Reliance Industries (RIL) and Russian petrochemical company Sibur haves announced a joint venture for the production of butyl rubber in India. The joint venture facility will have an initial capacity of 100,000 tons of butyl rubber at RIL’s integrated refining-cum-petrochemical site in Jamnagar. The project is expected to be commissioned by 2013 at an estimated investment of US$450 mln. Sibur will provide its proprietary technology for butyl rubber polymerisation and finishing, while RIL will supply monomers and provide the JV with world-class infrastructure and utilities. RIL will have a majority stake in the joint venture.
Initial production will comprise regular butyl rubber, and is expected to manufacture other types of butyl rubber specialities in the future. Commenting on this development, NR Meswani, Executive Director, RIL, said “This is a significant step towards Reliance’s commitment to service India’s growing automotive sector by bringing in complex technologies,... available with only a very few companies globally. The setting up of domestic manufacturing of butyl rubber will fulfill a long standing demand of the Indian tyre and rubber industry and this investment is part of Reliance’s vision of emerging as a significant global payer in the synthetic rubber business We are satisfied with the dynamics of the creation of the joint venture and hope to begin construction soon,” said Sibur’s President Dmitry Konov commenting on the joint venture.
“Sibur has unique technologies for the production of synthetic rubber, which in partnership with Reliance will cater the growing needs of the Indian tyre industry with high-quality raw material.”