Jamnagar, India – A rubber joint venture between India’s Reliance Industries Ltd (RIL) and Russia’s Sibur has taken one step closer to start-up with the securing of a long-term loan.
Reliance Sibur Elastomer Pvt Ltd secured a $330 million (€292-million) loan to part finance the capital expenditure to set up what RIL described as India’s first butyl rubber plant in Jamnagar, Gujarat.
In a 9 Sept regulatory filing with the National Stock Exchange of India, RIL said that the loan’s tenure was 10 years.
The ‘mandated lead arrangers’ for the facility, according to the filing, were the Bank of Tokyo-Mistubishi UFJ, Credit Agricole Corp. and Investment Bank, DBS Bank, State Bank of India and Sumitomo Mitsui Banking Corp.
Reliance and Sibur set up the rubber JV in 2013 with the Indian company holding a majority equity stake of 74.9 percent in the business.
Construction work is on-going at the rubber plant, which will have a production capacity of 120 kilotonne per annum (ktpa).
The completion of the facility is closely linked to the start-up Jamangar 3 (J3) steam cracker – part of Reliance’s major petrochemical project.
Reliance, ERJ has learnt, is close to completing the petrochemical project.
“J3 has numerous units. The first (benzene recovery unit) was launched in June. Now the ramp up works are being implemented,” a source close to the project explained to ERJ.
In Sept-Oct, the source added, RIL is expected to launch production of paraxylene.
The construction of the rubber plant, according to ERJ source, will be on schedule. No specified date has, however, been given for completion of the project.
The J3 cracker, which will provide feedstock for the rubber plant, is likely to be launched “by the end of the year or maybe in March 2017,” the project observer explained.