Reliance Industries Limited (RIL) and Russia’s largest petrochemical company SIBUR, are venturing in a butyl rubber plant in Jamnagar in the next six months.
The joint venture of the two companies was formed earlier this year, but the project was already announced in 2010 when Russia’s Former President Dmitry Medvedev went for a visit to India. RIL will hold 74.9% of the joint venture while SIBUR will hold a 25.1% share.
RIL will be responsible for the construction of the plant while SIBUR will account for the technology, which it will implement in the plant, as well as train the workers.
The plant that will be constructed in Jamnagar will be launched in mid-2014 with the target production capacity of 100,000 tpa. 75,000 tonnes of the production will be sold in the domestic market while the others might be exported to overseas countries, particularly in Asia, where there is a high demand for butyl rubber.
The two companies are investing US $450 million but is anticipating a turnover of US $700 million.
RIL will be the first company in India to manufacturer butyl rubber in the country. (RJA)
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