Russian SR industry is recovering.

Manufacturing of synthetic rubber (SR) in the former USSR was one of the most advanced branches of Soviet chemical industry. In fact, in 1988 the Soviet Union produced 2.4 million metric tons of SR and was one of the largest producers in the world, on a level with the U.S., which was consuming a big amount of natural rubber (NR) and significantly reduced the amount of SR production since the mid-1970s.

Production of SR had a great strategic importance for the independence and economy of the USSR. The Soviets did not have convertible currency to buy NR and started production of the desperately needed SR before the start of World War II. A similar goal of supplying themselves with rubbers, the U.S. solved its rubber shortage by building a powerful SR industry during 1941-1943 during WWII.

The International Institute of Synthetic Rubber Producers (IISRP) gives mainly correct data on Russian SR production regarding total capacities and the past production for each specific rubber.

The principal structural particularity of the Russian SR industry is a great concentration of the capacities in only thirteen commercial plants. The five biggest plants located in the cities of Nizhnekamsk, Togliatti, Sterlitamak, Voronezh and Efremov can produce more than 1.7 million metric tons of SR for about $400-$1,100 each.

The second distinguishing feature of SR industry in Russia is the self-provision with most of the plants producing both monomers and rubbers at the same facility. Main exemptions are monomers made as by-products of cracking of hydrocarbons in ethylene production, and styrene and [Alpha]-methylstyrene monomers.

Built after World War II, new modern plants are geographically located in the river basin of Volga, near the resources of petrochemical raw materials (Tatar and Bashkir Republics) and close to the energy and water source. Older plants are located in the Central European part of the country. Two plants were built in Siberia. The city of Omsk produces mainly SBR, and the city of Krasnoyarsk is the only Russian producer of nitrile rubber.

The only two plants that are not located in Russia are the sole plant for the production of polychloroprene rubber in the city of Erevan, Armenia, and SBR and butyl (IIR) rubber facilities in the city of Sumgait, Azerbaijan.

In the mid-1980s, more than 50% of tires in the USSR were tires for light and heavy tracks. Tables 1 and 2 illustrate the trends of change in the situation - a relative growth of the number of passenger cars and tires, respectively, comparing to trucks and their tires. The present situation reflects changes in the social structure of the nation - a remarkable increase of the number of private passenger cars, and decrease of the number of industrial trucks, owing to the weakness of the economy.

Table 1 - Russian tire production (million sets)

                      1990    1992    1994    1996    1998    1999

Tires total             48      41      21      23      26      28
Car and light truck     17      17      11      14       6      19
Heavy truck             20      17       8       9       8       9
Table 2 - yearly vehicle production and vehicles in use (thousands)

                  1990      1992     1994     1996     1998   2000(*)

Cars and light
 truck
Production       1,100       960      800      870      840     1,100
On road          8,900    10,500   12,900   15,800   18,800    21,000
Heavy trucks
Production         665       580      180      130      140       155
On road                  No data

(*) Forecast based on 1st quarter data

This structure of the fire industry has determined the share of each type of robber in total production depending on application. In the record 1988, polyisoprene constituted 40% of total rubber output at 987,000 mt, SBR 27.5% at 670,000 mt and polybutadiene 15% at 370,000 mt. The share values are keeping up now, as dictated not only by internal demand, but by trade with other countries as well. International demand increased production of butyl robber from 54.4 mt in 1988 up to 94.5 mt in 1999. In butyl rubber production, Russia overcame the designed capacities by as much as 50%.

The Togliatti butyl plant uses the original technology of polymerization in an aliphatic solvent, not in commonly used chloromethane. This technology has definite advantages for the production of halogenated IIR

It should be underlined that for many years Russia was supplying the leading European tire producers with PI, PB, SBR and butyl rubber. In 1999, Russia sold about 45% of all produced rubbers, or approximately 300,000 mt. That constituted about 3% of total world SR consumption.

Russia is selling more than a thousand tons per year of isoprene monomer for rubber and TPE production.

Table 3 contains the updated information about the current status of the SR industry in Russia as a whole and broken into individual plant productions.

Table 3 - yearly synthetic rubber production (thousand tons)

         1990    1992   1994   1996   1998   1999   2000(*)

Total   2,158   1,611    632    775    619    733       800
SBR       542     413    164    203    143    203       200
PB        365     249    109    155    119    119       120
PI        891     676    233    283    221    256       300
Other     360     273    126    134    136    155       180

(*) Forecast based on 1st half-year data

Table 3 shows how dramatic failure of SR production resulted from the overall economy crisis in the 1990s. Thus, in 1994, Russia produced only 25% of the record production of 1987. A slight recovery in 1996 and 1997 was interrupted by August's collapse of the bank system. However, positive changes in the economy, particularly systems and policies resulting in a lower cost of petrochemical raw materials and energy resources, noticeably stimulated the internal market. The rate of the anticipated growth in 2000, based on the results of the first half of the year, is about 10%.

The decrease of the value of Russian currency caused an increase of the profitability of the import from Russia.

Stabilization of the political structure and the reform of the taxation system in Russia provide hope that positive trends will convert into a stable recovery.

But even so, with 10% annual growth, in 4-5 years Russia might produce not more than half of its record production. It means that the facilities built for production of 1.2 mmt SR are available and can be involved in production after a limited renovation and repair.

A transfer to the market economy significantly changed the structure of the production of monomers. Power-intensive technology of the butadiene and isoprene synthesis by two step dehydrogenation and one step dehydrogenation of butadiene was stopped or limited to plants with subsidized price of energy resources.

Synthesis of isoprene from isobutane and formaldehyde was realized, based on the original technology with improved data of raw material and energy consumption.

It should be noted that Russia has a diversified SR industry and developed production of many types of rubbers including silicone, urethane, thiokol, low molecular weight functional polymers, including hydroxyl and carboxyl terminated polybutadiene, epoxy, etc. The Russian fluoroelastomer and fluoromonomer industry has a strong collaboration with DuPont and other leading chemical companies.

In spite of hard times, Russia continues developing new polymers and technologies. The Nizhnekamsk plant started the production of ethylene-propylene solution rubber. This plant tested the possibility of one-step dehydrogenation of isopentane into isoprene using the equipment for the butadiene production. The Nizhnekamsk and Togliatti plants are working on the production of chloro- and bromo-IIR. The Togliatti plant is developing a new technology using not the molecular chlorine, but its non-toxic derivatives.

A new giant plant for petrochemistry was built in Tobolsk, Siberia, near the sources of oil. Production of MTBE is on stream, and the facilities for IIR and a variety of monomers are coming.

The Russian SR industry may require technical collaboration with the U.S. or other countries concerning certain needs. One area is the replacement of titanium catalysts in polybutadiene, which produces a significant amount of volatile toxic oligomers, by nickel or cobalt catalyst. Russia does not have solution SBR technology. Unlimited possibilities of monomer and additives trade exist as well.

Tire and technical rubber goods industries can provide facilities for mixing and compounding of up to one million mt of rubber per year. It is noteworthy that these facilities have mostly relatively modern European equipment and qualified personnel.

Dr. Valentin V. Sazykin worked as Chairman of the All Soviet Union Synthetic Rubber and Organic Chemistry Department of Chemical and Petrochemical Ministry. Now Dr. Sazykin is Chairman of the Russian Association of SR Manufacturers and Chairman of Russian Union of Chemists, an analog of ACS. Dr. Arkady S. Estrin was a leading SR and polymer industrial chemist in the former Soviet Union with the main emphasis of polydienes technology. He currently lives in the U.S. and authored the book "The Synthetic Rubber Industry in the USSR."