Sibur, Reliance JV to meet India’s synthetic rubber needs
The biggest petrochemical company in Russia and Eastern Europe has entered into a joint venture with India’s largest private company to produce butyl rubber. On 21 February Sibur and Reliance Industries Limited jointly announced their intention to establish a facility in Jamnagar, India capable of producing 100,000 tonnes of the substance per annum. The plant will be operated by the joint venture company Reliance Sibur Eleastomers Private Limited, which will be India’s first butyl rubber manufacturer and the world’s forth largest supplier.
The joint venture is expected to meet the Indian automotive industry’s demand for synthetic rubber, which at present stands at more than 75,000 tonnes a year and is satisfied by imports. Reliance Industries will own 74.9 per cent of the joint venture and Sibur 25.1 per cent. A total of US$450 million is to be invested in building the production facility, which is expected to be commissioned in mid-2014.
Reliance and Sibur have also signed a technology licence agreement facilitating the use of Sibur’s proprietary butyl rubber production technology at the new facility. The Russian firm will develop basic engineering design for the facility and also train the joint venture’s personnel at its production site in Togliatti, Russia.
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