Reliance, SIBUR JV to invest $450 million in butyl rubber production

SIBUR, President, Dmitry Konov (left) and Reliance Industries, Executive Director, Nikhil R Meswani exchanging documents in Mumbai to form the joint venture. Reliance Industries, CMD, Mukhesh D. Ambani (centre) looks on. © The Hindu

MUMBAI, INDIA: Russia, Eastern Europe’s largest petrochemical company, SIBUR and India’s largest private company, Reliance Industries Limited (RIL), will form a joint venture, Reliance Sibur Elastomers Pvt Ltd to produce 100,000 tonne of butyl rubber per year in Jamnagar, India. The JV will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber worldwide. The JV will invest $450 million to construct the facility, which is expected to be commissioned in mid-2014.

The investment is in line with Reliance’s vision of emerging as a significant player in the global synthetic rubber market. Reliance’s share in the JV will total 74.9 per cent, while Sibur will account 25.1 per cent. 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.

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