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RIL to form JV with Sibur of Russia to produce butyl rubber in India
Mumbai, February 21, 2012
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Oil, gas and petrochemicals major Reliance Industries Limited (RIL) today said it had agreed to form a joint venture (JV) with Sibur, Russia and Eastern Europe's largest petrochemicals company to produce 100,000 tons of butyl rubber per year at Jamnagar in Gujarat.
The JV, named Reliance Sibur Elastomers Private Limited, will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber in the world.
The JV will cater to the demand for synthetic rubber from the Indian automotive industry of over 75,000 tonnes per year, which is currently satisfied by imports. Investment in the JV is in line with Reliance’s vision of emerging as a significant player in the global synthetic rubber market, a press release from the company said.
Reliance share in the JV will total 74.9%, while Sibur will account for 25.1%. The JV will invest $ 450 million to construct the facility, which is expected to be commissioned in mid-2014.
Reliance and Sibur also signed a technology licence agreement facilitating use by the JV of Sibur's proprietary butyl rubber production technology at the new production facility.
Sibur will develop basic engineering design for the facility and also train the JV’s personnel at its production site in Togliatti, Russia.
NNN
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