RIL ropes in Russia's Sibur for 1 lakh tonne butyl rubber JV
21 February 2012
Reliance Industries Limited (RIL) and Sibur, the largest petrochemical company in Russia and Eastern Europe, will jointly set up a 100,000 tonnes per annum butyl rubber venture in Jamnagar, Gujarat.
The joint venture, to be 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, RIL said in a release today.
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. Reliance expects to emerge as a significant player in the global synthetic rubber market, the release said.
Reliance will hold a majority 74.9 per cent stake in the JV while Sibur will account for the remaining 25.1 per cent.
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 Sibur's production site in Togliatti, Russia.