Mumbai, India – Reliance Sibur Elastomers Private Ltd (RSEPL), a joint venture between Sibur and Reliance Industries Ltd (RIL) plan to build an halogenated butyl rubber unit at RIL’s integrated petrochemical site in Jamnagar, India, the companies said 17 Jan.
The unit would be linked to the JV’s previously announced 120 kilotonnes per annum (ktpa) butyl rubber plant at the same site. Construction work has started on this project, with commissioning targeted for 2018.
Depending on market conditions, up to 60ktpa of its total future output might be used as feedstock to produce halogenated butyl rubber at the new facility, a press statement added. The design phase is currently under way.
The halogenated butyl rubber plant will be “well-poised to capitalise on the significant surge in regional demand in tire and pharmaceutical industries,” said Nikhil Meswani, executive director, noting that Indian and International tire majors are gearing up to make capital investments of Rs. 15,000 crore (€2 billion) in India.
Demand for halogenated butyl rubber is set to show 8-10% compound annual growth rate (CAGR) over the next few years. The market, said Meswani, is being driven by a shift to tubeless tires in India and neighbouring countries, and significant investments in the manufacture of pharmaceutical closures and tank inner liners.
“India offers attractive investment opportunities given the growing local demand for synthetic rubbers and Gujarat’s favourable investment environment coupled with the well-developed infrastructure and raw material availability at a world-class Industrial site owned by RIL,” said said Dmitry Konov, chairman of Sibur.