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RIL forms $ 450 MN Rubber JV With Russia's Sibur

  • Reliance Industries today announced a joint venture with Russian petrochemicals giant Sibur for production of butyl rubber in Jamnagar, Gujarat, with a combined investment of USD 450 million (about Rs 2,250 crore).
  • The JV would be named Reliance Sibur Elastomers Pvt Ltd and would annual produce one lakh tonnes of butyl rubber, a synthetic rubber used extensively in auto and other sectors.RIL would have a 74.9 per cent stake in the JV, while Sibur would own 25.1 per cent.
  • The joint venture would invest USD 450 million to construct the manufacturing facility in Jamnagar, which is expected to be commissioned by mid-2014.
  • The JV would be the first manufacturer of butyl rubber in India and could become the world's fourth largest supplier, industrialist Mukesh Ambani-led Indian corporate giant said in a statement.
  • The company would cater to the demand for synthetic rubber from Indian automotive industry of over 75,000 tonnes a year, which is currently met through imports. RIL said it would aim at emerging as a significant player in the global synthetic rubber market.
  • RIL and Sibur have also signed a technology license agreement facilitating use by the JV of Russian company's proprietary butyl rubber production technology at the new plant.
  • Sibur would develop the basic engineering design for the facility and also train the JV staff at its own plant in Russia.
  • Sibur is the largest petrochemicals company in Russia and Eastern Europe and also figures among the top-two European synthetic rubber producers.

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