Titan-Polymer plant will be built leveraged by one of the largest banks in Russia

Titan-Polymer LCC (a part of AO Group of companies Titan) and JSC Gazprombank signed a project agreement on the financing the construction of a plant in the Pskov Region for the production of biaxially oriented polyethylene terephthalate film (BOPET) with a capacity of up to 72 thousand tons per year and polyethylene terephthalate (PET) granules with a capacity of up to 210 thousand tons per year.

BOPET films are widely used all over the world, primarily in the food industry, electrical engineering, and flexible packaging. PET is also required in mechanical engineering, light industry and in pharmacology as packaging for medicines, dietary supplements, vitamins. This polymer has found its use in medicine. As an example, they are surgical sutures, endoprostheses, heart valves and blood vessels, personal protective equipment: masks, suits and protective shields. The project with a total cost of 16.7 billion rubles is being implemented with attracting finance from the Industrial Development Fund. The volume of finance under the credit agreement is more than 12, 8 billion rubles for a period of 10 years.

The project is being implemented on the principles of project financing and involves the provision of loans against a guarantee of future cash flows. “We are looking forward to our partnership with Gazprombank which is one of the largest banks in our country. We are proceeding according to the project implementation plan on a firm schedule. To this date the contracts with the principle suppliers of equipment for the BOPET films production are signed and prepaid. Titan-Polymer plant is essential not only for the Pskov region. The whole country needs it. The production in line with the highest standards will be created on the territory of the special economic zone Moglino. The first-time special purpose polymer manufacturer will appear in Russia. The project implementation will allow to cover the domestic needs in BOPET and PET. We are grateful to our financial partners for the project support”, – noted the Chairman of the Board of Directors of AO GC Titan Mikhail Sutyaginsky.

Gazprombank has been cooperating with AO Group of companies Titan for two years. The bank has already started financing a project for renovating the production of phenol and acetone, as well as to organize the production of isopropyl alcohol on the basis of the Omsky kauchuk plant. We highly appreciate participation in the Group's strategic projects, and we plan to continue supporting the implementation of a large-scale investment program in future, inclusive of import phase-out. It should be added that in a pandemic situation, the personal protective equipment production, which components are being supplied by Titan-Polymer, has critical importance”, – emphasized the Deputy Chairman of the Management Board of Gazprombank Alexey Belous.

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