RIL JV plans South Asia's first halogenated butyl rubber unit at Jamnagar.

Joint venture partners Reliance Industries Limited (RIL) and Russian petrochemical giant SIBUR will be setting up South Asia's first butyl rubber halogenation unit at the former's integrated petrochemical site in Jamnagar.

As per an official communique, the unit will produce 60,000 MT of halogenated butyl rubber annually under Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture (JV) of which RIL owns 74.9 per cent, while SIBUR owns 25.1 per cent.

Halogenated butyl rubber is a key ingredient for manufacturing inner liners of tubeless tyres. With the Indian automobile trend aligning with global trends, penetration of tubeless tyres is expected to accelerate in the Indian market, resulting in an increased demand of halogenated butyl rubber. The ingredient is also used in the manufacture of pharma stoppers, inner liner of storage tanks, etc.

Apart from the planned halogenation unit which is scheduled to commission in 2018, a 1,20,000 MT per annum butyl rubber plant, owned by the JV, is also currently under construction at the same venue which will provide the necessary butyl rubber feed to the halogenation unit.

'RSEPL's halogenated butyl rubber plant will be well-poised to capitalise on the significant surge in regional demand in tyre and pharmaceutical industries. India is expected to see a quantum jump in tyre production, with Indian and International tyre majors gearing up to make capital investments of Rs. 15,000 crore. The halogenated butyl rubber demand is expected to grow at a rapid pace of 8-10 per cent CAGR over the next few years, driven by increasing customer preference for tubeless tyres in India and neighbouring countries, and significant investments in the manufacture of pharmaceutical closures and tank inner liners,' said Nikhil Meswani, Executive Director, RIL.

According to Dmitry Konov, Chairman of SIBUR's Management Board, the unit assumes significance amid growing local demand for synthetic rubbers.

'Gujarat's favourable investment environment coupled with the well-developed infrastructure and raw material availability at a world-class Industrial site owned by RIL. SIBUR has a long track record of successful cooperation with RIL and the Gujarat government, which has provided us with a solid basis for expanding our footprint in India,' Konov said in the communique.

BS