Sibur, Reliance sign Butyl plant deal

ERJ staff report (DS)

New Delhi -- Sibur Holding and Reliance Industries Limited (RIL) have formalised their proposed joint venture to make butyl rubber in India by announcing a RIL-controlled joint venture company.

The joint venture facility will have an initial capacity of 100,000 tons of butyl rubber at RIL's integrated petrochemical site in Jamnagar, India and is expected to be commissioned by 2013. The project has a value of some $450 million.

Initially the unit will make only conventional butyl rubber (Isoprene-isobutylene rubber), but is expected to add an halogenation unit in the future to make bromo-butyl and chloro-butyl.

Sibur will provide its proprietary technology for butyl rubber polymerisation and finishing, while RIL will supply monomers and provide the JV with world-class infrastructure and utilities. RIL will have a majority stake in the joint venture.

Commenting on this development, Mr. N. R. Meswani, Executive Director, RIL, said “The setting up of domestic manufacturing of butyl rubber will fulfil a long standing demand of the Indian tyre and rubber industry and this investment is part of Reliance's vision of emerging as a significant global payer in the synthetic rubber business.”

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