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 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.
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.
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.
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.”