MOSCOW—Rosneft, Pirelli S.p.A. and Synthos S.A. have signed a memorandum of understanding (MoU) to study the creation of a synthetic rubber joint venture as part of the three companies' investment in a plant in Nakhodka, Russia.
According to a Rosneft news release, the three parties took a step closer to finalizing the feasibility study for the synthetic rubber plant construction with officials from the companies signing the MoU in Verona, Italy.
The signed memorandum, said Rosneft, confirms the possibility of the creation of a joint venture between Rosneft and Synthos in synthetic rubber production in Nakhodka, and the implementation of joint research and development with Pirelli in the area of tire materials.
The document also outlines the potential for Pirelli to become the key customer of synthetic rubber in line with a memorandum signed between Rosneft and the tire maker in May 2014.
The MoU also calls for the approval of the feasibility study of the project.
The proposed rubber plant is part of Rosneft's FEPCO petrochemical project, which plans to use the Russian far eastern port of Nakhodka, near Vladivostok, for access to high margin markets of the Asia-Pacific region.
“The agreement will allow us not only to build the most advanced synthetic rubber plants … but also to successfully supply Chinese and other Asian automotive tire markets for years to come,” Rosneft chairman Igor Sechin said in a statement.
“Pirelli's involvement in the process of developing this advanced regional production hub, both on the R&D side and eventually as a key customer, underlines our belief in and commitment to the entire Russian market,” added outgoing Pirelli vice chairman Marco Tronchetti Provera.