Sinopec to acquire 25 per cent stake in Sibur

BEIJING, CHINA: Sinopec International (Hong Kong) Co Ltd, a subsidiary of Sinopec, has agreed to acquire a 25 per cent stake in Russian petrochemical company Sibur’s rubber plant in the Russian city of Krasnoyarsk. The additional share will give Sinopec International (Hong Kong), a right to veto in corporate business such as increases of corporate assets and changes of corporate executives.

Named as Krasnoyarsk Synthetic Rubber Plant, the plant is able to produce 42,500 tonne of nitrile rubber each year. Both parties are considering the possibility of increasing the production capacity of nitrile rubber to 56,000 tonne each year upon establishment of the joint venture. The deal is still subject to the approval of the Chinese and Russian governments.

The two firms are also in talks to set up a joint venture to produce nitrile as well as polyisoprene rubber in Shanghai. The two sides predicted the output of each material could reach 50,000 tonne annually.

© Xinhua News