IndianOil to set up high-value synthetic rubber plant at Panipat
New Delhi 03-Apr-2010
In a tactical move aimed at producing high value petrochemicals in India, Indian Oil Corporation Ltd. (IndianOil) today entered into a joint venture with TSRC Corporation, Taiwan and Marubeni Corporation, Japan to set up of a state-of-the-art Styrene Butadiene Rubber (SBR) unit at Panipat. With a capacity of 120,000 tonnes per annum, the SBR unit will utilise Butadiene feed made available from IndianOil's Panipat Naphtha Cracker Complex located in Panipat to produce high quality synthetic rubber used in the manufacture of automotive tyres, conveyors, fan belts, etc.
The agreement was inked by Mr. B.M.Bansal, Chairman, IndianOil; Mr. Wei-Hua Tu, CEO / President, TSRC Corporation, Taiwan; Mr. K. Hatta, Managing Executive Officer, Marubeni Corporation, Japan, and Mr. Wing Keung Hendrick Lam, Director, TTC, in the presence of senior officials of the companies.
The shareholding of IndianOil, TSRC and Marubeni in the Joint Venture is 50%, 30% and 20% respectively. The project is targeted to be completed by September 2012 at an estimated cost of Rs. 900 Crore.
SBR is a specialty petrochemical product with a robust growing demand in India. SBR is utilized for manufacture of automotive tyres, conveyors, fan belts etc. Currently, India lacks an operating SBR capacity and the entire domestic demand is met through imports. Thus, setting up of the SBR unit at Panipat would not only result in import substitution but also add value to the intermediate streams of IndianOil's Panipat Naphtha Cracker Complex.
IndianOil is India's flagship downstream petroleum company with a growing presence across the hydrocarbon value chain. TSRC is the SBR technology provider and a leading producer & supplier of synthetic rubbers. Marubeni is one of the largest general trading companies in Japan engaged in the trading of commodities including but not limited to oil, gas, chemicals, metals, machineries, foods, etc on a global level.
