RIL and SIBUR Embark On The Construction Of Butyl Rubber Plant In Gujarat
Filed Under: Business | Posted: 02/25/2013 at 4:42AM
Comments | Region: India
Reliance SIBUR Elastomers Private Limited (RSEPL) has initiated the construction of their new butyl rubberplant in Jamnagar, Gujarat. RSEPL is a joint venture between Reliance Industries Limited, India ‘s largest private sector company and SIBUR, a Russian controlled companythat caters to a spectrum of services in the petrochemical segment including gas processing, production of monomers, plastics and synthetic rubbers and processing of plastic.
The project when commissioned in 2015 will mark the set –up of the only plant in the country to manufacture butyl rubber and the joint venture will be deemed as the world’s leading five butyl rubber manufacturers. This Jamnagar plant is estimated to have a production capacity of 100,000 tonnes, on an annual basis.
The attendees at the ceremony included Dmitry Konov, CEO of SIBUR, Mr. Alexy V Novikov, Consul General, Mr. Nikhil Meswani, Executive Director of Reliance,other key members of both the companies (RIL and SIBUR) and a number of public officials. Speaking at the event, Mr. Nikhil Meswani, Executive Director, RIL stated that Reliance is pleased to be a part of the select group of international Butyl rubber producers. Optimistic about the development, he added that with India making tremendous progress in the automotive segment and emerging to be an auto hub on the global sphere, it has a huge market for these products and the conglomerate will aim to meet these growing needs.
In agreement, Mr.Konov mentioned that India is presently one of the largest petrochemical markets in the world, considering the colossal investments made in infrastructure that has paved the way for rising demand. He added that SIBUR’s technologies joining hands with Reliance Infrastructure and resources, would build a facility that will competently fulfill the demand for butyl rubber, in the Asian market.
RIL and SIBUR inked the technology licensing agreement that permits the use of butyl rubber producing technology owned by the latter at the new facility. The agreement also allows advancement of a Basic Engineering Package (BEP) and provision of skilled technical personnel with hands on experience, during the project and operational stages. RIL will shoulder provision of monomer and offering sophisticated infrastructure solutions and facilities. While RIL has 74.9%ownership of the joint venture, SIBUR owns the remaining 25.1%.
Until date, the project has developed as per the schedule wherein the BEP was completed in November2012 and Detailed Engineering is on the move. Currently, RSEPL is looking for long lead equipments.