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Paraxylene supplies to Polyef to commence in the second half of July

According to Selena Group press service, the company petrochemical division and Bashkortostan paraxylene producers have successfully completed negotiations on the feedstock supplies to Polyef. Selena Neftekhim, a member of Selena Group, converts large amounts of crude oil at three Ufa-based oil refineries (Novoil, Ufimski Oil Refinery and Ufaneftekhim), with Ufaneftekhim accounting for the larger part of paraxylene produced. Since Ufaneftekhim produces paraxylene based on the tolling agreements from the raw materials owned by Selena Neftekhim Ltd., the preliminary paraxylene supply agreement was signed directly between the Polyef plant and Selena Neftekhim Ltd. The contract provides for delivering up to 12,000 tonnes of paraxylene per month for the period of 5 years.

Polyef needs about 12,000 tonnes of paraxylene and 1,000 tonnes of acetic acid per month to produce terephthalic acid. Totally, there are 15 components needed for terephthalic acid manufacturing.

JSC Polyef is the only Russia producer of terephthalic acid. In March 2005, Selena Plant Ltd, a member of Selena Group, bought JSC Polyef though a privatization bidding. The Polyef plant is expected to become operational in October this year, but deliveries of 7,000 tonnes of paraxylene will begin in the second half of July to accumulate appropriate amount. Special facilities are built at Polyef to store paraxylene.

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