SIBUR is reorganizing the management of productive assets in the Nizhny Novgorod region

Nizhny Novgorod, 23 August 2010. SIBUR has started on reorganization of its subsidiary SIBUR-Neftekhim JSC, which includes the businesses «Caprolactam» and «Plant for ethylene oxide and glycols» (Dzerzhinsk), and " Neftekhim Plant» (Kstovo).

In the years 2001 to 2008, the presence of an interim management team for SIBUR- Neftekhim in Nizhny Novgorod was necessary in order to move the plants out of a pre-bankruptcy state and subsequently to integrate them into the holding company. In connection with these tasks, the structure of asset management in the Nizhny Novgorod region was changed to be in line with the existing company standard, according to which directors at the corporate center of SIBUR interact directly with the industrial sites.

In Kstovo, on the basis of «Neftekhim Plant» there will be registered a new entity SIBUR-Kstovo LLC. The production staff of SIBUR- Neftekhim JSC, based in Kstovo, will be transferred to work for the new organization.

The Dzerzhinsk production sites will remain within SIBUR-Neftekhim JSC. Management staff of SIBUR- Neftekhim JSC and SIBUR-Kstovo LLC will be located at the location of the industrial sites.

Following the reorganization, the General Director of SIBUR- Neftekhim JSC, Peter Krupnov, will now be employed in SIBUR’s corporate center in the position of Presidential Adviser.

As a result of the reorganization, the two companies will report directly to the SIBUR’s Directorate of Plastics and Organic Synthesis, which will improve management efficiency and reduce the company’s administrative costs. The businesses will have greater operational autonomy.