The Financial Express reports, “Reliance Industries has joined hands with Russia’s Sibur to set up a butyl rubber manufacturing plant in Gujarat. The agreement would be highlighted during Russian President Vladimir Putin’s visit to India, starting Wednesday, said Russian Ambassador to New Delhi Alexander Kadakin.
At present, the Mukesh Ambani firm has a polybutadiene rubber (PBR) plant in Vadodara that produces about 80,000 metric tons per year. The firm, announced in 2012 that it has joined hands with Russia’s Siburo set up a butyl rubber manufacturing plant in Gujarat. Sibur and RIL entered into a joint venture arrangement in February 2012. Jointly owned company Reliance Sibur Elastomers Private Limited was then set up, in which the group owns a 25.1 percent stake. This joint venture was established for the development of a butyl rubber production facility in Jamnagar with a capacity of 120 ktpa.
The project is currently at the design and procurement stage and the construction works are expected to be completed by the end of 2016. India is now seeing a wave of tenders for new petrochemical processing technology held by major players, ONGC and GAIL, among others. Demand for products is growing as the industry is developing, and India will soon need to increase its imports, sources said.
India is the world’s fourth largest consumer of elastomers after China, the U.S. and Japan, and demand in China and India is growing at a faster rate than in America where it remains stable. Demand for synthetic rubber in India has more than doubled over the last few years, according to market analysis.”