MOSCOW—Pirelli & C. S.p.A. and Russia's Rosneft Oil Co. have selected Synthos S.A., a Polish chemical raw materials producer, as their technological partner for a synthetic rubber joint venture they're establishing in far western Russia on the Sea of Japan.
Pirelli, Rosneft and Synthos have signed a memorandum of understanding to conduct feasibility studies into the research, production and supply relating to synthetic rubber in Nakhodka, Russia, in the context of the Far East Petrochemical Co. (FEPCO) petrochemical cluster, a Rosneft subsidiary.
Among the activities covered will be engineering design requisites and the operation of the plant, market studies, investments and estimates of operating costs, Pirelli said. The three groups also expressed their intention to use the FEPCO petrochemical cluster to produce SR for supplying, among others, Pirelli plants in the Asia-Pacific region.
The SR to be produced in Nakhodka is of particular interest, Pirelli said, as it is considered an eco-friendly material used in the production of “green tires,” which offer fuel efficiency and grip in both wet and dry conditions.
Synthos describes itself as one of the largest producers of chemical raw materials in Poland, with capacities for emulsion synthtic rubber and polystyrene. The company was established out of the merger of Firma Chemiczna Dwory S.A. and Kaucuk a.s. and operates SR plants in Oświęcim, Poland, and Kralupy, Czech Republic.
Financial terms were not disclosed.
Pirelli and Rosneft first agreed to work together in the SR field in January 2013, agreeing then to partner with Russian petrochemical concerns to conduct joint research and development into SR in Armenia, in part to support its growing tire manufacturing activities in Russia.
They followed that up in May 2014 with talks regarding possible participation in the Far East Petrochemical project in Nakhodka, a port city on the Sea of Japan.