increase production with high added value, which is in line with the strategy of the Group development. Total investments into the project will exceed US$70 million. In addition, the construction of the unit will create 400 new jobs in Budennovsk," said the General Director of LUKOIL-Neftekhim, Alexey Smirnov.
"The inclusion of our proprietary UNIPOL UNIPPAC Advanced Process Control software marks the fifth commercial application of this exciting technology in less than 12 months," added Steven Stanley, business director, UNIPOL PP Licensing & Catalyst from Dow. "By incorporating this technology, LUKOIL-Neftekhim can expect to receive valuable enhancements to production rate, aim grade, and monomer consumption efficiencies."
Licensees of the UNIPOL PP process technology from Dow today operate more than 35 production lines, accounting for more than 6 million metric tons of polypropylene production worldwide.
About Dow
Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.
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