Russia and Eastern Europe's largest petrochemical company SIBUR and India's largest private company Reliance Industries Limited (RIL) have agreed to form a joint venture named Reliance Sibur Elastomers Private Limited to produce 100,000 tonnes of butyl rubber per year in Jamnagar, India, says the official press reliease.
The joint venture will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber in the world.
The JV will meet demand for synthetic rubber from the Indian automotive industry, whose current requirement for more than 75,000 tonnes per year is satisfied by imports.
Reliance Industries will own 74.9% of the JV with SIBUR 25.1%. The JV will invest US$450 million to construct the production facility, which is expected to be commissioned in mid-2014.
RIL and SIBUR also signed a technology licence agreement facilitating use of SIBUR's proprietary butyl rubber production technology at the new facility. SIBUR will develop basic engineering design for the facility and also train the JV’s personnel at its production site in Togliatti, Russia.
Author: Irina Fomina