Gazprom's Sibur fertiliser group to spend up to 11 bln usd on expansion - report 07.27.07, 5:50 AM ET
MOSCOW (Thomson Financial) - OAO Gazprom's Sibur fertiliser group plans to spend up to 11 bln usd through to 2010 in order to become one of Russia's largest companies in the sector, Vedomosti reported, citing a Sibur memorandum it had obtained.
Sibur, which was formed by the natural gas giant last year, is currently a small player, with 8 pct of Russia's nitrogen fertiliser market, the newspaper added.
According to the memo, Sibur will spend about 3.3 bln usd to consolidate several independent producers in such locations as Perm and Tollyatti, Russia, and Odessa, Ukraine by the end of next year.
Between 2009 and 2010 Sibur plans to spend 4-8 bln usd to merge with a major player such as Uralkaly or Belaruskaly.
Sibur declined to comment on the memo when contacted by Vedomosti.
However, several unnamed sources at Gazprom told the newspaper that the document was one of the final working drafts of a paper approved by Sibur officials in May.
