Reliance and Sibur form butyl rubber JV
Mar 28 2012, 16:19 | By Moneycontrol.com
Reliance\'s JV with Sibur will manufacture butyl rubber that is currently satisfied by imports.
Image: SME Mentor
Sibur, the Russian petrochemical company, and Reliance Industries Limited (Ril), formed a joint venture, Reliance Sibur Elastomers Private Limited, which will produce 100,000 tons of butyl rubber per year in Jamnagar. The butyl rubber will be supplied to the automotive industry in India, Reliance said.
The Reliance-Sibur JV will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber in the world. It will supply over 75,000 tonnes of butyl rubber per year currently satisfied by imports. Investment in the JV is in line with Relianceís vision of emerging as a significant player in the global synthetic rubber market, Reliance said.
Reliance will own 74.9 percent, while Sibur will account for 25.1 percent. 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 bof Siburís proprietary butyl rubber production technology at the JVís new production facility. The Russian company will develop the basic engineering design for the facility and also train the JVís personnel at Siburís production site in Togliatti, Russia.
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