Titan-Polymer Plant will be constructed using funds from one of the largest banks of Russia

Titan-Polymer Ltd (is included in Group of companies Titan) and Gazprombank have signed a Project Financing Agreement for the construction in Pskov region of the biaxially oriented polyethylene terephthalate film (BOPET) production plant with a capacity of up to 72 thousand tons per year and polyethylene terephthalate granules (PET) pellet production plant with a capacity of up to 210 thousand tons per year.

BOPET films are widely used all over the world, first of all in the food industry, electrical engineering, and in flexible packaging production. PET is also required in mechanical engineering, light industry, pharmacology as packaging for medicines, dietary supplements, vitamins. This polymer has found its application in medicine. These are, for example, surgical sutures, endoprostheses, heart and blood vessel valves, personal protective equipment: masks, suits, protective shields.

The project with a total value amounted to 16.7 billion rubles is being implemented with the involvement of funds from the Industrial Development Fund. Within the framework of the loan agreement the financing volume amounts to more than 12.8 billion rubles for a period of 10 years.

The project is being implemented based on the project financing principles and involves the provision of loans against a guarantee of future cash flows.

“We are pleased to be a partner of one of the largest banks in the country - Gazprombank. We are proceeding strictly in accordance with the project implementation plan. At present, contracts have been signed with the basic suppliers of equipment for the BOPET film production, advance payments have been paid. The Titan-Polymer Plant is needed not only for Pskov region. The whole country needs it. On the territory of the Moglino Special Economic Zone the production facilities will be created, meeting the highest standards. For the first time a manufacturer of special-purpose copolymers will appear in Russia. The project implementation will allow to completely cover the needs of domestic industries for BOPET and PET products. We are grateful to our financial partners for the project support,” remarked Mikhail Sutyaginsky, Chairman of the Board of Directors of the AO GC Titan.

Gazprombank has been cooperated with the Group of companies Titan for two years. The bank is already financing the project regarding the modernization of phenol and acetone production facilities, as well as the organization of the production of isopropyl alcohol based on Omsky kauchuk Plant. We highly appreciate the participation in the Group’s strategic projects, and we plan to continue supporting the implementation of a large-scale investment program, including in terms of import substitution. It should be added that in the pandemic conditions, the production of personal protective equipment, components for which are supplied by Titan-Polymer is of particular importance,” - said Aleksey Belous, Deputy Chairman of the Management Board of Gazprombank.

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