Belarus has drafted a government program for the development of the petrochemicals industry to the end of 2015 and through 2020 that calls for overall capital expenditures of $17.2 billion, petrochemicals company Belneftekhim told Interfax.

This will include $9.9 billion for the development of the chemicals sector. Projects are expected to be financed with $7.2 billion in internal funds from organizations and $2.7 billion in borrowing.

Another source of financing is expected to be foreign direct investment. Negotiations are now being held with a number of international companies concerning involvement in the development of Belneftekhim organizations.

The program for the chemicals sector to 2020 includes more than 40 major investment projects. The most important include the construction of a facility to produce ammonia, methanol, hydrogen and carbamide at Grodno Azot, the overhaul of olefin production at Naftan's Polimir plant, and the construction of a polyether facility at Mogilevkhimvolokno.

There are also plans to build a plant for intensive, comprehensive processing of chloride-bearing mineral resources at Belaruskali, and set up production of radial, solid metal cord tires with rim diameter of 57" and 63" at Belshina.

This year will see the completion of major projects such as the construction of a third phase at the Krasnoslobodsky mine, and overhaul of the Karbamid-4 division at Grodno Azot. Projects scheduled for completion in 2013 include the first phase of the plant for comprehensive processing of chloride-bearing mineral resources at Belaruskali; the overhaul of caprone and cord thread production lines at Khimvolokno; construction of a granulated PA6 production line at Grodno Azot with capacity of 35,000 tonnes; and the modernization of the solid metal cord truck tire production line at Belshina, among others.

"The main emphasis in the development of the chemicals sector until on the overhaul of existing production with their expansion and construction of new production lines, including with maximum use of Belarusian raw materials," a Belneftekhim spokesman told Interfax.

The investment projects are expected to expand production capacity to 12 million tonnes per year for potassium chloride, 1.16 million tonnes for nitrogen fertilizer, and 2 million tonnes for complex NPK fertilizer. Tire production will expand by 40%, and production of film materials will triple.

Vp

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(Originally published August 10, 2012, in Russia & CIS Business and Financial Newswire.)