22 FEBRUARY 2013
SIBUR and Reliance Industries Limited Begin Butyl Rubber Plant Construction
Jamnagar (India), 22 February 2013. Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between SIBUR and Reliance Industries Limited (RIL), hosted the official ground-breaking ceremony for the construction of their new butyl rubber plant.
The ceremony was attended by SIBURs CEO, Dmitry Konov, and Executive Director of Reliance Industries, Mr Nikhil Meswani. Other senior members of SIBUR, Reliance, and public officials were also in attendance.
Dmitry Konov said: We are delighted that our cooperation with Reliance is consistently developing. SIBURs unique technology and many years of engineering expertise in butyl rubber production, combined with our partners resource capabilities, effective platform and understanding of the market will enable the joint venture to win leading positions in the sector in India and other Asian countries.
The plant plans to produce 100,000 tonnes of butyl rubber per year. Once commissioned it is expected the plant will become Indias primary manufacturer of butyl rubber and one of the worlds largest suppliers.
RSEPL was established in February 2012 to build a plant for the production of butyl rubber on the Reliance Industries existing industrial site in Jamnagar (India). SIBUR's share in the equity of the joint venture is 25.1%, while Reliance Industries owns 74.9%.
RIL and SIBUR also signed a technology licence agreement facilitating use of SIBUR's 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.
In August 2012 SIBUR Petrochemical India, a SIBUR subsidiary based in Mumbai, was established with one of its main tasks to support the construction of the butyl rubber plant. The company will also promote SIBUR in India and South Asian region, exploring petrochemical markets and assisting business units including business development through cooperation with the state authorities.
The BEP at the new plant was completed in November 2012 and detailed engineering is underway. RSEPL is now placing orders for long-lead equipment. Commercial operations are tentatively scheduled to begin in 2015.
Notes to editors:
Reliance Sibur Elastomers Private Limited is a JV formed between SIBUR and Reliance Industries Limited (RIL) in February 2012 to produce 100,000 tonnes of butylrubber per year at Reliances integrated petrochemical site in Jamnagar, India. Reliance Industries Limited owns 74.9% of the JV and SIBUR 25.1%.
SIBUR is a uniquely positioned gas processing and petrochemicals company with a business model focused on the integrated operation of its two core segments. The Group owns and operates Russias largest gas processing business in terms of associated petroleum gas processing volumes, according to IHS CERA and is a leader in the Russian petrochemicals industry. The Group has two operating and reportable segments: feedstock and energy and petrochemicals. The Groups feedstock and energy segment comprises (i) gathering and processing of associated petroleum gas (APG) that the Group purchases from major Russian oil companies, (ii) transportation, fractionation and other processing of natural gas liquids (NGLs) that the Group produces internally or purchases from major Russian oil and gas companies, and (iii) marketing and sales of energy products, such as natural gas, liquefied petroleum gases (LPG), naphtha, raw NGL, methyl tertiary butyl ether and other fuels and fuel additives. The Group sells these energy products on the Russian and international markets and uses some of them as feedstock for its petrochemicals segment, which processes them into various petrochemicals, including basic polymers, synthetic rubbers, plastics and products of organic synthesis, as well as intermediates and other chemicals.
Reliance Industries Limited (RIL)is Indias largest private sector company with a turnover of INR 284,500 crore (US$ 51.7 billion) and net profit of INR 15,414 crore (US$ 2.8 billion) as for 9 months ending 31 December, 2012.
RIL is the first private sector company from India to feature in the Fortune Global 500 list of World's Largest Corporations and is ranked 99th on list of the world's biggest corporations for the year 2012.
The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals, textiles, retail, infotel and special economic zones.
