Reliance Industries today announced a joint venture with Russian petrochemicals giant Sibur for production of butyl rubber in Jamnagar,Gujarat,with a combined investment of USD 450 million (about Rs 2,250 crore). The JV would be named Reliance Sibur Elastomers Pvt Ltd and would annual produce one lakh tonnes of butyl rubber,a synthetic rubber used extensively in auto and other sectors. RIL would have a 74.9 per cent stake in the JV,while Sibur would own 25.1 per cent. The joint venture would invest USD 450 million to construct the manufacturing facility in Jamnagar,which is expected to be commissioned by mid-2014. The JV would be the first manufacturer of butyl rubber in India and could become the world's fourth largest supplier,industrialist Mukesh Ambani-led Indian corporate giant said in a statement. The company would cater to the demand for synthetic rubber from Indian automotive industry of over 75,000 tonnes a year,which is currently met through imports. RIL said it would aim at emerging as a significant player in the global synthetic rubber market. RIL and Sibur have also signed a technology license agreement facilitating use by the JV of Russian company's proprietary butyl rubber production technology at the new plant. Sibur would develop the basic engineering design for the facility and also train the JV staff at its own plant in Russia. Sibur is the largest petrochemicals company in Russia and Eastern Europe and also figures among the top-two European synthetic rubber producers.
