State-owned Indian Oil Corp (IOC) plans to partner with Marubeni Corp and Taiwan's TSRC Corp to invest Rs 900 crore in a Styrene Butadiene Rubber (SBR) plant at Panipat. The SBR would produce high quality synthetic rubber used in the manufacture of automotive tyres, conveyors and fan belts. Planned to be complete by September 2012, the SBR unit will have capacity to produce 1,20,000 tpa of synthetic rubber from butadiene, to be sourced from IOC's naphtha cracker at Panipat. The plant has been planned to benefit from rising domestic demand from the automotive sector. IOC will hold 50% stake in the venture, TSRC will hold 30%, while Marubeni will hold the balance 20% stake.
India’s current SBR domestic requirements are met solely through imports. The new SBR unit at Panipat will lead to import substitution and value addition to the intermediate streams of IOC's Panipat Naphtha Cracker Complex.