Sinopec signs deal to acquire stake in SIBUR’s Russia rubber plant

31 October 2012 05:52  [Source: ICIS news]

SINGAPORE (ICIS)--China’s state-owned petrochemical giant Sinopec has signed a deal with SIBUR on the acquisition of a 25% stake in the Russian firm’s synthetic rubber plant in Krasnoyarsk, the companies said in a joint statement on Wednesday.

Sinopec’s wholly owned subsidiary Sinopec International (Hong Kong) Co Ltd will acquire 25% + 1 share of Krasnoyarsk Synthetic Rubbers Plant JSC (KSRP) based on the signed deal, they said.

Financial details of the acquisition were not disclosed.

The deal is still subject to regulatory approvals from China and Russia.

Sinopec and SIBUR announced in April a plan to set up a joint venture that will produce nitrile rubbers (NBR) on the base of KSRP.

“Once the joint venture is established, the shareholders will also consider the possibility of increasing the plant’s annual NBR capacity from 42.5 to 56 thousand tones,” Sinopec and SIBUR said.

The companies are also discussing projects on setting up a joint venture to produce nitrile and polyisoprene rubbers in Shanghai.

“Future operations’ annual capacity for each type of rubber is currently estimated at the level of 50 thousand tonnes, to be determined more precisely once the feasibility study is completed,” they added.

By: Pearl Bantillo
+65 6780 4359

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