Russian oil group Lukoil (Moscow; www.lukoil.com) says it will begin producing S-PVC in Kalush / Ukraine in the third quarter of 2010. Local media report that Serhiy Chmykhalov, managing director of Lukoil subsidiary Karpatnaftochim (Kalush / Ukraine; www.knh.com.ua) – which will be running the plant – announced the start-up of the 300,000 t/y line at a press conference held in March. In the initial stages of planning, production had been set to commence in 2009 – see Plasteurope.com of 26.09.2006.

The line, which reportedly cost Lukoil USD 234m in investments, is expected to generate a profit for the oil group in 2011. Media reports indicate that the Russian conglomerate is also planning to set up a PVC window profile processing plant in Kalush.

Crippled by the financial crisis, Ukraine’s building and construction industry shows no signs of recovery yet. A German consultancy to Ukraine, Deutsche Beratergruppe (www.beratergruppe-ukraine.de), reports of inadequate financing structures and a residential construction sector still reeling under the credit crunch