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South Asia's first halogenated butyl rubber unit to be built in India

South Asia's first halogenated butyl rubber unit to be built in India
Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between Sibur and Reliance Industries Limited (RIL), announced plans for setting up South Asia's first halogenated butyl rubber unit at RIL's integrated petrochemical site in Jamnagar, India. Currently, the design phase is underway. The production site will feature the JV's 120 ktpa butyl rubber plant, which is now under construction. Depending on the market environment and customer demand, up to 60 ktpa of its total future output might be used as feedstock to produce halogenated butyl rubber at the new facility.

Commenting on the halogenated butyl rubber unit, Mr Nikhil Meswani, Executive Director, RIL, said, "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% 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."

"India offers attractive investment opportunities given the growing local demand for synthetic rubbers and 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 Gujarat's government, which has provided us with a solid basis for expanding our footprint in India," said Dmitry Konov, Chairman of Sibur's Management Board.

Production from RSEPL will substitute imports, providing impetus to the government's Make in India initiative. Construction of the butyl rubber plant is in full swing at Jamnagar, its commissioning targeted for 2018.


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SIBUR is the leader of petrochemistry in Russia and Eastern Europe.