Sibur, Reliance Industries Enter Butyl Rubber JV

India’s Reliance Industries Ltd. and Russian petrochemical company Sibur have signed a Memorandum of Understanding (MoU) to establish a joint venture in India to produce butyl rubber at Reliance’s integrated petrochemical site in Jamnagar, Gujarat state. According to the MoU, Sibur will provide proprietary technology for butyl rubber polymerisation and its finishing, while Reliance will supply monomers and provide the infrastructure and utilities for the venture.

“The creation of new capacity in close proximity to the Asian markets provides both Sibur and Reliance with exciting opportunities. Rubber consumption in Asia has shown strong growth in recent years, triggered by increased volumes of tyre production”, said Sibur President Dmitry Konov. 

“Reliance is committed to serving the Indian rubber industry,” added a Reliance Industries spokesperson. “This industry is growing rapidly on the back of automobile demand in India and the sub-continent. This step reinforces RIL’s commitment to the synthetic rubber industry in India. It is also a significant milestone in taking forward the vision of our chairman, Mr. Mukesh D. Ambani, for the Elastomer industry.”