Eyeing strong demand from the automobile sector, Mukesh Ambani-led Reliance Industries today said it has joined hands with Russia-based petrochemical company SIBUR to produce synthetic rubber at the company's Jamnagar site in Gujarat.
While SIBUR will provide the proprietary technology for butyl rubber polymerisation and its finishing, RIL will supply monomers and provide the JV with infrastructure and utilities, according to a Memorandum of Understanding signed between the two companies.
"Reliance Industries Ltd... And SIBUR, Russia's leading petrochemical company, have signed a Memorandum of Understanding (MoU) to set up a joint venture in India. This new joint venture will produce butyl rubber at Reliance's integrated petrochemical site in Jamnagar, India," RIL said in a statement.
Commenting on the initiative, a RIL spokesperson said the Indian rubber industry is growing rapidly on the back of automobile demand in India and the sub-continent.
"This step reinforces RIL's commitment to the synthetic rubber industry in India," he said.
SIBUR President Dmitry Konov said the creation of new capacity in close proximity to Asian markets provides both SIBUR and Reliance with exciting opportunities.
Rubber consumption in Asia has shown strong growth in recent years, triggered by increased volumes of tyre production, he said.
