Delhi (India) 21.12. 2010.
In the framework of the official visit of President of Russia Dmitry Medvedev to India, India's biggest private sector firm «Reliance Industries Limited» and the leading Russian petrochemical holding Sibur announced the signing of agreements to establish a joint venture for the production of butyl rubber, which will be based in India.
The initial annual capacity is 100,000 tons of butyl rubber a year, which will be produced in the petrochemical complex of «Reliance» in Jamnagar, India. The plant is scheduled for commissioning in 2013. The total investment in the project is estimated at approximately U.S. $ 450 million. In the first phase the plant will produce regular butyl rubber, but later and is expected to produce special grades of butyl rubber. SIBUR will provide proprietary technology of production and allocation of butyl rubber. «Reliance», in turn, will provide the joint venture with raw materials and infrastructure that meets international standards. Reliance will receive a majority stake in the joint venture.
"We are satisfied with the dynamics of the process of the joint venture and look forward to the imminent start of construction — said SIBUR President Dmitry Konov. — SIBUR has unique technologies for the production of synthetic rubber, which in partnership with Reliance will meet the growing needs of the Indian tire industry in high-quality raw materials. "
SIBUR is the largest petrochemical company in Russia and Eastern Europe. Production chain of the company covers gas processing, production of plastics, synthetic rubber, nitrogen fertilizers, tires and rubber products, as well as the processing of plastics. In 2009, SIBUR plants processed more than 16.8 billion m3 of associated gas and produced over 15 million tons of petrochemical products. Revenue SIBUR in 2010, is projected to reach more than 220 billion rubles (more than $ 7 billion).
About «Reliance Industries Limited»:
«Reliance Industries Limited» is the largest private sector company in India in all the main financial indicators: turnover — 44.6 billion U.S. dollars, operating profit — 6.2 billion U.S. dollars, net profit — 3.6 billion U.S. dollars. The company's capitalization is estimated at 30.6 billion U.S. dollars (as of March 31, 2010).