NOVATEK-Polimer is the core subsidiary in our industrial manufacturing business segment and one of the largest Russian producers of anti-corrosive insulating materials used on underground pipelines in the oil and gas industry. It produces more than a dozen types of polyethylene based insulating tape, including polymer tape and wrap, heat-shrinkable tape and sleeves to protect welded pipe joints.
 

In June 2005, we commissioned a modern BOPP (Biaxially Oriented Polypropylene) Film plant for the production of film wrap, which is widely used as a packaging material in the food, tobacco, perfume, pharmaceutical and textile industries.
 

At present, sales of cold applied tape are decreasing while the demand for heat- shrinkable tape is continuing to grow in line with the overall trend on the insulation materials market. In 2009, insulation materials production volumes decreased by 26% due to the changes in timing of capital projects for the domestic oil and gas industry and the general decline in industrial output during the period. The main consumers of our insulation materials are Russian oil and gas producing companies while our polymer products are exported to Uzbekistan and Kazakhstan.