A joint venture between Russian petrochemicals giant Sibur and Reliance Industries, India’s largest private sector company, has begun building a 100,000 tpa butyl rubber plant in India.
The two groups formed a joint enterprise, Reliance Sibur Elastomers Private Ltd. (RSEPL) a year ago with the intention of constructing the new plant on Reliance group’s existing industrial site in Jamnagar, India.
This month, the partnership hosted an official ground-breaking ceremony on site attended by Sibur CEO Dmitry Konov and Reliance executive director Nikhil Meswani. A basic engineering package was completed in November 2012 and detailed engineering in currently underway, Sibur reported.
RSEPL is placing orders for long-lead time equipment and the partners have a tentative plan to launch commercial production at the new plant in 2015, said Last year, the venture talked of getting the plant on stream in mid-2014.
Last year, the partners signed a technology licence agreement under which Sibur will provide the Indian facility with its butyl rubber technology. Reliance will provide the venture with monomer and its infrastructure and utilities.
“Sibur’s unique technology and many years of engineering expertise in butyl rubber production, combined with our partner’s resource capabilities , effective platform and understanding of the market will enable the JV to win leading positions in the sector in India and other Asian countries,” Konov commented at the ceremony.
The $450m (€343m) project will create India’s leading butyl rubber producer and one of the world’s biggest suppliers. The venture is targeting India’s blooming automotive sector which last year consumed around 75,000 tpa of the synthetic rubber, all of it imported.
Moscow-based Sibur holds a 25.1% equity stake in RSEPL while Reliance Industries owns the majority 74.9% share.