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Posted on Feb 22, 03:45PM | IBNS
Jamnagar, Feb 22 : Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between Reliance Industries Limited and SIBUR, on Friday began construction of their new butyl rubber plant, in Jamnagar.
The ceremony was attended by SIBUR's CEO, Dmitry Konov; Alexy V Novikov, Consul General; Nikhil Meswani, Executive Director of Reliance and senior members of SIBUR, Reliance, and public officials.
Commenting on the event, Meswani said "Reliance is excited to join a select group of global Butyl Rubber producers. India, as a fast emerging auto hub, is a vast market for these products. We look forward to serving this market."
Konov commented, "India is one of the most attractive petrochemicals markets right now due to the significant investment in infrastructure which has spurred demand. SIBUR's technologies together with Reliance's infrastructure and resources will help to establish a facility that will meet the demand for butyl rubber in Asian market."
When commissioned in 2015, the new plant will be India's only manufacturer of butyl rubber and the JV will be amongst the world's top five manufacturers of butyl rubber.
RIL and SIBUR signed a technology licence agreement facilitating use of SIBUR's proprietary butyl rubber production technology at the new facility.
The licensing package includes development of a Basic Engineering Package (BEP) and full-time provision of highly-experienced technical personnel on both project and operational stages.
RIL will supply monomer and provide the JV with world-class infrastructure and utilities.
The project is progressing as per the original schedule.
The BEP has already been completed in Nov 2012, and Detailed Engineering is underway.
At present, RSEPL is placing orders for long-lead equipment. When complete, the Jamnagar plant will have the capacity to produce 100,000 tonnes annually.
Reliance has already started market seeding butyl rubber from SIBUR in India. The response is very encouraging, said the company.
SIBUR is a uniquely positioned gas processing and petrochemicals company.
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of INR 339,792 crore (US$ 66.8 billion), cash
profit of INR 31,994 crore (US$ 6.3 billion) and net profit of INR 20,040 crore (US$ 3.9 billion) as of March 31, 2012.