himprom.uaThe launch of Karpatneftekhim, the largest Ukrainian polymer producer, is scheduled for June 8, the company’s press service reported.

It is noted that the start of production after five years of downtime will occur due to the introduction of taxation of petrochemical raw materials. In December 2016, the Tax Code expanded the list of raw materials subject to a zero excise tax rate in the case of further processing. Liquefied gases and butane were added to straight-run gasolines and diesel fuel.

The government has determined for the Karpatneftekhim quota for the supply of raw materials: liquefied gas – 1070 million liters per year; Straight-run gasoline – 1170 million per year; Diesel fuel – 985 million liters per year. Recycling of each of these volumes can ensure the release of 250 thousand tons of ethylene per year, note the company.

The company claims that the work will be provided to 1950 employees of the plant personnel and 750 employees of related and service organizations.

The choice of raw materials will depend on the conjuncture of commodity and commodity markets, the report says. In 2017, the main raw material will be straight-run gasoline, but it may involve the involvement of liquefied gas or diesel fuel.

The new working conditions will provide the factory with production flexibility in case of a change in the market situation, the company notes.

As previously reported in the Market Report, in February 2017, Lukoil completed a deal to sell a 100% stake in LUKOIL Chemical B.V. (Netherlands), which belongs to Karpatneftekhim. Techinservice Limited bought from Lukoil up to 50% of Karpatneftekhim. The amount of the entire transaction was USD25 million.
The second indirect owner of over 50% in LLC “Karpatneftekhim” through the Cyprus Xedrian Holding Ltd was Lukoil manager in Ukraine Ilham Mammadov.

The production at Karpatneftekhim was terminated in September 2012. Earlier, the plant repeatedly noted the existence of problems in the activities due to the state’s debts for the reimbursement of export VAT and dumping of foreign, in particular, American producers of PVC – one of the main commodity positions of the Karpatneftekhim.

Karpatneftekhim (Kalush, Ivano-Frankivsk region) – was a subsidiary of LUKOIL-Neftekhim and is the largest producer of polymers in Ukraine. The company produces polyolefins (ethylene and propylene), polyethylene, chlorine, polyvinyl chloride and caustic soda. The enterprise’s capacities allow producing 300 thousand tons of ethylene, 100 thousand tons of HDPE, 180 thousand tons of caustic soda and 300 thousand tons of PVC per year.