OREANDA-NEWS. The signed document underlines the conclusion of the preparation stage of the feasibility study of the synthetic rubber plant construction project in Nakhodka, which included plant conceptual engineering designs and operational requirements, market studies, capital investments and operating costs estimates within the original scope of work agreed in the Memorandum signed in April, 2015.Rosneft, Pirelli S.p.A. and Synthos S.A. signed a Memorandum of Understanding with regard to the approval of the results of the feasibility study and future cooperation in the implementation of the synthetic rubber plant construction project in Nakhodka. The document was signed within the Fourth Eurasian Forum in Verona by Rosneft Chairman of the Management board Igor Sechin, Pirelli Tyre S.p.A. Executive Vice Chairman CEO Marco Tronchetti Provera and Synthos S.A. majority stakeholder Michal Solowow.

The signed memorandum confirms the intention of parties to analyze the possibility of the creation of a joint venture between Rosneft and Synthos in the area of synthetic rubber production in Nakhodka, and the implementation of joint R&D with Pirelli in the area of tyre materials. Within the signed document Pirelli may become the key off take customer of synthetic rubber in continuation of the Memorandum signed by Rosneft and Pirelli in May, 2014.As a result of the feasibility study recommendations, the parties marked with satisfaction the investment potential in the project and are committed to continuing this joint work towards the implementation of the project. The successful finalization of this phase marks yet another crucial step of the implementation of a large-scale project aimed at creating a unique petrochemical cluster in the Russian Far East region. The cooperation with leading global companies in this project demonstrates the investment appeal of FEPCO, which is based both on the efficiency of cooperation and unique geographical position of the future production site, which provides access to high margin markets of the Asia-Pacific region.

Following the signing Igor Sechin said that: "We intend to create at FEPCO a cutting-edge technological and production platform for boosting the development of the automotive and petrochemical clusters in the Russian Far East. In particular, the agreement that we have signed today with two recognized global leaders in high-end technology for synthetic rubber and tire production will allow us not only to build the most advanced synthetic rubber plants as part of our FEPCO development in Nakhodka, but also to successfully supply Chinese and other Asian automotive tire markets for years to come. Developing the FEPCO project is one our key priorities. Its implementation will allow Rosneft to significantly strengthen its position in the energy and petrochemical arena of the region, whilst at the same time creating an unprecedented platform for a multiplicative and all-round development of the Russian Far East region.”

Marco Tronchetti Provera said: “We are pleased to be moving forward with Rosneft and Synthos on this project, greatly encouraged by the positive results of feasibility study. Pirelli’s involvement in the process of developing this advanced regional production hub, both on the R&D side and eventually as a key customer, underlines our belief in and commitment to the entire Russian market.”

On May, 14 2014 Rosneft and Pirelli S.p.A. signed in the presence of the President of the Russian Federation Vladimir Putin a Memorandum of Understanding with regard to the production and supplies of synthetic rubber in Nakhodka. The document envisages the implementation of a joint analysis of the possibility of the use of the FEPCO cluster in Nakhodka for the production of synthetic rubber for the scope of, among other things, arranging deliveries to Pirelli tyre-making facilities in Asia-Pacific.

On April, 16 2015 Rosneft, Pirelli S.p.A. and Sythos S.A. signed a Memorandum of understanding with regard to R&D, production and supplies of synthetic rubber within the FEPCO cluster. The signed document envisaged, among other things the implementation of the Feasibility study of the facility.

On September, 3 2015 Rosneft and China National Chemical Corporation (ChemChina) signed a Memorandum of understanding with regard to the cooperation within the FEPCO project. The document envisages, among other things, the analysis of possible investments of the Chinese company in FEPCO.

Synthos Group S.A. is one of the largest manufacturers of chemical raw materials in Europe with production facilities in Czech Republic and Poland. The Company is the first European manufacturer of emulsion rubbers and leading manufacturer of polybutadiene rubber and expandable polystyrene. The company offers high-grade, sophisticated technological products to a wide range of customers worldwide.

Synthetic rubber, which is planned to be produced at the facility is an environmentally-friendly material, which is used in production of “green tires” and other high-performance engineering and construction applications. This chemical in tyres component improves adherence on both wet and dry roads and helps to reduce fuel consumption.