NEW DELHI (Dec. 22, 2010)—Sibur Holding and Reliance Industries Ltd. have formalized their proposed joint venture to make butyl rubber in India by announcing a Reliance-controlled joint venture company.
The joint venture facility will have an initial capacity of 100,000 tons of butyl rubber at Reliance'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 a halogenation unit in the future to make bromo-butyl and chloro-butyl.
Sibur will provide its proprietary technology for butyl rubber polymerization and finishing, while Reliance will supply monomers and provide the venture with world-class infrastructure and utilities. Reliance will have a majority stake in the joint venture.
Reliance Executive Director N. R. Meswani said the project will fulfill a long standing demand of the Indian tire and rubber industry.