Reliance Industries has announced a joint venture with Russian petrochemicals giant Sibur for production of butyl rubber in Jamnagar, Gujarat, with a combined investment of US$450 mln (Rs 2,250 crore). RIL will hold 74.9% stake in the JV, while Sibur would own 25.1%.
To be named Reliance Sibur Elastomers Pvt Ltd, the JV will produce 1,00,000 tpa of butyl rubber, a synthetic rubber used extensively in auto and other sectors. The joint venture would invest US$ 450 mln to construct the manufacturing facility in Jamnagar, which is expected to be commissioned by mid-2014.
The JV would be the first manufacturer of butyl rubber in India and could become the world's fourth largest supplier. RIL and Sibur have also signed a technology license agreement facilitating use by the JV of Russian company's proprietary butyl rubber production technology at the new plant. Sibur would develop the basic engineering design for the facility and also train the JV staff at its own plant in Russia.
22-Feb-12 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}