Mumbai (India), 21.02.2011.
The largest in Russia and Eastern Europe petrochemical holding Sibur and India’s largest private company Reliance Industries agreed to establish a joint venture «Reliance Sibur Elastomers Private Limited». Joint venture will invest $ 450 million to build a new complex for the production of butyl rubber capacity of 100 thousand tons per year in the industrial area Reliance Industries in Jamnagar (India).
It is expected that the new plant will be commissioned in mid-2014. The new complex will be the first manufacturer of butyl rubber in India and the fourth largest in the world. The new company will be focused on meeting the growing demand in India. The Indian market of synthetic rubber is currently the fastest growing in the world, is imported into the country annually to 75 million tons of synthetic rubber.
Simultaneously, with the agreement of the joint venture parties signed license agreement that provides for the use of a joint venture owned by Sibur patented butyl rubber production. SIBUR will develop the basic design of the new complex and will train the staff of the joint venture on the same operating plant in Togliatti, Samara region.
Share SIBUR in the joint venture is 25.1%, the share of Reliance Industries — 74,9%.
SIBUR (Www.sibur.ru) — a leading petrochemical company in Russia and Eastern Europe, one of the fastest growing petrochemical companies in the world, is one of three global petrochemical companies in terms of profitability on EBITDA. The company is the second largest European producers of synthetic rubber.
SIBUR covers the entire cycle from the gas processing industry to produce monomers, plastics and synthetic rubber and plastics. SIBUR is a vertically integrated company, which provides gas processing capacity of petrochemical production with own raw materials. The company has sales offices in Europe and China. The company produces more than 2,000 types of products and invested in 2011 in the development of more than 2 billion U.S. dollars.
"RelianceIndustriesLimited" is the largest private sector company in India to all the main financial indicators: turnover, 58 billion U.S. dollars, operating profit — 7.7 billion U.S. dollars, net profit — 4.5 billion U.S. dollars. The company’s capitalization is estimated at 34 billion U.S. dollars (as of March 31, 2011).
«Reliance» is the first Indian companies in the Fortune 500 largest industrial companies in the world and ranks 119th among the top 200 global companies in terms of profitability. «Reliance» occupies 68th place in the list of world’s 500 largest companies according to «FinancialTimes». «Reliance» is on the list of "50 most innovative companies in the world in 2010," according to a survey conducted by the U.S. financial publication «BusinessWeek» together with the Boston Consulting Group (BCG). In 2010, BCG Reliance awarded second place in the ranking of "sustainable value creation" for the creation of the world’s most shareholder value over 10 years.