Kazakhstan's national oil and gas company, KazMunayGas (KMG), has divested a 60% stake in the inactive Polymer Production LLP to the Russian petrochemical holding, SIBUR.

Source: Interfax

This collaboration aims to expedite the plant's operational revival through significant investment, as stated by KMG.

The plant's restart is scheduled for Q3-Q4 2025. Current personnel are undergoing skills development through customized training at SIBUR's production sites. KMG acquired 100% of Polymer Production in December 2023. At the time of purchase, the BOPP film plant, which has a 10,000-tonne annual capacity, was idle with all technological lines preserved. "Staff were placed on forced downtime with partial salary compensation. The company's losses amounted to 5.8 billion tenge. Since the acquisition, KMG began production recovery efforts while maintaining social obligations to employees.

^{KMG said}

The production of BOPP film is not part of KMG's core business, since this product primarily serves as packaging material for the food industry, according to the company.

KazMunayGas operates as Kazakhstan's national entity for hydrocarbon exploration, production, processing, and transportation, representing state interests within the oil and gas sector.

Therefore, we decided to engage an appropriate partner for high-quality plant rehabilitation. This will enable production launch, create permanent jobs for Kazakh citizens, establish uninterrupted domestic production compliant with international standards, diversify the product line-up, and promote value-added exports to foreign markets

BOPP (biaxially-oriented polypropylene) film is a high-quality packaging material extensively utilized for food products, consumer goods labeling, and industrial tapes.