Sibur and RIL form JV to produce butyl rubber in India

According to the companies, the JV will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl rubber in the world. The JV will meet demand from the Indian automotive industry, whose current requirement for more than 75,000 t/y is satisfied by imports. RIL will own 74.9 % of the JV with Sibur 25.1 %. The JV will invest USD 450 million to construct the production facility, which is expected to be commissioned in mid-2014.

Both partners also signed a technology licence agreement facilitating use of Sibur's proprietary butyl rubber production technology at the new facility. Sibur will develop basic engineering design for the facility and also train the JV’s personnel at its production site in Togliatti, Russia.

RIL is said to be India’s largest private sector company with a turnover of approximately USD 58.0 billion as of 31 March 2011. Sibur is said to be the largest petrochemical company in Russia and Eastern Europe as well as one of the top two European synthetic rubbers producers.